September, 2023
The Future Leaders Fund had a solid quarter, up +1.6%, well ahead of the benchmark’s -1.1%. For the quarter the Fund benefitted from solid results by several of our quality holdings in the August reporting season, while our caution towards the resources sector aided performance relative to the benchmark.
Global share markets declined in the September quarter as bond yields rose sharply and sticky inflation led investors to focus on the likelihood that the Fed and other central banks will need to keep interest rates ‘higher for longer.’ Most markets fell, with the MSCI World Index down -2.4% and the NASDAQ down further, -4.0%, reversing some of its impressive recent gains.
Local markets took a lead from overseas, with the ASX 300 down -0.8% for the quarter. Energy was the strongest sector, up +21%, buoyed by soaring oil prices, driven by supply cuts from Saudia Arabia and Russia. The interest rate sensitive Real Estate sector was weak, down –6.2%, weighed down by the move higher in bond yields. The Materials sector was also very weak, down -9.4%, as lithium companies came under pressure in-line with a pullback in the lithium price.
Many of the Fund’s holdings performed well over the quarter, with several rallying following strong results during reporting season including Ampol, GUD, Regis Healthcare, A2B Australia, and SG Fleet. Australian Clinical Labs, (see below) and Kelsian disappointed. Kelsian had a slightly weaker than expected result due to temporary labour issues, but we believe it’s well placed for growth in FY24 after new contract wins and recently acquiring All Aboard America, which is trading strongly.
During the quarter we trimmed our positions in several companies on share price strength including GUD, HMC Capital, A2B and Ampol and increased our holdings in ACL, Austal and Kelsian on share price weakness. We also added EVT Limited to the Fund, which we believe is being priced by the market at an attractive discount to the fair value of its portfolio of quality property assets, effectively placing a low value on its operating businesses.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-32.pdfAugust, 2023
The Fund was up +0.7% in August, well ahead of the benchmark which was down -1.1%.
The Fund’s outperformance came on the back of good performances from several key holdings in the portfolio, which given strong market positions and resilient end demand, allowed them to grow revenues and maintain operating margins.
Several of our holdings were up strongly after reporting better than expected results, including GUD, Clearview Wealth, and Regis Healthcare, and in the case of TPG Telecom, also a potential material asset sale. Mayne Pharma’s performance was disappointing, dropping after reporting lower-than-expected revenue for its key women’s contraceptive product, Nextstellis. Management confirmed Nextstellis is on track to meet expectations in FY24.
As expected, reporting season was mixed given the differing impact of high inflation and rising interest rates on companies over the last 12 months, with outlook statements generally cautious given some cost pressures continue to build. We continue to focus on well-established companies with strong recurring earnings and competitive advantage that we believe can continue to perform well, despite uncertain economic conditions in the year ahead.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-31.pdfJuly, 2023
The Fund had a strong month in July, up +3.9%, in line with the benchmark’s +4.0%. All sectors recorded gains over the month except Healthcare and Materials, as lithium companies fell due to a weaker than expected lithium price auction outcome.
Over the month the Fund benefitted from a number of good performances as investors grew more positive about the prospects for numerous industrial companies. GUD rallied as industry data showed that automotive deliveries continue to grow while SG Fleet, A2B and Hipages also performed well. Ampol rose after reporting a solid 2nd quarter performance across its non-refining businesses. Pro-pac Packaging also rose after an update which revealed improved cashflow and an increase in revenue.
Australian Clinical Labs declined after the ACCC raised issues with its proposed merger with Healius. While this was not unexpected, and a merger does unlock significant synergies, we believe the outlook for a standalone ACL remains attractive.
August will see the majority of companies report their FY23 results. We are expecting a mixed reporting season given the sharp increase in interest rates over the last 12 months and other costs which are weighing on various parts of the economy. Given this backdrop, we continue to act cautiously, focusing on well established companies with strong competitive advantages and recurring earnings that are likely to perform well in a range of economic conditions.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-30.pdfJune, 2023
The Future Leaders Fund had a solid quarter, up +2.4%, slightly ahead of its benchmark’s return of +2.3%. While the Fund’s performance was strong over the second half of the year, up +9.7%, a difficult first six months of the year saw the Fund lag the benchmark over the year to June, returning +4.9%, behind the benchmark’s +14.7%. For the year the benchmark’s gains were boosted by a strong rally in resources stocks, particularly lithium miners, and richly-priced tech stocks. We are cautious of the current pricing for many miners given the uncertain outlook for global economic growth and wary of many of the tech stocks given their high valuations, preferring to skew the portfolio to reasonably-priced industrials with more resilient businesses.
Global markets were up for the quarter with the MSCI World Index +6.7%, led by the Nasdaq, +13%. Upgraded guidance from US chipmaker Nvidia early in the quarter led to a strong rally in the US tech sector. Gains became more widespread late in the quarter as optimism grew that the rate-rising cycle was near its end, with economic data revealing the US economy is proving more resilient than feared.
The ASX 300 lagged global markets, rising +1.0% for the quarter, as the strong lead from overseas markets was tempered by a RBA rate hike which made local investors more cautious, compounded by a raft of negative retailer updates. For the Mid and Small Cap Index, Technology gained +13.5% amid general optimism towards tech stocks, while weakness amongst the retailers led the Consumer Discretionary sector lower. Strength in the mid-cap miners, particularly lithium players, helped the Materials sector record only a slight decline over the quarter, in contrast to heavy falls experienced by many small resources companies.
For the quarter the Fund benefitted from several strong performances as many stocks recovered from oversold levels. Codan, Aurizon, Adbri, SG Fleet and HMC Capital all posted gains. Kelsian rose significantly after settling a US acquisition, opening up a substantial new market opportunity for the business. Austal also gained after winning a new contract with the US Navy, potentially worth up to US$3bn, while press speculation around takeover interest in the company also contributed.
For the quarter the main detractors were Pact, as explained below, and Bega which fell after providing guidance that its FY24 profits would be flat on FY23, due to higher farmgate milk prices impacting the profitability of its commodity bulk milk division.
