AMP Capital Specialist Geared Aus Shr is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Large Geared 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 AMP Capital Specialist Geared Aus Shr has Assets Under Management of 317.78 M with a management fee of 1.56%, a performance fee of 0.00% and a buy/sell spread fee of 0.7%.
The Fund posted a negative return and underperformed its benchmark over the September quarter. Amid considerable market volatility, two of the Fund’s three underlying managers gained ground, with Macquarie outperforming the benchmark. Vinva slightly underperformed, with DNR Capital lagging on a relative basis. The Fund’s gearing also detracted. DNR Capital continues to drive the Fund’s strong performance compared to the benchmark over the long term, including over 2, 3, 5 years and since inception (all returns before fees).
Stock selection detracted from relative returns, outweighing the value added by sector allocation. Regarding sector allocation, the main contributors were an underweight exposure to utilities and an overweight position in energy. The main detractor was an underweight exposure to materials. Regarding stock selection, the Fund’s positions in financials and consumer discretionary detracted the most, while industrials added most value by sector. The largest individual contributors to relative returns were underweight positions in toll-road operator Transurban Group (-14%) and hospital and health care group Ramsay Health Care (-21%) and an overweight position in coal, oil and gas operator New Hope Corporation (+82%). Transurban underperformed as ‘bond proxy’ stocks amid surging bond yields in the latter half of the period. Ramsay Health Care shares suffered after the KKR -led takeover consortium confirmed it would not improve its previous offer, throwing the potential deal into doubt. New Hope soared after Prime Minister Albanese confirmed Australia as an ongoing supplier of gas and coal, which is supported by the global energy crisis.
The largest individual detractors from relative returns were overweight positions in Domino’s Pizza (-23%) and financials services and tech provider IRESS (-21%), as well as being underweight lithium and tantalite miner Pilbara Minerals (+99%). Domino’s fell amid concerns over its European earnings with inflation and a general deterioration in economic conditions weighed.
IRESS saw a downgrade on the back of a CEO change, with higher $US-based costs and slowing Australian sales also impacted. Pilbara Minerals rode the wave with other lithium producers as global demand was unabated.
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