Macquarie Australian Shares Fund aims to outperform the S&P/ASX 200 Accumulation Index (Index) over the medium to long term (before fees).
The Fund returned -2.52% (post-fees) for the month, outperforming the benchmark which returned -2.84%.
The key contributors to relative performance included overweight positions in QBE Insurance (QBE), Seven Group (SVW) and Beach Energy (BPT). QBE outperformed as insurers benefitted from higher running yields on their asset base which improves near-term investment results. Insurance is also seen as less discretionary than other forms of spending and should be more durable in a slowing economy.
The key detractors from relative performance included overweight positions in Qantas (QAN), Perseus Mining (PRU) and Northern Star (NST). Qantas underperformed for the period after announcing that CEO Alan Joyce would retire earlier than planned with Vanessa Hudson to replace him. Qantas also remained under pressure with rising oil prices likely to impact profitability given a reluctance to directly pass higher costs onto customers.
What is Macquarie Australian Shares Macquarie Australian Shares is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Large Cap Neutral 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 Macquarie Australian Shares has Assets Under Management of 199.46 M with a management fee of 0.6%, a performance fee of 0.00% and a buy/sell spread fee of 0.44%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Macquarie Australian Shares has returned 3.94% in the last month. The previous three years have returned 9.66% annualised and 15.02% each year since inception, which is when the Macquarie Australian Shares 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 Macquarie Australian Shares first started, the Sharpe ratio is NA with an annualised volatility of 15.02%. The maximum drawdown of the investment product in the last 12 months is -3.86% and -46.93% 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 Macquarie Australian Shares has a 12-month excess return when compared to the Domestic Equity - Large Cap Neutral Index of 2.55% and 2.17% 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. Macquarie Australian Shares has produced Alpha over the Domestic Equity - Large Cap Neutral 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 Neutral Index category, you can click here for the Peer Investment Report.
What level of diversification will Macquarie Australian Shares provide?
Macquarie Australian Shares has a correlation coefficient of 0.96 and a beta of 1.03 when compared to the Domestic Equity - Large Cap Neutral 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 Macquarie Australian Shares and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Macquarie Australian Shares with the ASX Index 200 Index?
For a full quantitative report on Macquarie Australian Shares compared to the ASX Index 200 Index, you can click here.
Can I sort and compare the Macquarie Australian Shares to do my own analysis?
To sort and compare the Macquarie Australian Shares financial metrics, please refer to the table above.
Has the Macquarie Australian Shares 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 Macquarie Australian Shares?
How do I get in contact with the Macquarie Australian Shares?
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Macquarie Australian Shares. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - August 31, 2023 The Fund returned -0.84% (post-fees) for the month, underperforming the benchmark by -0.10%.
The key contributors to relative performance included overweight positions in Altium (ALU), Premier Investments (PMV) and AMP (AMP). Financial services company AMP outperformed after it beat analyst expectations during reporting season. Its business simplification continues to deliver; underlying earnings expanded, and cost ratios declined.
The key detractors from relative performance included overweight positions in WiseTech Global (WTC) and Perpetual (PPT), and an underweight position in Wesfarmers (WES). Wesfarmers benefited from the ongoing strength and resilience of its Bunnings hardware business and K Mart. Kmart is benefiting from customers seeking value in household goods in a tightening macro environment.
Performance Commentary - July 31, 2023 The Fund returned 3.61% (post-fees) for the month, outperforming the benchmark by 0.73%.
The key contributors to relative performance included overweight positions in Webjet (WEB), Lendlease (LLC) and WiseTech (WTC). WiseTech continued to benefit from the boom in IT stocks globally with the stock up more than 70% for 2023.
The key detractors from relative performance included an overweight position in Northern Star Resources (NSR) and underweight positions in National Australia Bank (NAB) and Woodside Energy (WDS). Major banks, including NAB, outperformed in July, playing catchup to the broader market, after lagging for the first half of the year. Competition in the mortgage refinancing segment eased with the major players easing back on incentives such as customer cashbacks to protect margins. From the perspective of deposits, banks continue to benefit from customer inertia in terms of locking-in better savings rates.
Performance Commentary - June 30, 2023 The Fund returned 1.79% (post-fees) for the month, outperforming the benchmark by 0.03%.
