The Acadian Wholesale Sustainable Global Equity Fund (the Fund) uses quantitative modelling and fundamental insights to identify socially responsible global equity stocks and reduce exposure to carbon intensive companies. The investment approach is both multi-faceted and highly adaptable, which allows Acadian to take advantage of attractive stocks opportunities as they arise. Acadian casts a wide net to discover the most attractive investment opportunities for inclusion in the portfolio, analysing more than 40,000 stocks daily.
The Portfolio returned 0.85%, 22.39%, 9.67% and 12.32% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of -0.43%, 21.64%, 9.79% and 12.48% for the MSCI World ex-AU (net) benchmark. Stock selection contributed to returns and country allocations were positive. Key sources of positive active returns included stock selection in the United States, an opportunistic exposure to Taiwan, and a combination of stock selection and an overweight position in Denmark. Leading advances within these markets respectively included a position in Booking Holdings, a holding in Wistron, and an investment in Novo Nordisk. Detractors included a combination of stock selection and an overweight position in Germany, a combination of stock selection and an underweight position in Japan, and an opportunistic exposure to China. Leading declines within these markets in turn included a position in Siemens, a holding in Rohm, and an investment in G-bits Network Tec A CNY1.*
Key Holdings2
Positive
‐ Our off-benchmark exposure to Wistron Corp., a Taiwan-based electronics manufacturer, was rewarded with 40 basis points of active returns as share prices rose 22.3% during the quarter. The companies been benefiting from increased investment in emerging technologies such as AI, green energy, and Industry 4.0.
Negative
‐ Our overweight to Fortinet, Inc., a provider of cybersecurity and networking solutions, cost the portfolio 30 basis points of active returns as share prices tumbled 21.6% during the period. The company has been reeling from weak macroeconomic conditions and recessionary fears which have negatively impacted its sales growth.
What is Acadian Sus Wholesale Glb Equity Acadian Sus Wholesale Glb Equity is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Value 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 Acadian Sus Wholesale Glb Equity has Assets Under Management of 48.48 M with a management fee of 0.98%, a performance fee of 0.00% and a buy/sell spread fee of 0.14%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Acadian Sus Wholesale Glb Equity has returned 1.41% in the last month. The previous three years have returned 13.65% annualised and 11.66% each year since inception, which is when the Acadian Sus Wholesale Glb Equity 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 Acadian Sus Wholesale Glb Equity first started, the Sharpe ratio is 0.43 with an annualised volatility of 11.66%. The maximum drawdown of the investment product in the last 12 months is -5.03% and -46.98% 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 Acadian Sus Wholesale Glb Equity has a 12-month excess return when compared to the Foreign Equity - Large Value Index of 6.32% and -0.05% 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. Acadian Sus Wholesale Glb Equity has produced Alpha over the Foreign Equity - Large Value Index of 0.68% in the last 12 months and 0.03% since inception.
What are similar investment products?
For a full list of investment products in the Foreign Equity - Large Value Index category, you can click here for the Peer Investment Report.
What level of diversification will Acadian Sus Wholesale Glb Equity provide?
Acadian Sus Wholesale Glb Equity has a correlation coefficient of 0.9 and a beta of 0.82 when compared to the Foreign Equity - Large Value 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 Acadian Sus Wholesale Glb Equity and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Acadian Sus Wholesale Glb Equity with the Developed -World Index?
For a full quantitative report on Acadian Sus Wholesale Glb Equity compared to the Developed -World Index, you can click here.
Can I sort and compare the Acadian Sus Wholesale Glb Equity to do my own analysis?
To sort and compare the Acadian Sus Wholesale Glb Equity financial metrics, please refer to the table above.
Has the Acadian Sus Wholesale Glb Equity 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 Acadian Sus Wholesale Glb Equity?
If you or your self managed super fund would like to invest in the Acadian Sus Wholesale Glb Equity please contact Tower 1, Ground Floor, 201 Sussex St,Sydney, NSW, 2000 via phone +61 2 93782000 or via email -.
