AMP Capital Specialist Geared Australian Share Fund aims to provide high returns over the long term through geared exposure to securities listed on the Australian Securities Exchange.
The Fund posted a positive return and comfortably outperformed its benchmark over the December quarter, driven by gearing. The Fund’s three underlying managers gained ground, with DNR Capital outperforming the benchmark whilst Macquarie and Vinva lagged on a relative basis.
Sector allocation detracted from relative returns, outweighing the value added by stock selection. Regarding sector allocation, the main detractors were underweight exposures to materials and utilities while an underweight exposure to consumer staples added most to performance. Regarding stock selection, the Fund’s positions in industrials and consumer discretionary contributed the most, while real estate was the main sector that held back performance.
The largest individual contributor to relative returns was an overweight position in Domino’s Pizza (+29%), which rebounded after company management provided updates to the market after their AGM (in the previous quarter). The company highlighted efforts to continue to manage ongoing pressures in Europe in the higher inflationary environment. Other major contributors included the underweight exposure to retailer Woolworths (-1%) and an overweight position in testing and analysis company ALS Ltd (+23%).
The largest individual detractor was an overweight position in property developer Lend Lease (-12%), which suffered after announcing weaker than expected guidance for its outlook for the current fiscal year. Other major detractors included the underweight exposures to Commonwealth Bank (+13%) and Westpac Banking Corp (+16%), which were buoyed earlier in the period by higher interest rates which will feed through to better margins in the short term.
What is AMP Capital Specialist Geared Aus Shr AMP Capital Specialist Geared Aus Shr is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Large Geared 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 Geared Aus Shr has Assets Under Management of 317.78 M with a management fee of 1.56%, a performance fee of 0.00% and a buy/sell spread fee of 0.7%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the AMP Capital Specialist Geared Aus Shr has returned 2.16% in the last month. The previous three years have returned 8.45% annualised and 26.3% each year since inception, which is when the AMP Capital Specialist Geared Aus Shr 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 Geared Aus Shr first started, the Sharpe ratio is 0.37 with an annualised volatility of 26.3%. The maximum drawdown of the investment product in the last 12 months is -21.54% and -76.24% 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 Geared Aus Shr has a 12-month excess return when compared to the Domestic Equity - Large Geared Index of 3.83% and 0.03% 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 Geared Aus Shr has produced Alpha over the Domestic Equity - Large Geared Index of 0.3% in the last 12 months and -0.03% since inception.
What are similar investment products?
For a full list of investment products in the Domestic Equity - Large Geared Index category, you can click here for the Peer Investment Report.
What level of diversification will AMP Capital Specialist Geared Aus Shr provide?
AMP Capital Specialist Geared Aus Shr has a correlation coefficient of 0.99 and a beta of 0.97 when compared to the Domestic Equity - Large Geared 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 Geared Aus Shr and its peer investments, you can click here for the Peer Investment Report.
How do I compare the AMP Capital Specialist Geared Aus Shr with the ASX Index 200 Index?
For a full quantitative report on AMP Capital Specialist Geared Aus Shr compared to the ASX Index 200 Index, you can click here.
Can I sort and compare the AMP Capital Specialist Geared Aus Shr to do my own analysis?
To sort and compare the AMP Capital Specialist Geared Aus Shr financial metrics, please refer to the table above.
Has the AMP Capital Specialist Geared Aus Shr 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 Geared Aus Shr?
If you or your self managed super fund would like to invest in the AMP Capital Specialist Geared Aus Shr 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 Geared Aus Shr?
If you would like to get in contact with the AMP Capital Specialist Geared Aus Shr manager, please call +61 2 8048 8162.
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the AMP Capital Specialist Geared Aus Shr. 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 negative return and underperformed its benchmark over the September quarter. Amid considerable market volatility, two of the Fund’s three underlying managers gained ground, with Macquarie outperforming the benchmark. Vinva slightly underperformed, with DNR Capital lagging on a relative basis. The Fund’s gearing also detracted. DNR Capital continues to drive the Fund’s strong performance compared to the benchmark over the long term, including over 2, 3, 5 years and since inception (all returns before fees).
