AMP Capital Australian Emerging Companies A aims to outperform the S&P/ASX Small Ordinaries Accumulation Index over rolling 5-year periods. The Fund employs a disciplined fundamental research process to identify undervalued companies where we have conviction in medium-term earnings delivery and are supported by sustainable business models.
The Fund returned +5.02% for the month of March, underperforming the benchmark by 0.24%. The largest contributors to relative performance included overweight positions in Uniti Group (UWL), Pilbara Minerals Ltd (PLS) and Nickel Mines Ltd (NIC).
Uniti Group (UWL) outperformed after the company received two takeover offers in the month. The initial bid was from infrastructure and property-focused asset manager, Morrison & Co. The bid valued the company at A$3.06bn, a 43% premium on UWL’s previous closing price.Nickel Mines Ltd (NIC) underperformed after there was uncertainty over the potential impact on Tsingshan Holding Co., a joint venture partner of the company, of margin calls on losses from nickel derivatives.
The largest detractors from relative performance included an overweight position in Capitol Health (CAJ), and underweight positions in Lake Resources (LKE) and AVZ Minerals (AVZ). Underweight holdings in lithium project developers Lake Resources (LKE) and AVZ Minerals (AVZ) detracted from performance. The strong performance in these names was driven by positive investor sentiment for the lithium price.
What is AMP Capital Australian Em Coms On-plfm A AMP Capital Australian Em Coms On-plfm A is an Managed Funds investment product that is benchmarked against ASX Index Small Ordinaries Index and sits inside the Domestic Equity - Small Cap 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 Australian Em Coms On-plfm A has Assets Under Management of 15.53 M with a management fee of 0.85%, a performance fee of 0.00% and a buy/sell spread fee of 0.6%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the AMP Capital Australian Em Coms On-plfm A has returned 1.44% in the last month. The previous three years have returned 5.44% annualised and 22.19% each year since inception, which is when the AMP Capital Australian Em Coms On-plfm 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 AMP Capital Australian Em Coms On-plfm A first started, the Sharpe ratio is 0.34 with an annualised volatility of 22.19%. The maximum drawdown of the investment product in the last 12 months is -26.38% and -28.66% 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 AMP Capital Australian Em Coms On-plfm A has a 12-month excess return when compared to the Domestic Equity - Small Cap Index of 0.32% and 1.88% 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. AMP Capital Australian Em Coms On-plfm A has produced Alpha over the Domestic Equity - Small Cap Index of -0.17% in the last 12 months and 0.17% since inception.
What are similar investment products?
For a full list of investment products in the Domestic Equity - Small Cap Index category, you can click here for the Peer Investment Report.
What level of diversification will AMP Capital Australian Em Coms On-plfm A provide?
AMP Capital Australian Em Coms On-plfm A has a correlation coefficient of 0.94 and a beta of 0.84 when compared to the Domestic Equity - Small Cap 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 AMP Capital Australian Em Coms On-plfm A and its peer investments, you can click here for the Peer Investment Report.
How do I compare the AMP Capital Australian Em Coms On-plfm A with the ASX Index Small Ordinaries Index?
For a full quantitative report on AMP Capital Australian Em Coms On-plfm A compared to the ASX Index Small Ordinaries Index, you can click here.
Can I sort and compare the AMP Capital Australian Em Coms On-plfm A to do my own analysis?
To sort and compare the AMP Capital Australian Em Coms On-plfm A financial metrics, please refer to the table above.
Has the AMP Capital Australian Em Coms On-plfm 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 AMP Capital Australian Em Coms On-plfm A?
If you or your self managed super fund would like to invest in the AMP Capital Australian Em Coms On-plfm A please contact 33 Alfred Street, Sydney via phone 1800 667 841 or via email askamp@amp.com.au.
How do I get in contact with the AMP Capital Australian Em Coms On-plfm A?
If you would like to get in contact with the AMP Capital Australian Em Coms On-plfm A manager, please call 1800 667 841.
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the AMP Capital Australian Em Coms On-plfm A. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - January 31, 2022 The AMP Capital Australian Emerging Companies Fund declined 7.0% in January, outperforming the benchmark by 2.0%. The fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering an outperformance of 6.6% pa since inception.
Performance Commentary - December 31, 2021 The AMP Capital Australian Emerging Companies Fund rose 4.5% in December, outperforming the benchmark by 3.1%. The Fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering outperformance of 6.2% pa since inception.
Supply chain and cost pressures, coupled with Omicron led labour shortages, make it likely that we are in for a weaker than usual reporting season in February. Trading updates and outlook statements have the potential to be worse than expected, and the short-term risk factor in our process has led to the exit of stocks with a high risk of short-term disappointment.
Performance Commentary - November 30, 2021 The AMP Capital Australian Emerging Companies Fund declined 1.6% in November, underperforming the benchmark by 1.3%. The Fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering an outperformance of 5.3% pa since inception.
The team has hosted a number of company meetings during the month as we look through the noise of a very busy IPO and capital raising period. This has led to a few new positions initiated in the fund, in addition to top ups of existing positions that we believe have been unfairly sold down. The portfolio is well balanced in relation to growth, value and quality factors, with a focus on medium-term earnings delivery and aversion to short-term downgrades. In addition, the fund continues to be well positioned with superior sustainability metrics compared to the benchmark.
Performance Commentary - September 30, 2021 The AMP Capital Australian Emerging Companies Fund returned -2.9% in September, underperforming the benchmark by 0.7%. The Fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering an outperformance of 4.9% pa since inception.
September was the second consecutive month where earnings did not drive share prices – yet again, revisions for the stocks held in the fund exceeded that of the benchmark but wasn’t rewarded performance wise. We believe this to be temporary and earnings will once again become the most important factor as the market looks past the short-term and considers more medium-term drivers.
Performance Commentary - August 31, 2021 The AMP Capital Australian Emerging Companies Fund returned 1.93% in August, underperforming the benchmark by 3.05%. The Fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering an outperformance of 5.5% pa since inception.
August was not a month where earnings drove share prices – the earnings revisions for the stocks held in the fund exceeded that of the benchmark but wasn’t rewarded performance-wise. We believe this to be temporary and earnings will once again become the most important factor as the market looks past the short-term and considers more medium-term drivers. There were minimal changes to the fund during the month, and it continues to be well positioned with superior earnings growth and sustainability metrics compared to the benchmark.
Performance Commentary - July 31, 2021 The AMP Capital Australian Emerging Companies Fund returned 1.4% in July, outperforming the benchmark by +0.8%. The Fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering an outperformance of +6.8% pa since inception.
Performance Commentary - June 30, 2021 The S&P/ASX Small Ordinaries Index rose 3.1% in June and outperformed the S&P/ASX 200 Index by 0.8% • Inflation expectations reduced and the slide in treasury yields resulted in the rotation into growth/technology and away from the reflation beneficiaries • Commodity prices came under pressure given the rising US dollar, which was caused by a more hawkish update from the US Federal Reserve – small resource companies subsequently underperformed with gold names particularly hard hit.
The AMP Capital Australian Emerging Companies Fund returned 2.5% in June, underperforming the benchmark by 0.6%. The Fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering an outperformance of 6.7% pa since inception.
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