September, 2023
The Concentrated Australian Share Fund outperformed its benchmark, the S&P/ASX 300 Accumulation Index, in the September quarter.
Contributing to the Fund’s outperformance were overweight positions in healthcare imaging software company Pro Medicus (PME) and cloud connectivity services company Megaport (MP1). A high quality FY23 earnings result and new contract win in the September quarter underpinned a rise in +27.3% Pro Medicus. PME delivered strong double digit growth across a number of key financial metrics including a 34% increase in revenue and +36% rise in EPS.
Pleasingly, PME produced an EBIT margin of 67% and Management anticipates that these solid margins are to remain broadly in line with these levels in the near term, reiterating the highly scalable operating leverage within the business. Another key takeout was the improvement of PME’s implementation speed, the Company actioned 8 cloud-based implementations in the year. As cloud adoption continues to accelerate we believe PME will be well positioned to capitalise on new opportunities. Later the in quarter, PME announced a new $140M, 10-year contract with not-for-profit IDN Baylor Scott & White, the largest of its kind in Texas and one of the largest in the United States. We were also encouraged to see that the new contract included PME’s ‘full-stack’ of products Visage 7 Open Archive, Visage 7 Workflow and Visage 7 Viewer, which has been a trend in a number of new contracts won in FY23. The ‘full-stack’ trend underscores PME’s growing penetration of the North American market as well as further validating PME’s unique and market leading imaging technology. In our view, the deal re-emphasises PME’s robust business model and reiterated to us that the Company is still in the early stages of capturing market share in a large addressable with short to medium term drivers being continued innovation and development in key growth areas including cardiology, a healthy contract pipeline with leads gained from the recent Radiological Society of North America (RSNA) conference, growing demand from existing and new customers for PME’s full stack of products and ramp up of large contracts.
Megaport (+63.0%) rose strongly the September quarter following two reasonably positive updates in July. Firstly, MP1 came to market early to upgrade its FY23 and FY24 guidance, while also announcing strong cash flow outcomes. Later in July, MP1 announced its 4Q23 Quarterly Update which we believe was a robust update. Although the quarterly update meant that the FY23 result was then largely pre-released, positive sentiment further compounded in August. The key driver of the strong performance was driven by the Company’s update to its FY24 EBITDA guidance which is now expected to fall in the range of $51M to $57M and is an impressive increase of ~152%-182% versus MP1’s FY23 earnings of $20.2M. Additionally, FY24 revenue was guided to $190M to $195M and Management confirmed that it expects to be net cash flow positive for the entirety of FY24. On other metrics, MP1 delivered 40% revenue growth YOY and indicated that aggregate customer lifetime value increased to 30% and is reflective of an increase in customers (+8%) and Customer Lifetime Value with customers on average using MP1’s services for 9 years. Moving forward, we maintain our conviction in MP1 given the Company is the global leader in cloud connectivity, we believe enterprises and Governments are still early in the cloud migration journey and MP1 is a share gainer, with its customers subscribing for more services over time, illustrating the power of the offering.
Somewhat offsetting these positive contributions was the Fund’s overweight positions in logistics solutions company WiseTech Global (WTC) and medical device maker ResMed (RMD). WiseTech Global declined -18.4% in the September quarter due to disappointing FY24 EBITDA guidance that was materially below market forecasts and disappointingly overshadowed the strong FY23 earnings result. WTC guided to revenue and EBITDA growth of 27%-34% and 18%-27% respectively, missing expectations given the dilutive margin impact of recent acquisitions and a step up in R&D reinvestment. We were encouraged by WTC’s strong FY23 financial performance which included revenue increasing +29% to $817M and underlying earnings rising to $417M. During the year, WTC secured six new Large Global Freight Forwarder (LGFF). We remain bullish on the long-term trajectory of the stock given recent acquisitions of leading US landside logistics software companies Envase (trucking) and Blume (rail, intermodal). These acquisitions provide WTC with a leading and unique position in the highly fragmented US landside logistics software market. This segment is highly complementary to their core freight forwarding operations and significantly expands WTC’s total addressable market. Accelerating contract wins post-COVID with major global freight forwarders including UPS and FedEx and more recently a global rollout of customs module with Kuehne & Nagel (world’s largest freight forwarder) has reinforced our conviction in the WTC as the unrivalled market leader.