Over the quarter we took advantage of share price strength to take part profits and trim our positions in Codan, A2B Australia, Integral Diagnostics and Southern Cross Media (following a raid of the register by fellow radio operator ARN at a 42% premium). While we added to our positions in ACL, Hipages and Readytech on share price weakness.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-29.pdfMay, 2023
The Fund had a disappointing month in May, down -3.3%, compared to the benchmark’s decline of -1.5%. A number of weak updates by retailers revealed a rapid slowdown in the economy is occurring following multiple rate rises and persistently high inflation. Given the uncertain environment many small cap stocks drifted lower over the month. The strong guidance from US chipmaker Nvidia sparked a rally in the IT sector, especially anything related to AI.
The Fund’s poor relative performance was mainly due to our lack of exposure to richly priced technology stocks as well as lithium names which rallied due to ongoing corporate activity. Performance was also negatively impacted by disappointing updates from Pact, oOh!media and ARN. Many stocks such as A2B and ACL also drifted lower, on little news, reflecting heightened investor uncertainty. We remain comfortable with the long-term positioning of these companies. The Fund benefitted from many resilient performances including Aurizon, Ampol and Kelsian. HMC Capital and Adbri also rose after reporting positive updates.
Economies still face significant issues amid slowing consumer demand and high inflation. Further rate rises are probable. In this environment we continue to act cautiously, focusing on well-established companies with strong competitive advantages, reasonable valuations and recurring earnings that are likely to perform better in a range of different economic conditions.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-28.pdfApril, 2023
The Fund had a solid month in April, up +2.5%, though lower than the benchmark which rose +3.1%. The broader market was boosted by continued optimism that the RBA had paused its interest rate increases, with the benchmark boosted by gains in many cyclicals, including retail and travel-related stocks. These hopes were quashed on 3 May as the RBA raised rates by 0.25% and warned that more increases were coming. Also helping the index was a rally in gold and lithium stocks.
The Fund benefitted from many strong performances over the month including Codan, HMC Capital and Integral Diagnostics, which rose after Medicare indexation settled higher than expected, and TPG Telecom with investors gaining confidence that mobile prices are increasing. Pact Group was the main detractor, with the market disappointed at no news on any asset sale.
The continuing sharemarket strength implies a belief in a painless retreat from high inflation as well as an early easing of interest rates. The RBA rate increase is a reminder that there is more work to do to bring inflation under control. As such we continue to adopt a cautious stance, focusing on well-established companies with competitive advantages and recurring earnings, making them more resilient and likely to continue to perform well in a range of different economic conditions.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-27.pdfMarch, 2023
The Future Leaders Fund had a very strong quarter, up +6.8%, well ahead of the benchmark which rose +1.5%. Performance was driven by strong gains in several key holdings after reporting in line, or better than expected results.
Global markets gained over the quarter, however volatility was high as investor sentiment fluctuated on concerns about inflation and economic conditions and the path of interest rates globally. In March the collapse of several regional US banks and the forced merger of Credit Suisse with UBS caused further volatility, however these concerns quickly eased as regulators took decisive action.
The Fund’s benchmark was up +1.5%, with mixed performance at a sectoral level. Information Technology and Communication Services sectors were strongest, both up +10.6%, mirroring strong gains seen offshore. Materials were also strong, boosted by the Albemarle bid for Liontown and gold miners rallying in line with the gold price. Holding performance back Financial Services (-6.9%) declined on worries about the unfolding banking crisis as well as poor performances by some of the fund managers.
The Fund benefitted from strong performances by ACL, GUD, Infomedia, Codan and Myer following positive first half FY23 results. United Malt also rallied late in the quarter after reporting a takeover approach and A2B was up significantly after selling a Sydney property. Holding back performance were Aurizon and Southern Cross Media after weaker than expected results. We remain confident in these companies’ long-term prospects.
Over the quarter we took advantage of share price strength to take part profits and trim our positions in Infomedia, Kelsian, Myer and Orica. We added to our position in ACL early in the quarter and Aurizon and Tabcorp on share price weakness.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-26.pdfFebruary, 2023
The Fund had a strong month in February, up +2.3%, well ahead of the benchmark which fell -3.6%.
Global markets were weaker during February as inflationary concerns resurfaced and bond markets sold off. Resource stocks were weak due to concerns about global growth, with lithium stocks particularly soft due to a failed producer auction and weak EV sales in China.
For the month the Fund benefitted from good results during February’s reporting season from a number of the stocks held in our portfolio including Ampol, A2B, GUD, Infomedia, Pact, Australian Clinical Labs, SG Fleet, Kelsian and Ridley Corp. While Aurizon and Integral Diagnostics fell over the month, on the back of softer than expected results, we remain comfortable holding these stocks as we are confident in their medium to long-term outlook.
We continue to position the Fund in well-established, profitable companies that continue to trade well despite the current economic uncertainties, while staying alert to opportunities that market volatility may present.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-25.pdfJanuary, 2023
The Fund had a very strong month in January, up +4.6%, although behind the benchmark’s return of +6.4%.
Many of the companies in the Fund posted strong gains over the month, partly recovering from the broad-based selloff in small caps last year, which had left many companies looking oversold. For the month Myer, Ampol and Codan all rallied significantly after positive trading updates while Nine Entertainment, HT&E, GUD, and Integral Diagnostics also performed strongly.
The main reason the Fund lagged the benchmark was a very strong performance by resources companies, particularly EVrelated stocks and gold stocks, which rose on China’s reopening, strong lithium prices and optimism that inflation is retreating.
We remain wary of the recent strong sharemarket rally and anticipate further volatility given that markets seem to now be factoring in an orderly retreat from high inflation as well as an early easing of interest rate increases. We believe there are risks to this scenario. We continue to position the Fund in well-established, profitable companies with strong market positions and attractive valuations. Reporting season next month will provide a clearer picture of how companies are faring in this environment.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-24.pdfDecember, 2022
The Future Leaders Fund had a disappointing quarter, recording a -1.0% decline, which was significantly behind the benchmark’s return of +6.9%. The main reasons for the disappointing relative performance were poor performances by some key holdings, as well as another strong quarter for resources stocks where we remain cautious given their cyclical nature. For the calendar year, the fund lagged the benchmark, declining -20.1% compared to the benchmark’s drop of -12.0%, with the small Resources sector (-8.4%) holding up much better than the small Industrials sector (-24.4%) in a very difficult year for small cap stocks.
