Zurich Investments Concentrated Global Growth aims to provide investors with long-term capital growth by investing in securities listed on international stock exchanges. The fund aims to outperform the MSCI World (ex-Australia) Accumulation Index in $A (net dividend reinvested) by 3% to 4% over periods of five or more years. The fund invests in a concentrated portfolio of securities with high growth potential that are primarily listed on international stock exchanges. The fund will be fully unhedged at all times, providing investors with exposure to foreign exchange fluctuations as well as underlying share movements.
The Fund fell with the market in the September quarter and was unable to outperform the Index return. The key positive contributors to included Novo Nordisk and Pioneer Natural Resources.
Novo Nordisk – The Danish pharmaceutical company’s popular treatments for diabetes and obesity continued to boost total revenues and, in turn, elevated the stock.
Pioneer Natural Resources – While the independent oil and gas company posted revenues that fell short of analysts’ expectations,
quarterly earnings surpassed, with oil production close to the top end of management’s estimated range.
The key detractors from performance included B3, AIA Group and Pernod Ricard.
B3-The securities and commodities exchange operator reported earnings where growth improved but investors remained concemed about the outlook on trading volumes. The long-term outlook for the stock is constructive and valuation remains attractive relative to its peers
AIA Group-Shares of this Hong Kong-based insurer remain depressed. The company has been reporting improvement in the value of new business booked, yet its stock continues to underperform. The overall bearishness around emerging markets stocks appears to be weighing on AIA shares as well.
Pemod Ricard-Shares of the spirits distributor of such brands as Mumm champagne and Absolut vodka moved lower on a mixed fiscal year report. While sales in China and the US are expected to decline, profits rose, and the dividend increased.
Notable purchases in the September quarter included Alphabet and NVIDIA while notable sales included Stellantis and AIA Group.
What is Zurich Investments Concentrated Glbl Gr Zurich Investments Concentrated Glbl Gr is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign 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 Zurich Investments Concentrated Glbl Gr has Assets Under Management of 55.63 M with a management fee of 1.1%, a performance fee of 0 and a buy/sell spread fee of 0.04%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Zurich Investments Concentrated Glbl Gr has returned 0.67% in the last month. The previous three years have returned 5.52% annualised and 12.07% each year since inception, which is when the Zurich Investments Concentrated Glbl Gr 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 Zurich Investments Concentrated Glbl Gr first started, the Sharpe ratio is 0.82 with an annualised volatility of 12.07%. The maximum drawdown of the investment product in the last 12 months is -5.48% and -18.15% 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 Zurich Investments Concentrated Glbl Gr has a 12-month excess return when compared to the Foreign Equity - Large Growth Index of -5.38% and 0.24% 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. Zurich Investments Concentrated Glbl Gr has produced Alpha over the Foreign Equity - Large Growth Index of -0.26% in the last 12 months and 0.06% since inception.
What are similar investment products?
For a full list of investment products in the Foreign Equity - Large Growth Index category, you can click here for the Peer Investment Report.
What level of diversification will Zurich Investments Concentrated Glbl Gr provide?
Zurich Investments Concentrated Glbl Gr has a correlation coefficient of 0.91 and a beta of 0.88 when compared to the Foreign 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 Zurich Investments Concentrated Glbl Gr and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Zurich Investments Concentrated Glbl Gr with the Developed -World Index?
For a full quantitative report on Zurich Investments Concentrated Glbl Gr compared to the Developed -World Index, you can click here.
Can I sort and compare the Zurich Investments Concentrated Glbl Gr to do my own analysis?
To sort and compare the Zurich Investments Concentrated Glbl Gr financial metrics, please refer to the table above.
Has the Zurich Investments Concentrated Glbl Gr 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 Zurich Investments Concentrated Glbl Gr?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Zurich Investments Concentrated Glbl Gr. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - August 31, 2023 The Fund produced a positive absolute return in August in Australian dollar terms but was unable to outperform the index return.
The key positive contributors to performance included Novo Nordisk, Pioneer Natural Resources and Avantor.
Novo Nordisk – The Danish pharmaceutical company’s popular treatments for diabetes and obesity continued to boost total revenues and, in turn, elevated the stock.
Pioneer Natural Resources – While the independent oil and gas company posted revenues that fell short of analysts’ expectations, quarterly earnings surpassed, with oil production close to the top end of management’s estimated range.
Avantor – Shares of this scientific and technical instruments company bounced back in August as investors took advantage of a period of underperformance. The long-term investment thesis remains constructive. The key detractors from performance included B3, Marvell Technology and Pernod Ricard.
B3 – The securities and commodities exchange operator reported earnings where growth improved but investors remained concerned about the outlook on trading volumes. The long-term outlook for the stock is constructive and valuation remains attractive relative to its peers.
Marvell Technology – Marvell, which offers data infrastructure solutions in networking and storage, among other areas, reported disappointing quarterly sales and profit margins. Despite the result, the company continues to stand to benefit from its position in artificial intelligence and other high-growth markets.
