PM Capital Australian Companies (PMC0101AU) Report & Performance

What is the PM Capital Australian Companies fund?

PM Capital Australian Companies aims to provide long term capital growth and outperform the greater of the MSCI All Country Asia ex Japan Net Index (AUD) or RBA cash rate over rolling seven year periods.

  • The Fund is not intended to replicate the index.
  • Old fashioned stock pickers – fundamental, bottom-up research intensive.

 

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For PM Capital Australian Companies

PM Capital Australian Companies Fund Commentary September 30, 2023

• Positive contributors to performance for the month of September included Stanmore Resources, Coronado Resources, and Apollo Global Management.

• Detractors to monthly performance were Star Entertainment, ING Groep, and Challenger.

• No new positions were initiated during the month, however we took up our allocation in Star Entertainment’s rights issue and topped up our positions in Imdex and Westpac Bank.

• No equity positions were exited during the period however we trimmed our position in the listed Perpetual Credit Income Trust.

• The net invested position at month’s end closed at 79%, with a net equity position of 68% and further 11% held in credit securities. We continue to see long term value in our current portfolio and with a cash position of 21% are well positioned to take advantage of new opportunities as they arise.

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.
PM Capital Australian CompaniesPMC0101AUManaged FundsDomestic EquityAustralian Long ShortDomestic Equity - Long Short IndexASX Index 200 Index28.95 M1.09%00.5%

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.
PM Capital Australian Companies5.24%4.57%9.99%8.8%10.02%10.28%14.02%14.65%-3.75%-12.29%-58.29%

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.
PM Capital Australian CompaniesDomestic Equity - Long Short Index-9.8%-1.29%NA%NA%NA%0.885.52%8.04%0.870.84

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
PM Capital Australian CompaniesYes-https://www.pmcapital.com.au/-

Product Due Diligence

What is PM Capital Australian Companies

PM Capital Australian Companies is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Long Short 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 PM Capital Australian Companies has Assets Under Management of 28.95 M with a management fee of 1.09%, a performance fee of 0 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 PM Capital Australian Companies has returned 5.24% in the last month. The previous three years have returned 8.8% annualised and 14.65% each year since inception, which is when the PM Capital Australian Companies 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 PM Capital Australian Companies first started, the Sharpe ratio is NA with an annualised volatility of 14.65%. The maximum drawdown of the investment product in the last 12 months is -3.75% and -58.29% 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 PM Capital Australian Companies has a 12-month excess return when compared to the Domestic Equity - Long Short Index of -9.8% and -1.29% 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. PM Capital Australian Companies has produced Alpha over the Domestic Equity - Long Short 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 - Long Short Index category, you can click here for the Peer Investment Report.

What level of diversification will PM Capital Australian Companies provide?

PM Capital Australian Companies has a correlation coefficient of 0.84 and a beta of 0.88 when compared to the Domestic Equity - Long Short 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 PM Capital Australian Companies and its peer investments, you can click here for the Peer Investment Report.

How do I compare the PM Capital Australian Companies with the ASX Index 200 Index?

For a full quantitative report on PM Capital Australian Companies compared to the ASX Index 200 Index, you can click here.

Can I sort and compare the PM Capital Australian Companies to do my own analysis?

To sort and compare the PM Capital Australian Companies financial metrics, please refer to the table above.

Has the PM Capital Australian Companies 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 PM Capital Australian Companies?

If you or your self managed super fund would like to invest in the PM Capital Australian Companies please contact via phone or via email .

How do I get in contact with the PM Capital Australian Companies?

If you would like to get in contact with the PM Capital Australian Companies manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the PM Capital Australian Companies. 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

• Positive contributors to performance for the month of August included Apollo Asset Management, ING Group, Stanmore Resources, Perpetual Credit Income Trust and National Australia Bank.

• Detractors to monthly performance were Imdex, Frontier Digital Ventures, Fletcher Building, Siemens AG and BHP.

• There were no new positions initiated during the month.

• No equity positions were exited during the period however out of the money call options were sold on Apollo Asset Management reducing our effective position and providing an exit point in the event of a further increase in the share price.

• The net invested position at month’s end closed at 80%, with a net equity position of 70% and further 10% held in credit securities. We continue to see long term value in our current portfolio and with cash and liquid credit securities of 30%, are well positioned to take advantage of new opportunities as they arise.

