AMP Capital Specialist Australian Small Companies Fund provides a sensible exposure to domestic small-cap equities. It’s aiming to provide total returns (income and capital growth) after costs and before tax, above the performance benchmark on a rolling 3 year basis.
The Fund posted a positive return and underperformed its benchmark over the December quarter. There was significant divergence in the Fund’s underlying managers’ performance. All four managers gained ground as well as underperforming the benchmark return, with Eiger and Elly Griffiths faring the best on a relative basis.
The Fund continues to outperform its benchmark over the longer term, including over 3 and 5 years, and since inception.
Sector allocation as well as stock selection hampered the relative returns during the period.
Regarding sector allocation, the main detractors were the underweight exposures to materials and real estate and overweight position in IT. The main contributor was an underweight exposure to financials.
Turning to stock selection, the Fund’s positions in most sectors detracted from returns, with positions in consumer discretionary, health care and communication services accounting for most of the underperformance. On the flipside, IT stock positions were strong contributors.
The largest individual contributor to relative performance was the overweight holding in workforce productivity software supplier Nitro Software (+38%), which saw its share price surge following a takeover bid by Potentia Capital which then drew a high counter-bid from KKR-owned US productivity company Alludo. Other major contributors included nil positions in lithium producer ioneer Ltd (-40%) and investment manager Magellan Financial Group (-21%).
The largest individual detractor from relative performance was the overweight holding in gas producer Cooper Energy (-27%). The company’s share price came under pressure alongside others in the local gas industry after the government passed legislation imposing temporary price caps on gas and coal in response to soaring gas prices.
What is AMP Capital Specialist AUS Small Coms A AMP Capital Specialist AUS Small Coms A is an Managed Funds investment product that is benchmarked against ASX Index Small Ordinaries Index and sits inside the Domestic Equity - Small Cap 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 Small Coms A has Assets Under Management of 319.30 M with a management fee of 1.13%, a performance fee of 0.00% and a buy/sell spread fee of 0.6%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the AMP Capital Specialist AUS Small Coms A has returned 7.75% in the last month. The previous three years have returned 1.66% annualised and 17.85% each year since inception, which is when the AMP Capital Specialist AUS Small Coms 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 Specialist AUS Small Coms A first started, the Sharpe ratio is 0.28 with an annualised volatility of 17.85%. The maximum drawdown of the investment product in the last 12 months is -9.81% and -61.25% 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 Small Coms A has a 12-month excess return when compared to the Domestic Equity - Small Cap Index of -2.22% and -1.39% 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 Small Coms A has produced Alpha over the Domestic Equity - Small Cap Index of -0.25% in the last 12 months and -0.17% since inception.
What are similar investment products?
For a full list of investment products in the Domestic Equity - Small Cap Index category, you can click here for the Peer Investment Report.
What level of diversification will AMP Capital Specialist AUS Small Coms A provide?
AMP Capital Specialist AUS Small Coms A has a correlation coefficient of 0.98 and a beta of 1.1 when compared to the Domestic Equity - Small Cap 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 Small Coms A and its peer investments, you can click here for the Peer Investment Report.
How do I compare the AMP Capital Specialist AUS Small Coms A with the ASX Index Small Ordinaries Index?
For a full quantitative report on AMP Capital Specialist AUS Small Coms A compared to the ASX Index Small Ordinaries Index, you can click here.
Can I sort and compare the AMP Capital Specialist AUS Small Coms A to do my own analysis?
To sort and compare the AMP Capital Specialist AUS Small Coms A financial metrics, please refer to the table above.
Has the AMP Capital Specialist AUS Small Coms 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 Specialist AUS Small Coms A?
If you or your self managed super fund would like to invest in the AMP Capital Specialist AUS Small Coms 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 Specialist AUS Small Coms A?
If you would like to get in contact with the AMP Capital Specialist AUS Small Coms A 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 Small Coms A. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - September 30, 2022 The Fund posted a positive return and comfortably outperformed its benchmark over the September quarter. There was significant divergence in returns in the Fund’s underlying managers, with two of the Fund’s four managers gaining ground. Eiger was the standout performer and Elly Griffiths also added significant value with each also exceeding the benchmark return. The Fund continues to outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception. (All returns are before fees.) Sector allocation as well as stock selection contributed to relative returns. Regarding sector allocation, most of the Fund’s positions enhanced returns, with the main contributors being the underweight exposure to real estate and overweight positions in energy (the best performing sector during the period) and industrials. There were no material detractors.
Turning to stock selection, the Fund’s positions in all sectors contributed except for exposures within health care and industrials. Stocks held in materials accounted for most of the outperformance, with IT, real estate, financials and communication services stocks also adding to relative returns.
The largest individual contributor to relative performance was the nil position in lithium and tin explorer AVZ Minerals (-100%), with the extended ongoing voluntary share trading halt relating to its mining and exploration rights for the Manono Lithium and Tin Project in the Congo also seeing its removal from the ASX300 market index. Other major contributors included stellar performers lithium and tantalite miner Pilbara Minerals (+99%) and location-based service provider Life360 (+74%).
The largest individual detractor from relative performance was the underweight position in Liontown Resources. The lithium producer (+41%) saw its share price continue to be buoyed by the ongoing demand for battery minerals required for electric vehicles. Other detractors included overweight positions in financials services and tech provider IRESS (-21%) and remote site aviation service provider Alliance Aviation Services (-13%).
Performance Commentary - June 30, 2022 Company NOVONIX (-63%) and an underweight position in cloud-based connectivity provider The Fund posted a negative return and underperformed its benchmark over the June quarter. All of the Fund’s four underlying managers lost ground, with Spheria outperforming the benchmark. The Fund continues to comfortably outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception. (All returns are before fees.)