The MSCI World Index rose +7.5% for the quarter, thanks to strong gains in October-November, although global markets dipped again in December as concerns resurfaced about the global economy slowing in 2023 as interest rates continued to rise around the globe.
The small-mid cap sector’s -12.0% calendar year fall was a significant underperformance on the ASX 300’s drop of -1.8% for 2022. This reflects investors’ preference for the more liquid, larger-cap companies as investors reduced their small cap exposure given elevated uncertainty with high inflation, rising interest rates and a slowing global economy. Impacting the Fund’s returns were disappointing performances from some of our key holdings such as Pact, Codan and Mayne Pharma, after giving disappointing trading updates. At current valuations we believe that a significant amount of bad news has now been priced in for many of our small industrial holdings and we remain confident in the Fund’s long-term prospects.
Offsetting the losses were gains by some key holdings. Kelsian was up after it won a new contract in SW Sydney, renewed its adjoining existing contract, and expanded its Australian footprint by acquiring Horizon West to build out its WA operation. Orica rose strongly after announcing a strong FY22 result. Readytech’s share price increased after a takeover proposal from Pacific Equity Partners (PEP), although PEP pulled out late in the quarter the stock still finished up on confirmation that current trading remains robust.
Over the quarter, we took advantage of the volatility to trim our positions in Myer, Ridley and Regis Healthcare, while we increased our weighting in Integral Diagnostics, Bega and ACL on share price weakness.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-23.pdfNovember, 2022
The Fund was up +0.9% in November, after some solid performances from companies including Myer, Orica and Readytech (which rose after a takeover bid early in the month), although the Fund was behind the benchmark’s return of +5.1%.
The relative performance was held back by our lower weighting in the Resources sector, which rallied strongly on optimism that China may ease its Covid restrictions. Pact Group and Infomedia both had disappointing months after their AGM trading updates were below expectations and A2B dropped after deferring a deal to sell its Sydney property.
Markets were up strongly in November, despite many uncertainties. We continue to position the Fund in well-established, profitable companies with strong market positions while staying alert to opportunities to buy further high-quality companies.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-22.pdfOctober, 2022
The Fund rose +1.1% in October, which was behind the benchmark’s strong return of +6.3%.
While several of the Fund’s holdings performed well, including Regis Healthcare, BOQ and Sky City, the Fund lagged the index due to strong gains from some lithium and speculative tech stocks, not held in the portfolio, as well as rallies by some discretionary retailers after positive AGM updates. With recent interest rate rises yet to be felt by consumers, we remain cautious on this sector.
Poor performances by some key stocks also held the Fund back. Ampol fell after reporting a weak September quarter which saw its distribution division impacted by one-off factors. Integral Diagnostics and ACL were both weak over concerns on referral volumes with ACL also impacted by a cyber incident. Codan dropped after forecasting weak sales in the first half of 2023 at its AGM.
While markets performed well in October, we expect volatility to continue. We continue to position the Fund in well-established, profitable companies with strong market positions looking for opportunities to buy good quality stocks in any market weakness.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-21.pdfSeptember, 2022
The Future Leaders Fund had a disappointing quarter, recording a -3.1% decline which was behind the benchmark’s return of +3.3%. The benchmark’s return was influenced greatly over the quarter by strong gains in electric vehicle metal related stocks (such as lithium explorers) and gains by several favoured local technology stocks, many of which are still loss-making. We remain cautious on these companies due to their high valuations, particularly for loss-making companies in a market where funding has become much more difficult.
Global markets had a very volatile quarter, up significantly for July and most of August before dropping sharply in September as bond markets sold off and it became clear that the US Federal Reserve, and other central banks, would continue to follow through with their commitment to raise interest rates in order to bring inflation under control.
Over the quarter the Fund benefited from strong performances from New Hope Corporation, which was up strongly on the back of a solid operational performance and a very high thermal coal price. Ridley Corp and Myer also rose significantly, reporting better than expected profits during reporting season while Mayne Pharma rallied after selling its Contract Development and Manufacturing division, Metrics Contract Services, for USD475m leaving the company in a strong net cash position.
Infomedia fell over the quarter after the multiple backed takeover approaches it had received did not eventuate in a transaction. We remain comfortable with our position in Infomedia, which has a net cash balance sheet and a high level of recurring revenue. TPG also had a disappointing quarter after it reported slightly lower than expected new mobile subscribers and a lower than expected first half result.
Over the quarter, we trimmed our positions in Mayne Pharma and Ridley after their share prices appreciated significantly, and we exited our position in Tassal as Cooke’s revised takeover bid of $5.23 a share was accepted. We also took advantage of lower share prices to add to our positions in Codan, GUD and Kelsian.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-20.pdfAugust, 2022
The Fund had a disappointing month, down -1.5%, below the benchmark which was up +3.1% led by a surging Resources sector (+5.9%), with lithium and energy stocks recording strong gains. We remain cautious on Resources given its volatility.
Reporting season dominated the news for the month. Companies reported on a very eventful year that caused a wide variety of outcomes leading to high volatility as share prices reacted wildly to results. Very few small cap companies provided earnings guidance for 2023 given continued uncertainty over interest rates, input prices and the global economy.
For the month Ridley Corp and media stocks HT&E and Nine Entertainment recorded good gains while Tassal rose after the company’s Board accepted a revised offer from Cooke Group. Pact and Codan fell over the month after reporting softer than expected outlook statements as did TPG after a slightly lower than anticipated result.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-19.pdfJuly, 2022
The Fund had a very strong month, up +8.6% in July, although behind the benchmark which rebounded +10.0%. Many of the Fund’s stocks – such as GUD, TPG and Pact - performed well in July as they rebounded from previously oversold levels.
