AMP Capital Ethical Leaders International Share Fund invests globally via a multi-manager structure.
The Fund produced a negative absolute return in May, though outperformed the benchmark (before fees). In regard to our underlying managers, both Boston Partners and C Worldwide outperformed their respective benchmarks, though were negative in absolute terms as markets fell significantly.
Stock selection drove the outperformance, though asset allocation also assisted. The portfolio’s developed-market holdings, which make up around 90% of the portfolio, outperformed its emergingmarket holdings in both absolute and relative terms. On a regional basis, stock selection in the US was again the main driver of outperformance, while selection in Japan was the main detractor. On an industry sector basis, selection within health care was a major contributor, as many stocks within the sector outperformed amid further flight to defensives over the period. Being underweight (i.e., not owning) energy stocks again detracted, as the sector, while quite volatile over the period, continued to gain on the back high inflation levels and supply shortages driving energy prices up.
Of stocks held in the portfolio, top contributors included overweight holdings in Cigna, McKesson and Novo Nordisk. Shares in US based insurer, Cigna, rose (+20%) as the business confirmed rising earnings, with analysts expecting further growth ahead. Shares in US based pharmaceutical The Fund produced a negative absolute return in May, though outperformed the benchmark (before fees). In regard to our underlying managers, both Boston Partners and C Worldwide outperformed their respective benchmarks, though were negative in absolute terms as markets fell significantly.
Stock selection drove the outperformance, though asset allocation also assisted. The portfolio’s developed-market holdings, which make up around 90% of the portfolio, outperformed its emergingmarket holdings in both absolute and relative terms. On a regional basis, stock selection in the US was again the main driver of outperformance, while selection in Japan was the main detractor. On an industry sector basis, selection within health care was a major contributor, as many stocks within the sector outperformed amid further flight to defensives over the period. Being underweight (i.e., not owning) energy stocks again detracted, as the sector, while quite volatile over the period, continued to gain on the back high inflation levels and supply shortages driving energy prices up.
Of stocks held in the portfolio, top contributors included overweight holdings in Cigna, McKesson and Novo Nordisk. Shares in US based insurer, Cigna, rose (+20%) as the business confirmed distributor, McKesson, rose (+16%) amid a rising preference for defensive sectors over the period, as did shares in Danish pharmaceutical giant Novo Nordisk (+8%).
Top detractors included overweight holdings in ASML, Siemens and HCA Healthcare. Shares in Dutch semiconductor manufacturer ASML steadily fell through the period (-23%) amid a worsening global backdrop of ongoing supply issues and an increased likelihood of recession. Siemens shares fell (-21%), with the German engineering and manufacturing company ending the quarter by announcing a 2.8 billion euro write-down related to a fall in the value of Siemens Energy. HCA Healthcare shares fell significantly during the period (-27%), after the health facility operator announced first quarter results and forward guidance that disappointed the market.
What is AMP Capital Ethical Leaders Intl Shr A AMP Capital Ethical Leaders Intl Shr A is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Responsible 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 AMP Capital Ethical Leaders Intl Shr A has Assets Under Management of 275.70 M with a management fee of 1.13%, a performance fee of 0.00% and a buy/sell spread fee of 0.5%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the AMP Capital Ethical Leaders Intl Shr A has returned -2.92% in the last month. The previous three years have returned 6.81% annualised and 11.14% each year since inception, which is when the AMP Capital Ethical Leaders Intl Shr A 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 AMP Capital Ethical Leaders Intl Shr A first started, the Sharpe ratio is 0.36 with an annualised volatility of 11.14%. The maximum drawdown of the investment product in the last 12 months is -15.62% and -35.82% 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 AMP Capital Ethical Leaders Intl Shr A has a 12-month excess return when compared to the Foreign Equity - Large Responsible Index of 0.58% and -0.48% 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. AMP Capital Ethical Leaders Intl Shr A has produced Alpha over the Foreign Equity - Large Responsible Index of -0.03% in the last 12 months and -0.02% since inception.
What are similar investment products?
For a full list of investment products in the Foreign Equity - Large Responsible Index category, you can click here for the Peer Investment Report.
What level of diversification will AMP Capital Ethical Leaders Intl Shr A provide?
AMP Capital Ethical Leaders Intl Shr A has a correlation coefficient of 0.98 and a beta of 0.92 when compared to the Foreign Equity - Large Responsible 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 AMP Capital Ethical Leaders Intl Shr A and its peer investments, you can click here for the Peer Investment Report.
