MLC Wholesale Global Share (MLC0261AU) Report & Performance

What is the MLC Wholesale Global Share fund?

MLC Wholesale Global Share Fund aims to outperform the MSCI ACWI Net Index ($A), before fees and tax, over 5 year periods by using investment managers who invest and diversify across many companies listed (or expected to be listed) on share markets anywhere around the world.

  • Suitable for investors wanting an actively managed global share portfolio with foreign currency exposure, that’s diversified across investment managers, countries (developed and emerging), industries, and companies.
  • Target allocation: 100% global shares.
  • Foreign currency exposures will generally not be hedged to the Australian dollar.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For MLC Wholesale Global Share

MLC Wholesale Global Share Fund Commentary June 30, 2023

The Australian share market posted relatively flat returns over the June 2023 quarter. The S&P/ASX200 Total Return Index (‘market benchmark’) returned 1.01% and the MLC Australian Share Fund returned 1.03% (before fees and tax) outperforming the market benchmark by 0.02%.

The fund over one year returned 15.71% (before fees and tax) to 30 June 2023. This was 0.93% better than the market benchmark’s 14.78% return and was due to the strong outperformance from two of our appointed managers, Northcape and Antares.

The ASX 200 lagged global markets over the quarter as the strong lead from overseas was tempered by somewhat unexpected Reserve Bank of Australia (RBA) interest rate hikes which made investors more cautious. The drivers in the June quarter were similar to those which have played out for most of this year, with Technology and Consumer stocks doing much of the heavy lifting as investors attempt to put a value on ‘Artificial Intelligence’ (AI) and assess any productivity gains this technology might produce. Materials were weaker in line with lower commodity prices and consumer facing sectors also struggled as interest rates continue to bite.

China’s disappointing economic performance continued to weigh on emerging markets and contributed to relative weakness in here given the exposure of our mining sector to China’s tepid growth. There was little joy for the miners, as commodity prices were generally lower over the period. Oil was down 6%, Coal -27%, Iron Ore -11%, Zinc -19%, Nickel -14%, Aluminium -11%.

From a sector perspective, there are few clear winners in the current environment. Consumer-exposed sectors, other than perhaps supermarkets, are seeing broad-based weakening. Banks are facing higher funding costs, slower credit growth and potentially higher credit losses while, for Resources to perform, China would likely need to meaningfully step up its stimulus measures – something its government to date has been unwilling to do.

The upcoming August reporting season should provide further insights into the extent of the economic slowdown the RBA has tried to orchestrate since the current interest rate tightening cycle started in May last year.

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.
MLC Wholesale Global ShareMLC0261AUManaged FundsForeign EquityLarge Blend - Multi-ManagerForeign Equity - Large Multi-Manager IndexDeveloped -World Index86.41 M0.9%0.00%0.25%

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.
MLC Wholesale Global Share0.95%1.65%20.1%8.09%5.14%8.92%9.98%11.86%-2.91%-17.62%-45.3%

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.
MLC Wholesale Global ShareForeign Equity - Large Multi-Manager Index-0.19%0.32%NA%NA%NA%0.933.7%3.4%0.920.96

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
MLC Wholesale Global ShareYes-https://www.mlc.com.au/-

Product Due Diligence

What is MLC Wholesale Global Share

MLC Wholesale Global Share is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Multi-Manager 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 MLC Wholesale Global Share has Assets Under Management of 86.41 M with a management fee of 0.9%, a performance fee of 0.00% and a buy/sell spread fee of 0.25%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the MLC Wholesale Global Share has returned 0.95% in the last month. The previous three years have returned 8.09% annualised and 11.86% each year since inception, which is when the MLC Wholesale Global Share 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 MLC Wholesale Global Share first started, the Sharpe ratio is NA with an annualised volatility of 11.86%. The maximum drawdown of the investment product in the last 12 months is -2.91% and -45.3% 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 MLC Wholesale Global Share has a 12-month excess return when compared to the Foreign Equity - Large Multi-Manager Index of -0.19% and 0.32% 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. MLC Wholesale Global Share has produced Alpha over the Foreign Equity - Large Multi-Manager 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 Multi-Manager Index category, you can click here for the Peer Investment Report.

