Airlie Australian Share is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic 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 Airlie Australian Share has Assets Under Management of 45.00 M with a management fee of 0.78%, a performance fee of 0.00% and a buy/sell spread fee of 0.28%.
The recent investment performance of the investment product shows that the Airlie Australian Share has returned -0.15% in the last month. The previous three years have returned 8.37% annualised and 15.55% each year since inception, which is when the Airlie Australian Share first started.
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 Airlie Australian Share first started, the Sharpe ratio is NA with an annualised volatility of 15.55%. The maximum drawdown of the investment product in the last 12 months is -7.23% and -23.8% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
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 Airlie Australian Share has a 12-month excess return when compared to the Domestic Equity - Large Value Index of 3.84% and 2.71% since inception.
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. Airlie Australian Share has produced Alpha over the Domestic Equity - Large Value Index of NA% in the last 12 months and NA% since inception.
For a full list of investment products in the Domestic Equity - Large Value Index category, you can click here for the Peer Investment Report.
Airlie Australian Share has a correlation coefficient of 0.95 and a beta of 1.13 when compared to the Domestic 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.
For a full quantitative report on Airlie Australian Share and its peer investments, you can click here for the Peer Investment Report.
For a full quantitative report on Airlie Australian Share compared to the ASX Index 200 Index, you can click here.
To sort and compare the Airlie Australian Share financial metrics, please refer to the table above.
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.
If you or your self managed super fund would like to invest in the Airlie Australian Share please contact MLC Centre, Level 36, 19 Martin Place, Sydney NSW 2000 via phone 612 9235 4888 or via email -.
If you would like to get in contact with the Airlie Australian Share manager, please call 612 9235 4888.
SMSF Mate does not receive commissions or kickbacks from the Airlie Australian Share. All data and commentary for this fund is provided free of charge for our readers general information.
Over the quarter the performance of portfolio companies reflected the macro influences of strong performance from USA exposed cyclicals – Aristocrat, Reece, and James Hardie – as a potential pause in rate hikes would benefit the housing market. Meanwhile the poorer-performing portfolio holdings were mostly interest-rate sensitives – Charter Hall, Macquarie, NAB, and CBA – which also fell on worries of banking contagion and commercial real estate exposure.
The Airlie Australian Share Fund rose 8.7% for the quarter, underperforming the ASX200 index by 0.7% net of fees. Contributors to performance included PWR Holdings and EBOS Group. EBOS Group is Australia’s largest pharmacy wholesaler, and also owns a pet food business and distributes medical devices. We recently attended EBOS’ investor day in Melbourne in November, which coincided with the company’s 100th year of corporate history. We’d always put EBOS in the “under the radar” camp, a quietly-achieving company with a really solid track record of returns and earnings growth. However the very well-attended investor day, and subsequent strong performance of the share price over the quarter (+18%) has made it clear to us that this stock is very much on the radar, possibly over the radar. We have trimmed our position on valuation grounds, however it remains a core holding.
Our two largest detractors for the quarter were James Hardie and Medibank Private. While we were aware that we were effectively “taking the cycle on” in investing in James Hardie as the US housing market turned, we felt the valuation compensated for this. We also believed a sizeable backlog of activity would delay the coming earnings decline. We got this last part wrong, and were surprised by the speed with which a decline in new housing activity is being felt within the Hardie’s business, as evidenced by the November earnings downgrade. That said, after a 10% share price drop in the quarter, we feel the narrative of a sharp decline in US housing activity is factored into the current share price (if not consensus estimates which still look stubbornly high to us).
The cyber incident at Medibank Private totally sideswiped us, as is the nature of these incidents. However, the strength of the balance sheet (net cash and with surplus capital), and favourable underlying trends in private health insurance gave us conviction to add to our positions while the headlines were very ugly. While it remains to be seen how many people switch as a result of the cyber incident, in our minds inertia is a powerful force.
The Airlie Australian Share Fund rose 4.15% in the September quarter, an excess return of 3.76% after fees vs the S&P ASX200 index, which returned 0.39%. The flat performance of the benchmark belies another extraordinarily volatile quarter for equity and debt markets- the ASX200 traded a 20% high/low range, whilst the Australian 10-year government bond traded in a 106bp range.
Overall, the portfolio saw a sizeable rebound for most holdings from the very weak June quarter. Key portfolio moves include:
A big quarter for lithium as the market re-rated all names due to prolonged strong pricing for spodumene and lithium hydroxide. Portfolio holding Mineral Resources (+36%) also benefited from a mooted potential spin-out of its lithium assets into a separate vehicle.
PWR Holdings rose 35% in the quarter, with a cracking FY22 result highlighting incredible growth in the emerging technologies division.
Consumer discretionary stocks in the portfolio rebounded strongly led by Premier Investments (+17%) – as it reported a strong 2H22 profit result. Nick Scali (+12%) and Wesfarmers (+2%) also produced very solid profit results. Consumer spending has been remarkably resilient despite the rapid increase in mortgage rates. Obviously, this is not expected to last, however the rebound over the quarter shows what can happen when results are ‘less bad’ than expected.
The Airlie Australian Share Fund fell 14.5% in the June quarter whilst the benchmark (the S&P ASX 200 Index) was down 11.9%. A disappointing quarter for the Fund. Historically we’d expect to outperform in such a hefty down market given our focus on financial strength and business quality – attributes that usually prove resilient in times of market stress. However, our underweight in the Energy sector and overweight in Consumer Discretionary caused the underperformance. Despite being on the wrong side of the current ‘macro’ influences we can make a solid case for all our individual portfolio holdings.
The Airlie Australian Share Fund (‘Fund’) fell 2.1% over the March quarter while the benchmark (the S&P/ASX 200 Accumulation Index) was up 2.2%. For the 12 months to March 2022, the Fund returned +20.6% (after fees) versus the benchmark’s rise of 15.0%. For the March 2022 quarter, being underweight resources, particularly energy, was a major cause of the divergence between fund performance and benchmark.
The best performing stocks in the Fund included:
• BHP (+25%) – Due to strong iron ore, copper, and oil prices. Also, positive index effects of unification of the company’s Australian and UK registers.
• PWR Holdings (+10%) – Solid profit result and outlook.
• National Australia Bank (+12%) – Turnaround of the franchise continues. Solid asset growth and margin outcomes.
• Northern Star (+14%) – Gold price rally on the invasion of Ukraine.
For the quarter the portfolio holdings that detracted were:
• James Hardie Industries (-27%) – Fears of the super cycle in US housing coming to a rapid end as mortgage rates shift higher.
• Aristocrat Leisure (-16%) – Fears of a looming recession in the US as the Fed hikes rates to combat inflation.
• Nick Scali Furniture (-26%) – Reversal from previous strong quarter as slowdown in consumer spending expected.
• Mineral Resources (-6%) – Disappointing 1H22 profit result due to higher costs in the iron ore business.
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