How do I compare the AMP Capital Ethical Leaders Intl Shr A with the Developed -World Index?
For a full quantitative report on AMP Capital Ethical Leaders Intl Shr A compared to the Developed -World Index, you can click here.
Can I sort and compare the AMP Capital Ethical Leaders Intl Shr A to do my own analysis?
To sort and compare the AMP Capital Ethical Leaders Intl Shr A financial metrics, please refer to the table above.
Has the AMP Capital Ethical Leaders Intl Shr A 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 AMP Capital Ethical Leaders Intl Shr A?
If you or your self managed super fund would like to invest in the AMP Capital Ethical Leaders Intl Shr A please contact 33 Alfred Street, Sydney via phone +61 2 8048 8162 or via email askamp@amp.com.au.
How do I get in contact with the AMP Capital Ethical Leaders Intl Shr A?
If you would like to get in contact with the AMP Capital Ethical Leaders Intl Shr A manager, please call +61 2 8048 8162.
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the AMP Capital Ethical Leaders Intl Shr A. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 2022 The Fund produced a negative absolute return in May, though outperformed the benchmark (before fees). In regard to our underlying managers, both Boston Partners and C Worldwide outperformed their respective benchmarks, though were negative in absolute terms as markets fell significantly.
Stock selection drove the outperformance, though asset allocation also assisted. The portfolio’s developed-market holdings, which make up around 90% of the portfolio, outperformed its emergingmarket holdings in both absolute and relative terms. On a regional basis, stock selection in the US was again the main driver of outperformance, while selection in Japan was the main detractor. On an industry sector basis, selection within health care was a major contributor, as many stocks within the sector outperformed amid further flight to defensives over the period. Being underweight (i.e., not owning) energy stocks again detracted, as the sector, while quite volatile over the period, continued to gain on the back high inflation levels and supply shortages driving energy prices up.
Of stocks held in the portfolio, top contributors included overweight holdings in Cigna, McKesson and Novo Nordisk. Shares in US based insurer, Cigna, rose (+20%) as the business confirmed rising earnings, with analysts expecting further growth ahead. Shares in US based pharmaceutical The Fund produced a negative absolute return in May, though outperformed the benchmark (before fees). In regard to our underlying managers, both Boston Partners and C Worldwide outperformed their respective benchmarks, though were negative in absolute terms as markets fell significantly. Stock selection drove the outperformance, though asset allocation also assisted. The portfolio’s developed-market holdings, which make up around 90% of the portfolio, outperformed its emergingmarket holdings in both absolute and relative terms. On a regional basis, stock selection in the US was again the main driver of outperformance, while selection in Japan was the main detractor. On an industry sector basis, selection within health care was a major contributor, as many stocks within the sector outperformed amid further flight to defensives over the period. Being underweight (i.e., not owning) energy stocks again detracted, as the sector, while quite volatile over the period, continued to gain on the back high inflation levels and supply shortages driving energy prices up. Of stocks held in the portfolio, top contributors included overweight holdings in Cigna, McKesson and Novo Nordisk. Shares in US based insurer, Cigna, rose (+20%) as the business confirmed distributor, McKesson, rose (+16%) amid a rising preference for defensive sectors over the period, as did shares in Danish pharmaceutical giant Novo Nordisk (+8%).
Top detractors included overweight holdings in ASML, Siemens and HCA Healthcare. Shares in Dutch semiconductor manufacturer ASML steadily fell through the period (-23%) amid a worsening global backdrop of ongoing supply issues and an increased likelihood of recession. Siemens shares fell (-21%), with the German engineering and manufacturing company ending the quarter by announcing a 2.8 billion euro write-down related to a fall in the value of Siemens Energy. HCA Healthcare shares fell significantly during the period (-27%), after the health facility operator announced first quarter results and forward guidance that disappointed the market.
Performance Commentary - March 31, 2022 The Fund produced a negative absolute return for the quarter and underperformed the benchmark (before fees). Boston Partners and C Worldwide both produced negative absolute returns and underperformed their respective benchmarks. Stock selection and asset allocation were both negative for the quarter. The portfolio’s developed- market holdings, which make up around 89% of the portfolio, underperformed its emerging-market holdings. On a regional basis, stock selection in the UK and Japan detracted, though selection in France and China was strong. On an industry sector basis, selection within healthcare was a significant positive contributor, while being underweight (i.e., not owning) energy sector stocks continued to detract, as the sector continued to gain on the back of continued high inflation levels, strong commodity prices and the war in Ukraine.