Pernod Ricard – Shares of the spirits distributor of such brands as Mumm champagne and Absolut vodka moved lower on a mixed fiscal year report. While sales in China and the US are expected to decline, profits rose, and the dividend increased.
Performance Commentary - July 31, 2023 The Fund produced a positive absolute return in July but was unable to keep pace with the strong index return.
The key positive contributors to performance included Stellantis, Hong Kong Exchanges & Clearing and Marvell Technology.
Stellantis – The automaker’s stock rose during the month after management announced revenues for the first half of 2023 that beat consensus forecasts. The company reiterated its guidance for the remainder of the year.
Hong Kong Exchanges & Clearing – Shares rebounded after a period of underperformance. The stock remains under pressure given the lackadaisical trading activity for Chinese equities. The long-term growth thesis for the company remains intact and is tied to the opportunities around Shanghai-Hong Kong Stock Connect, which links investors in Hong Kong and mainland China.
Marvell Technology – Shares of Marvell, which offers data infrastructure solutions in networking and storage, among other areas, have benefited from the surge in investor interest in companies positioned to profit from increased spending and reliance on artificial intelligence. The key detractors from performance included FMC, CoStar Group and SBA Communications.
FMC – This agricultural science company reduced its revenue forecast for the second quarter and full year of 2023, driving its share price lower. Execution has been very uneven, and the company has disappointed on earnings over the last few quarters.
CoStar Group – The company’s share price fell following management’s lowering of revenue projections for the remainder of 2023 amid a weakening commercial real estate market.
SBA Communications – Shares trended lower as investors worried about slower US organic growth driven by industry churn and debt refinancing headwinds.
Notable purchases in July included Danaher and Advanced Micro Devices.
Danaher provides tools, consumables and services to the biotechnology and health care industries. A position was initiated after the company reported earnings that beat consensus expectations. Despite uncertainty around an inflection in China’s biotech demand, Danaher’s long-term growth drivers are attractive.
Advanced Micro Devices was purchased as it is expected to benefit from continued market share gains driven by sales of server CPUs and the anticipated ramp-up in its new graphics processing unit offering. The long-term outlook for cloud computing with a focus on infrastructure to support artificial intelligence should drive growth for the company.
Performance Commentary - June 30, 2023 The Fund produced a solid absolute return in the June quarter but was unable to outperform the impressive index return.
The key individual contributors to performance included B3, Marvell Technology and CoStar Group.
B3 – Shares of this company boosted relative returns as B3 benefits from being the largest financial exchange operator in Brazil, where volatility continues to drive trading volumes.
Marvell Technology – Shares of Marvell rose following the release of quarterly earnings and revenues that beat consensus market expectations.
CoStar Group – This leading provider of real estate data and services recently raised its guidance for 2023.
The key individual detractors from performance included Catalent, MarketAxess Holdings and Hong Kong Exchanges & Clearing.
Catalent – The contract drugmaker weighed on performance after delaying its quarterly report twice. The company posted a decline in revenues, citing ongoing operational challenges. Full-year revenue guidance was also trimmed. The investment team fully exited the name during the quarter.
MarketAxess Holdings – Shares of the operator of bond trading platforms traded lower despite the company reporting solid volume statistics, including its best single day of credit volume and a solid rebound in new issuance in May.
Hong Kong Exchanges & Clearing – The Hong Kong-based bourse operator dampened relative returns. While global economic uncertainties have negatively impacted volumes, the company reported solid quarterly figures along with strategic initiatives to enhance operations.
Notable purchases in the quarter included Howmet Aerospace and ASML Holding while notable sales included HEICO.
Howmet Aerospace provides advanced engineered solutions for the aerospace and transportation industries. The company is a beneficiary of rising production rates at The Boeing Co. and Airbus. Given that a new management team has been restructuring the business, revenue growth is anticipated at high incremental margins.
ASML Holding was added to the portfolio on rising evidence that interest and demand trends in generative artificial intelligence will fuel incremental growth in the server/data centre market, which will in turn be a strong driver of future silicon wafer consumption. The company recently upgraded its end-market growth assumptions.
HEICO was fully exited with the proceeds used to invest in Howmet Aerospace. Shares of HEICO have rerated higher, and the potential risk/reward trade-off is less supportive.
Performance Commentary - May 31, 2023 The Fund produced a marginally positive return in May but was unable to outperform the index return.
The key positive contributors to performance included Marvell Technology, Workday and B3.
Marvell Technology – Shares of Marvell rose following the release of quarterly earnings and revenues that beat consensus market expectations. In addition, a peer company’s strong earnings guidance driven by artificial intelligence-related demand for semiconductor chips further buoyed Marvell stock.
Workday – The developer of cloud-based human capital management software aided relative results as earnings for the first quarter of fiscal year 2024 exceeded analysts’ expectations, fuelling stock gains.
B3 – The company benefits from being the largest financial exchange operator in Brazil, where volatility continues to drive trading volumes. The key detractors from performance included Catalent and FMC.
Catalent – The drugmaker’s stock declined after the company lowered its full-year net revenue and core profit forecasts, citing operational challenges. The stock was sold during the period.