How do I get in contact with the Acadian Sus Wholesale Glb Equity?
If you would like to get in contact with the Acadian Sus Wholesale Glb Equity manager, please call +61 2 93782000.
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Acadian Sus Wholesale Glb Equity. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 2023 The Portfolio returned 6.53%, 23.28%, 11.50% and 12.72% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of 7.63%, 22.59%, 11.46% and 13.17% for the MSCI World ex-AU (net) benchmark. Stock selection detracted from returns, while the country allocations were positive. Key sources of negative active return included a combination of stock selection and an underweight position in the United States, a combination of stock selection and an overweight position in Denmark, and opportunistic exposure to China. Leading declines within these markets respectively included a position in Valero Energy, a holding in AP Moller – Maersk, and an investment in G-bits Network Tec A CNY1. Contributors included opportunistic exposure to Taiwan, a combination of stock selection and an underweight position in Hong Kong, and stock selection in Spain. Leading advances within these markets in turn included a position in Wistron, a holding in IGG, and an investment in Industria de Diseno Textil.*
Performance Commentary - March 31, 2023 The Portfolio returned 10.57%, 6.75%, 11.41% and 13.75% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of 9.20%, 4.31%, 11.02% and 13.95% for the MSCI World ex-AU (net) benchmark. Stock selection contributed to returns and country allocations were positive. Key sources of positive active returns included stock selection in the United States, an opportunistic exposure to China, and stock selection in France. Leading advances within these markets respectively included a position in Cadence Design Systems, a holding in 360 Security Technology, and an investment in STMicroelectronics. Detractors included a combination of stock selection and an overweight position in Norway, stock selection in the United Kingdom, and stock selection in Germany. Leading declines within these markets in turn included a position in Equinor, a holding in Johnson Matthey, and an investment in Deutsche Bank.*
Key Holdings2
Positive
‐ Our overweight to STMicroelectronics N.V., a designer and manufacturer of semiconductor products, was rewarded with 40 basis points of active return as share prices rallied 50.2% over the quarter. The company expects first quarter net revenues to increase 18.5% year-over-year to $4.2 billion. It has been benefiting from strength in its automotive and industrial infrastructure segments.
Negative
‐ Our underweight to NVIDIA Corp., an artificial intelligence computing company, cost the portfolio 54 basis points of active return as share prices rallied 87.4% over the quarter. The company has been benefiting from growth opportunities in ray-traced gaming, rendering, high-performance computing, AI and self-driving cars. A surge in Hyperscale demand also boosted its shares.
Performance Commentary - December 31, 2022 The Portfolio returned 3.02%, -11.08%, 9.01% and 13.12% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of 3.95%, -12.52%, 9.25% and 13.74% for the MSCI World ex-AU (net) benchmark. Stock selection detracted from returns while the country allocations were positive. Key sources of negative active returns included a combination of stock selection and an underweight position in France, stock selection in Switzerland, and a combination of stock selection and an underweight position in Japan. Leading declines within these markets respectively included a lack of exposure to TotalEnergies, a holding in Roche Holding, and an investment in eRex. Contributors included an overweight position in Denmark, an overweight position in Austria, and a combination of stock selection and an underweight position in Canada. Leading advances within these markets in turn included a position in Novo Nordisk, a holding in OMV, and an investment in Fairfax Financial Holdings.*
Key Holdings2
Positive
‐ Our underweight to Tesla Inc., an EV maker, was rewarded with 71 basis points of active return as share prices declined 54.1% over the quarter. Tesla’s Q4 EV delivery data disappointed, falling short of expectations and weighed on the stock. The company made 405,278 deliveries in the period, compared to the consensus estimate of around 427,000 deliveries.
Negative
‐ Our out of benchmark exposure to Yelp Inc., operator of an online platform that connects consumers with local businesses, cost the portfolio 27 basis points of active return as share prices declined 20.3% in the period. A slowing economy and supply-chain constraints have been weighing on the stock. Increasing competition from Google and lack of revenue diversification are other concerns for the company.