Performance Commentary - December 31, 2021 The Fund produced a strong absolute return, though slightly underperformed the benchmark (before fees) over the quarter. In regard to our two underlying managers, C Worldwide Ethical outperformed the benchmark, while Boston Partners underperformed, though both were solid in absolute returns.
Overall, the portfolio’s asset allocation was positive, though stock selection was negative. Developedmarket holdings, which make up around 90% of the portfolio, produced considerably stronger returns than our emerging-market holdings as emerging markets struggled more with inflation, commodity price volatility, and Chinese growth concerns. On a regional basis, the portfolio’s US holdings were the main detractor from the relative return, due to both selection and allocation. On an industry sector basis meanwhile, selection within information technology was the major detractor.
At a stock level, relative performance continued to be negatively impacted by the portfolio not owning some of the major US technology stocks which surged over the period, such as Apple, Tesla and Nvidia Corporation, an area where our managers don’t see much value. Apple (+25%) rose as the market welcomed speculation that the company was planning to release the next generation iPhone SE in the March 2022 quarter
Performance Commentary - June 30, 2021 The Ethical Leaders International Shares Fund slightly produced a strong absolute return despite slightly underperforming the benchmark over the June quarter. Sector allocation was the main contributor to the relative return, however, it was offset by stock selection, which contributed positively within industrials; with overweights to Owens Corning, Brenntag and Siemens adding the most value.
Conversely, stock selection in the information technology sector was the major detractor from relative performance, including underweights to Apple, PayPal and Shopify. Stock selection in health care and financials further detracted from performance. At the manager level, C Worldwide outperformed the Fund benchmark, whilst Lazard, Boston Partners and the Ethical Leaders Emerging Markets Fund underperformed. The overweight to emerging markets was a detractor, as emerging markets underperformed developed markets over the quarter.
Performance Commentary - March 31, 2021 The Ethical Leaders International Shares Fund produced a positive return and outperformed the benchmark over the period. Stock selection was the main contributor to performance, however, it was offset by the sector allocation decisions.
Stock selection was particularly strong within the information technology sector, including through an underweight to Apple along with overweights to Applied Materials, Concentrix and Synnex.
Stock selection in consumer discretionary and industrials further contributed to performance. Conversely, an underweight to the energy sector was the major detractor from relative performance, particularly as we don’t own ExxonMobil and Chevron. At an underlying manager level, Boston Partners and Lazard outperformed the Fund benchmark, whilst the Ethical Leaders Emerging Markets Fund and C Worldwide underperformed. An overweight to emerging markets was a detractor, as emerging markets underperformed developed markets over the month
Performance Commentary - December 31, 2020 The Ethical Leaders International Shares Fund produced a positive return and outperformed the benchmark over the December quarter. Stock selection contributed to performance, as did the sector allocation effect. Stock selection was particularly strong within information technology, including through overweights to Samsung Electronics, TSMC and Applied Materials.
Stock selection in consumer discretionary and health care further contributed to performance. Conversely, stock selection in the consumer staples sector was the major detractor from relative performance, including through overweights to Kimberly-Clark and Procter & Gamble. At the underlying manager level, Boston Partners and the Ethical Leaders Emerging Markets Fund outperformed the Fund benchmark, whilst Lazard and C Worldwide underperformed.
The overweight to emerging markets was a contributor, as emerging markets outperformed developed markets over the quarter.
Performance Commentary - September 30, 2020 The Ethical Leaders International Shares Fund produced another positive return, though underperformed the benchmark over the September quarter. Stock selection detracted from performance, while the sector allocation effect was neutral. Underweight exposure to the energy and utilities sectors contributed positively, as did stock selection within financials. Conversely, stock selection in the consumer discretionary sector was the major detractor from relative performance, including underweights to Tesla, Apple and Alibaba. The underweight to Tesla and Apple accounted for almost half of the underperformance for the quarter. Stock selection in communication services and industrials further detracted from performance. At the manager level, allocations to the Ethical Leaders Emerging Markets Fund and C Worldwide outperformed the Fund benchmark, whilst Boston Partners and Lazard underperformed. The overweight to emerging markets was a contributor, as emerging markets outperformed developed markets over the quarter.
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