SPW Global High Quality – Retail aims in AUD to outperform the MSCI Daily World Total Return Net World Index, after management costs and usual expenses, over rolling 3 to 5 year periods. The Fund invests in an actively managed portfolio of global equities with a high-quality bias and which are listed on recognised exchanges.
The SPW Global High-Quality Fund underperformed the MSCI World Index during the month by 1.0%, with the fund up 1.8%. The best performing stock during the month was Philips (+11.7%).
The shares have struggled for the last few quarters as the company faced litigation due to a recall in their Respironics division. However, performance this year has been better, especially in the Diagnostics & Treatment and Connected Care businesses. The company operate in the €150 billion HealthTech industry which is growing in the 3-6% range. We believe that they will benefit from the increased integration of electronic health records, data analytics (including artificial intelligence), patient monitoring, and clinical decision-making. Other strong performers during the month include NetEase (+11.0%) and Fiserv (+9.3%). NetEase has a long and successful history of game development and managing franchises over multiple years.
Their launch slate over the coming months is comprehensive, with Justice Mobile, Harry Potter: Magic Awakened, and Eggy Party all released this year. We believe that their opportunity to gain market share outside of China over the next few years should provide a strong avenue for growth. In terms of laggards, Roche (-5.8%) and Reckitt Benckiser (-5.6%) underperformed.
Both names have been out of favour amid strong growth in.
What is SPW Global High Quality – Retail SPW Global High Quality – Retail 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 SPW Global High Quality – Retail has Assets Under Management of 0.00 M with a management fee of %, a performance fee of and a buy/sell spread fee of %.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the SPW Global High Quality – Retail has returned 0.34% in the last month. The previous three years have returned 11.68% annualised and 11.67% each year since inception, which is when the SPW Global High Quality – Retail 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 SPW Global High Quality – Retail first started, the Sharpe ratio is 0.72 with an annualised volatility of 11.67%. The maximum drawdown of the investment product in the last 12 months is -4.27% and -13.26% 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 SPW Global High Quality – Retail has a 12-month excess return when compared to the Foreign Equity - Large Fundamental Index of -6.14% and -1.45% 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. SPW Global High Quality – Retail has produced Alpha over the Foreign Equity - Large Fundamental Index of -0.27% in the last 12 months and 0.01% 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 SPW Global High Quality – Retail provide?
SPW Global High Quality – Retail has a correlation coefficient of 0.83 and a beta of 0.83 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 SPW Global High Quality – Retail and its peer investments, you can click here for the Peer Investment Report.
How do I compare the SPW Global High Quality – Retail with the Developed -World Index?
For a full quantitative report on SPW Global High Quality – Retail compared to the Developed -World Index, you can click here.
Can I sort and compare the SPW Global High Quality – Retail to do my own analysis?
To sort and compare the SPW Global High Quality – Retail financial metrics, please refer to the table above.
Has the SPW Global High Quality – Retail 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 SPW Global High Quality – Retail?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the SPW Global High Quality – Retail. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - May 31, 2023 The SPW Global High-Quality Fund underperformed the MSCI World Index during the month by 3.7%, with the fund down 2.4%. The best performing stock during the month was Alphabet (+16.4%). The company hosted a Google Marketing Live event that delivered some tangible examples of how AI-driven products and tools can improve advertiser performance. The market seems confident that Alphabet will emerge as a net-winner from the proliferation of AI usage into the world. Having seemingly fallen behind Microsoft at the beginning of the year with a less-than-impressive debut for their generative AI tool, Bard, Alphabet have continued to show an impressive pace of innovation since, in getting AI-driven products into the hands of users and businesses. Their next-generation language model is available in more than 180 countries, and can be linked into other Google products, such as Lens, Docs, Drive, Gmail, and Maps. Other strong performers during the month were Akamai (+14.7%) and Samsung (+11.6%). In terms of laggards, ABI (-15.7%) and Kering (-13.8%) underperformed. ABI sent one of their products to a transgender influencer, which unfortunately led to some of their existing consumers boycotting the brand. This has resulted in some softer volumes.
Performance Commentary - April 30, 2023 The SPW Global High-Quality Fund outperformed the MSCI World Index during the month by 1.7%, with the fund up 4.7%.
The best performing stock during the month was Philips (+16.6%). They reported a strong set of Q1 numbers which exceeded expectations. Their diagnostics and treatment division, which makes up half their sales, grew organically by 15%, led by double digit growth in ultrasound and image-guided therapy. The company are also carrying out cost reduction initiatives and are about halfway through their planned reduction of 10,000 global roles. Success here led to a 74% EBITA beat in the latest set of results. However, the name remains under the cloud of litigation in their Connected Care division. The company faces court cases over the noise-dampening foam inside ventilators that treat sleep apnoea. That said, we are starting to hear more positive news on compensation agreements with some patients. The conclusion of litigation would remove a major overhang on the stock. Other strong performers during the month were Medtronic (+14.3%) and Novartis (+13.1%). In terms of laggards, Alibaba (-16.0%) and Tencent (-9.6%) underperformed the market. Both names suffered from a change of sentiment in China after a strong start to the year.
Performance Commentary - February 28, 2023 The SPW Global High-Quality Fund underperformed the MSCI World Index during the month by 1.7%, with the fund up 0.1%.