The Fund’s return was lower than its benchmark mainly due to our caution towards the more speculative Tech and Resources companies, many of which rallied strongly in July as investors hoped the sharemarket had bottomed. We believe sharemarket volatility may return in coming months given the many uncertainties and as such we continue to adopt a cautious approach, looking for opportunities to buy good quality companies when their valuations look attractive
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-18.pdfJune, 2022
The Future Leaders Fund had a challenging June quarter with its unit price declining -14.1% in a quarter where its benchmark fell by an even larger -17.6%. The correction in the last quarter meant the previous 9 months of gains for the Fund reversed and it finished FY 2022 returning -8.9%, which while very disappointing was significantly better than the benchmark’s fall of -14.9%.
Global markets had a tumultuous quarter as bond markets sold off heavily and Central Banks all over the world responded to rapidly rising inflation by raising their overnight interest rates. Other major global uncertainties weighing down markets – including the Ukraine-Russia war and the Covid restrictions in China – added further anxiety for investors.
The ASX 300 Accumulation Index’s heavy fall over the June quarter saw all sectors finish lower except for Energy and Utilities which eked out small gains. Particularly hard hit were the Information Technology and Materials sectors as investors heavily sold the more speculative stocks that had previously been in favour, as well as cyclicals more generally given growing uncertainty over the direction of the economy.
Very few stocks escaped the broad-based sell off in small caps this quarter. Two which were among the hardest hit over the quarter were GUD, which reported a relatively small earnings downgrade due to supply chain disruption and delays in new vehicle supply, and Bega which fell heavily as investors grew concerned that higher input prices would impact margins in future. While disappointing, we continue to like the 3-5 year outlook for both these well managed, very profitable companies.
The Fund’s performance was helped by strong performances from Tassal (+33.4%) and Infomedia (+23.2%) over the quarter after both companies received takeover approaches. These approaches are just the latest of many over the last two years, highlighting the quality and attractive valuations of many of the companies held in the Fund. Tassal has so far had multiple takeover offers from Cooke Group, while over the quarter Infomedia had takeover approaches from three different buyers with two of these potential buyers now in the final detailed due diligence stage
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-17.pdfMay, 2022
In what was a very tough month for small-mid cap investors the Fund’s unit price was down -5.2%, which was behind the benchmark’s return of -4.9%.
Many of the Fund’s stocks were sold down amid concerns about rising inflation and general negativity around the future direction of the Australian economy. We continue to believe in the long-term value and position of these companies and their ability to navigate through the more challenging economic and inflationary pressures.
Some of the Fund’s core stocks performed well in May, offsetting the poor market. Infomedia received two competing takeover proposals while Codan rallied after reaffirming guidance and providing detail on the growth plans for its radio communication business. Regis rallied in expectation the new Federal Government would inject more money into aged care.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-16.pdfApril, 2022
In a tough month for small-cap investors, the Investors Mutual Future Leaders Fund delivered a flat return for April, which was significantly better than the benchmark’s negative return of -1.7%.
While many of the Fund’s stocks performed well our media and technology-related holdings (including Hipages, HT&E and Nine Entertainment) were caught up in the general negativity towards tech/media stocks and were sold down. We continue to believe in the positioning and long-term direction of these companies, all of which are growing with positive cash-flows and healthy balance sheets. The Fund’s cautious approach towards speculative technology companies and the volatile Resources sector helped relative performance.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-15.pdfMarch, 2022
The Future Leaders Fund had a soft quarter, down -3.1%, although it was slightly ahead of its ex-50 benchmark, which was down -3.3%.
It was a tale of two markets for ex-50 companies with ex-50 Resources up +8% for the quarter as the prices of many commodities soared following the introduction of sanctions on Russian commodity exports following the invasion of Ukraine. On the other hand, all industrial sectors finished the quarter in negative territory, with the exception of Utilities. In particular loss-making technology and med-tech companies sold off heavily which saw the ex-50 Healthcare and Technology sectors down -by 24% and -16% respectively.
The Fund’s caution toward the more speculative part of the market helped relative returns and the Fund benefited from solid performances from our holdings in companies such as Orica, Regis Healthcare, Ridley, and Myer. Unfortunately, some of the Fund’s holdings sold off over the quarter, in line with the broader market and as short-term concerns arose. Pro-Pac Packaging was down after a rise in the cost of the underlying raw materials used in its packaging, such as resin. In our view, this is a short-term issue and the company’s strong competitive position will allow it to pass on increased costs to the end customer over the medium term. Hipages growth slowed due to abnormally high demand for trade services (which reduces tradies’ need to pay for lead generation). We retain conviction in the long-term opportunity available to Hipages, which is the clear market leader in its category, and we have added to our position following the weakness.
Over the quarter we trimmed our holdings in companies such as Australian Clinical Labs, Home Co and Z Energy and used the proceeds to top up the Fund’s holdings at times of weakness in good quality companies such as Pact, GUD, Codan and Bega Cheese. We also participated in a capital raising for Integral Diagnostics to fund the acquisition of a quality radiology business in South-East Queensland.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-14.pdfFebruary, 2022
The Future Leaders Fund was up +0.4% in a challenging month which saw the ex50 benchmark return -0.6%. - A strong ex50 Resources sector (to which the Fund has a low weighting) offset declines in most other sectors, in particular, the Technology sector (down -9.5%). -It was a mixed month for the Fund’s portfolio with gains from companies such Pact, SG Fleet, Nine Entertainment, and Regis Healthcare offsetting disappointing performances from Codan, Bega Cheese, and Integral Diagnostics.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-13.pdfJanuary, 2022
The Investors Mutual Future Leaders Fund shed -6.5% in January which, while disappointing, was far better than the benchmark’s fall of -8.8%. Our focus of only investing in stocks that we believe offer both value and quality held the portfolio in good stead, due in part to our zero weighting in the speculative and concept driven segment of the market which was badly hit. The portfolio benefited from its holdings in good quality companies such as Crown Resorts (under takeover), Orica, AusNet (under takeover), Virgin Money and Tassal. Detractors over the month included Australian Clinical Labs which was affected late in the month by the expectation that covid testing volumes had peaked, although the company remains well positioned within the growing pathology sector and we are comfortable holding the stock at current levels. Over the month we exited our position in Santos (now top 50) and took part-profits in stocks such as Steadfast and Australian Clinical Labs (early in the month) given their strong runs. We used the proceeds to top up opportunistically in good quality companies which fell to attractive levels over the month including Pact Group, Codan, Orica, TPG Telecom and Bank of Queensland, all of which we believe offer very strong long-term value.