ResMed (-27.9%) produced a broadly solid FY23 result in August with 21% revenue growth driven by both devices and masks, operating profit growth of 14% and strong cash flows. However, the fourth quarter featured a further decline in gross margins in contrast to guidance for improving margins. Gross margins fell 30bps during the quarter due to FX headwinds and an unfavourable product mix caused by a step down in sales of high margin ventilators. The fumbled guidance and poor explanations triggered a sharp selloff in the in share price. Also weighing down the share price is market concerns about the longer term impact on RMD’s growth from anti-obesity GLP-1 medications such as Ozempic/Wegovy. These medicines have proven very effective in reducing weight in clinical trials and have created a lot of buzz and uptake over the last 1-2 years. Given that 70% of obstructive sleep apnea (OSA) incidence is due to obesity, these drugs have the potential to reduce the population of OSA sufferers and shrink the market. However, there are a number of real world hurdles facing these drugs (including high cost, unpleasant side effects, low adherence, and high discontinuance rates) that limit their effectiveness in achieving long term sustained weight loss necessary to eliminate OSA.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Concentrated-Australian-Share-Fund-Adviser-Quarterly.pdfMarch, 2023
The Wholesale Concentrated Share Fund outperformed its benchmark, the S&P/ASX 300 Accumulation Index, in the March quarter.
Contributing to the Fund’s outperformance were overweight positions in logistics solutions company WiseTech Global (WTC) and cloud accounting services provider Xero (XRO). WiseTech Global rallied over the March quarter, climbing +28.5% off the back of strategically accretive acquisition announcements, a strong 1H23 financial earnings result and new global rollouts. The latter consisting of four new global rollouts with NTG Nordic Transport Group, IFB International Freightbirdge, EMO Trans as well as WTC’s first global roll out in its global customs and compliance solution product with one of the world’s largest 3PL provider Kuehne + Nagel. This landmark deal with Kuehne + Nagel has taken WTC’s overall large global freight forwarder (LGFF) count to 11 of the top 25 global freight forwarders and presents WTC with further cross-selling opportunities and growth within the highly fragmented global customs industry. Recent acquisitions of landside logistics companies Envase and Blume Global also provides WTC with a clear runway to expand their total addressable market and is consistent with Management’s strategy and desire to expand CargoWise’s capabilities to ensure it remains a valuable, market-leading service. Lastly, February reporting season continued to deliver evidence of WTC’s superior product innovation and enhancements, solid demand for their CargoWise platform from both existing and new customers with group and CargoWise revenue respectively increasing 35% and +50% or organic growth of 32% and 46%.
Xero rallied +27.3% over the March quarter following the announcement of a cost reduction program involving a reduction of 700-800 roles across the business (15% of the workforce). XRO’s new CEO, Sukinder Singh Cassidy, an outside appointment, only formally commenced her role from February 1st but has wasted no time in taking action to rebalance XRO’s focus towards profitability. Ms. Singh Cassidy is a highly experienced Silicon Valley executive with more than 25 years global experience including senior positions at Google, Amazon, StubHub (eBay) and co-founded several other digital companies. We are confident she will bring greater scrutiny on expenditure and M&A activity and we are very encouraged by her early progress, including the exit from their struggling receivables factoring business Waddle.
Somewhat offsetting these positive contributions was the Fund’s zero-weight position in gold miner Newcrest Mining (NCM) and overweight position in cloud connectivity services provider Megaport (MP1). Gold miner Newcrest Mining rallied +33.0% over the March quarter, benefiting from strong appreciation of its mined commodity gold which increased by +8.0% over the period. The Company was also bolstered by positive sentiment stemming from an acquisition offer from Newmont and a positive exploration update for its Red Chris exploration, expanding its exploration target for East Ridge.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Wholesale-Concentrated-Australian-Share-Fund-Adviser-Quarterly-6.pdfDecember, 2022
The Wholesale Concentrated Share Fund underperformed its benchmark, the S&P/ASX 300 Accumulation Index, in the December quarter.
Contributing to the Fund’s underperformance were overweight positions in the building materials company James Hardie (JHX) and cloud connectivity services provider Megaport (MP1). James Hardie fell -14.4% in the December quarter as investors were discouraged by a downgrade to profit guidance in their 2Q23 results update. The fibre cement company flagged a fastening deterioration in volumes seen in the last 45 days with order backlogs diminishing as a result of a weaker-than-expected construction market, change in building process whereby JHX products are used earlier and housing completions outpacing new starts. Management expect new builds to see a -30% decline in 2H23 as the US housing market slows. Whilst disappointing we were more sanguine on the result and note that JHX’S North America Fibre Cement business is only 30% exposed to the single family construction market with the greater majority 70% exposed to the residential repair & remodel (R&R) segment which is expected to be more resilient. We remain encouraged by continued strength in JHX’s ColorPlus volumes (+31%) which we believe is demonstrative of the effectiveness of their strategy and recent marketing efforts. JHX’s dominant market position and consistently strong price mix growth should support margins in near-term periods of volatility.