The key contributors to relative performance included overweight positions in AUB Group (AUB), AGL Energy (AGL) and NRW Holdings (NWH). AGL Energy outperformed following significant updates after announcing improved energy plant availability. AUB Group saw a reversal after last month’s trading update.
The key detractors from relative performance included overweight positions in Qantas (QAN) and Premier Investments (PM) and an underweight position in Fortescue Metals (FMG). Qantas underperformed despite providing an update that Group domestic capacity was now back to pre-COVID levels and that data showed that consumers continued to prioritise travel over other spending categories.
Performance Commentary - May 31, 2023 The Fund returned -3.00% (post-fees) for the month, underperforming the benchmark by -0.47%.
The key contributors to relative performance included an underweight position in Wesfarmers (WES), overweight position in AGL Energy (AGL), and an underweight position in NAB (NAB). National Australia Bank underperformed after the company reported weaker-thanexpected net interest margin in their 1H FY 2023 results and expectations for further margin expansion decreased.
The key detractors from relative performance included an overweight position in Premier Investments (PMV), overweight position in Super Retail (SUL), and an overweight position in Perseus Mining (PRU). Super Retail saw share price weakness following a disappointing trading update, while Perseus Mining underperformed as the gold price fell during the period.
Performance Commentary - April 30, 2023 The Fund returned 1.54% (post-fees) for the month, underperforming the benchmark by -0.31%.
The key contributors to relative performance included an underweight position in Fortescue Metals (FMG) and overweight positions in Corporate Travel (CTD) and AUB Group (AUB).
Steel producer Fortescue underperformed for the period as iron ore prices fell, directly impacting the company’s bottom line.
Corporate Travel saw its share price jump after winning a significant contract with the UK Home Office to provide bridging and accommodation services for asylum seekers.
The key detractors from relative performance included underweight positions in Allkem (AKE) and Mirvac (MGR) and an overweight position in Grange Resources (GRR).
Lithium producer Allkem outperformed amid speculation it was a potential takeover target given the fall in lithium prices in recent months.
Property manager Mirvac outperformed as the pause in monetary policy in early April triggered a rebound in the REIT sector.
Performance Commentary - February 28, 2023 The Fund returned -2.67% (post-fees) for the month, underperforming the benchmark by 0.22%.
The key contributors to relative performance included overweight positions in AUB Group (AUB), QBE Insurance (QBE) and Medibank Private (MPL).
Insurer AUB outperformed following a positive earnings update. The company reported revenue growth and margin expansion in its Australian broking division driven by ongoing network optimisation, disciplined acquisitions, and enhanced broker propositions.
Health insurer Medibank Private also saw strong share price movement after releasing its half year results for the six months ending 31 December 2022. Despite the controversy due to the cybersecurity breach in October, Medibank reported growth in revenue, profit and earnings per share as the company benefited from a higher interest rate environment and lower claims.
The key detractors from relative performance included overweight positions in Clinuvel Pharmaceuticals (CUV), Northern Star Resources (NST) and NRW Holdings (NWH).
Biotech company Clinuvel Pharmaceuticals saw share price weakness after reporting lower than expected sales of its key product SCENESSE.
Despite reporting strong results in its earnings update, gold mining company Northern Star underperformed for the period as the share price was weighed down by higher costs impacting the broader mining sector and a falling gold price.
Performance Commentary - December 31, 2022 In December, the Fund finished down -3.08% (post-fees), outperforming the benchmark by 0.14%.
The key contributors to relative performance included overweight positions in QBE Insurance (QBE), Clinuvel Pharmaceutical (CUV) and Perenti (PRN).
Insurance business QBE Insurance outperformed as it continues to benefit from rising interest rates.
Mining services company Perenti outperformed following a positive earnings update, upgrading its earnings guidance. The company had managed to arrange rate adjustments with customers, including for work already completed. Perenti had also managed to secure additional contracts with Evolution Mining and Regis Resources.
The key detractors from relative performance included overweight positions in Aristocrat Leisure (ALL) and Nine Entertainment (NEC) and an underweight position in Fortescue Metals (FMG).
Aristocrat Leisure continued to underperform as investors digested commentary from its November full year result. Of particular concern was the lower-than-expected growth forecast from its mobile-games unit.
Media giant Nine Entertainment saw share price weakness after digital property company Domain (ASX: DHG) underperformed following a poor trading update, highlighting a decline in listings threatening near term earnings. Nine holds 55% of DHG shares.
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