FMC – Shares of the crop chemical company fell after management announced disappointing revenues and profit margins. Quarterly earnings, however, beat analysts’ expectations.
Notable purchases in May included London Stock Exchange and American Water Works.
London Stock Exchange’s earnings are expected to continue to improve as the business realises synergies from its Refinitiv acquisition. The company has benefited from secular growth trends around rising data consumption, and it is working to improve its product experience through cloud migration and integration with Microsoft.
American Water Works is the largest independent publicly traded water utility in the US and its valuation has materially improved. The company’s sustainable growth is benefiting from two secular trends, the aging of US water infrastructure and the ongoing consolidation of water utilities.
Performance Commentary - April 30, 2023 The Fund produced a positive return of 1.58% in April but was unable to keep pace with the strong index return. Calendar year-to-date, the Fund is marginally ahead of the strong index return.
The key positive contributors to performance included B3 and CoStar Group.
B3 – The Brazil-based financial exchange operator performed strongly as volatility continues to drive trading volumes. During the month, B3 and S&P Dow Jones Indices introduced the first two bond indices in a new series that will track corporate bonds in Brazil.
CoStar Group – The US-based provider of commercial real estate data reported quarterly earnings and revenues that exceeded analysts’ estimates, driving shares higher.
The key detractors from performance included Catalent, MarketAxess Holdings and NXP Semiconductors.
Catalent – The contract drugmaker’s stock declined after the company lowered sales expectations for 2023. Productivity challenges and higher costs at three of its plants drove the lowered estimates.
MarketAxess Holdings – Shares of the operator of bond trading platforms traded lower despite the company reporting monthly and quarterly credit volumes that improved versus the previous year.
NXP Semiconductors – Shares of the automotive chip designer and manufacturer moved lower amid relatively subdued revenue and earnings expectations for 2023. Flat automotive sales and an easing of chip shortages likely contributed to the anticipated slowdown in demand for NXP’s chips.
There were no new purchases or sales during April.
Performance Commentary - March 31, 2023 The Fund produced an impressive return in the March quarter and was significantly ahead of the index return. The key positive contributors to performance included Catalent, MarketAxess Holdings and Stellantis.
Catalent’s stock advanced after the company announced an expansion of its manufacturing partnership with COVID-19 vaccine maker Moderna.
MarketAxess Holdings advanced on the strength of quarterly earnings and revenues that beat analysts’ estimates. MarketAxess reported solid growth in its latest monthly credit volumes as well.
Stellantis recorded annual profit announced in February, with notable strength in sales of electric vehicles driving shares upward. B3 was a key detractor over the quarter. The Brazil-based securities and commodities exchange operator declined as management reported quarterly net profits below analysts’ estimates. The region’s macroeconomic environment, including high interest rates, led to higher expenses for the company.
Humana was added to the Fund during the quarter. Humana is a leading provider of health insurance in the U.S. We have initiated a position on evidence that the company has started to regain lost market share. Further, uncertainty around government reimbursement for Medicare Advantage has been clarified, thus removing an overhanging risk on the stock.
The investment team decided to fully exit Amazon given risks around near-term earnings growth. The company’s earnings profile is facing a combination of expense pressures at its online marketplace division and slowing demand at Amazon Web Services, its cloud computing segment.
The Fund continues to invest in companies where business fundamentals are improving and there is high conviction that improvement is sustainable. The investment team has a bias for companies that can deliver growth regardless of the cyclical environment and that benefit from idiosyncratic and/or secular tailwinds. Many companies have become less expensive and remain attractive, especially in an environment where economic growth will be increasingly challenged.
Performance Commentary - February 28, 2023 The Fund produced a solid return of 2.13% in Australian dollar terms and was marginally ahead of the index return. The key contributors included Catalent, Stellantis and Marvell Technology. Catalent – The contract drugmaker’s stock advanced after the company announced an expansion of its manufacturing partnership with COVID-19 vaccine maker, Moderna. Stellantis – The Netherlands-based automaker announced a record annual profit in February, with notable strength in sales of electric vehicles driving shares upward. Marvell Technology – Shares outperformed during the month as investors anticipated favourable earnings driven by 5G, automotive and cloud-related demand. Results from peers like NVIDIA also supported share price gains.
The key detractors from performance included B3, SBA Communications and Pioneer Natural Resources. B3 – Shares of the Brazil-based securities and commodities exchange operator declined as management reported quarterly net profits below analysts’ estimates. The region’s macroeconomic environment, including high interest rates, led to higher expenses for the company. SBA Communications – This real estate company owns and leases cell towers and distributed antenna systems. Management reported that quarterly funds from operations rose strongly but missed analysts’ estimates, though long-term growth trends remain intact. Pioneer Natural Resources – The independent oil and gas exploration company reported quarterly earnings that beat analysts’ estimates, while revenue fell short. Pioneer’s strong free cash flow, focus on returning capital to shareholders, along with an anticipated healthy oil market, should bode well for the stock. There were no new purchases or positions liquidated during the period.
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