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.
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.
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%.
How has the investment product performed recently? The recent investment performance of the investment product shows that the Greencape Broadcap has returned 3.52% in the last month. The previous three years have returned 7.77% annualised and 13.94% each year since inception, which is when the Greencape Broadcap 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 Greencape Broadcap first started, the Sharpe ratio is NA with an annualised volatility of 13.94%. The maximum drawdown of the investment product in the last 12 months is -4.3% and -43.12% 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 Greencape Broadcap has a 12-month excess return when compared to the Domestic Equity - Large Growth Index of 1.15% and 1.58% 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. Greencape Broadcap has produced Alpha over the Domestic Equity - Large Growth 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 Growth Index category, you can click here for the Peer Investment Report.
What level of diversification will Greencape Broadcap provide? Greencape Broadcap has a correlation coefficient of 0.98 and a beta of 0.93 when compared to the Domestic Equity - Large Growth 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 Greencape Broadcap and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Greencape Broadcap with the ASX Index 200 Index? For a full quantitative report on Greencape Broadcap compared to the ASX Index 200 Index, you can click here.
Can I sort and compare the Greencape Broadcap to do my own analysis? To sort and compare the Greencape Broadcap financial metrics, please refer to the table above.
Has the Greencape Broadcap 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 Greencape Broadcap? 
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Comments from SMSF Mates SMSF Mate does not receive commissions or kickbacks from the Greencape Broadcap. All data and commentary for this fund is provided free of charge for our readers general information.
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 The S&P/ASX 300 Accumulation Index returned +0.45% for the quarter. The fund outperformed the market and delivered a +0.71%
return over the quarter.
Performance Commentary - June 30, 2022 The S&P/ASX 200 Accumulation Index returned -11.90% for the quarter. The fund underperformed the market and delivered a – 12.33% return over the quarter.
Performance Commentary - December 31, 2021 The ASX300 posted its fifth consecutive quarterly gain in a row to end the year, a feat which has not been achieved since 2006. The COVID-19 pandemic continued to throw up surprises, with a new variant becoming globally dominant in a matter of weeks. In contrast to the beginning the pandemic, central bank policy became markedly more hawkish in light of increasing evidence of persistent inflationary drivers. As expected, the RBA didn’t move on rates in any of its three meetings during the period.
In a December speech, RBA Governor Philip Lowe said the bank’s central case was to not raise the cash rate in 2022. This is in stark contrast to the futures curve which implies the market is expecting there to be at least three rate rises this year. In the same speech, Governor Lowe also outlined three options for the current $4bn per week bond purchasing program; further tapering with an expectation to cease purchasing in May, taper and assess in May or cease purchases in February altogether. These options will be assessed at the RBA’s first board meeting for the year in February. Australian job ads staged a remarkable recovery at the back end of the year. The gains were broad based, with the hardest hit sector in 2020 in Hospitality and Tourism bouncing back the strongest.
Performance Commentary - June 30, 2021 The S&P/ASX 300 Accumulation Index returned +8.48% for the quarter. The fund underperformed the market and delivered a +6.98% return over the quarter.
Performance Commentary - March 31, 2021 The S&P/ASX 300 Accumulation Index returned +13.79% for the quarter. The fund underperformed the market and delivered a
+11.96% return over the quarter.
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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