AMP Capital Specialist Australian Share Fund aims to provide a total return (income and capital growth), after costs and before tax, above the Fund’s performance benchmark on a rolling 3 year basis.
The Fund produced a strong positive return for the quarter, though underperformed the benchmark.
Underlying manager returns were mostly strong in absolute terms, though mostly underperformed the market. Allan Gray was the standout best performer. The Fund continues to outperform its benchmark over the longer-term, including over 3 and 5 years, and since inception (all returns before fees).
Stock selection and asset allocation both contributed negatively over the quarter. The portfolio’s small cash holding (circa 3%) also slightly reduced the relative performance as stocks rallied over the period.
Significant contributors to the relative return included overweight holdings in Stanmore Resources, Virgin Money UK and QBE Insurance Group. Shares in Coal mining company Stanmore Resources continued to surge over the quarter (+37%) in line with ongoing high coal prices. UKbased financial company Virgin Money UK shares rose (+57%) over the quarter, as the company reported a strong earnings result and a rising profit margin. Shares in Insurance company QBE meanwhile pushed steadily higher (+16%) as gross written premiums increased.
Significant detractors from the relative return included underweight holdings in BHP, Commonwealth Bank and Fortescue Metals. While the portfolio has significant holdings in these stocks, they reduced the relative return, given strong individual price performances. Shares in BHP rose over the quarter (+18%), helped by strength in metal prices as China began to ease its COVID restrictions. Shares in Fortescue Metals (+22%) also benefited from this dynamic over the period. Finally, shares in Commonwealth bank rose over the period (+13%) on optimism around profit margins as interest rates continued to rise.
What is AMP Capital Specialist AUS Shr WT AMP Capital Specialist AUS Shr WT is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Large Cap Passive 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 Specialist AUS Shr WT has Assets Under Management of 835.09 M with a management fee of 0.8%, 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 AMP Capital Specialist AUS Shr WT has returned 6.91% in the last month. The previous three years have returned 7.23% annualised and 13.64% each year since inception, which is when the AMP Capital Specialist AUS Shr WT 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 Specialist AUS Shr WT first started, the Sharpe ratio is 0.44 with an annualised volatility of 13.64%. The maximum drawdown of the investment product in the last 12 months is -8.4% and -47.11% 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 Specialist AUS Shr WT has a 12-month excess return when compared to the Domestic Equity - Large Cap Passive Index of 0.58% and 0.02% 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 Specialist AUS Shr WT has produced Alpha over the Domestic Equity - Large Cap Passive Index of 0.02% in the last 12 months and 0.01% since inception.
What are similar investment products?
For a full list of investment products in the Domestic Equity - Large Cap Passive Index category, you can click here for the Peer Investment Report.
What level of diversification will AMP Capital Specialist AUS Shr WT provide?
AMP Capital Specialist AUS Shr WT has a correlation coefficient of 0.99 and a beta of 1.04 when compared to the Domestic Equity - Large Cap Passive 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 Specialist AUS Shr WT and its peer investments, you can click here for the Peer Investment Report.
How do I compare the AMP Capital Specialist AUS Shr WT with the ASX Index 200 Index?
For a full quantitative report on AMP Capital Specialist AUS Shr WT compared to the ASX Index 200 Index, you can click here.
Can I sort and compare the AMP Capital Specialist AUS Shr WT to do my own analysis?
To sort and compare the AMP Capital Specialist AUS Shr WT financial metrics, please refer to the table above.
Has the AMP Capital Specialist AUS Shr WT 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 Specialist AUS Shr WT?
If you or your self managed super fund would like to invest in the AMP Capital Specialist AUS Shr WT 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 Specialist AUS Shr WT?
If you would like to get in contact with the AMP Capital Specialist AUS Shr WT manager, please call +61 2 8048 8162.
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the AMP Capital Specialist AUS Shr WT. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - September 30, 2022 The Fund produced a positive return for the September quarter and outperformed the benchmark (before fees). Underlying manager returns was mixed. ECP and Macquarie solidly outperformed, while Alphinity and Allan Gray produced negative returns. The Fund continues to outperform its benchmark over the longer-term, including over 3 and 5 years, and since inception (all returns before fees).
Asset allocation contributed positively, while overall stock selection detracted. Stock selection in consumer discretionary however was particularly strong and contributed positively, as did the portfolio’s small cash holding (circa 6%).
Significant contributions to relative return came from overweight holdings in Lovisa Holdings, Ansell and Megaport. Shares in fashion and jewellery retailer Lovisa rose (+56%) on surging earnings. Industrial and medical glove manufacturer Ansell shares rose (+15%) over the quarter, particularly in the period leading up to their August earnings report, which showed a fall in profit as expected due to falling glove sales as the COVID pandemic faded, though positive signs for the future including rising margins and cash conversion. Shares in technology company Megaport rose significantly (+43%) on the back of strong earnings reported earlier in the period.
Significant detractors from the relative return included overweights to Newcrest Mining, Alumina and Costa Group. Shares in gold miner Newcrest Mining steadily fell over the quarter (-18%), as the gold price fell further despite continued high inflation. Alumina shares also fell (-10%) amid falling commodity prices and rising costs. Horticulture and produce supplier, Costa Group, meanwhile fell (-20%) on the surprise announcement of its CEO’s departure in late September.
Performance Commentary - June 30, 2022 The Fund posted a negative return in the June quarter, underperforming the benchmark (before fees). Our underlying managers’ performance was mixed in relative terms, though all struggled in absolute terms amid broad market falls. Alphinity and Macquarie (formerly managed by AMP Capital) outperformed, while Allan Gray and ECP underperformed. Overall, the Fund continues to outperform its benchmark over the longer term, including over 2, 3 and 5 years, and since inception (all returns before fees).