Megaport fell -19.0% given a softer first quarter trading update and broader weakness in the Information Technology sector. The market reacted poorly to MP1’s trading update, focusing on: a moderate slowdown in underlying monthly recurring revenue (MRR) growth from MP1’s record 4Q22; softer key metrics for new ports and customer additions; and higher capex for FY23. However, we were more optimistic on the quarterly given MP1 delivered close to record metrics in 4Q22 and its September quarters have historically slowed after its June quarters, exhibiting some seasonality. Additionally, we are comfortable with the company spending moderately more on capex and working capital to fortify inventory and mitigate supply chain issues to ensure its growth runway is not hampered. We maintain our conviction in the strength of MP1’s connectivity offering, with the Company’s global footprint (MP1’s network spans almost 800 data centres in 25 countries) a key competitive advantage. Further, the Company has built a rich, global ecosystem that is a key attraction for enterprises, data centre operators and cloud service providers (CSPs). We believe MP1 has a strong, long term growth trajectory and forecast annual sales growth for MP1 of over 40%.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Wholesale-Concentrated-Australian-Share-Fund-Adviser-Quarterly-5.pdfSeptember, 2022
The Wholesale Concentrated Share Fund outperformed its benchmark, the S&P/ASX 300 Accumulation Index, in the September. The Fund continues to diligently navigate through periods of volatility through application of our be-spoke fundamental research process, allowing us to identify high quality, growth stocks that we believe will generate superior returns for our investors over time.
Contributing to the Fund’s outperformance were the overweight positions in logistical solutions company WiseTech Global (WTC) and cloud connectivity services provider Megaport (MP1). An upgrade to guidance in July instigated positive market sentiment for WiseTech Global as the company increased their EBITDA guidance range from $275-295m to $310-$320m and also indicated that revenue would reach the upper end of their current range. Optimism compounded further after releasing a convincing full year earnings result strengthened by continued global rollouts of their best-in-class Cargowise platform, new customer wins, increasing customer usage and innovative product enhancements. All of which supported a 25% yoy increase in revenue - the top end of their guidance - and robust EBITDA margin of 50%. Key rollouts in the year included the likes of UPS, FedEx and Craft Multimodal, the former taking WTC’s overall large global freight forwarder (LGFF) count to 10 of the top 25 global freight forwards, signalling growing momentum and accelerating penetration in the logistical solutions space. As a dominant market leader, we remain attracted to WTC’s ability to exert a high degree of pricing power to offset inflationary pressures demonstrated by the price increase made in the second half of the year. The combination of accelerating momentum and strong pricing power should place WTC in good stead to continue generating attractive sales growth over the medium to long term.
Similarly, a strong fourth quarter trading update and full year results propelled Megaport +42.9% in the quarter. The market was encouraged by growth in all key regions and a number of strong KPI results including 24% increase in average revenue per customer, +9% rise in average services per customer and +16% increase in total customers. We were also pleased to see an acceleration in monthly recurring revenue (MRR), increasing from $9.2m to $10.7m yoy. We maintain conviction in the strength of MP1’s global footprint which reinforces its offering, as MP1’s network spans over 750 data centres in 25 countries. The company has built a rich, global ecosystem that is a key attraction for enterprises, data centre operators and cloud service providers (CSPs), a key competitive advantage. We believe that MP1 has a strong long term growth pipeline and forecast annual sales growth for MP1 of over 40%.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Wholesale-Concentrated-Australian-Share-Fund-Adviser-Quarterly-4.pdfJune, 2022
The Wholesale Concentrated Share Fund underperformed its benchmark, the S&P/ASX 300 Accumulation Index, in the June quarter but continues to deliver attractive levels of excess returns over longer periods as our be-spoke fundamental research process allows us to identify high quality, growth stocks that we believe will generate superior returns for our investors over time.
