Alphinity Australian Share Performance Review | News

What is the Alphinity Australian Share fund?

Alphinity Australian Share Fund aims to deliver consistent incremental outperformance at comfortable levels of volatility.

The Fund is a diversified portfolio of 35-55 stocks selected based on their quantitative score and the fundamental analysis by the investment team.
Alpha delivered from stock selection with minimal sector biases, and it is using the S&P/ASX 300 Accumulation Index as the benchmark.
The combination of fundamental and quantitative research results in a strong buy and sell discipline.

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Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Latest News & Updates For Alphinity Australian Share

Alphinity Australian Share Fund Commentary September 30, 2023

The Fund outperformed the market in the September quarter. The clear winner was online advertising group carsales.com although gaming machine maker Aristocrat Leisure also did very well. Other positives were Caterpillar dealer Seven Group and not owning global medical device maker Resmed Inc. The only notable detractors for the quarter were mineral sands producer Iluka Resources and airline Qantas.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

Product Overview
Performance Review
Peer Comparison
Product Details

Product Overview

Fund Name	APIR Code ? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.	Structure ?	Asset Class ? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.	Asset Category ? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.	Peer Benchmark Name ? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.	Broad Market Index ? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.	FUM ? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.	Management Fee ? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.	Performance Fee ? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.	Spread ? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Alphinity Australian Share	PAM0001AU	Managed Funds	Domestic Equity	Australia Large Growth	Domestic Equity - Large Growth Index	ASX Index 200 Index	173.08 M	0.9%	0.00%	0.4%

Performance Review

Fund Name	Last Month ? Returns after fees in the most recent (last) month).	3 Months Return ? Returns after fees in the most recent 3 months.	1 Year Return ? Trailing 12 month returns.	3 Years Average Return ? Average Annual returns from the last 3 years.	Since Inc. Average Return ? Average (annualised) returns since inception	1 Year Std. Dev. (Annual) ? The standard deviation (or annual volatility) of the last 12 months.	3 Years Std. Dev. (Annual) ? The average standard deviation (or annual volatility) from the last 3 years.	Since Inc. Std. Dev. (Annual) ? The average standard deviation (or annual volatility) since the fund inception.	1 Year Max Drawdown ? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	3 Year Max Drawdown ? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	Since Inc. Max Drawdown ? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Alphinity Australian Share	3.09%	-3.81%	12.84%	7.45%	8.65%	10.12%	12.76%	13.36%	-6.69%	-10.78%	-51.33%

Peer Comparison

Fund Name	Peer Index Name ? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.	12 Months Excess Return ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	Excess Return Annualised Since Inception ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	12 Months Alpha ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	Alpha Annualised Since Inception ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	12 Months Beta ? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	Beta Annualised Since Inception ? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	12 Months Tracking Error ? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	Tracking Error Since Inception ? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	12 Months Correlation ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.	Correlation Since Inception ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Alphinity Australian Share	Domestic Equity - Large Growth Index	5.19%	-0.31%	NA%	NA%	NA%	0.89	2.18%	2.9%	0.99	0.98

Product Details

Fund Name	Verifed by SMSF Mates	Manager Address	Phone	Website	Email
Alphinity Australian Share	Yes	Level 2, 5 Martin Place, Sydney NSW 2000	+61 133 566	https://www.challenger.com.au/personal	info@challenger.com.au

Product Due Diligence

What is Alphinity Australian Share

Alphinity Australian Share is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Large Growth Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Alphinity Australian Share has Assets Under Management of 173.08 M with a management fee of 0.9%, a performance fee of 0.00% and a buy/sell spread fee of 0.4%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Alphinity Australian Share has returned 3.09% in the last month. The previous three years have returned 7.45% annualised and 13.36% each year since inception, which is when the Alphinity Australian Share first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Alphinity Australian Share first started, the Sharpe ratio is NA with an annualised volatility of 13.36%. The maximum drawdown of the investment product in the last 12 months is -6.69% and -51.33% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Alphinity Australian Share has a 12-month excess return when compared to the Domestic Equity - Large Growth Index of 5.19% and -0.31% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Alphinity Australian Share has produced Alpha over the Domestic Equity - Large Growth Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Domestic Equity - Large Growth Index category, you can click here for the Peer Investment Report.