Performance Commentary - July 31, 2023

• Positive contributors to performance for the month of July included Stanmore Resources, ING Group, ANZ Group, Challenger and Woodside.

• Detractors to monthly performance were Star Entertainment, REA Group (short) and Seek Limited (short).

• There were no new positions initiated during the month however, positions in BHP Group and Stanmore Resources were increased. BHP Group and Stanmore were the two largest positions in the portfolio at month end.

• No equity positions were exited during the period.

• The net invested position at month’s end closed at 84%, with a net equity position of 74% and further 10% held in credit securities. We continue to see long term value in our current portfolio and with cash and liquid credit securities of 26%, are well positioned to take advantage of new opportunities as they arise.

Performance Commentary - June 30, 2023

• Positive contributors to performance over the month of June included Apollo Global Management, Coronado Global Resources, ING Group, BHP Group and Fletcher Building.

• Detractors to monthly performance included Lark Distillery, Stanmore Resources, Top Shelf International, Siemens and REA Group (short position).

• There were no new positions initiated during June. Positions in BHP Group, Imdex, ANZ, Stanmore Resources and Perpetual Credit Income Trust were increased.

• No equity positions were exited during the period. The Fund however did exit its position in Seek Limited’s June 2026 Subordinated Floating Rate Note after the company called the security in full.

• The net invested position at month’s end closed at 82%, with a net equity position of 72% and further 10% held in credit securities.

Performance Commentary - May 31, 2023

• Positive contributors to May monthly performance included Apollo Global Management, Fletcher Building, ING Group, Siemens AG and Challenger.

• Detractors to monthly performance included Pact Group, Stanmore Resources, Frontier Digital Ventures, Coronado Global Resources and Imdex.

• There were no new positions initiated during May. Positions in Stanmore Resources, Pact Group and Perpetual Credit Income Trust were increased.

• No positions were exited during the period.

• The net invested position at month’s end closed at 85%, with a net equity position of 71% and further 14% held in credit securities. Cash holdings stood at 14% leaving the Fund well positioned to take advantage of the current volatility being experienced in markets.

Performance Commentary - April 30, 2023

Frontier Digital Ventures completed an institutional placement and retail Share Purchase Plan during the month with proceeds used to settle deferred consideration liabilities relating to the acquisitions of InfoCasas and Encuentra24 in Latin America. While the quantum of the raising was small (6.1% current shares outstanding), the timing was poor with the share price coming under pressure in recent months as investors focused on portfolio company Zameen, given the difficult macro conditions in Pakistan.

In late April, Frontier provided a trading update which showed that despite softer revenues at Zameen, the overall portfolio was able to grow EBITDA in Q1. The result highlights the increased breadth of the business today versus 2-3 years ago when it was much more reliant on the Zameen business.

Northern Star Resources contributed positively to performance as the gold price rallied to near-record levels above US$2,000/oz. Increased investor attention on the ASX gold sector, following global gold-miner Newmont’s ongoing pursuit of ASX-listed Newcrest also acted as a tailwind. We used recent strength to exit our position with the current share price reflecting fair value.

Performance Commentary - March 31, 2023

The portfolio returned 4.6% over the quarter. Our positions in European industrials and gaming were positive contributors while our US financials holdings detracted from performance.

Performance Commentary - February 28, 2023

Fund participates in two capital raisings for Star Entertainment and Top Self International.

Star Entertainment announced $800m capital raising structured as a 3-for-5 entitlement and a $115m institutional placement. The Fund took up its entitlement in full. The capital raising follows the NSW government’s proposal to increase taxes on casino tables and EGMs. This announcement was unexpected and our view of tax certainty was off the mark. Our focus has been gaining clarity around the earnings power of Star Sydney in the event NSW tax proposal goes through as planned. At Star’s current share price, the market is heavily discounting the group’s earnings power given the elevated uncertainty. With the balance sheet now repaired the share price move feels overdone. Furthermore, with the focus squarely on NSW there is less focus on the launch of Queens Wharf Brisbane, which we think has potential to surprise positively over a medium term as the property ramps up.

Top Shelf Internationa l also announced $10m capital raising via an institutional placement to fund the development of its agave business. The Fund participated in the placement. While Top Shelf has achieved strong revenue traction in both whisky and vodka, the company now needs to make the transition to one which self-funds its growth ambitions. We think this will be aided by the launch of their agave brand in the second half of 2023 which to date has required material investment while not contributing to revenue

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