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.
• 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.
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% in the last month. The previous three years have returned 13.84% annualised and 14.78% 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 0.5 with an annualised volatility of 14.78%. The maximum drawdown of the investment product in the last 12 months is -12.29% 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 -4.53% and -0.92% 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 -0.3% in the last 12 months and 0% 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 0.89 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?
How do I get in contact with the PM Capital Australian Companies?
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.
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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