Performance Commentary - September 30, 2022 For the third quarter, the portfolio outperformed its benchmark2 by 1.5%. Gains were realised from prudent stock selection while country allocations were negative. Key sources of positive active return included stock selection in the United States, stock selection in Germany, and a combination of stock selection and an overweight position in the Netherlands. Leading advances within these markets respectively included a position in Molina Healthcare, a holding in Merck, and an investment in Wolters Kluwer. Detractors included stock selection in the United Kingdom, an opportunistic exposure to China, and a combination of stock selection and an overweight position in Denmark. Leading declines within these markets in turn included a position in GSK, a holding in Orient Overseas International, and an investment in AP Moller – Maersk.
Performance Commentary - June 30, 2022 For the second quarter, the portfolio outperformed its benchmark2 by 0.9%. Gains were realized from a combination of stock selection and country allocations. Key sources of positive active return included a combination of stock selection and an underweight position in the United States, an opportunistic exposure to Thailand, and stock selection in Japan. Leading advances within these markets respectively included a position in McKesson, a holding in PTT Exploration & Production, and an investment in Mitsubishi Electric. Detractors included a combination of stock selection and an underweight position in the United Kingdom, a combination of stock selection and an underweight position in France, and stock selection in Switzerland. Leading declines within these markets in turn included a position in Greggs, a holding in STMicroelectronics, and a lack of exposure to Nestle.
Performance Commentary - March 31, 2022 For the first quarter, the portfolio outperformed its benchmark2 by 0.7%. Gains were realized from a combination of stock selection and country allocations. Key sources of positive active return included an opportunistic exposure to Brazil, stock selection in Israel, and a combination of stock selection and an overweight position in Norway. Leading advances within these markets respectively included a position in Energisa, a holding in Zim Integrated Shipping Ord Shs, and an investment in Equinor. Detractors included stock selection in the United States, a combination of stock selection and an underweight position in the United Kingdom, and a combination of stock selection and an underweight position in Canada. Leading declines within these markets in turn included a position in Bio-Rad Laboratories, a holding in Greggs, and a lack of exposure to Canadian Natural Resources.
Performance Commentary - December 31, 2021 For the fourth quarter, the portfolio outperformed its benchmark3 by 0.1%. Gains realised from stock selection were somewhat offset by negative payoffs from country allocations. Key sources of positive active return included stock selection in Denmark, stock selection in Israel, and a combination of stock selection and an underweight position in Germany. Leading advances within these markets respectively included a position in AP Moller – Maersk, a holding in ZIM Integrated Shipping Services Ord Shs, and a lack of exposure to BASF. Detractors included opportunistic exposure to South Korea, opportunistic exposure to China, and a combination of stock selection and an overweight position in Italy. Leading declines within these markets in turn included a position in Shinhan Financial Group, a holding in Sansteel Minguang, and an investment in Eni.
Key Holdings
Positive:
‐ Our overweight exposure to Accenture PLC, a global professional services company, was rewarded with 32 basis points of active return. Share prices climbed on a series of positive developments, most notably, the publication of highly favorable financial results for the quarter ending Nov. 30, 2021, which included a 27% increase in revenue over the same period last year. Also on a positive note, Accenture PLC was awarded a seven-year, $87 million contract by the U.S. Patent and Trademark Office and acquired Japan-based, integrated commerce services provider Tambourine.
Negative:
‐ Our underweight exposure to Nvidia Corp, an artificial intelligence computing company, cost the portfolio 41 basis points of active return as share prices surged 42% over the quarter. Record third quarter fiscal 2022 results boosted share prices. Highlights included a 50% jump in revenues from the same period one year earlier and a 9% hike from the previous quarter. The favorable outcome was largely driven by robust gains from the company’s Gaming, Data Center, and Professional Visualization market platforms
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