Contributing to the Fund’s underperformance were the overweight positions in the digital payments company EML Payments and cloud connectivity services provider Megaport (MP1). EML Payments (-59%) continued to de-rate in the June quarter alongside other tech and payment names. A FY22 trading update in April lowering profit guidance accelerated a downward trajectory for EML given cuts were 8% lower than consensus expectations. The downgrade was largely attributed to a loss in non-recurring revenues and higher costs in the European business related to the Central Bank of Ireland’s remediation process. While disappointing, we believe these issues are very short term and maintain a positive growth outlook for the company following the resolution of the remediation process. We remain attracted to EML as its Australian and North American businesses performed in line with expectation and core business grew ~18% in the third quarter, demonstrating robust growth in their underlying business. We are also optimistic about the pipeline of growth particularly as they enter the ~A$88bn Employee Benefits Market through their latest partnership with Up Spain and look to pursue further penetration within the open banking market through their NuPay products.
Similarly, poor sector sentiment has placed Megaport under short term pressure resulting in the Information Technology constituent falling -61% over the June quarter. MP1 is a global cloud connectivity leader via its Network-as-a-Service (NaaS) model and its cloud computing addressable market is growing at more than ~30% annually as enterprises and governments continue to migrate to public and hybrid cloud. However, in this current volatile environment, the market reacted poorly to MP1’s third quarter trading update given a slowdown in underlying monthly recurring revenue (MRR) growth and FX headwinds. However, we were of the view that MRR growth headwinds were largely temporary and instead were encouraged by a number of strong KPI results including 489 new ports, 67 new Megaport Cloud Routers (MCRs) the second highest quarter on record and 19 new Megaport Virtual Edge (MVE) instances. We maintain conviction in the strength of MP1’s global footprint which underpins its offering, as MP1’s network spanning over 750 data centres in almost 25 countries. The company has built a rich, global ecosystem that is a key attraction for enterprises, data centre operators and cloud service providers (CSPs), a key competitive advantage. We are of the view that MP1 has a strong long term growth pipeline and forecast annual sales growth for MP1 of over 40%.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Wholesale-Concentrated-Australian-Share-Fund-Adviser-Quarterly-3.pdfMarch, 2022
The Wholesale Concentrated Share Fund underperformed its benchmark, the S&P/ASX 300 Accumulation Index, in the March quarter but continues to deliver attractive levels of excess returns over longer periods as our be-spoke fundamental research process allows us to identify high quality, growth stocks that we believe will generate superior returns for our investors over time.
Contributing to the Fund’s underperformance were the overweight positions in building materials company James Hardie (JHX) and accounting software developer Xero (XRO). JHX (-27%) faced a tough start to the quarter following the departure of its CEO Jack Truong. JHX continued to move lower in light of the Russia-Ukraine war and as its impact materialised through softening European activity, increased energy, freight and pulp costs, and rising mortgage rates in the US. JHX’s North America Fibre Cement business is 70% exposed to the residential repair & remodel (R&R) segment, with the remaining 30% exposed to the single family new construction market. In our view, the R&R market is likely to hold up in the face of rising mortgage rates given strong house price appreciation in the US, significant levels of home equity, strong employment, and a shortage of new housing stock. We remain confident in JHX’s ability to control costs and their pipeline of new products and projects to generate returns as they continue to expand their global presence. The cloud-based business XRO (-27%) was no exception to the indiscriminate sell-off in technology companies as the prospect of interest rate hikes increased and news of the Russia-Ukraine war unsettled the market.
Despite the market’s view on a rising cost of capital, the fundamentals of XRO remain attractive. We maintain our positive outlook for XRO given the ongoing strong growth in cloud computing and product development, recognised as XRO reached 3m subscribers for the first time in 1H22 (23% YOY growth). Although subscribers are mainly located in Australia, New Zealand and the United Kingdom XRO has a large addressable market and are on track for building momentum in Singapore, South Africa and North America.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Wholesale-Concentrated-Australian-Share-Fund-Adviser-Quarterly-2.pdfDecember, 2021
Rising government bond yields were a headwind for performance and resulted in the Fund declining in value by 1.5% during the quarter. Reported returns were in line with the benchmark Bloomberg AusBond Composite 0+ Yr Index. The product is designed so that returns should always remain close to those of the benchmark.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Wholesale-Indexed-Australian-Bond-Fund-Adviser-Quarterly-3.pdfJune, 2021
The Wholesale Concentrated Australian Share Fund outperformed its benchmark, the S&P/ASX 300 Accumulation Index, in the June quarter and continues to deliver attractive levels of excess returns over longer periods as our be-spoke fundamental research process allows us to identify high quality, growth stocks that we believe will generate superior returns for our investors over time.
