September, 2023
The Portfolio returned -0.38%, 11.71%, 6.63% and 7.90% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of -0.84%, 12.92%, 6.61% and 7.39% for the S&P/ASX 300 Accumulation Index. Gains realised from stock selection were offset to a degree by negative payoffs from sector allocations.
Key sources of positive active returns included a combination of stock selection and an underweight position in health care, stock selection in materials, and stock selection in financials. Leading advances within these sectors respectively included a position in Cochlear, a lack of exposure to Allkem, and an investment in ANZ Group Holdings. Detractors included a combination of stock selection and an underweight position in consumer discretionary, a combination of stock selection and an overweight position in information technology, and stock selection in real estate. Leading declines within these sectors in turn included a position in Wesfarmers, a holding in WiseTech Global, and an investment in Charter Hall Retail REIT.*
Key Holdings1
Positive
Our overweight to Cochlear Ltd, a provider of implantable hearing solutions for children and adults, was rewarded with 13 basis points of active return as share prices gained 11.4% over the quarter. The company has been benefiting from increased sales of its cochlear implant units across both the developed and the emerging markets on the back of improved clinical capacity and a rise in COVID catch-up surgeries. It now expects its FY24 underlying net profit to increase by 16- 23% from FY23.
Negative
Our overweight to Qantas Airways Ltd, a provider of air transportation services, cost the portfolio 14 basis points of active return as share prices slumped 20.7% in the period. The company continues to be impacted by post-COVID supply chain and resourcing challenges that have resulted in a high number of cancellations and delays. Numerous lawsuits and reputational challenges remain as other major headwinds for the company.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Australian-Equity-Fund-September-2023.pdfJune, 2023
The Portfolio returned -0.22%, 13.41%, 6.96% and 9.04% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of 0.99%, 14.40%, 7.11% and 8.54% for the S&P/ASX 300 Accumulation Index. Stock selection detracted from returns, while sector allocations were positive.
Key sources of negative active return included a combination of stock selection and an overweight position in materials, stock selection in energy, and a combination of stock selection and an underweight position in real estate. Leading declines within these sectors respectively included a position in South32, a holding in Santos, and an investment in Goodman Group. Contributors included stock selection in consumer discretionary, an overweight position in information technology, and stock selection in health care. Leading advances within these sectors in turn included a lack of exposure to IDP Education, a holding in WiseTech Global, and an investment in Ramsay Health Care.*
Key Holdings
Positive
Our overweight to McMillan Shakespeare Ltd, a provider of automotive salary packaging, leasing services, fleet and asset management and financing services, was rewarded with 15 basis points of active return as share prices gained 25% over the quarter. The company has been benefiting from steady growth in novated lease orders and sales, salary packages under management, as well as the number of Plan and Support Services customers.
Negative
Our overweight to South32 Ltd, a diversified metals and mining company, cost the portfolio 11 basis points of active return as share prices slumped 11.7% in the period. The company continues to be impacted by high interest rates, sticky inflation, and growing concerns of a global recession.
March, 2023
The Portfolio returned 2.98%, -0.19%, 8.83% and 8.49% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of 3.33%, -0.60%, 8.63% and 8.12% for the S&P/ASX 300 Accumulation Index. Sector allocations were positive while stock selection detracted from returns.
The main drivers of negative returns included a combination of stock selection and an underweight position in consumer staples, stock selection in energy, and stock selection in information technology. Leading declines within these sectors respectively included a position in Woolworths Group, a holding in Whitehaven Coal, and a lack of exposure to Xero. Contributors included a combination of stock selection and an overweight position in health care, a combination of stock selection and an overweight position in industrials, and an underweight position in real estate. Leading advances within these sectors included a position in Cochlear, a holding in Brambles, and an investment in Mirvac Group.
Key Holdings
Positive
Our overweight to Aristocrat Leisure Ltd, a gaming content and technology company, was rewarded with 16 basis points of active returns as share prices gained 22.4% over the quarter. The company expects to benefit from continued strong revenue and profit growth in the first quarter, on the back of a market-leading position and recurring revenue drivers.
Negative
Our overweight to Whitehaven Coal Ltd, a developer and operator of coal mines in New South Wales and Queensland, cost the portfolio 18 basis points of active return as share prices slumped 21.8% in the period. The company continues to be impacted by severe labour shortages which is likely to impact its production output.