What level of diversification will Alphinity Australian Share provide?

Alphinity Australian Share has a correlation coefficient of 0.98 and a beta of 0.89 when compared to the Domestic Equity - Large Growth Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Alphinity Australian Share and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Alphinity Australian Share with the ASX Index 200 Index?

For a full quantitative report on Alphinity Australian Share compared to the ASX Index 200 Index, you can click here.

Can I sort and compare the Alphinity Australian Share to do my own analysis?

To sort and compare the Alphinity Australian Share financial metrics, please refer to the table above.

Has the Alphinity Australian Share been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Alphinity Australian Share?

If you or your self managed super fund would like to invest in the Alphinity Australian Share please contact Level 2, 5 Martin Place, Sydney NSW 2000 via phone +61 133 566 or via email info@challenger.com.au.

How do I get in contact with the Alphinity Australian Share?

If you would like to get in contact with the Alphinity Australian Share manager, please call +61 133 566.

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Alphinity Australian Share. All data and commentary for this fund is provided free of charge for our readers general information.

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Historical Performance Commentary

Performance Commentary - August 31, 2023

The Fund outperformed nicely in August with a number of decent winners and almost no losers. The best contributors to returns were from a variety of sectors and, pleasingly, came from our larger active weights: online advertising (carsales.com), industrial property (Goodman Group), pallet pooling (Brambles Industries), medical devices (Cochlear), health insurance (Medibank), gaming (Aristocrat Leisure) and building materials (James Hardie). Not owning medical device company (Resmed) or tech company WiseTech also added to returns. The only noticeable detractor was mineral sands producer Iluka Resources.

Performance Commentary - July 31, 2023

The Fund underperformed in July although there were no individually significant entries on either the positive or negative side. The best contributors to returns were energy generator AGL, packaging company Orora and building materials producer James Hardie; biggest detractors were mineral sands/rare earth miner Iluka, pallet pooler Brambles and supermarket operator Woolworths.

Performance Commentary - June 30, 2023

The Fund performed in line with the market in June, and across the June quarter. The best contributors were global insurer QBE, pallet pooler Brambles, and advertising platform carsales.com; not owning resource giants South32 or Rio Tinto also added some value.

Offsetting these however were holdings of resource giant BHP and medical device maker Fisher & Paykel Healthcare, while not owning high tech companies Xero and WiseTech detracted from returns.

Performance Commentary - May 31, 2023

The Fund lagged the market a little in May, with a holding in respiratory products maker Fisher & Paykel and not holding accounting software provider Xero both detracting from returns. The portfolio benefitted from no exposure to gold miner Newcrest and overweight holdings in Lynas and Viva energy.

Performance Commentary - April 30, 2023

The Fund performed essentially in line with the market in April, and there were few companies of note on either side of the ledger; the only meaningful positive contributor was not owning diversified miner Rio Tinto; the only meaningful detractor was owning resource giant BHP.

Despite ongoing macro uncertainty, the portfolio has continued to exhibit better earnings revisions than its benchmark with March quarter updates from Brambles, Medibank Private and Woolworths some of the highlights. Indications of stronger-than-anticipated increases in mobile pricing plans across the telecom sector has also benefitted Telstra.

The mixed news out of China, especially the suggestion that there might be a Government-mandated cap on steel production, has seen weakness across the commodity price complex. The portfolio remains underweight this sector and we trimmed our iron ore exposure somewhat as near term earnings upside has become more limited.

Performance Commentary - March 31, 2023

The Fund performed a little better than the market over the March Quarter. The material contributors over the period were quite diverse: gaming company Aristocrat Leisure, health insurer Medibank Private, petrol distributor Viva Energy, packaging company Orora and pallet pool operator Brambles, although these were partially offset by our position in National Australia Bank and not owning gold miner Newcrest.

Performance Commentary - February 28, 2023

The Fund outperformed the market nicely in February, helped by strong returns from some of our key positions. The best contributors to overall performance came from health insurer Medibank Private, global insurer QBE, packaging company Orora, pallet mover Brambles Industries, gaming machine maker Aristocrat Leisure and insurance broker Steadfast. The only detractor of note was our position in BHP.

Alphinity Australian Share (PAM0001AU) Report & Performance