Paradice Australian Mid Cap Fund B (ETL8772AU) Report & Performance

What is the Paradice Australian Mid Cap Fund B fund?

The Paradice Australian Mid Cap Fund typically invests in 40-60 companies listed outside of the S&P/ASX 50 with a market cap lower limit of $400m, providing investors with an exposure to a diversified portfolio of emerging Australian businesses. The Fund believes equity markets are often inefficient due to investor emotion, short-term thinking and too much reliance on a single aspect of a company’s financial health – it’s profit and loss statement.

  • Key focus is on management, current and future cash flows and the quality of the balance sheet.
  • Our expertise lies in evaluating a company’s market position taking into account all factors from balance sheet, macroeconomic drivers through an extensive visitation program.
  • The Paradice Australian Mid Cap Fund aims to outperform the composite benchmark of 70% of the S&P/ASX Mid Cap 50 Total Return Index and 30% of the S&P/ASX Small Ordinaries Total Return Index over a three to five year period (after management costs and before tax).

 

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Paradice Australian Mid Cap Fund B

Paradice Australian Mid Cap Fund B Fund Commentary September 30, 2023

The Fund delivered a negative return for the quarter of -1.99%, which was in line with/slightly lower than the Mid Cap Composite Benchmark of -1.75%. The main contributor to this was more stock specific than from a sector perspective which is evident in the positives and negatives from an attribution perspective.

Corporate activity was fairly muted. Orora’s announced the acquisition of Saverglass in France, and there were further rumours around the sale of Incitec Pivot’s Fertilisers business, although nothing announced.

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.
Paradice Australian Mid Cap Fund BETL8772AUManaged FundsDomestic EquityAustralian Small CapDomestic Equity - Small Cap IndexASX Index Small Ordinaries Index77.00 M1.1%0.09%0.5%

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.
Paradice Australian Mid Cap Fund B0.8%1.9%11.95%4.4%7.78%13.12%15.08%16.27%-10.36%-16.84%-27.69%

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.
Paradice Australian Mid Cap Fund BDomestic Equity - Small Cap Index-2.27%-1.18%NA%NA%NA%1.053.69%5.03%0.960.95

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Paradice Australian Mid Cap Fund BYes-www.paradice.com.au-

Product Due Diligence

What is Paradice Australian Mid Cap Fund B

Paradice Australian Mid Cap Fund B 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 Paradice Australian Mid Cap Fund B has Assets Under Management of 77.00 M with a management fee of 1.1%, a performance fee of 0.09% and a buy/sell spread fee of 0.5%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Paradice Australian Mid Cap Fund B has returned 0.8% in the last month. The previous three years have returned 4.4% annualised and 16.27% each year since inception, which is when the Paradice Australian Mid Cap Fund B 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 Paradice Australian Mid Cap Fund B first started, the Sharpe ratio is NA with an annualised volatility of 16.27%. The maximum drawdown of the investment product in the last 12 months is -10.36% and -27.69% 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 Paradice Australian Mid Cap Fund B has a 12-month excess return when compared to the Domestic Equity - Small Cap Index of -2.27% and -1.18% 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. Paradice Australian Mid Cap Fund B has produced Alpha over the Domestic Equity - Small Cap 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 Domestic Equity - Small Cap Index category, you can click here for the Peer Investment Report.

What level of diversification will Paradice Australian Mid Cap Fund B provide?

Paradice Australian Mid Cap Fund B has a correlation coefficient of 0.95 and a beta of 1.05 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 Paradice Australian Mid Cap Fund B and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Paradice Australian Mid Cap Fund B with the ASX Index Small Ordinaries Index?

For a full quantitative report on Paradice Australian Mid Cap Fund B compared to the ASX Index Small Ordinaries Index, you can click here.

Can I sort and compare the Paradice Australian Mid Cap Fund B to do my own analysis?

To sort and compare the Paradice Australian Mid Cap Fund B financial metrics, please refer to the table above.

Has the Paradice Australian Mid Cap Fund B 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 Paradice Australian Mid Cap Fund B?

If you or your self managed super fund would like to invest in the Paradice Australian Mid Cap Fund B please contact via phone or via email .

How do I get in contact with the Paradice Australian Mid Cap Fund B?

If you would like to get in contact with the Paradice Australian Mid Cap Fund B manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Paradice Australian Mid Cap Fund B. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - June 30, 2023

The Paradice Australian Mid Cap Fund (the Fund) delivered a positive return for the quarter of 2.07%, which was 0.96% below the Mid Cap Composite Benchmark. The main contributor to this was more stock specific than from a sector perspective which is evident in the positives and negatives from an attribution perspective in the next section of this quarterly update.

Corporate activity was fairly muted. BHP’s takeover of OZ Minerals was completed and a proposed merger between USA listed Livent and Allkem was put to the market.

Positives
Bank of Queensland (BOQ) – Underweight Management changes and question marks over integration of ME Bank.

Vicinity Centres (VCX) – Underweight Retail shopping centre owner: raising cap rates and a consumer under pressure.

AUB Group Ltd (AUB) – Overweight Insurance Industry doing very well in current environment and optimism over Tysers acquisition.

Negatives
EBOS Group (EBO) – Overweight EBO lost the Chemist Warehouse contract to Sigma.

Champion Iron (CIA) – Overweight Iron ore price weakness on the back of Chinese growth slowdown.

ALS Limited (ALQ) – Overweight ALS has been sold off on the back of concerns that resource mineral exploration is cooling off, leading to less samples being processed by ALS.