Contributing to the Fund’s outperformance were the overweight positions in the cloud connectivity services provider Megaport (MP1) and the leading radiology software provider Pro Medicus (PME). MP1 rallied +66% in the June quarter as it benefited from a strong third-quarter result and an investor update that showcased its latest product offering. The third-quarter result highlighted ongoing growth in installed data centres, customers and ports thanks to its global footprint and high-quality network. As a result, MP1 delivered a 10% increase in underlying monthly recurring revenue, its second highest quarterly increase ever. Management noted that the strong demand had continued into the next quarter as the digital transformation accelerates. In June, MP1 showcased its latest evolution of the Megaport Virtual Edge (MVE), which covered: its SD-WAN solution, in collaboration with various industry leading vendors; case studies for both small and large enterprises; expected pricing; and MP1’s sales plan. With MP1’s network serving as the ‘underlay’ over which SD-WAN providers can sell networking services, and having already inked deals with four major vendors that account for ~50% of the SD-WAN market, MP1 is well-positioned to benefit from a fast-growing industry as enterprises increasingly use cloud-based technology.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Wholesale-Concentrated-Australian-Share-Fund-Adviser-Quarterly-1.pdfMarch, 2021
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Wholesale-Indexed-Australian-Bond-Fund-Adviser-Quarterly.pdfDecember, 2020
The Wholesale Concentrated Australian Share Fund delivered another strong quarterly return as it outperformed its benchmark, the S&P/ASX 300 Accumulation Index, by more than 4%. Over what has been an unprecedented year for capital markets, the Fund performed admirably and delivered a pleasing return for investors. By investing in companies with above-market growth potential, high-quality earnings and robust balance sheets, the Fund outperformed the broader equity market by more than 20% in the 2020 calendar year.
Contributing to the Fund’s outperformance were the overweight positions in the Buy-Now-Pay-Later firm Afterpay (APT) and the cloud accounting software provider Xero (XRO). Afterpay moved +47.5% higher through the December quarter as it benefited from a raft of positive trading updates. Each update highlighted continued customer, merchant and sales growth while loss metrics remained relatively unchanged. The most recent trading update announced that the business had set a new monthly sales record in November, with more than $2.1bn in sales being processed through the platform. Adding further support was the partnership between APT and Westpac Bank, which will allow APT to offer Australian customers transaction and savings accounts along with other cashflow management tools. The additional products will help cement Afterpay’s dominant position in the market whilst also offering additional transaction data that will feed into APT’s risk control mechanisms. XRO rallied +10.8% as expectations of a recovery in SME activity improved. A positive first-half result provided additional support, with XRO explaining positive subscriber growth and lower costs helped margins and earnings to grow above consensus expectations.
Through its cloud accounting software, subscribers are able to efficiently view and submit tax return filings, monitor live data from bank feeds and access their ledger anywhere and at any time. These items place XRO in good stead to grow its market share, particularly in the US, and drive profitability. Somewhat dragging on the Fund’s performance were the overweight positions in The a2 Milk Company (A2M) and Megaport (MP1). A disappointing trading update released in December was the key catalyst driving A2M’s -18.5% decline. The continued disruption to diagou sales activity, which represents a significant portion of infant nutrition sales, drove A2M to downgrade its FY21 sales and earnings guidance. Management noted that the protracted disruption, caused by lockdown laws and travel restrictions, had also spread to A2M’s other nutritional segments. While the overall trading update was disappointing, the release also included several positive items. Chinese MBS sales activity has remained strong through 1H21 with revenue growth expected to reach 40%. Further, the liquid milk businesses in Australia and the US have been performing well and are expected to deliver strong first-half earnings growth.
The cloud connectivity services provider Megaport (-11.4%) moved lower following the release of its first-quarter trading update in the early stages of the quarter. Despite adding an additional 566 ports and 138 customers in the first quarter of FY21, the market instead focused on the temporary slowing in revenue growth caused by a one-off repricing of legacy products. An investor presentation released later in the quarter helped MP1 to somewhat recover as management noted continued customer, ports and EBITDA growth. We remain attracted to MP1 given its global leadership in Software Defined Networking, offering corporates and enterprises flexible, scalable, on-demand cloud connectivity via its NaaS (Network as a Service) offering.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Wholesale-Concentrated-Australian-Share-Fund-Individual-Quarterly.pdfSeptember, 2020
The Wholesale Concentrated Australian Share Fund delivered another strong quarterly return as it outperformed its benchmark, the S&P/ASX 300 Accumulation Index, by more than 5%. Over the longer term, the Fund has delivered consistent outperformance through both up and down markets as our growth and quality focus combined with a fundamental research approach helps identify companies with above-market growth potential, high-quality earnings and robust balance sheets. This is particularly pleasing given the volatility experienced by capital markets over the 2020 calendar year.
