The Acadian Wholesale Australian Equity Fund (the Fund) uses quantitative modelling and fundamental insights to unearth undervalued stocks and deliver compelling returns for investors. The investment approach is both multi-faceted and highly adaptable, which allows Acadian to take advantage of attractive stocks opportunities as they arise. Acadian casts a wide net to discover mis-priced stocks, analysing more than 1,000 stocks daily to find the most attractive investment opportunities for inclusion in the portfolio.
The Portfolio returned -0.22%, 13.41%, 6.96% and 9.04% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of 0.99%, 14.40%, 7.11% and 8.54% for the S&P/ASX 300 Accumulation Index. Stock selection detracted from returns, while sector allocations were positive.
Key sources of negative active return included a combination of stock selection and an overweight position in materials, stock selection in energy, and a combination of stock selection and an underweight position in real estate. Leading declines within these sectors respectively included a position in South32, a holding in Santos, and an investment in Goodman Group. Contributors included stock selection in consumer discretionary, an overweight position in information technology, and stock selection in health care. Leading advances within these sectors in turn included a lack of exposure to IDP Education, a holding in WiseTech Global, and an investment in Ramsay Health Care.*
Key Holdings
Positive
Our overweight to McMillan Shakespeare Ltd, a provider of automotive salary packaging, leasing services, fleet and asset management and financing services, was rewarded with 15 basis points of active return as share prices gained 25% over the quarter. The company has been benefiting from steady growth in novated lease orders and sales, salary packages under management, as well as the number of Plan and Support Services customers.
Negative
Our overweight to South32 Ltd, a diversified metals and mining company, cost the portfolio 11 basis points of active return as share prices slumped 11.7% in the period. The company continues to be impacted by high interest rates, sticky inflation, and growing concerns of a global recession.
What is Acadian Wholesale Australian Equity Acadian Wholesale Australian Equity is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Large Cap Passive 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 Wholesale Australian Equity has Assets Under Management of 135.74 M with a management fee of 0.81%, a performance fee of 0.00% and a buy/sell spread fee of 0.24%.
How has the investment product performed recently? The recent investment performance of the investment product shows that the Acadian Wholesale Australian Equity has returned 3.18% in the last month. The previous three years have returned 9.19% annualised and 14.8% each year since inception, which is when the Acadian Wholesale 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 Wholesale Australian Equity first started, the Sharpe ratio is NA with an annualised volatility of 14.8%. The maximum drawdown of the investment product in the last 12 months is -3.74% and -53.83% 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 Wholesale Australian Equity has a 12-month excess return when compared to the Domestic Equity - Large Cap Passive Index of 1.71% 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. Acadian Wholesale Australian Equity has produced Alpha over the Domestic Equity - Large Cap Passive 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 Cap Passive Index category, you can click here for the Peer Investment Report.
What level of diversification will Acadian Wholesale Australian Equity provide? Acadian Wholesale Australian Equity has a correlation coefficient of 0.98 and a beta of 0.98 when compared to the Domestic Equity - Large Cap Passive 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 Wholesale Australian Equity and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Acadian Wholesale Australian Equity with the ASX Index 200 Index? For a full quantitative report on Acadian Wholesale Australian Equity compared to the ASX Index 200 Index, you can click here.
Can I sort and compare the Acadian Wholesale Australian Equity to do my own analysis? To sort and compare the Acadian Wholesale Australian Equity financial metrics, please refer to the table above.
Has the Acadian Wholesale 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 Wholesale Australian Equity? If you or your self managed super fund would like to invest in the Acadian Wholesale 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 Wholesale Australian Equity? If you would like to get in contact with the Acadian Wholesale Australian Equity manager, please call +61 2 93782000.
Comments from SMSF Mates SMSF Mate does not receive commissions or kickbacks from the Acadian Wholesale Australian Equity. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - March 31, 2023 The Portfolio returned 2.98%, -0.19%, 8.83% and 8.49% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of 3.33%, -0.60%, 8.63% and 8.12% for the S&P/ASX 300 Accumulation Index. Sector allocations were positive while stock selection detracted from returns.
The main drivers of negative returns included a combination of stock selection and an underweight position in consumer staples, stock selection in energy, and stock selection in information technology. Leading declines within these sectors respectively included a position in Woolworths Group, a holding in Whitehaven Coal, and a lack of exposure to Xero. Contributors included a combination of stock selection and an overweight position in health care, a combination of stock selection and an overweight position in industrials, and an underweight position in real estate. Leading advances within these sectors included a position in Cochlear, a holding in Brambles, and an investment in Mirvac Group.
Key Holdings
Positive
Our overweight to Aristocrat Leisure Ltd, a gaming content and technology company, was rewarded with 16 basis points of active returns as share prices gained 22.4% over the quarter. The company expects to benefit from continued strong revenue and profit growth in the first quarter, on the back of a market-leading position and recurring revenue drivers.