Central banks around the world seem poised to raise interest rates in reaction to CPI numbers which have reached levels the world has not seen in almost 40 years. Whilst headline inflation levels will eventually normalise, it is now becoming increasingly evident to many investors that the prospect of ultra-low interest rates could soon be a thing of the past. We believe that in this environment, the worst impacted will be many high-flying, concept and often purely speculative parts of the sharemarket – many of which were buoyed in the last few years by speculators using this cheap money. We have always steered away from the riskier parts of the sharemarket and have remained focused on identifying and holding only what we assess to be good quality, well-managed companies in leading industry positions. While interest rates will increase from their current historic lows, economic growth remains firm, and in this environment companies which generate good cashflows and dividends and that can maintain margins by passing on higher input prices to customers, should continue to do well over the next 3-5 years.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-12.pdfDecember, 2021
The Investors Mutual Future Leaders Fund had a very strong year returning +23.1%, well ahead of the benchmark’s return of +18.3%. The Fund’s performance was helped by what we see as a return to more fundamental investing with the prospect of the end of free money looming large. Takeover bids for good quality companies which were trading at very attractive valuations also helped. Our holdings in Home Consortium, Clearview Wealth, Australian Clinical Labs, API, Symbio, Event Hospitality and AusNet all enjoyed a strong year. For the final quarter of the year, the Fund posted a return of +0.3%, which lagged the benchmark’s return of +3.4%. Our caution to the Resources sectors weighed on our relative returns, although we remain comfortable with this positioning given the inherent volatility in the sector. Over the quarter the Fund benefited from its holdings in Australian Clinical Labs, Crown Resorts (under takeover), Here, There & Everywhere, API (under takeover) and Clearview Wealth.
Conversely, Pact Group and Pro-Pac endured a weaker quarter on short term cost and Covid-induced disruptions to their operations, although we remain confident in the long-term outlook for both businesses, especially in light of their strong industry position and attractive valuations.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-11.pdfNovember, 2021
The Investors Mutual Future Leaders Fund had a disappointing month shedding -2.8%, behind the benchmark’s return of +0.4%. The Fund’s limited exposure to the Resources and Technology sectors held back relative returns, however we remain very comfortable with this positioning given the inherent volatility in these sectors. The Fund’s performance was affected by weakness in its holdings in packaging stocks Pact Group and ProPac which both fell after both companies confirmed that this year’s results would be negatively impacted by higher input and shipping costs. While these factors will hurt first half FY22 profits, margins should recover in the second half as price increases to mitigate these higher costs take effect and we remain comfortable with both stocks given their strong positioning in their respective segments. The Fund’s holdings in Crown and AusNet both contributed positively after both companies received higher revised takeover bids from Blackstone and Brookfield respectively. Nine Entertainment shares rallied +7% off the back of a strong trading update which highlighted solid growth for its streaming service Stan and its Domain Holdings stake.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-10.pdfOctober, 2021
Global equity markets rebounded strongly in October with the MSCI World index returning +5%. The gains were led by the US, with the S&P500 gaining +7%, capping its strongest month this year and returning the index to record highs following last month’s -5% pull back. Despite weaker than expected GDP growth and soft results from both Amazon and Apple, given ongoing supply chain disruptions and tightening in the labour market, US Q3 reporting season proved robust with the majority of companies beating earnings expectations. Across the Atlantic the mood was equally buoyant with Europe’s Stoxx50 index returning +5.2%.
Commodity markets remained volatile. The oil price gained a further +7% reaching its highest price in over three years as OPEC resisted calls to increase output. Energy markets in general continued to whipsaw with both the coal and European natural gas prices beholden to severe supply disruptions. Copper, a bellwether for global manufacturing activity, surged a further +10% driven by low inventories in both Europe and China
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-1-3.pdfSeptember, 2021
The Investors Mutual Future Leaders Fund enjoyed a very strong quarter, returning +9.0%, which was significantly better than the benchmark’s return of +3.3%. The Fund benefited from the positive performance of many of its core holdings such as Home Consortium, TPG Telecom, MNF and Integral Diagnostics. The Fund also benefited from takeover bids for AusNet, Australian Pharmaceuticals and Z Energy. Recent IPO’s that we participated in such as Best & Less and the HealthCo Healthcare REIT also contributed to performance as did the Fund’s limited exposure to the volatile iron ore and base metals companies which we had been wary of for some time given the highly elevated prices in these sectors.
Over the quarter, we trimmed our holdings in stocks such as Home Consortium, Events Hospitality and Brickworks as the share prices of these companies rallied strongly. We deployed the proceeds to add to our positions in good quality companies that we believe are very attractively priced such as Bega Cheese, TPG Telecom and United Malt.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-1-2.pdfAugust, 2021
The Investors Mutual Future Leaders Fund enjoyed a very healthy month returning +5.5%, which was better than the benchmark’s return of +4.1%, thanks to strong performances from many companies in the portfolio. Pro-Pac Packaging, Clearview Wealth, Bega Cheese, MNF and Australian Clinical Labs all had a good month following the release of strong FY21 earnings. Additionally, Ampol’s proposed takeover of NZ’s Z Energy benefited performance. Over the month, we trimmed our holdings in stocks such as Events Hospitality and Select Harvest as these companies rallied. We used the proceeds top-up our holdings in Tassal Group and Bega Cheese which are trading at attractive valuations. During the month we also participated in the IPO for Healthco Health and Wellness REIT which, in our view, was attractively priced.