Sector allocation contributed to relative returns, whereas stock selection detracted overall. Regarding sector allocation, the main contributor was the underweight exposure to materials (which significantly lagged other parts of the market). As the market retreated, the Fund’s cash position also enhanced returns. The main detractors from relative returns were underweight exposures to real estate and energy (which was the only small companies sector to post a positive return).
Regarding stock selection, the main detractors from relative returns were positions in communication services and consumer discretionary, while the main contributors were positions in IT stocks.
The largest individual detractor from relative performance was the nil position in Whitehaven Coal. The coal miner (+20%) saw its share price continue to benefit as coal prices globally remained elevated, supported by energy demand and the impact of supply disruptions. Other detractors included an overweight position in location-based service provider Life360 (-52%) and an underweight exposure to telecommunications infrastructure company Uniti Group (+4%).
The largest individual contributor to relative performance was the nil position in lithium explorer and developer Lake Resources (-61%), which saw its shares suffer following the shock resignation of its chief executive officer and managing director, prompting investor fears of underlying issues within the company. Other positive contributors included the nil position in battery materials and technology Megaport (-61%).
Performance Commentary - March 31, 2022 The Fund posted a negative return and underperformed its benchmark over the March quarter. All four of the Fund’s underlying managers lost ground and two outperformed the benchmark, led by Spheria and Elly Griffiths Group. Eiger Asset Management lagged, following a prolonged period of stellar performance. The Fund continues to significantly outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception. (All returns are before fees.) Sector allocation as well as stock selection detracted from relative returns.
Regarding sector allocation, the main detractors from relative returns were underweight exposures to materials and energy (which rallied significantly) and an overweight exposure to consumer discretionary. The main contributors were an underweight exposure to financials and overweight to industrials. Regarding stock selection, the main detractors from relative returns were positions in energy and materials, while the main contributors were positions in health care and financials stocks.
Performance Commentary - December 31, 2021 The Fund posted a positive return and comfortably outperformed its benchmark over the December quarter. All four of the Fund’s underlying managers posted positive returns and three outperformed the benchmark, led by Elly Griffiths Group. Eiger Asset Management lagged, following a prolonged period of stellar performance. The Fund continues to significantly outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception. (All returns are before fees.) Stock selection was the driver of the outperformance, while sector allocation detracted from relative returns. Regarding sector allocation, the main detractors from relative returns were an underweight exposure to materials and an overweight exposure to consumer discretionary. The main contributors were underweight exposures to financials and energy. Regarding stock selection, the main contributors to relative returns were positions in industrials and communication services, while the main detractors were positions in real estate and information technology stocks.
The largest individual contributor to relative performance was an overweight position in Class Ltd. The SMSF administration software company soared (+57%) on news of a takeover bid from HUB24, with the offer coming at a significant premium to Class’ previous closing share price and other favourable terms. Other positive contributors included an underweight (not held) position in digital retail payments company Zip Co which fell heavily (-39%) and an overweight position in emerging lithium and tantalum miner Pilbara Minerals which rallied (+22%) over the period
Performance Commentary - June 30, 2021 The largest individual contributor to relative performance was an overweight position in City Chic Collective. The plus-size women’s clothing retailer soared (+37.9%) as it continues to benefit from its significant online presence throughout the pandemic period.
The company is also benefitting from its growing international presence, after it made some strategic acquisitions in the US and UK late last year. Other positive contributors included overweight positions in building services company Johns Lyng Group which rallied (+32.1%) and online consumer credit business MoneyMe which shot higher (+62.3%) over the period.
Performance Commentary - March 31, 2021 The Fund posted a strong positive return and outperformed its benchmark over the March quarter. All four of the Fund’s underlying managers posted positive returns and Eiger, Spheria and Perennial outperformed the benchmark. The Fund continues to strongly outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception (annualised). (All returns are before fees.)
Stock selection was the main driver of the outperformance, while sector allocation detracted from relative returns. Regarding sector allocation, the main detractors from relative returns were an overweight exposure to industrials and an underweight exposure to financials, while the main contributors were an underweight exposure to real estate and an overweight exposure to consumer discretionary
Performance Commentary - December 31, 2020 The Fund posted a very strong positive absolute return and outperformed its benchmark over the December quarter. All four of the Fund’s underlying managers posted strong positive absolute returns and Spheria, Eiger and Perennial outperformed the benchmark. The Fund continues to outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception (annualised). (All returns are before fees.)
Stock selection was the main driver of the outperformance, while sector allocation detracted from relative returns. Regarding sector allocation, the main detractors from relative returns were underweight exposures to financials and materials, and overweight exposures to information technology and healthcare. The main contributor was an underweight exposure to real estate. Regarding stock selection, the main contributors to relative returns were positions in materials, consumer discretionary, health care and communication services stocks. The main detractors were positions in information technology, financial and consumer staples stocks.
The largest individual contributor to relative performance was an overweight position in Pilbara Minerals. The mining company rocketed higher (+187.4%) as excitement about electric cars drove up demand for lithium, which the company mines in Pilbara, Western Australia. Other positive contributors included an underweight position in regenerative medicine company Mesoblast which dropped sharply (-55.7%) and an overweight position in mining company Lynas Rare Earths which soared (+71.6%) over the period.
The largest individual detractor from relative performance was an underweight position in Virgin Money UK. The financial services provider shot higher (+83.0%) mainly due to optimism around the availability of COVID-19 vaccines, and despite releasing very disappointing full-year 2020 results. Other detractors included an overweight position in food delivery service Marley Spoon which fell (- 2.9%) and an underweight position in mining company Mineral Resources which rallied (+33.7%).
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