Intermede Global Equities Fund (PPL0036AU) Report & Performance

What is the Intermede Global Equities Fund fund?

Intermede Global Equities Fund aims to deliver a return that exceeds the Benchmark (before fees) over 7 year periods. Intermede engages in intensive research to identify investment opportunities in mid and large capitalisation companies and across developed and emerging markets.

  • The Fund is a concentrated portfolio of approximately 40-50 companies.
  • Intermede’s investment philosophy is that companies with good management and strong market positions in attractive industries will outperform if their shares are bought at the right price.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Intermede Global Equities Fund

Intermede Global Equities Fund Fund Commentary September 30, 2023

We initiated a position in Inditex late in September. Inditex is the leading global apparel firm outside of the sporting goods space. The company has 5,700 stores across 93 countries with 73% of sales from the Zara brand. The company has long been widely appreciated for its unique business model which is based on a rapidly refreshed product assortment supported by a highly responsive and proximate supply chain. Inditex was initially slow to embrace ecommerce but shifted strategy around 2016, and in 2022 ecommerce accounted for 24% of sales with profitability commensurate with physical stores. After a long period of heavy investment in its ecommerce capabilities and a rationalisation of the store base, we view the company as well positioned to grow at a sustained pace with room for expansion in Northern Europe, the Middle East and the US.

There were no fully closed position during the period.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Intermede Global Equities FundPPL0036AUManaged FundsForeign EquityLarge Blend - FundamentalForeign Equity - Large Fundamental IndexDeveloped -World Index512.63 M0.99%0.00%0.1%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Intermede Global Equities Fund0.04%-1.61%14.49%5.87%11.22%10.31%12.67%11.42%-6.02%-22.85%-22.85%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Intermede Global Equities FundForeign Equity - Large Fundamental Index-0.54%0.76%NA%NA%NA%0.982.59%3.44%0.970.95

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Intermede Global Equities FundYes-https://www.mlc.com.au/-

Product Due Diligence

What is Intermede Global Equities Fund

Intermede Global Equities Fund is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Fundamental 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 Intermede Global Equities Fund has Assets Under Management of 512.63 M with a management fee of 0.99%, a performance fee of 0.00% and a buy/sell spread fee of 0.1%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Intermede Global Equities Fund has returned 0.04% in the last month. The previous three years have returned 5.87% annualised and 11.42% each year since inception, which is when the Intermede Global Equities Fund 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 Intermede Global Equities Fund first started, the Sharpe ratio is NA with an annualised volatility of 11.42%. The maximum drawdown of the investment product in the last 12 months is -6.02% and -22.85% 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 Intermede Global Equities Fund has a 12-month excess return when compared to the Foreign Equity - Large Fundamental Index of -0.54% and 0.76% 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. Intermede Global Equities Fund has produced Alpha over the Foreign Equity - Large Fundamental Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Foreign Equity - Large Fundamental Index category, you can click here for the Peer Investment Report.

What level of diversification will Intermede Global Equities Fund provide?

Intermede Global Equities Fund has a correlation coefficient of 0.95 and a beta of 0.98 when compared to the Foreign Equity - Large Fundamental 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 Intermede Global Equities Fund and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Intermede Global Equities Fund with the Developed -World Index?

For a full quantitative report on Intermede Global Equities Fund compared to the Developed -World Index, you can click here.

Can I sort and compare the Intermede Global Equities Fund to do my own analysis?

To sort and compare the Intermede Global Equities Fund financial metrics, please refer to the table above.

Has the Intermede Global Equities Fund 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 Intermede Global Equities Fund?

If you or your self managed super fund would like to invest in the Intermede Global Equities Fund please contact via phone or via email .

How do I get in contact with the Intermede Global Equities Fund?

If you would like to get in contact with the Intermede Global Equities Fund manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Intermede Global Equities Fund. All data and commentary for this fund is provided free of charge for our readers general information.

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Historical Performance Commentary

Performance Commentary - August 31, 2023

There were no newly opened or fully closed positions in the period.

Performance Commentary - July 31, 2023

We closed our position in Disney in July. We closed our position in Disney during the period after taking a more negative overall view on the direction and economics of the company’s transition from linear TV to content delivered increasingly through Disney+, the company’s OTT streaming service launched in late 2019. While the early magnitude of Disney+ success was accretive to revenue as the pandemic accelerated streaming adoption, we have developed a more negative long-term view regarding the terminal profitability of this business, particularly relative to the company’s Linear Networks segment, its largest profit pool. While we continue to recognize the powerful network effects of streaming in combination with Disney’s experiences and Parks business, we have decided to close our position as we view more attractive long-term opportunities in the media and entertainment space.

Performance Commentary - June 30, 2023

We opened a new position in Universal in June and fully closed our position in Dollar Tree.

We opened a new position in Universal Music Group, UMG, in June. UMG is the largest music entertainment company in the world with more than 30% market share. While the history of the music industry has seen volatility, the current secular shift toward streaming and digital technologies is reinvigorating growth, which creates new opportunities for artists and music companies to monetise on increasing consumption. In an increasingly competitive entertainment environment, we believe music’s uniquely enduring and long-lasting popularity will drive compounding value over the longterm, and UMG is the best positioned company to capitalise on those trends.

We closed the position in Dollar Tree late in the quarter after holding the name since early 2021. The initial benefits of the move away from the single price of $1 at the Dollar Tree banner have been realised. We increasingly believe that management’s attention is too focussed on Family Dollar, the chain acquired in 2013, which has been a major drag on the business for most of the time since. While a turnaround would certainly be accretive to earnings, if this comes at the expense of performance at the much higher margin Dollar Tree banner, the overall result would not be positive.

After attending the company’s investor day we see an increased risk that the Dollar Tree banner may not be getting the attention it needs.

Performance Commentary - May 31, 2023

There were no newly opened or fully closed positions in May.

Performance Commentary - April 30, 2023

There were no newly opened or fully closed positions in April.

Performance Commentary - February 28, 2023

There were no newly opened or fully closed positions in February.

Performance Commentary - January 31, 2023

We opened one new position Equifax in January.

In January, we initiated an investment in Equifax, a leading consumer data and analytics provider. Equifax is one of three global credit bureaus, an oligopolistic industry with high barriers to entry benefitting from secular demand trends for increased data, analytics and insights. Equifax also has a differentiated employment data asset, with a monopoly type competitive position and significant growth opportunities through penetration, pricing, product enhancements and new verticals/use cases. Following the well-publicised data breach in 2017, an impressive new management team has been installed who have spent $1.5bn upgrading to a best in class, fully cloud native technology system, which improves security, reduces costs and accelerates product development, in addition to a well executed bolt-on M&A to enhance existing offerings and add faster growing verticals. We have been following Equifax for several years but have been waiting to enter at the optimal point in the US mortgage market cycle, with 20-30% of group revenues sensitive to origination volumes. We were reluctant to invest during the temporary boom driven by falling rates post covid, since this appeared to be over-extrapolated, and then held back last year amid uncertainty regarding where and when the mortgage market would bottom, as rates moved up significantly. With mortgage rates now seeming to have peaked, origination volumes appear likely to trough in the coming quarters, leading us to initiate our investment at an attractive price ahead of a likely acceleration in revenue growth.

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