The Australian sharemarket continues to trade at close to record levels with seemingly very little on the horizon to halt its ongoing rise. Having said this, we continue to steer away from some of the riskier parts of the sharemarket and remain focused on good quality companies which are well-managed, where valuations remain justifiable, and which we believe can do well over the next 3-5 years. To this end we remain very comfortable with how the Fund is currently positioned.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-9.pdfJuly, 2021
The Investors Mutual Future Leaders Fund had a relatively flat month as did the benchmark. Our caution to the evervolatile Resources sector held back the Fund’s relative performance although we remain comfortable with this positioning given the current record prices across many base metals. Our holding in Crown Resorts detracted from the Fund’s performance as the share price came under pressure as the Victorian Royal Commission continued into the suitability of the company to hold its Melbourne licence and Star Entertainment Group backed out of merger talks. We continue to monitor the situation closely although remain hopeful that given the significant changes implemented at Board and senior management level as well as the company’s strong property holdings will enable the company to recover. Our holdings in good quality companies such as API (under takeover), HomeCo, Incitec Pivot, Australian Clinical Labs and Z-Energy all contributed to returns over the month. We trimmed our holdings and took some profits in stocks such as Metcash and Brickworks and deployed the proceeds to top up positions in good quality companies such as Australian Clinical Labs and Bank of Qld which, in our view, are trading at very compelling valuations.
Investors will now look to the August reporting season to gain a detailed insight into how most companies are faring in the current COVID situation. The Australian sharemarket continues to trade at record levels with seemingly very little on the horizon to halt its ongoing rise. Having said this, we continue to steer away from some of the riskier parts of the sharemarket and remain focused on good quality companies which are well-managed, where valuations remain justifiable, and which we believe can do well over the next 3-5 years.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-8.pdfJune, 2021
The Investors Mutual Future Leaders Fund posted a positive return of +30.3% over the financial year, although this was behind the Fund’s ASX300 ex-LPT ex-50 benchmark’s return of +34.8%. The market was very volatile over the past year, and the rallies in the more speculative or cyclical sectors such as Technology and Resources held back our market-relative performance. Our portfolio’s positioning in more defensive companies weighed on the Future Leaders Fund’s marketrelative return, although we remain very comfortable with the Fund’s positioning. Our positions in good quality companies such as HomeCo, SG Fleet, Nine Entertainment, Virgin Money UK, Pact Group, Imdex, Tabcorp, and Vitalharvest all served the portfolio well following strong share price appreciation.
The Fund paid a distribution of 0.6867 cents per unit for the June half, taking the total distribution for the financial year to 1.6867 cents per unit representing a fullyear distribution yield of 1.91%. Over the final quarter of FY20, the Fund returned a solid +4.8%, although this was below the benchmark’s strong return of +9.3%. Over the June quarter, the Fund benefited from its holdings in good quality industrials such as HomeCo, SG Fleet, Hipages, United Malt, TPG Telecom, Brickworks and Steadfast, while Bega Cheese, McPhersons, and API lagged.
Over the quarter we trimmed our exposures to stocks such as Centuria, Healius, Event Hospitality & Entertainment, HomeCo, and Orora, following strong share price appreciation. We used the funds generated from these sales to top up in good quality companies such as TPG Telecom, API, and Infomedia, which in our opinion all represent compelling valuations, especially given their medium to long-term prospects, which the market is yet to appreciate.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-7.pdfMay, 2021
Global equity markets finished their fourth consecutive month higher, with the MSCI World Index returning +1.1% as ongoing confidence in the global economic recovery grows as vaccination programmes accelerate. While the US S&P500 Index held on to its gains for the month, returning +0.7%, the tech-heavy NASDAQ Index came under increasing pressure, shedding -1.4% as investors’ inflationary concerns and the prospect of higher bond yields weighed on fully-priced tech valuations. Indeed, US inflation accelerated at its fastest annual pace in over a decade as the economic recovery kicked into gear. Across the Atlantic the mood was similarly positive as economies emerge from lockdowns in time for the summer tourism season, with European bourses enjoying a solid month, the EuroStoxx50 Index returning +2.3%.
Domestically, the mood remained upbeat following the release of the Federal Budget, with government fiscal largesse continuing to aid the post-COVID recovery. Commodity prices were strong through the month, with the iron ore price gaining +7.8% and holding its level above US$200 per tonne despite Chinese overtures about punishing “excessive speculation” in commodity markets. The oil price gained a further +3% as stockpiles built up during the pandemic continue to run down as economies reopen. Increasing inflationary concerns courtesy of the magnitude of economic stimulus and continued low interest rates also helped the gold price gain +7.5% for the month, to finish above US$1,900 an ounce.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-6.pdfApril, 2021
Global equity markets enjoyed another strong month, with the MSCI World Index returning +3.7%. The US S&P500 and the tech-heavy NASDAQ indices led the charge, both returning +5.3% and in so doing set new record highs throughout the month. Investors were emboldened following a streak of strong third quarter US company earnings reports, buoyed by record US household disposable income as a result of the passing of President Biden’s American Rescue Plan, which included US$1,400 stimulus payments to US households. Across the Atlantic, the mood was a little less sanguine, with Europe’s Stoxx50 Index returning +1.9%, reflecting investors’ concerns about the continent’s slow rollout of the vaccination programme, which continues to impede economic recovery. The result of the significant amounts of stimulus supporting equity markets is increased inflationary expectations, with many companies across the globe reporting pricing pressures for inputs, which in turn are passing through to customers as price rises. Additionally, it was reported that US labour costs jumped the most in 14 years as companies boost production to cater to pent-up demand.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-5.pdfMarch, 2021
Global equity markets enjoyed a strong first quarter of calendar 2021, returning +5.9% thanks to continued investor optimism as the global economy recovers from the turmoil caused by COVID-19 and as vaccines are rolled out around the world. These gains were made despite the headwinds of a substantial selloff in bond markets. The benchmark US 10-year bond rose 0.5% to a 12-month high of 1.7% by the end of March on inflationary fears as a combination of continued strong fiscal stimulus, strong commodity prices and continued record low overnight interest rates stoked investor concerns. Over the quarter President Biden’s US$1.9 trillion stimulus package was approved, with the new President now looking to get a proposed US$2 trillion infrastructure plan approved by Congress, while in Australia the Federal Government unveiled a $1.2 billon tourism support package. The US S&P500 Index recorded fresh record highs in March, pushing through the 4,000 level for the first time. The S&P500’s return of +6.1% for the first quarter marked the index’s best 12-month rolling return since 1936 and a staggering +80% return since the March 2020 lows. Across the Atlantic, Europe’s Stoxx50 jumped +10.7% for the quarter, while Japan’s Nikkei Index returned +6.9%. Encouragingly, we saw the value style of investing as the main driver of quarterly returns, with the frothier end of the market coming under pressure
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-4.pdfFebruary, 2021
A surge in bond yields late in the month caused volatility in global equity markets as investors grew increasingly wary about the potential for higher inflation. Yields on US 10-year bonds experienced one of their largest monthly spikes in modern times, rising 0.5% to a 12-month high of 1.4%. There are growing fears that central banks may have to raise interest rates earlier than expected, driven by the recovery in global economic activity, optimism about the COVID-19 vaccine rollout, the passing of President Biden’s US$1.9 trillion stimulus package, and the significant amount of easy money sloshing through the system.