December, 2022
The Portfolio returned 9.13%, -0.66%, 7.54% and 8.98% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of 9.13%, -1.80%, 7.09% and 8.61% for the S&P/ASX 300 Accumulation Index. Stock selection contributed to returns, while sector allocations were negative.
Key sources of positive active returns included a combination of stock selection and an underweight position in consumer staples, stock selection in industrials, and stock selection in utilities. Leading advances within these sectors respectively included a position in Woolworths Group, a holding in ALS, and an investment in Origin Energy.
Detractors included a combination of stock selection and an underweight position in financials and a combination of stock selection and an overweight position in health care. Leading declines within these sectors in turn included a position in Medibank Pvt and a holding in Sonic Healthcare.*
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Australian-Equity-Fund-December-2022.pdfSeptember, 2022
The portfolio returned 1.2%1 for the quarter (gross of fees) versus a 0.5% return for the S&P/ASX 300 Accumulation Index. Stock selection contributed to returns and sector allocations were positive.
Key sources of positive active return included stock selection in energy, a combination of stock selection and an underweight position in real estate, and a combination of stock selection and an overweight position in information technology. Leading advances within these sectors respectively included a position in Whitehaven Coal, a holding in Goodman Group, and an investment in WiseTech Global. Detractors included stock selection in materials, stock selection in consumer staples, and stock selection in financials. Leading declines within these sectors in turn included a lack of exposure to OZ Minerals, a holding in GrainCorp, and an investment in Bendigo & Adelaide Bank.*
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Australian-Equity-Fund-September-2022.pdfJune, 2022
The portfolio returned -12%1 for the quarter (gross of fees) versus a -12.2% return for the S&P/ASX 300 Accumulation Index. Stock selection contributed to return, while sector allocations were muted.
Key sources of positive active return included a combination of stock selection and an overweight position in energy, stock selection in information technology, and stock selection in financials. Leading advances within these sectors respectively included a position in Viva Energy Group, a holding in Block, and an investment in Medibank Pvt. Detractors included stock selection in industrials, stock selection in consumer discretionary, and an underweight position in consumer staples. Leading declines within these sectors in turn included a lack of exposure to Atlas Arteria, a holding in Harvey Norman Holdings, and an investment in Coles Group.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Australian-Equity-Fund-June-2022.pdfMarch, 2022
The portfolio returned 2.7%1 for the quarter (gross of fees) versus a 2.1% return for the S&P/ASX 300 Accumulation Index. Gains realised from sector allocations were joined with positive payoffs from stock selection. Key sources of positive active return included a combination of stock selection and an overweight position in energy, stock selection in financials, and a combination of stock selection and an underweight position in communication services. Leading advances within these sectors respectively included a position in Whitehaven Coal, a holding in ASX, and a lack of exposure to REA Group. Detractors included stock selection in real estate, a combination of stock selection and an overweight position in health care, and an overweight position in information technology. Leading declines within these sectors in turn included a position in Charter Hall Group, a holding in Sonic Healthcare, and an investment in Technology One
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Australian-Equity-Fund-March-2022.pdfDecember, 2021
The portfolio returned 2.5%1 for the quarter (gross of fees) versus a 2.2% return for the S&P/ASX 300 Accumulation Index. Gains realised from stock selection were joined with positive payoffs from country allocations.
