2000s Lifestage Fund — A s an actively managed fund, investing in a diversified portfolio of assets. It aims to provide returns (after fees) equivalent to CPI plus 5.4% p.a. over a 10 year period. The Fund is invested using the ‘multi-manager’ concept – packaging together high-quality investment managers from Australia and around the globe into a single fund.
The 2000’s Lifestage Fund produced a negative return over the March quarter, the 12-month rolling performance remained positive.
Both equities and bond markets experienced significant volatility over the quarter. The US Federal Reserve turned increasingly hawkish and started hiking interest rates by 25bps in March. The market expects more aggressive rate hikes into the year, and balance sheet reduction or ‘quantitative tightening’ as a result of inflationary pressures and tight labour markets. Sentiment was further exacerbated following the ramifications of Russia’s invasion of Ukraine.
Strong commodity prices provided a tailwind to domestic equities and the Australian Dollar. The domestic equity market, as represented by the S&P/ASX 300 Accumulation Index, returned 2.1%. International Equities, as measured by the MSCI World ex Australia Net Return Index, returned -5.0% on AUD hedged basis and -8.4% on unhedged basis. Emerging market equities underperformed with the MSCI Emerging Markets Net Total Return Index returning -9.9% over the quarter, led by the continuing poor sentiment towards China following growing concerns about forced delisting of the US-listed Chinese companies and the new surge of COVID cases and restrictions across multiple regions in China. Domestic listed property as measured by the S&P/ASX 300 A-REIT Index returned -6.7% and global listed property as measured by the FTSE EPRA/NAREIT Developed AUD Hedged Net Total Return Index, returned -3.5% over the quarter.
Bond markets experienced some of the worst drawdowns over the past 30 years, driven by monetary tightening and higher inflation expectations. The US 10-year treasury yield moved 83bps higher to 2.34%, and the Australian 10-year government bond yield moved 117bps higher to 2.84% over the quarter. Credit spreads also widened as market volatility surged. As a result, domestic fixed interest, as measured by the Bloomberg Ausbond Composite 0+ Yr Index, returned -5.9%. International fixed interest markets, as measured by the Bloomberg Barclays Global-Aggregate Total Return AUD Hedged index, returned -5.0%.
Over the quarter both growth and defensive oriented portfolios had negative results
What is 2000s Lifestage Fund — A 2000s Lifestage Fund — A is an Managed Funds investment product that is benchmarked against Multi-Asset Aggressive Investor Index and sits inside the Multi-Asset - 81-100% 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 2000s Lifestage Fund — A has Assets Under Management of 0.00 M with a management fee of 0.5%, a performance fee of 0.00% and a buy/sell spread fee of 0.32%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the 2000s Lifestage Fund — A has returned 3.54% in the last month. The previous three years have returned 7.85% annualised and 10.03% each year since inception, which is when the 2000s Lifestage Fund — A 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 2000s Lifestage Fund — A first started, the Sharpe ratio is 0.64 with an annualised volatility of 10.03%. The maximum drawdown of the investment product in the last 12 months is -5.32% and -19.8% 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 2000s Lifestage Fund — A has a 12-month excess return when compared to the Multi-Asset - 81-100% Multi-Manager Index of 0.98% and -0.31% 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. 2000s Lifestage Fund — A has produced Alpha over the Multi-Asset - 81-100% Multi-Manager Index of 0.1% in the last 12 months and -0.03% since inception.
What are similar investment products?
For a full list of investment products in the Multi-Asset - 81-100% Multi-Manager Index category, you can click here for the Peer Investment Report.
What level of diversification will 2000s Lifestage Fund — A provide?
2000s Lifestage Fund — A has a correlation coefficient of 0.99 and a beta of 0.97 when compared to the Multi-Asset - 81-100% 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 2000s Lifestage Fund — A and its peer investments, you can click here for the Peer Investment Report.
How do I compare the 2000s Lifestage Fund — A with the Multi-Asset Aggressive Investor Index?
For a full quantitative report on 2000s Lifestage Fund — A compared to the Multi-Asset Aggressive Investor Index, you can click here.