The best performing stock during the month was Fiserv (+12.7%). Fiserv is a global leader in payments and financial technology and they reported strong full year results early in February. They serve more than 12,000 clients around the world and provide account processing systems, electronic payment processing products, as well as Clover, their point-of-sale processing system, mainly used by small businesses. They should continue to benefit from cash to card secular shifts in the U.S. Their medium-term revenue target of 7-9% is higher than their historic top line growth, and we will expect the stock to perform well if it executes on this. They have also announced a large share repurchase authorisation.
Other strong performers during the month include Edwards Lifesciences (+9.6%) and Anheuser-Busch InBev (ABI) (+6.0%). In terms of laggards, Sabre (-22.4%) and Alibaba (-18.7%) underperformed the wider market. Sabre shares responded negatively to soft 2023 guidance, whereas Alibaba’s move was part of a wider sell-off in China, having started the year very strongly.
Performance Commentary - January 31, 2023 The Sanlam Global High-Quality Fund underperformed the MSCI World Index during the month by 1.2%, with the fund up 2.4%. The best performing stock during the month was Alibaba (+21.0%). The company has been a key beneficiary of the loosening of covid restrictions, post lockdown. The company is leveraged to a consumption recovery in China, which the market expects to happen throughout the year. Moreover, Alibaba over indexes on discretionary categories such as apparel and cosmetics, which we expect to outperform staples in this environment. We also see a better regulatory environment aiding Alibaba as well. The overhang from a possible ADR delisting in the US has been resolved, and any positive regulatory event regard Ant Financial would be a further positive catalyst for the stock. Other strong performers include NetEase (+18.0%) and InterContinental Hotels Group (+16.3%). NetEase has benefited from the resumption of game approvals in China, the early success of new game ‘Egg Party’, and the improving macro situation in the country. In terms of laggards, Johnson & Johnson (-10.5%) and General Dynamics (-8.6%) underperformed the wider market. These were two of the strongest performers in 2022 and have suffered because of portfolio rotation.
Performance Commentary - December 31, 2022 The SPW Global High-Quality Fund outperformed the MSCI World Index during the month by 2.4%, with the fund down 3.5%. The best performing stock during the month was Tencent (+14.9%). Sentiment continued to improve in December as covid restrictions continued to ease. This was despite the virus now having ripped through the population. Almost of third of Tencent’s revenues come from gaming and this segment is seeing news flow improve.
Domestically, Beijing have now approved various imported games that Tencent now has the right to distribute. These include Pokemon Unite from Nintendo and Valorant by Riot Games. This is the first-time imported games have received approval since the end of 2021. The pipeline remains strong, and we expect to see better growth for the segment in 2023 vs 2022. Other strong performers during the month were ABI (+2.7%) and Novartis (+1.6%). In terms of laggards, Alphabet (-13.7%) and the London Stock Exchange Group (-13.7%) underperformed the wider market. Big tech has struggled in 2022, a reversal of what we have got used to over the last decade. The market remains sceptical as to whether Alphabet can control their costs in the wake of slowing growth.
Performance Commentary - November 30, 2022 The SPW Global High-Quality Fund outperformed the MSCI World Index during the month by 1.8%, with the fund up 3.8%. The best performing stock during the month was Tencent (+34.2%). Sentiment towards China turned positive during the quarter as Beijing’s tone towards their zero covid policy softened. It would appear that the government’s political will to impose prolonged strict lockdowns is exhausted, not only due to the enormous economic costs, but also the overwhelming pandemic fatigue and discontent among its population. Tencent remains a bellwether for the Chinese stock market and so this change of stance has been beneficial for them.
They are also profiting from the resumption of game licence approvals. These were banned last year amid Beijing’s crackdown on their own Internet sector. Tencent will also be distributing their large holding in Meituan to shareholders as a dividend. This is consistent with their recent strategy of divesting investments and seems likely to be a move done with placating the regulator. Other strong performers during the quarter were Alibaba (+31.5%) and Yum China (27.6%). In terms of laggards, Medtronic (-13.6%)
Performance Commentary - October 31, 2022 The SPW Global High-Quality Fund outperformed the MSCI World Index during the month by 7.3%, with the fund up 15.6%. The best performing stock during the month was General Dynamics (+19.1%). General Dynamics has two sides to its business, both of which are performing well. The Defence part of the business – this makes tanks, munitions, weapon systems and nuclear submarines – is a beneficiary of the war in Ukraine. The other part of the business – called Gulfstream, which makes business jets – is also firing on all cylinders. The order book continues to grow as a result of increasing numbers of ultra-high net worth individuals during the pandemic, the high oil price and an extremely low level of used planes available for sale. Other strong performers during the month included Imperial Brands (+18.8%) and SAP (+17.8%). In terms of laggards, both Meta Platforms (-30.9%) and NetEase (-26.0%) had tough months. Meta reported their Q3 results, where they guided for a steep step up in costs for 2023. The market took a dim view of this and remains sceptical about the company’s ability to transition their business to the metaverse. NetEase suffered from further negative sentiment towards China, as President Xi took over total control of the Chinese Communist Party as it was confirmed that he will sit for a third term.
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