Despite shedding -3% in the final week of the month, the MSCI World Index still finished the month up +2.4%. Similarly, the US S&P500 Index finished the month +2.7% higher, setting a new record high before inflationary fears sent ripples through the market. The tech-heavy NASDAQ Index finished the month only slightly higher after shedding -7% during a difficult final week of the month.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-3.pdfJanuary, 2021
After starting the year in positive fashion, global sharemarkets came under pressure in the back half of January, and the MSCI World Index finished the month in negative territory. The US S&P500 Index retraced from record highs to finish -1.0% lower, while Europe’s Stoxx50 Index shed -1.9% as bond yields around the world rose on expectations of higher economic activity and inflationary expectations as the COVID-19 vaccine rollout continued across the globe. Market sentiment was also affected as some high-profile short squeezes of US stocks such as GameStop and AMC Entertainment saw the share prices of these companies balloon after retail punters charged in en masse. This reminded investors about the speculative excesses currently abounding in many sections of the sharemarket as zero interest rates, Central Banks money printing via QE and huge fiscal stimulus programmes have encouraged excessive risk-taking by many market participants. Commodity prices were mixed over the month. The oil price rebounded a further +7% following a surprise production cut from the Saudis, acting independently from OPEC, to help support the oil price amid faltering global demand. The iron ore price came under pressure following a near +40% rise in the final quarter of 2020, with increased supply coming online from Brazil, coupled with China’s scrap steel market reopening. Gold also had a soft month falling -3%.
The Australian sharemarket as measured by the S&P/ASX300 Index suffered a similar fate to its global peers, selling off in the latter part of the month to finish January fairly flat. The Fund’s ex-100 benchmark was fairly flat for the month, falling -0.4%. The ex-50 Resources sector shed -2.5%, with many of the miners falling in sympathy with softness in the prices of iron ore and gold. In addition, despite the higher oil price, the Energy sector fell in the back half of the month, to finish -3% lower. Within the Industrials segment, sector performances were mixed over the month. The Technology sector fell sharply, down -5%, with many of the more speculative and concept stocks such as those in the payment solutions space sold off. Similarly, several of the more speculative ‘med-tech’ names fell heavily, such as PolyNovo and Nanosonics. On the positive side of the ledger, the Consumer Discretionary sector rallied +3% over the month off the back of a solid trading update from Super Retail Group and positive sentiment surrounding Harvey Norman, which have continued to benefit from the current surge in consumer spending. The Consumer Staples sector also enjoyed a solid month, benefiting from robust share price performances from some of the soft commodity producers, in sympathy with more agreeable global food indices. In addition, Bega Cheese enjoyed a strong month, gaining +10% after investors reacted positively to the settlement of Bega’s acquisition of Lion Dairy & Drinks.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-2.pdfDecember, 2020
The Investors Mutual Future Leaders Fund recorded a disappointing result for calendar year 2020, recording a total return of -3.7 %, well below the benchmark’s strong return of +14.5% which was buoyed by the ex-50 Resources and Tech sectors. A number of companies held in the portfolio were significantly impacted as a result of national and state-based COVID-19 lockdowns throughout the year which directly affected profitability and thus these companies’ share prices. The Fund’s very low weighting to the higher risk Resources and IT sectors also impacted our relative performance. Over the year many of our core holdings in wellmanaged, good quality industrial companies such as Metcash, Pro-Pac and Nine Entertainment did well.
For the final quarter, the Investors Mutual Future Leaders Fund posted a strong gain of +11.4%, although this was behind the benchmark’s gain of +15.7%. The Fund benefited from several of its holdings such as Home Co and Southern Cross Media enjoying a strong quarter as well as from takeovers offers for Regis Healthcare and Vital Harvest. Highly cyclical sectors such as Technology and Resources sectors rallied significantly over the final quarter thus holding back our relative performance.
We used strength in the share prices of companies such as Nine Entertainment, SeaLink and Centuria to trim positions and lock in some profits over the quarter. We deployed some of this cash to participate in a number of capital raisings over the quarter including Bega Cheese, which raised $401m to acquire Lion Dairy & Drinks and which will position the company as a leading branded consumer packaged goods business.
The Fund also deployed funds to add Hipages to the portfolio. Hipages, which listed on the ASX in November, is 25% owned by News Corp and operates the leading online platform connecting ‘tradies’ to customers. We also topped up our holdings in high calibre companies, such as Metcash, during the quarter, adding to our positions at attractive valuations in companies which in our assessment should do well over the next 3 to 5 years.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-1-1.pdfNovember, 2020
Global equity markets enjoyed one of their strongest months on record, surging on optimism about Joe Biden’s US Presidential Election victory and a series of breakthroughs in the development of a COVID-19 vaccine. The MSCI World Index returned +11% over the month, driven by strong gains in the US S&P500 Index, which reset fresh record highs following weakness in October, and the Dow Jones Index, which pushed through the 30,000 level for the first time in its history and enjoyed its strongest month since 1987. Across the Atlantic, the mood was even more effervescent, with Europe’s Stoxx Index returning +19%, catching up some of its recent relative underperformance compared with US indices.