Stock selection was negative for the quarter, though allocation was positive. An overweight to energy stocks aided the relative return as the sector outperformed on the back of strong price rises.
Significant contributions to relative return came from overweight holdings in QBE, Woodside Energy and Worley. QBE shares rose (+6%) over the period, as insurance rate increases continued to flow through to earnings despite increased broader economic uncertainty. Woodside Energy shares closed the quarter slightly lower (-1%), though significantly outperformed the broader market, buoyed by sentiment towards the energy sector. Worley shares meanwhile gained (+10%) over the quarter, helped by the announcements of new contracts and agreements. The portfolio’s small cash allocation also contributed positively amid falling markets.
Performance Commentary - March 31, 2022 The Fund posted a positive return in the March quarter and outperformed the benchmark (before fees). Our underlying managers generally posted solid performance, with Allan Gray again being the standout performer. Overall, the Fund continues to outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception (all returns before fees).
Sector allocation was the prime driver of the outperformance, while stock selection was negative. Selection was strong in the energy sector, though week in financials. An overweight exposure to energy was the largest contributor to the outperformance.
The top individual contributors to the relative return were overweight exposures to Woodside Petroleum and Sims. Shares in petroleum explorer and producer, Woodside, soared over the quarter (+54.0%), as the oil price reached multi-year highs on the back of the Russia-Ukraine conflict. Global recycling company Sims’ shares meanwhile spiked (+37.1%) on the release of a stellar earnings report mid quarter, indicating strong cash flow and net profit growth.
Performance Commentary - December 31, 2021 The Fund posted a positive return, though underperformed the benchmark for the quarter (before fees). Our underlying managers posted mixed returns, with Alphinity the strongest performer. Overall, the Fund continues to outperform its benchmark over the longer term, including over 2, 3 and 5 years, and since inception (all returns before fees). Stock selection and sector allocation both detracted from the quarter’s relative return. Selection in the materials sector was a significant detractor from the relative return, though positive selection in information technology offset some of this. Regarding sector allocation, an overweight exposure to energy and an underweight exposure to real estate detracted, while an overweight exposure to materials added some value. Significant individual contributors to the relative return came from underweight exposures to Westpac and Commonwealth Bank and an overweight holding in Sims. Westpac and Commonwealth Bank both fell over the period (- 15.70% and -3.19% respectively) on news of falling net interest margins amid tough competition for mortgages combined with a deteriorating market outlook for housing prices. Inflation fears also likely added to volatility for financials. Metal recycling company, Sims, was up strongly over the quarter (+23.38%) as the company announced a buyback during the period, as well as some significant sales and acquisitions.
Performance Commentary - June 30, 2021 The Fund posted a strong positive return but underperformed its benchmark over the June quarter. All of the Fund’s four underlying managers posted positive returns, and ECP, Alphinity and AMP Capital outperformed their respective benchmarks. The Fund continues to outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years and since inception (all returns before fees). Both stock selection and sector allocation detracted modestly from relative returns.
Regarding sector allocation, the main detractors were a holding of cash, as the market rose strongly, and an overweight exposure to energy. These were partially mitigated by the main positive contributors which were underweight exposures to industrials and utilities. Regarding stock selection, by far the main detractors were positions in materials and consumer staples stocks, while the main positive contributors were positions in financials, health care and information technology stocks.
Performance Commentary - March 31, 2021 The Fund posted a positive return but modestly underperformed its benchmark over the March quarter. Three of the Fund’s four underlying managers posted positive returns and Allan Gray, Alphinity and AMP Capital outperformed their benchmarks. The Fund continues to outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years and since inception (all returns before fees). Stock selection was the main reason for the Fund’s underperformance, while sector allocation contributed positively to relative returns. Regarding sector allocation, the main contributors to relative returns were underweight exposures to real estate, industrials and utilities, while the main detractors were an overweight exposure to information technology and an underweight exposure to communication services
Performance Commentary - December 31, 2020 The Fund posted a strong absolute return and outperformed its benchmark over the quarter. All of the Fund’s four underlying managers posted positive absolute returns and Allan Gray strongly outperformed its benchmark. The Fund continues to outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years and since inception (all returns before fees).
Sector allocation was the main driver of the Fund’s outperformance, while stock selection slightly detracted from relative returns. Regarding sector allocation, the main contributors to relative returns were underweight exposures to industrials and utilities, and an overweight exposure to energy. Meanwhile, by far the main detractor from relative returns was a cash holding, as the share market rallied strongly.
Regarding stock selection, the main detractors from relative returns were positions in information technology and financials, while the main contributors were positions in materials, health care and communication services.
The largest individual detractors from relative returns were overweight positions in Newcrest Mining, Magellan Financial Group and a2 Milk. Gold mining company Newcrest Mining declined (- 17.5%) as positive vaccine news boosted sentiment and weighed on the prices of safe-haven assets, such as gold. Financial services company Magellan Financial Group slumped (-5.3%) as its managed funds have underperformed recently and milk producer a2 Milk fell sharply (-18.5%) after it downgraded its earnings guidance.
The largest individual contributors to relative returns were overweight positions in Sims and NUIX and an underweight position in CSL. Metals recycling company Sims soared (+77.4%) as scrap metal prices are expected to increase over the next year as governments around the world undertake metalintensive infrastructure spending to stimulate economic recovery. Investigative analytics and intelligence software provider NUIX also soared (+70.6%) following its initial public offering. Meanwhile, global biotechnology company CSL waned (-1.3%) after announcing it would abandon the next phase of trials for its COVID-19 vaccine which was being developed by the University of Queensland
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