Stock selection detracted from relative returns, outweighing the value added by sector allocation. Regarding sector allocation, the main contributors were an underweight exposure to utilities and an overweight position in energy. The main detractor was an underweight exposure to materials. Regarding stock selection, the Fund’s positions in financials and consumer discretionary detracted the most, while industrials added most value by sector. The largest individual contributors to relative returns were underweight positions in toll-road operator Transurban Group (-14%) and hospital and health care group Ramsay Health Care (-21%) and an overweight position in coal, oil and gas operator New Hope Corporation (+82%). Transurban underperformed as ‘bond proxy’ stocks amid surging bond yields in the latter half of the period. Ramsay Health Care shares suffered after the KKR -led takeover consortium confirmed it would not improve its previous offer, throwing the potential deal into doubt. New Hope soared after Prime Minister Albanese confirmed Australia as an ongoing supplier of gas and coal, which is supported by the global energy crisis.
The largest individual detractors from relative returns were overweight positions in Domino’s Pizza (-23%) and financials services and tech provider IRESS (-21%), as well as being underweight lithium and tantalite miner Pilbara Minerals (+99%). Domino’s fell amid concerns over its European earnings with inflation and a general deterioration in economic conditions weighed.
IRESS saw a downgrade on the back of a CEO change, with higher $US-based costs and slowing Australian sales also impacted. Pilbara Minerals rode the wave with other lithium producers as global demand was unabated.
Performance Commentary - June 30, 2022 The Fund posted a negative return and underperformed its benchmark over the June quarter. The Fund’s gearing detracted and was the driver of the Fund’s underperformance. Amid considerable market weakness, all of the Fund’s three underlying managers lost ground, although DNR Capital was the standout performer on a relative basis as it significantly outperformed the benchmark during the period. The Fund continues to perform strongly compared to the benchmark over the long term, including over 2, 3, 5 years and since inception (all returns before fees).
Stock selection was the primary contributor to relative returns, with sector allocation also adding value. Regarding sector allocation, the main contributors were an underweight exposure to materials and an overweight position in energy. The main detractors were underweight exposures to utilities and health care. The Fund’s cash position also enhanced returns as the market fell. Regarding stock selection, the standout positive contributors were positions in information technology, consumer discretionary and financials stocks, while industrials detracted most by sector.
The largest individual contributors to relative returns were overweight positions in QBE Insurance and Computershare, and an underweight exposure to Block. QBE Insurance (+6%) benefitted from higher bond rates which will provide a boost to earnings, with the company also buoyed by offshore competitors announcing solid results. Share registry operator Computershare (0%) was resilient, as higher interest rates should flow to significantly higher profits. Fintech company Block (-51%) – formerly Square – suffered alongside the broader global IT sector as rising bond yields are seen to dampen higher growth companies with limited profitability.
The largest individual detractors from relative returns were underweight positions in Transurban Group and Ramsay Health Care and an overweight position in Seek. Toll-road operator Transurban Group (+8%) rose as the market recognised the company’s substantial protection from rising inflation through contracted tolling agreements. Fund Performance inflation through contracted tolling agreements. Online employment company Seek (-30%) fell despite record job ad volumes, as investors favoured defensive exposures. Hospital and health care group Ramsay Health Care (+12%) rallied following a takeover bid from KKR.
Performance Commentary - March 31, 2022 The Fund posted a positive return and significantly outperformed its benchmark over the March quarter. The Fund’s gearing contributed to the outperformance. All of the Fund’s three underlying managers gained ground, with DNR Capital the standout performer, whilst Vinva also outperformed the benchmark during the period. The Fund continues to significantly outperform over the long term, including over 1, 2, 3, 5 years and since inception (all returns before fees). Stock selection drove relative returns, whereas sector allocation detracted somewhat.