What level of diversification will MLC Wholesale Global Share provide?

MLC Wholesale Global Share has a correlation coefficient of 0.96 and a beta of 0.93 when compared to the Foreign Equity - Large Multi-Manager 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 MLC Wholesale Global Share and its peer investments, you can click here for the Peer Investment Report.

How do I compare the MLC Wholesale Global Share with the Developed -World Index?

For a full quantitative report on MLC Wholesale Global Share compared to the Developed -World Index, you can click here.

Can I sort and compare the MLC Wholesale Global Share to do my own analysis?

To sort and compare the MLC Wholesale Global Share financial metrics, please refer to the table above.

Has the MLC Wholesale Global Share 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 MLC Wholesale Global Share?

If you or your self managed super fund would like to invest in the MLC Wholesale Global Share please contact via phone or via email .

How do I get in contact with the MLC Wholesale Global Share?

If you would like to get in contact with the MLC Wholesale Global Share manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the MLC Wholesale Global Share. 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 - March 31, 2023

The Australian share market posted reasonable returns over the March 2023 quarter. The S&P/ASX200 Total Return Index (market benchmark) returned 3.5% and the MLC Australian Share Fund returned 5.2% (before fees and tax) outperforming the market benchmark by 1.7%.

The fund over one year returned 1.7% (before fees and tax) to 31 March 2023. This was 1.6% better than the market benchmark’s 0.1% return and was due to the strong outperformance from two of our appointed managers, Northcape and Antares.

As mentioned earlier, the Australian share market delivered positive returns, rising alongside both its developed and emerging markets peers. The quarter had a particularly strong start in January as investors focused on easing inflationary fears and hopes that central banks could start slowing their pace of interest rate hikes. Iron ore prices also rebounded in January, rising on the expectation of an improving Chinese economy in 2023 following the removal of COVID restrictions in December, but paused for breath towards the end of the quarter as investors looked for evidence of the strength of China’s economy following its re-opening.

Most sectors were positive with Consumer Discretionary performing strongly, up 11.4%, driven by investors’ willingness to take on more risk and some strong individual performances followed by Communication Services (9.4%) off the back of Telstra’s strong performance. Financial Services was the weakest, down 2.7%, on worries about the unfolding banking crisis and mortgage competition. The real estate sector was one of the weaker performing sectors over the quarter. This mirrored the sell-off in property names in other markets including the US and Europe as investors worried that the turmoil in the US banking sector could tighten access to credit and put property prices under further pressure.

Please refer to the ‘Market commentary’ for an overview of what happened in other domestic and global markets over the quarter.

Performance Commentary - December 31, 2022

Over the three months to 31 December 2022, the fund generated a very strong return of 5.7% (before fees and tax). This return was 1.6% above the benchmark MSCI All Country World Index ($A). Over the year, the fund delivered a disappointing return of -11.9%.

2022 was a year dominated by large scale events and trends, from the invasion of Ukraine in February to sharp interest rate increases and inflation across major economies, Chinese-US tensions, unrest in Iran and pivotal elections in the US and elsewhere. In the final quarter of the year, financial markets were becoming more resilient to inflation and interest rate risks with strong returns in global shares.

The Australian dollar increased relative to the US dollar over the quarter. As a result, not being hedged to the Australian dollar detracted for global share investors over this period.

Of the four managers in the fund, for the full quarter, three managers outperformed over the quarter, with positive stock selection being the predominant driver of relative outperformance. During the quarter, Tweedy Browne and Kiltearn were replaced by Royal London and Pzena.

Performance Commentary - September 30, 2022

The fund returned -2.2% for the quarter and -11.7% in the year to 30 September 2022 (before fees and tax). The fund performed in line with the benchmark return for the quarter and outperformed by 0.3% over the past year.

Global government bond yields continue to rise sharply given inflation concerns. High commodity prices, persistent supply disruptions and increasing wage pressures have been the key drivers for rising bond yields. The Russian-Ukraine conflict since February 2022 has only intensified these inflation concerns.

Corporate bonds have also proven sensitive to expectations for higher interest rates in coming years, as well as the potential for slower economic activity and reduced corporate profitability. Credit spreads have accordingly widened significantly in response to these negative expectations.