Performance Commentary - September 30, 2022

The Fund delivered a positive absolute return for the quarter of 0.80%, which was 2.68% below the index. Main contributors to this were being underweight coal, and a number of the strong performers from the June quarter giving up some of their gains. With higher bond yields and concerns about economic growth driven by rampant inflation and higher interest rates, it would seem odd that the top 7 performing Mid Cap holdings over the quarter were a mix of tech and resource stocks. There were no broad discernible trends outside of lithium and coal. Performance was very much stock specific and driven predominantly by results and management commentary. There was continued volatility in global equity markets during the June quarter with the MSCI World Net Total Return Index falling 6.19%, the S&P 500 Total Return Index falling 4.9% and the tech heavy NASDAQ 100 Total Return Index falling 4.42% (all in US Dollar terms). The Australian market outperformed these indices, with the S&P ASX 200 Total Return Index rising by 0.4%. A number of stocks generated in-line results but after strong runs into reporting season, were sold off if there was no quantifiable upgrade to expectations (e.g. Orora, Qube). The market also marked down stocks that made poor acquisitions and / or over-raised (e.g. Atlas Arteria, Orica).

Performance Commentary - March 31, 2022

The Paradice Mid Cap portfolio delivered a positive relative return for the quarter, generating -1.89% as compared to the Mid Cap composite index return of -3.03%, outperforming by 1.14%. The March quarter opening and closing months were polar opposites, highlighting the volatility of markets: the benchmark was down 8.77% in January and up 6.52% in March, following what was an overall very positive reporting season. The Australian market outperformed all major global indices given our weighting to Resources and Banks, with the NASDAQ Composite Index, for example, down 9.1% (in US Dollar terms) and the Dow Jones Industrial Average down 4.6% (in US Dollar terms).

The February reporting season was strong from a results perspective and the portfolio was generally favourably positioned. Overall “value” stocks outperformed relative to consensus and “expensive” stocks underperformed. Approximately 36% of companies saw consensus upgrades which is well above the long-term average. The Mid Cap composite index performance was driven predominantly by strong returns across the Materials sector and, to a lesser extent, Regional Banks. Standout from an unexpected perspective was a very strong result from JB HiFi which continued its strong run despite coming up against a comparatives historic period that was positively impacted by lockdown buying. Offsetting this strength were sell-offs in IT names and other areas such as stocks exposed to interest rate hikes. USA exposed stocks such as Reliance Worldwide and Reece were sold off on expectations that the rates cycle will have a significant negative impact on housing facing earners.

Performance Commentary - June 30, 2021

The Fund aims to outperform the composite benchmark of 70% of the S&P/ASX Mid Cap 50 Total Return Index and 30% of the S&P/ASX Small Ordinaries Total Return Index over a three to five year period

The Paradice Mid Cap portfolio performed broadly in line with the index. The Australian market performance was driven by strong performances in technology and discretionary. Strength in the USA was driven by the Nasdaq Composite Index returning +9.7% and the S&P500 returning +8.5% (in US Dollar terms). Bond yields drifted lower over the period (AU 10 years yield -14% and USA -16%) after a rapid rise in the March quarter. This apparent disconnect with inflation can be put down to a mix of factors including excess liquidity, Fed bond issuance weaker than normal and / or a sense that inflation pressures might be transitory. In Australia thematically the market was more mixed with standout under and over performance largely being driven by stock specific news flow.

Performance Commentary - December 31, 2020

The Paradice Mid Cap portfolio had a difficult quarter relative to its index. We suffered from being underweight the strong reflation sectors such as Energy, Financials and non-gold resources. We were also overweight more defensive sectors such as Healthcare. We were underweight technology stocks which (as mentioned in the previous section) counter intuitively outperformed in the quarter despite their “long tail” valuations. From a stock point of view the attribution indicated a few “mistakes” (in terms of companies within the portfolio not hitting their financial targets) but was more a reflection of the macro rotation we have described, with a number of the stocks that served us well during the earlier stages of COVID, underperforming.

The top relative contributors to performance for the quarter are as follows:
Evolution Mining (EVN) – Underweight Weak performance of gold stocks in general during the quarter in a risk on environment.
Mesoblast (MSG) – Underweight/Not held Biotech that failed in multiple clinical trials of its products during the quarter.
Nuix (NXL) – Overweight Strongly performing IPO that the portfolio participated in during the quarter. Nuix offers a platform for searching, analysing and extracting knowledge from unstructured data for use in such industries as the legal and law enforcement professions as well as forensic accounting.

The top relative detractors from performance for the quarter are as follows:
Ansell (ANN) – Overweight The stock underperformed despite upgrading F21 guidance during the period. This would seem to relate to USD weakness (ANN’s functional currency) and its perception as having been a COVID beneficiary in its Healthcare division, noting that the company is also exposed to rising industrial production through its Industrial division.
Chorus (CNU) – Overweight Yield sensitive stocks underperformed in the quarter.
Saracen (SAR) – Overweight Weak performance of gold stocks in general during the quarter in a risk on environment.

PORTFOLIO CHANGES
The December quarter saw one of the most significant index changes we have seen in a number of years with both Afterpay (APT) and Xero (XRO) exiting into the ASX 50 Leaders to be replaced by Oil Search (OSH) and Vicinity Centres (VCX). The sheer size of APT and XRO saw a significant change in the relative weights of all stocks in the index and, as they were both in the Information Technology Sector, also saw a significant change in the sector weightings of the portfolio’s benchmark. The majority of the proceeds from selling holdings in APT and XRO have now been reinvested.

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