Can I sort and compare the 2000s Lifestage Fund — A to do my own analysis?
To sort and compare the 2000s Lifestage Fund — A financial metrics, please refer to the table above.
Has the 2000s Lifestage Fund — A 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 2000s Lifestage Fund — A?
If you or your self managed super fund would like to invest in the 2000s Lifestage Fund — A please contact 282 Kent Street Sydney, NSW 2000 Australia via phone 61-2-9259-3562 or via email .
How do I get in contact with the 2000s Lifestage Fund — A?
If you would like to get in contact with the 2000s Lifestage Fund — A manager, please call 61-2-9259-3562.
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the 2000s Lifestage Fund — A. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - March 31, 2021 The domestic equity market, as represented by the S&P/ASX 300 Accumulation Index, returned 4.2%, Global developed equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index, returned 6.2% over the quarter. Unhedged International equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index returned 6.3% with the AUDUSD stabilising to circa 76cents. Emerging markets in AUD terms returned 3.6%, as measured by the MSCI Emerging Markets AUD Index. The performance of domestic and international listed property sectors diverged over the quarter due to different speed in lifting Covid restrictions. The domestic listed property sector corrected some large gains from the December quarter and ended the March quarter with -0.6% return, as measured by the S&P/ASX 300 A-REIT Index. The global listed property sector returned 7.3% as measured by the FTSE EPRA/NAREIT Developed AUD Hedged Net Total Return Index.
Domestic yields, as measured by the Australian 10 year government bond yield rose 82bps to 1.79% over the quarter, and similarly the US 10 year treasury yields rose 83bps to 1.74%. As a result, Australian fixed interest, as measured by the Bloomberg Ausbond Composite 0+ Yr Index, returned -3.2%. International fixed interest markets, as measured by the Bloomberg Barclays Global-Aggregate Total Return AUD Hedged index returned -2.5%. Credit spreads were mostly stable over the quarter.
Performance Commentary - December 31, 2020 The 2000’s Lifestage Fund produced a positive return over the December quarter, resulting in positive 12 month performance. The December quarter started with investor optimism as markets climbed higher during early October. However, investor sentiment soured mid-month as uncertainty over the US election and climbing COVID-19 cases reversed much of the gains. The Nov 3 US election coupled with approvals for a series of vaccinations resulted in strong equity returns during November that persisted into December, despite being softened by further lockdowns and increasing case rates into the western holiday period.
The domestic equity market, as represented by the S&P/ ASX 300 Accumulation Index, was the stand out performer over the quarter, returning 13.8%, thanks in part to the Australian response to the pandemic and the additional monetary stimulus the RBA has been able to deliver through rate cuts. Global developed equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index, returned 11.7% over the quarter vs. a 5.7% increase in the unhedged index. The Australian Dollar appreciated against its developed market peers due to continuing global risk-on sentiment, ending the quarter buying 76.9c USD, up from 71.6c at the start of the quarter. Emerging markets measured by the MSCI Emerging Markets AUD Index returned 11.2%. The domestic and international listed property sectors returned strongly over the quarter. The domestic listed property sector returned 13.2% but global listed property lagged, returning 10.6%, as measured by the S&P/ASX 300 A-REIT Index and the FTSE EPRA/NAREIT Developed AUD Hedged Net Total Return Index respectively. Global bond yields reached record lows during the COVID-19 pandemic but increased during the December 2020 quarter. Domestic yields, as measured by the Australian 10 year government bond yield rose 18bps, leaving yields at 97bps, compared to 137bps 12 months prior. International yields followed a similar path, with US 10 year yields rising 23bps. A further tightening in credit spreads helped to offset some of the rise in yields, resulting in a -0.1% return for the Bloomberg Ausbond Composite 0+Yr Index. International fixed interest markets, as measured by the Bloomberg Barclays Global-Aggregate Total Return AUD Hedged index returned 0.8%. Over the quarter funds with higher allocations to growth assets outperformed those with a higher allocation to defensive assets, due to equity markets outperforming fixed interest assets.
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