Performance Commentary - June 30, 2022

Over the three months to 30 June 2022, the fund generated a weak return of -7.2% (before fees and tax). This return was 0.7% above the benchmark MSCI All Country World Index ($A). Over the year, the fund delivered a weak return of -9.6%.

June concluded the worst first-half year for share markets in decades, with the US share market, as measured by the S&P 500 index, declining by 20.1% in local currency terms. Rising inflation and interest rates, supply chain woes intensified by ongoing zero-Covid measures in China, and the Russian invasion of Ukraine have sent a wave of uncertainty across the global economy.

The Australian dollar decreased relative to the US dollar, euro and pound sterling over the quarter. As a result, not being hedged to the Australian dollar was beneficial for global share investors over this period.

Of the six managers in the strategy, four managers outperformed over the quarter, with positive stock selection being the predominant driver of relative outperformance.

Performance Commentary - March 31, 2022

Over the three months to 31 March 2022, the fund generated a weak return of -9.3% (before fees and tax). This return was 0.9% below the benchmark MSCI All Country World Index ($A). Over the year, the fund delivered a solid return of 5.9%.

The Russian invasion of Ukraine raised geopolitical uncertainties leading to volatility in global share markets and added to fears of persistently higher inflation. Despite rising interest rates globally, initially helping value stocks, investor focus shifted from valuation to potential demand destruction. Meanwhile, Germany, heavily dependent on Russian oil and gas, reported inflation numbers greater than 7%. Despite this, there have been relatively few profit warnings ahead of the upcoming earnings season, and global share markets rose at the end of the quarter.

The Australian dollar increased relative to the major currencies over the quarter. As a result, not being hedged to the Australian dollar detracted for global share investors over this period.

Of the six managers in the strategy, three managers outperformed over the quarter, with positive stock selection being the predominant driver of relative outperformance.

Performance Commentary - December 31, 2020

The fund’s return (before deducting fees and taxes) turned sharply upwards, delivering 16.3% in the December quarter. The one year return is still weak, largely due to the significant falls earlier in the year during the “COVID crash” in March.

The exceptional December quarter performance was due largely to positive news that a number of COVID-19 vaccines had been developed. Expectations that the rollout of the vaccine in 2021 would lessen the economic impact of COVID-19 raised company earnings forecasts and led to improved performance by industries and companies closely exposed to the anticipated economic recovery. The more positive market tone was also helped by improved local economic data and a further loosening of monetary policy with the cash rate reduced to 0.1% by the Reserve Bank of Australia. Strength in commodity prices also helped the local share market, with the iron ore price pushing above US$150/t and the price of oil rising sharply.

Even the Financial sector joined in as confidence that Australia’s economic recovery would reduce loan repayment deferrals led to rises in the fund’s holdings in banks.

Performance Commentary - September 30, 2020

Over the three months to 30 September 2020, the fund generated a return of 2.5% (before fees and tax). This return was -1.4% behind the benchmark MSCI All Country World Index ($A). Over the year, the fund returned 1.5%.

In the March quarter share markets sold off on concerns regarding the spread of the COVID-19 virus. Since then we have seen a recovery in global share markets. While Wall Street surged to record highs in early September given vaccine hopes, various factors weighed on global shares later in September. Firstly and primarily, the virus remains a troubling global threat with new infection cases rising towards 300,000 per day. Secondly, political risk is becoming more prominent, in particular the US Presidential election.

The Australian dollar strengthened relative to the US dollar over the quarter and against trade-weighted currencies. As a result, not being hedged to the Australian dollar detracted for global share investors.

Global share markets continue to be narrowly led, with those companies delivering on earnings growth being handsomely rewarded, while those stocks with any economic sensitivity are being punished.

Of the six managers in the strategy, three outperformed over the quarter, with positive stock selection being the predominant driver of relative outperformance.

A final word on the fund’s positioning as we reflect on the last quarter. We remain comfortable with our positioning. Our growth managers continue to deliver strong excess performance. For our value managers, history suggests that when they own decent businesses so lowly valued, with valuation spreads at extremes, an investment style that is so out of favour and recent performance that has been so unsatisfactory relative to history; the odds are much more in favour of these managers. We are therefore maintaining exposure to value managers.

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