Key sources of positive active return included a combination of stock selection and an underweight position in financials, a combination of stock selection and an underweight position in consumer staples, and stock selection in real estate. Leading advances within these sectors respectively included a position in Westpac Banking, a holding in GrainCorp, and an investment in Charter Hall Group. Detractors included stock selection in industrials, a combination of stock selection and an overweight position in energy, and stock selection in materials. Leading declines within these sectors in turn included a position in McMillan Shakespeare, a holding in Whitehaven Coal, and an investment in Fortescue Metals Group.*
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Australian-Equity-Fund-December-2021.pdfJune, 2021
The portfolio returned 9.0% for the quarter (gross of fees) versus an 8.5% return for the S&P/ASX 300 Accumulation Index. Gains realised from stock selection were joined with positive payoffs from country allocations. Key sources of positive active return included a combination of stock selection and an overweight position in materials, stock selection and an underweight position in utilities, and stock selection and an underweight position in industrials. Leading advances within these sectors respectively included a position in Mineral Resources, a holding in APA Group, and an investment in Sydney Airport. Detractors included stock selection in consumer staples and communication services as well as an overweight position in information technology. Leading declines within these sectors in turn included a position in Costa Group Holdings, a holding in News, and an investment in Technology One.*
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Australian-Equity-Fund-June-2021.pdfMarch, 2021
The portfolio returned 5.0% for the quarter (gross of fees) versus a 4.2% return for the S&P/ASX 300 Accumulation Index. Stock selection contributed to return, while sector allocations were negative. Key sources of positive active return included stock selection in Information Technology, Communication Services, and Health Care. Leading advances within these sectors respectively included a position in Codan, a holding in News, and an investment in Sonic Healthcare. Detractors included stock selection in Energy, stock selection in Industrials, and an underweight position in Financials. Leading declines within these sectors in turn included a position in Beach Energy, a holding in NRW Holdings, and an investment in Westpac Banking.*
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Australian-Equity-Fund-March-2021.pdfDecember, 2020
The portfolio returned 13.84% for the quarter (gross of fees) versus a 13.79% return for the S&P/ASX 300 Accumulation Index1. Stock selection contributed to return, while sector allocations were negative. Key sources of positive active return included stock selection in financials, a combination of stock selection and an overweight position in materials, and stock selection in health care. Leading advances within these sectors respectively included a position in ASX, a holding in Fortescue Metals Group, and an investment in Cochlear.
Detractors included stock selection in information technology, stock selection in consumer discretionary, and stock selection in consumer staples. Leading declines within these sectors in turn included a position in Data#3, a holding in Collins Foods, and an investment in A2 Milk. Key Holdings2
Positive
Our overweight to Fortescue Metals Group was rewarded with 20 basis points of active return. Share prices rose 43% over the period on strong demand for iron ore from China. In November, the Australian iron ore company posted upbeat annual financial results. Highlights included record first quarter operating performance and year-over-year improvements in net profits after tax.
Negative
Our overweight to Data#3, a leading Australian IT services and solutions provider, cost the portfolio 18 basis points of active return. Share prices fell 14% over the quarter as investors rotated out of pandemic winners on vaccine-induced enthusiasm. The potential eradication of COVID-19, and a not-to-distant return to normalcy, may reduce reliance on technological innovations needed to support a remote workforce.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Australian-Equity-Fund-December-2020-3.pdfSeptember, 2020
The portfolio returned 0.54% for the quarter (gross of fees) versus a -0.06% return for the S&P/ASX 300 Accumulation Index1. Stock selection contributed to return, while sector allocations were also positive.
Key sources of positive active return included a combination of stock selection and an underweight position in Financials, stock selection in Information Technology, and stock selection in Consumer Discretionary. Leading advances within these sectors respectively included a position in Netwealth Group, a holding in Data#3, and an investment in Premier Investments. Detractors included stock selection in Consumer Staples, stock selection in Real Estate, and stock selection in Communication Services. Leading declines within these sectors in turn included a position in A2 Milk, a holding in Mirvac Group, and an investment in 5G Networks.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Australian-Equity-Fund-September-2020.pdfticker: FSF0787AU
commentary_block: Array
factsheet_url:
QUARTERLY FACTSHEET
https://www.acadian-asset.com/au/wholesale-australian-equity-fund
release_schedule: Quarterly
fund_features:
The Acadian Wholesale Australian Equity Fund (the Fund) uses quantitative modelling and fundamental insights to unearth undervalued stocks and deliver compelling returns for investors. The investment approach is both multi-faceted and highly adaptable, which allows Acadian to take advantage of attractive stocks opportunities as they arise. Acadian casts a wide net to discover mis-priced stocks, analysing more than 1,000 stocks daily to find the most attractive investment opportunities for inclusion in the portfolio.
- Invest in a fund that uses systematic expertise to unearth undervalued stocks and deliver compelling long-term returns.
- Analyses more than 1,000 stocks daily to uncover opportunities and find hidden value.
- Systematic, bottom-up analysis converts insights into risk return forecast.
- Aims to outperform the S&P/ASX 300 Accumulation Index over rolling four-year periods before fees and taxes.
manager_contact_details: Array
asset_class: Domestic Equity
asset_category: Australia Large Blend - Broad Cap - Passive
peer_benchmark: Domestic Equity - Large Cap Passive Index
broad_market_index: ASX Index 200 Index
structure: Managed Fund