Acadian Geared Australian Equity aims to maximize long-term returns by borrowing to invest, predominantly, in a selection of Australian companies within the S&P/ASX 300 Accumulation Index, while carefully controlling portfolio risk and transaction costs. The option aims to outperform the S&P/ASX 300 Accumulation Index over rolling seven year periods before fees and taxes.
The Portfolio returned -4.69%, 15.79%, 3.91%, and 3.39% net of fees for the quarterly, 1-year, 5-year and Since Inception periods, versus returns of -0.84%, 12.92%, 6.61% and 6.74% for the S&P/ASX 300 Accumulation Index. The underlying portfolio underperformed the benchmark1 by 0.32% for the quarter, therefore the impact of gearing was the main contributor to underperformance. Stock selection contributed to returns, while sector allocations were negative.
Key sources of negative active returns included a combination of stock selection and an underweight position in energy, an underweight position in financials, and stock selection in communication services. Leading declines within these sectors respectively included a position in Woodside Energy Group, a holding in National Australia Bank, and a lack of exposure to carsales.com. Contributors included a combination of stock selection and an underweight position in materials, stock selection in industrials, and a combination of stock selection and an underweight position in information technology. Leading advances within these sectors in turn included a position in Incitec Pivot, a holding in Computershare, and a lack of exposure to WiseTech Global.*
Approximately 57% of the portfolio was held in the lowest beta stocks, compared to roughly 27% for the index. The effect of the portfolio’s exposure to the lowest beta quintile was positive, contributing 2 bps. Meanwhile, approximately 59% of the portfolio was held in the lowest volatility stocks, compared to roughly 52% for the index. The effect of the portfolio’s exposure to the lowest volatility quintile was negative, detracting 25 bps.
What is Acadian Geared Australian Equity Acadian Geared Australian Equity 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 Acadian Geared Australian Equity has Assets Under Management of 15.97 M with a management fee of 0%, a performance fee of 0.00% and a buy/sell spread fee of 0.66%.
How has the investment product performed recently? The recent investment performance of the investment product shows that the Acadian Geared Australian Equity has returned 2.51% in the last month. The previous three years have returned 5.14% annualised and 16.64% each year since inception, which is when the Acadian Geared Australian Equity 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 Acadian Geared Australian Equity first started, the Sharpe ratio is NA with an annualised volatility of 16.64%. The maximum drawdown of the investment product in the last 12 months is -8.02% and -48.39% 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 Acadian Geared Australian Equity has a 12-month excess return when compared to the Domestic Equity - Large Geared Index of -4.53% and -6.56% 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. Acadian Geared Australian Equity has produced Alpha over the Domestic Equity - Large Geared Index of NA% in the last 12 months and NA% since inception.
What are similar investment products? For a full list of investment products in the Domestic Equity - Large Geared Index category, you can click here for the Peer Investment Report.
What level of diversification will Acadian Geared Australian Equity provide? Acadian Geared Australian Equity has a correlation coefficient of 0.62 and a beta of 0.96 when compared to the Domestic Equity - Large Geared 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 Acadian Geared Australian Equity and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Acadian Geared Australian Equity with the ASX Index 200 Index? For a full quantitative report on Acadian Geared Australian Equity compared to the ASX Index 200 Index, you can click here.
Can I sort and compare the Acadian Geared Australian Equity to do my own analysis? To sort and compare the Acadian Geared Australian Equity financial metrics, please refer to the table above.
Has the Acadian Geared Australian Equity 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 Acadian Geared Australian Equity? If you or your self managed super fund would like to invest in the Acadian Geared Australian Equity please contact Tower 1, Ground Floor, 201 Sussex St,Sydney, NSW, 2000 via phone +61 2 93782000 or via email -.
How do I get in contact with the Acadian Geared Australian Equity? If you would like to get in contact with the Acadian Geared Australian Equity manager, please call +61 2 93782000.
Comments from SMSF Mates SMSF Mate does not receive commissions or kickbacks from the Acadian Geared Australian Equity. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 2023 Fund Performance and Activity
The Portfolio returned -0.47%, 14.51%, 4.38%, and 4.53% net of fees for the quarterly, 1-year, 5-year and Since Inception periods, versus returns of 0.99%, 14.40%, 7.11% and 7.26% for the S&P/ASX 300 Accumulation Index. The underlying portfolio underperformed the benchmark1 by 0.31% for the quarter, therefore the impact of gearing contributed to underperformance. Stock selection contributed to returns, while sector allocations were negative.
Key sources of negative active return included a combination of stock selection and an overweight position in consumer staples, a combination of stock selection and an overweight position in materials, and a combination of stock selection and an underweight position in information technology. Contributors included a combination of stock selection and an overweight position in industrials, stock selection in healthcare, and stock selection in financials. Approximately 57% of the portfolio was held in the lowest beta stocks, compared to roughly 30% for the index. The effect of the portfolio’s exposure to the lowest beta quintile was positive. Approximately 58% of the portfolio was held in the lowest volatility stocks, compared to roughly 52% for the index. The effect of the portfolio’s exposure to the lowest volatility quintile was positive.