Despite record numbers of COVID-19 cases across the world, investor optimism was buoyed by signs that President-elect Joe Biden will make a relatively smooth transition into the White House, as well as positive vaccine news from Pfizer/BioNTech and Moderna. This news drove a strong rotation into companies that were deemed to be wellpositioned for the reopening of economies and the much hoped for return to normality, while many concept and fad stocks lagged the market.
Domestically, the Reserve Bank of Australia cut the cash rate by a further 0.15% in early November, taking the cash rate down to a new record low of 0.10%, while also announcing a further $100 billion in bond purchases as part of its quantitative easing programme. Commodities experienced a very strong month off the back of the vaccine breakthrough. Oil was the standout, gaining +27% as investors repositioned for the likelihood of greater oil consumption as economies reopen. Iron ore also firmed by a further +11% to the $130/tonne level. As a result of the strength in commodity prices, the AUD had a strong month, gaining +5% against the USD as it rallied to the 74-cent level. This was despite continued concerns about the diplomatic stoush between Australia and China which has led to the hiking of trade tariffs by the Chinese, most notably on our wine exports. The strong rally in global equities saw the Australian sharemarket as measured by the ASX300 produce its best month on record, returning +10.2% in November.
The Fund’s ex-50 benchmark had a strong month returning +8.3%, led by a rebound in the Energy sector of +27% as optimism built about the demand for oil from the travel sector as the vaccine is rolled out. Within the Industrials segment of the market, the Communication Services sector enjoyed a strong month returning +14%, supported by strong performances from Event Hospitality, Ooh media and Southern Cross Media – companies that stand to benefit as the economy reopens and recovers. The Technology sector, which has benefited immensely this year given the mania for “anything tech”, came off the boil, with overhyped names such as Afterpay, Megaport, Next DC and several other ‘buy now pay later’ providers finishing in negative territory. In addition, online electronics retailer – Kogan fell over -30% on the announcement of the vaccine with the shift to online likely to slow.
The Investors Mutual Future Leaders Fund enjoyed an excellent month, returning +11.6%, which was better than the benchmark’s return of +8.3%. Encouragingly, many of our holdings benefited from the rotation back into quality companies trading on attractive valuations, such as Southern Cross Media, Event Hospitality, A2B and Home Consortium. In addition, the Fund benefited from both Regis Healthcare and Vital Harvest receiving takeover offers during the month. Importantly, our caution toward many of the concept and “fad” companies, that previously benefited as a result of the pandemic, held the Fund in good stead.
Over the month, we used strength in the share prices of Virgin UK, Sealink, Genesis Energy, Downer EDI and Integral Diagnostics to trim our positions. We added to our positions in good quality companies such as Regis Healthcare (prior to their takeover bid), Bega Cheese (via its capital raising) and Metcash, which we believe remain attractively priced given their prospects for the next few years.
Continued record low interest rates, government stimulus and the recovery in many parts of the Australian economy, as lockdowns cease and interstate borders open up, has led to a sweet spot for the Australian equity market, with many companies’ share prices rallying strongly over the past month. Having said this, the outlook for 2021 remains relatively uncertain given the many imbalances in the economy as things normalise. We continue to focus on companies that, in our view, have a strong franchise, experienced and capable management, and a resilient business that can continue to generate healthy cashflows over the next few years
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Latest_Update_IMFL-1.pdfOctober, 2020
The Investors Mutual Future Leaders Fund had a lacklustre month gaining +0.2%, well below the benchmark’s strong return of +3.7%. Our continued caution to much of the speculative froth within the Tech sector held back relative returns, however the sector remains significantly overvalued in our view and we continue to find much better value elsewhere. Some of the Fund’s core holdings had a lacklustre month with Event Hospitality and Entertainment and Crown Resorts both under pressure. We remain comfortable with our holdings in these good quality companies at what we believe are very attractive prices. On a positive note, many of our holdings in good quality companies such as Pro-Pac Packaging, Home Consortium, Virgin Money UK, Metcash and Steadfast all enjoyed a strong month. In addition, Nine Entertainment continues to benefit from improving TV ad spend and increasing subscriptions for Stan.
Over the month we used strength in the share prices of Sky City, Steadfast and AusNet to trim our holdings as these companies rallied strongly. We used this cash opportunistically to add to our holdings in good quality companies such as Regis Healthcare, Crown and Tabcorp at what we assess as bargain basement prices for these well-established companies as their share prices continue to wallow over what are, in our view, relatively short-term issues.
With risk taking greatly encouraged by central banks’ ultra-low interest rate policies, we continue to stay disciplined and focused on companies that, in our view, have a strong franchise, experienced and capable management and a resilient business that can generate healthy cash flows over the next few years. While the portfolio’s performance has lagged the sharemarket in recent times, we remain very comfortable with the overall quality of the stocks and the positioning of the portfolio and continue to look for opportunities to add to our holdings when we believe prices look highly attractive.
ticker: IML0003AU
commentary_block: Array
factsheet_url:
https://iml.com.au/files/Latest_Update_IMFL.pdf
release_schedule: Monthly
fund_features:
The Investors Mutual Future Leaders Fund aims to provide a rate of return (after fees and expenses and before taxes) which exceeds the return of the S&P/ASX 300 Accumulation Index (ex. S&P/ASX50, ex LPT) on a rolling four year basis. The Fund will invest in a diversified portfolio of quality ASX listed Australian and New Zealand shares outside the Top 50 shares listed on the ASX.
- Conservative value based investment philosophy applied.
- Bottom-up approach to identifying, researching and valuing quality companies.
- This Fund is considered to be a high risk investment.
manager_contact_details: Array
asset_class: Domestic Equity
asset_category: Australian Small Cap
peer_benchmark: Domestic Equity - Small Cap Index
broad_market_index: ASX Index Small Ordinaries Index
structure: Managed Fund