Negative
Our overweight to Whitehaven Coal Ltd, a developer and operator of coal mines in New South Wales and Queensland, cost the portfolio 18 basis points of active return as share prices slumped 21.8% in the period. The company continues to be impacted by severe labour shortages which is likely to impact its production output.
Performance Commentary - December 31, 2022 The Portfolio returned 9.13%, -0.66%, 7.54% and 8.98% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of 9.13%, -1.80%, 7.09% and 8.61% for the S&P/ASX 300 Accumulation Index. Stock selection contributed to returns, while sector allocations were negative.
Key sources of positive active returns included a combination of stock selection and an underweight position in consumer staples, stock selection in industrials, and stock selection in utilities. Leading advances within these sectors respectively included a position in Woolworths Group, a holding in ALS, and an investment in Origin Energy.
Detractors included a combination of stock selection and an underweight position in financials and a combination of stock selection and an overweight position in health care. Leading declines within these sectors in turn included a position in Medibank Pvt and a holding in Sonic Healthcare.*
Performance Commentary - September 30, 2022 The portfolio returned 1.2%1 for the quarter (gross of fees) versus a 0.5% return for the S&P/ASX 300 Accumulation Index. Stock selection contributed to returns and sector allocations were positive.
Key sources of positive active return included stock selection in energy, a combination of stock selection and an underweight position in real estate, and a combination of stock selection and an overweight position in information technology. Leading advances within these sectors respectively included a position in Whitehaven Coal, a holding in Goodman Group, and an investment in WiseTech Global. Detractors included stock selection in materials, stock selection in consumer staples, and stock selection in financials. Leading declines within these sectors in turn included a lack of exposure to OZ Minerals, a holding in GrainCorp, and an investment in Bendigo & Adelaide Bank.*
Performance Commentary - June 30, 2022 The portfolio returned -12%1 for the quarter (gross of fees) versus a -12.2% return for the S&P/ASX 300 Accumulation Index. Stock selection contributed to return, while sector allocations were muted.
Key sources of positive active return included a combination of stock selection and an overweight position in energy, stock selection in information technology, and stock selection in financials. Leading advances within these sectors respectively included a position in Viva Energy Group, a holding in Block, and an investment in Medibank Pvt. Detractors included stock selection in industrials, stock selection in consumer discretionary, and an underweight position in consumer staples. Leading declines within these sectors in turn included a lack of exposure to Atlas Arteria, a holding in Harvey Norman Holdings, and an investment in Coles Group.
Performance Commentary - March 31, 2022 The portfolio returned 2.7%1 for the quarter (gross of fees) versus a 2.1% return for the S&P/ASX 300 Accumulation Index. Gains realised from sector allocations were joined with positive payoffs from stock selection. Key sources of positive active return included a combination of stock selection and an overweight position in energy, stock selection in financials, and a combination of stock selection and an underweight position in communication services. Leading advances within these sectors respectively included a position in Whitehaven Coal, a holding in ASX, and a lack of exposure to REA Group. Detractors included stock selection in real estate, a combination of stock selection and an overweight position in health care, and an overweight position in information technology. Leading declines within these sectors in turn included a position in Charter Hall Group, a holding in Sonic Healthcare, and an investment in Technology One
Performance Commentary - December 31, 2021 The portfolio returned 2.5%1 for the quarter (gross of fees) versus a 2.2% return for the S&P/ASX 300 Accumulation Index. Gains realised from stock selection were joined with positive payoffs from country allocations.
Key sources of positive active return included a combination of stock selection and an underweight position in financials, a combination of stock selection and an underweight position in consumer staples, and stock selection in real estate. Leading advances within these sectors respectively included a position in Westpac Banking, a holding in GrainCorp, and an investment in Charter Hall Group. Detractors included stock selection in industrials, a combination of stock selection and an overweight position in energy, and stock selection in materials. Leading declines within these sectors in turn included a position in McMillan Shakespeare, a holding in Whitehaven Coal, and an investment in Fortescue Metals Group.*
Performance Commentary - June 30, 2021 The portfolio returned 9.0% for the quarter (gross of fees) versus an 8.5% return for the S&P/ASX 300 Accumulation Index. Gains realised from stock selection were joined with positive payoffs from country allocations. Key sources of positive active return included a combination of stock selection and an overweight position in materials, stock selection and an underweight position in utilities, and stock selection and an underweight position in industrials. Leading advances within these sectors respectively included a position in Mineral Resources, a holding in APA Group, and an investment in Sydney Airport. Detractors included stock selection in consumer staples and communication services as well as an overweight position in information technology. Leading declines within these sectors in turn included a position in Costa Group Holdings, a holding in News, and an investment in Technology One.*
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