Regarding sector allocation, the main detractors were an underweight exposure to materials and an overweight position in communication services. The main contributors were an underweight exposure to health care and an overweight exposure to energy. Regarding stock selection, the standout positive contributors were positions in information technology and materials stocks, while there were no material detractors by sector.
Performance Commentary - December 31, 2021 The Fund posted a positive return and outperformed its benchmark over the December quarter. The Fund’s gearing contributed to the outperformance. With Vinva the strongest performing underlying manager outperforming the benchmark, all of the Fund’s three underlying managers posted positive returns during the period. The Fund continues to significantly outperform over the long term, including over 1, 2, 3, 5 years and since inception (all returns before fees). Stock selection contributed positively to relative returns, whereas sector allocation detracted. Regarding sector allocation, the main detractors were an underweight exposure to utilities and an overweight position in energy. The main contributors were an underweight exposure to financials and an overweight exposure to communication services.
Regarding stock selection, the standout positive contributors were positions in financials and information technology stocks, while the main detractors were positions in materials, consumer discretionary and industrials stocks
Performance Commentary - June 30, 2021 The Fund posted a strong positive return, but slightly underperformed its benchmark over the June quarter. All four of the Fund’s underlying managers posted strong positive returns and Elly Griffiths, Perennial and Spheria outperformed the benchmark. 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 overweight exposure to industrials and underweight exposures to financials and materials. The cash holding also detracted from relative returns as the market rallied. The main contributor was an underweight exposure to consumer staples. Regarding stock selection, the main contributors to relative returns were positions in industrials, consumer discretionary, information technology and real estate stocks, while the main detractors were positions in health care and energy stocks
Performance Commentary - March 31, 2021 The Fund posted a strong positive return and outperformed its benchmark over the March quarter (before fees). The Fund’s gearing increased the magnitude of the outperformance. All of the Fund’s three underlying managers posted strong positive absolute returns and outperformed the benchmark. The Fund continues to outperform over the long term including over 1, 2, 3, 5 years and since inception.
Stock selection was the key driver of the Fund’s outperformance and sector allocation also contributed positively. Regarding sector allocation, the main contributors to relative returns were an underweight exposure to health care, and overweight exposure to communication services and consumer discretionary. Meanwhile, the main detractors from relative returns were an underweight exposure to financials and a cash holding as the share market rallied.
Performance Commentary - December 31, 2020 The Fund posted a strong positive absolute return and outperformed its benchmark over the December quarter (before fees). The Fund’s gearing increased the magnitude of the outperformance. All of the Fund’s three underlying managers posted positive absolute returns, and DNR and Vinva outperformed the benchmark. The Fund continues to outperform over the long term including over 2, 3, 5 years and since inception. Stock selection was the key driver of the Fund’s outperformance, while sector allocation modestly detracted from relative returns. Regarding sector allocation, the main detractors from relative returns were an underweight exposure to financials and a cash holding as the share market rallied.
Meanwhile, the main contributors to relative returns were underweight exposures to health care and utilities, and an overweight exposure to information technology.
Regarding stock selection, the main contributors to relative returns were positions in communication services, financials, materials, real estate and industrials, while the main detractors were positions in information technology.
The largest positive contributors to relative returns were an underweight position in CSL, and overweight positions in REA Group and Virgin Money UK. 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. Meanwhile, global online real estate advertising company REA Group rose to record highs (+35.4%) after reporting better-than-expected first quarter results and financial services provider Virgin Money UK shot higher (+83.0%) mainly due to optimism around the availability of vaccines. The largest individual detractors from relative returns were underweight positions Commonwealth Bank, Afterpay and ANZ Banking Group.
Commonwealth Bank rallied (+29.1%) after reporting solid first quarter results, with its home loan growth rate twice as high as the wider banking system. ‘Buy now, pay later’ financial company Afterpay rose to rAfterpay rose to record highs (+47.5%) after reporting very strong first quarter results and ANZ Banking Group gained (+34.2%) after reporting soft, but better-than expected first quarter results.
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