Greencape Broadcap Performance Review | News

What is the Greencape Broadcap fund?

The Greencape Broadcap Fund is an Australian equities fund which can take significant positions in companies of all sizes. It offers investors access to a diversified portfolio of large, mid and small cap Australian shares, providing the potential for capital growth above the S&P/ASX 300 Accumulation Index over the medium to long term.

Diversified portfolio of between 25 and 70 Australian shares.
Aims to outperform the benchmark over rolling three-year periods.
Derivatives such as futures and options may also be used to reduce risk or gain exposure to other types of investments.
The Fund can also invest 10% in stocks listed on any international stock exchange. We aim to fully hedge any international asset exposure back to Australian dollars.

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Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Latest News & Updates For Greencape Broadcap

Greencape Broadcap Fund Commentary June 30, 2023

The S&P/ASX 300 Accumulation Index returned +0.99% for the quarter. The fund outperformed the market and delivered a +2.62% return over the quarter.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

Performance Review
Product Overview
Peer Comparison
Product Details

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.
Greencape Broadcap	3.52%	8.11%	24.19%	7.77%	9.78%	10.45%	13.52%	13.94%	-4.3%	-14.78%	-43.12%

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.
Greencape Broadcap	HOW0034AU	Managed Funds	Domestic Equity	Australia Large Growth	Domestic Equity - Large Growth Index	ASX Index 200 Index	1.19 BN	0.95%	15.00%	0.4%

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.
Greencape Broadcap	Domestic Equity - Large Growth Index	1.15%	1.58%	NA%	NA%	NA%	0.93	2.3%	2.54%	0.98	0.98

Product Details

Fund Name	Verifed by SMSF Mates	Manager Address	Phone	Website	Email
Greencape Broadcap	Yes		-	https://www.challenger.com.au/personal	-

Product Due Diligence

What is Greencape Broadcap

Greencape Broadcap is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Large Growth 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 Greencape Broadcap has Assets Under Management of 1.19 BN with a management fee of 0.95%, a performance fee of 15.00% and a buy/sell spread fee of 0.4%.

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Historical Performance Commentary

Performance Commentary - March 31, 2023

The S&P/ASX 300 Accumulation Index returned +3.33% for the quarter. The fund outperformed the market and delivered a +5.15% return over the quarter.

Performance Commentary - September 30, 2022

Performance Commentary - June 30, 2022

Performance Commentary - December 31, 2021

Performance Commentary - June 30, 2021

Performance Commentary - March 31, 2021

Performance Commentary - December 31, 2020

The Australian market rallied throughout the quarter, initially buoyed by a successful effort to suppress the virus relative to the rest of the developed world. The index then got a ‘shot in the arm’ in November as positive data was released for several vaccine candidates. Despite the late recovery, the ASX200 only managed to achieve a slight gain for the calendar year. The Reserve Bank of Australia (RBA) fired its final Cash Target Rate bullet in November, cutting the rate from 0.25% to 0.10% in November. Philip Lowe (RBA Governor) also revealed the central bank does not expect to raise the benchmark rate “for at least three years”.

Given the lack of room to maneuver on the cash rate, the RBA indicated they would continue to pursue further unconventional mechanisms, including buying $100bn in government bonds over the next six months. Incredibly, the average G10 central policy rate went negative in December. This suggests that monetary policy will continue to be more unconventional going forward, and fiscal policy will be likely be forced to carry more of the stimulus burden. Elsewhere, much of the focus was on the US Election which ran in November. As has become custom, the result was much closer than the polls suggested in the lead up to the vote. The likely outcome in the aftermath of the election, whereby Biden takes the White House but the Republicans retain control of the senate, was viewed as a ‘goldilocks’ outcome for global markets. Under this scenario, Biden likely didn’t have a path to implementing his administration’s proposed tax reform, however he was still in theory able to implement immediate stimulus. This scenario was forced to be reconsidered post period end following the Senate run-off elections which were both won by the Democrats. The market reaction to the election was relatively muted compared to the announcement a week later that the Pfizer vaccine was indicated to be over 90% effective in preventing COVID-19.

Value and Cyclical stocks which had been hit by the pandemic rallied strongly, whilst COVID-19 ‘winners’ were sold off harshly. This saw investors trade out of sectors such as Technology and E-Commerce into Travel and Energy, the latter whose recovery profile became a lot more visible due to the encouraging vaccine data Following the release of the Pfizer data, the Equal Weight S&P 500 Index had its largest out performance day on record relative to the (market weight) S&P 500.The local experience was in tune with offshore, with the Energy sector topping the performance table for the quarter. However, despite the sector’s remarkable rally in Q4, it was still by far the worst returning sector for the calendar year. Financial stocks (namely the banks) also benefitted from the flight to ‘Value’. The listed iron ore names fared notably well during the quarter, aided by the significant tailwind of a strong commodity price. Whilst demand for the metal was strong out of China, the price strength was exacerbated by Vale SA announcing it would miss its production targets. Whilst in USD terms the iron ore price didn’t reach the highs from 10 years ago, in AUD it well surpassed previous highs. It’s a profitable time to be an Aussie iron ore miner!

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Greencape Broadcap (HOW0034AU) Report & Performance