Contributing to the Fund’s outperformance were the overweight positions in the Buy-Now-Pay-Later firm Afterpay (APT) and the cloud connectivity services provider Megaport (MP1). Afterpay moved +31.2% higher through the September quarter as it benefited from an impressive FY20 result and geographic expansion. The FY20 result highlighted continued customer growth, with an average of 25,000 customers added per day in the fourth quarter. Pleasingly, all geographies achieved strong top line growth while net transaction loss declined – proving the effectiveness of APT’s inherent risk management technique of disabling purchase activity on accounts that have missed payments. Adding further support were the announced expansions into both Europe and Asia and news that the platform had gone live in Canada. Increased concerns of competition dragged on APT in the final stages of the quarter, however we believe Afterpay boasts a differentiated product that focuses on building a loyal customer base and connecting them to retailers, both online and in-store.
Megaport (+33.2%) also performed strongly through the September quarter. Its entry into the growing SD-WAN market, through a partnership with the global technology company Cisco, was a key catalyst. As a result, MP1 will release a new product, called “Megaport Virtual Edge”, which will allow the use of MP1’s network from any internet connected SD-WAN location. A positive FY20 result added further support as the company experienced strong growth across each geography. We remain attracted to MP1 given its global leadership in Software Defined Networking, offering corporates and enterprises flexible, scalable, on-demand cloud connectivity via its NaaS (Network as a Service) offering.
Somewhat dragging on the Fund’s performance were the overweight positions in The a2 Milk Company (A2M) and EML Payments (EML). A trading update released late in the quarter drove A2M -24.7% lower. The company warned that stage four lockdowns in Victoria and travel restrictions have hindered sales through the corporate daigou and reseller channels given the decline in international tourists and students. Management lowered first-half FY21 guidance as a result. Despite the temporary headwind, the rest of the business has remained robust with Chinese MBS experiencing sales and market share growth in July and August. Positively, A2M confirmed that the upcoming “Singles’ Day” may help clear excess stock and that the liquid milk businesses in Australia and the United States were performing strongly. We continue to believe in the long-term growth opportunities available for A2M given its strong execution track record, growing product suite and geographic footprint.
EML Payments declined -14.7% through the September quarter as travel restrictions and lockdowns threatened retail activity. A mixed FY20 result added further pressure to the share price in August despite an operationally good result with a 25% increase in revenue. The market instead focused on the 5% miss to consensus earnings expectations and the absence of FY21 guidance given the volatility caused by the coronavirus on EML’s Gift & Incentive programs. We believe EML is well-placed in a recovery given its technology and focused strategy to deliver a seamless product to its clients. Additionally, EML completed its acquisition of Irish fintech, Prepaid Financial Services (PFS), under favourable terms, which will allow the business to maintain its net cash position. PFS is a high quality business, and will reduce the seasonality of EML given the majority of PFS is general digital banking and prepaid services for government or large corporate clients.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Wholesale-Concentrated-Australian-Share-Fund-Adviser-Quarterly.pdfticker: FSF0016AU
commentary_block: Array
factsheet_url:
Make sure the location is set to Australia not GLOBAL
Quarterly Factsheet ===> “Australian Equity – Growth”
https://www.firstsentierinvestors.com.au/au/en/adviser/performance/literature.
in the PDF : the commentary is under Fund Performance
release_schedule: Quarterly
fund_features:
Colonial First State Wholesale Concentrated Australian Share Fund aims to provide long-term capital growth by investing in a concentrated portfolio of 15-30 stocks. The option aims to outperform the S&P/ASX 300 Accumulation Index over rolling three year periods before fees and taxes.
- Invests in high quality companies with strong balance sheets and earnings in the S&P/ASX 300 Accumulation Index.
- The option predominantly invests in Australian companies and therefore does not hedge currency risk.
manager_contact_details: Array
asset_class: Domestic Equity
asset_category: Australia Large Growth
peer_benchmark: Domestic Equity - Large Growth Index
broad_market_index: ASX Index 200 Index
structure: Managed Fund