Performance Commentary - March 31, 2023 The Portfolio returned 6.52%, -5.80% and 4.87% net of fees for the quarterly, 1 year and Since Inception periods, versus returns of 3.33%, -0.60% and 7.43% for the S&P/ASX 300 Accumulation Index. The underlying portfolio outperformed the benchmark1 by 0.42% for the quarter, therefore the impact of gearing contributed to outperformance.
Key sources of positive active returns included a combination of stock selection and an underweight position in financials, a combination of stock selection and an overweight position in healthcare, and a combination of stock selection and an underweight position in energy. Detractors included stock selection in consumer staples, an underweight position in consumer discretionary, and stock selection in information technology. Approximately 58% of the portfolio was held in the lowest beta stocks, compared to roughly 28% for the index. The effect of the portfolio’s exposure to the lowest beta quintile was positive, contributing 18 bps.
Performance Commentary - December 31, 2022 The Portfolio returned 14.59%, -15.07% and 3.71% net of fees for the quarterly, 1 year and Since Inception periods, versus returns of 9.13%, -1.80% and 7.08% for the S&P/ASX 300 Accumulation Index. The underlying portfolio underperformed the benchmark1 by 2.2% for the quarter, therefore the impact of gearing contributed to outperformance.
Key sources of positive active returns included stock selection in information technology, an underweight position in consumer discretionary, and stock selection in communication services. Detractors included a combination of stock selection and an underweight position in financials, an overweight position in consumer staples, and a combination of stock selection and an overweight position in healthcare. Approximately 57% of the portfolio was held in the lowest beta stocks, compared to roughly 28% for the index. The effect of the portfolio’s exposure to the lowest beta quintile was negative, detracting 116 bps.
Performance Commentary - September 30, 2022 The fund returned -5.23%1 gross of fees in the September quarter, underperforming the benchmark by 5.68%, therefore the impact of gearing contributed to underperformance. Stock selection as well as sector allocations detracted from returns.
Key sources of negative active return included a combination of stock selection and an overweight position in consumer staples, a combination of stock selection and an overweight position in materials, and a combination of stock selection and an overweight position in healthcare. Contributors included stock selection in industrials, stock selection in financials, and stock selection in communication services. Approximately 55% of the portfolio was held in the lowest beta stocks, compared to roughly 29% for the index. The effect of the portfolio’s exposure to the lowest beta quintile was negative, detracting 146 bps.
Performance Commentary - June 30, 2022 The fund returned -18.1% in the June quarter net of fees and gearing, underperforming the benchmark by 5.8%. On an ungeared basis, the underlying portfolio returned – 7.6%1 gross of fees, outperforming the benchmark by 4.7%, therefore the impact of gearing was the key driver of underperformance. Stock selection and sector allocations contributed to returns.
Key sources of positive active return included a combination of stock selection and an overweight position in consumer staples, stock selection in information technology, and stock selection in materials. Detractors included stock selection in healthcare. Approximately 51% of the portfolio was held in the lowest beta stocks, compared to roughly 25% for the index. The effect of the portfolio’s exposure to the lowest beta quintile was Positive, contributing 285 bps.
Performance Commentary - March 31, 2022 The fund returned -3.4%1 gross of fees in the March quarter, underperforming the benchmark by 5.5%. The underlying portfolio underperformed the benchmark2 by 3.1% for the quarter, therefore the impact of gearing contributed to underperformance. Stock selection and sector allocations detracted returns.
Key sources of negative active return included stock selection in materials, a combination of stock selection and an overweight position in health care, and a combination of stock selection and an underweight position in energy. Leading declines within these sectors respectively included a position in BHP Group, a holding in Sonic Healthcare, and a lack of exposure to Woodside Petroleum.
Contributors included a combination of stock selection and an underweight position in consumer discretionary, stock selection in information technology, and an underweight position in real estate. Leading advances within these sectors in turn included a lack of exposure to Wesfarmers, a holding in Computershare, and a lack of exposure to Charter Hall Group.* Approximately 37.2% of the portfolio was held in the lowest beta stocks, compared to roughly 17.0% for the index. The effect of the portfolio’s exposure to the lowest beta quintile was negative, detracting 117 bps.
Performance Commentary - June 30, 2021 Being a geared fund with a target leverage of 55%, the fund gained 18.5% gross of fees in the June quarter, primarily attributable to the impact of gearing. The underlying portfolio was in line with the benchmark1 for the quarter. Stock selection detracted whereas sector allocations provided some positive offset.
Key sources of negative active return included a combination of stock selection and an overweight position in consumer staples, stock selection and an underweight position in consumer discretionary, and stock selection in communication services. Leading declines within these sectors respectively included a position in Costa Group Holdings, a lack of exposure to Aristocrat Leisure, and an investment in Chorus. Contributors included a combination of stock selection and an overweight position in materials, stock selection in health care, and a combination of stock selection and an underweight position in energy. Leading advances within these sectors in turn included a position in Brickworks, a holding in ResMed, and a lack of exposure to Woodside Petroleum.*
Approximately 46% of the portfolio was held in the lowest beta stocks, compared to roughly 29% for the index. The effect of the portfolio’s exposure to the lowest beta quintile was negative, detracting 89 bps
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