Single Sector Fund
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This fund provides access to a global share portfolio that offers thematic exposure to disruptive innovation across a number of sectors and geographies.
Disruptive innovation is caused by the introduction of new technologically enabled products or services that permanently change an industry or economic sector by providing greater simplicity, accuracy, customisation and accessibility while driving down costs.
Risk Indicator (volatility)
Target Asset Allocation
This number indicates the relative 'risk' level of this fund based on the types of assets it is invested in, ranging from level 1 (least risky) to 7 (most risky).
| Risk category | Description of volatility |
| 1 | Very low |
| 2 | Low |
| 3 | Medium |
| 4 | Medium to High |
| 5 | High |
| 6 | Very high |
| 7 | Extremely high |
The risk indicators are calculated using returns of the funds, the returns of the fund’s market index or a combination of both, for the previous five years. Index returns or a mix are used if the fund has existed for less than five years. All Managers are required to use the same methodology so you can compare the risk of different funds if you are researching more than one manager.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 7.89% | 9.85% | 32.56% | -20.86% | |
| Appropriate Market Index (AMI)2 | 6.40% | 14.64% | 53.70% | 19.21% |
AMI (appropriate market index) is a theoretical portfolio with similar underlying assets as the fund. This allows investors to see a comparison of how the value of those assets have changed in the market relative to the fund.
| One month | Three months | One year | Three years (p.a) | Five years (p.a) | |
|---|---|---|---|---|---|
| Fund performance1 | 7.95% | 9.92% | 32.84% | -20.83% | |
| Appropriate Market Index (AMI)2 | 6.40% | 14.64% | 53.70% | 19.21% |
AMI (appropriate market index) is a theoretical portfolio with similar underlying assets as the fund. This allows investors to see a comparison of how the value of those assets have changed in the market relative to the fund.
| Security Name | Percentage |
|---|---|
| Coinbase Global Inc | 8.18% |
| Tesla Motors Inc | 8.00% |
| Block Inc | 6.44% |
| Roku Inc | 5.92% |
| Zoom Video Communications Inc | 4.64% |
| Crispr Therapeutics Ag | 4.14% |
| Robinhood Markets Inc | 3.86% |
| Palantir Technologies Inc | 3.61% |
| Draftkings Inc | 3.58% |
| Roblox Corp | 3.55% |
Commentary
As of 29 February 2024
Market Highlights
Key contributors for the month include Coinbase (COIN), Robinhood (HOOD), Palantir (PLTR).
On the back of crypto asset appreciation and volatility, Coinbase reported 50% year-over-year growth in net revenue for the fourth quarter of 2023. Robinhood reported strong fourth quarter earnings with 24% year-over-year growth in revenue, beating Wall Street estimates. The company also reported a substantial $4.6B in net deposit inflows for the fourth quarter of 2023, with $1.3 billion of this amount coming from brokerage account transfers from its competitors. Palantir was a contributor to the fund after the company reported their fourth quarter earnings. US Commercial revenue grew 70% year-over-year, a significant acceleration from 33% year-over-year growth last quarter, driven by the success of Palantir's AIP bootcamps. The company exceeded their original goal of holding 500 bootcamps in 2023, having held 560 in total, as enterprises continue to search for a comprehensive and flexible platform through which they can integrate AI into their businesses.
Key detractors for the month include Roku (ROKU), Teladoc (TDOC), Twilio (TWLO).
Roku was a detractor from the fund this month following the announcement of its fourth quarter earnings, compounded by news of a giant retail chain acquiring connected TV competitor Vizio. Roku's total revenue for 2023 grew 11% year-over-year, and total active accounts reached 80 million, surpassing the subscriber count of the six largest traditional pay-TV providers in the US combined. While the acquisition of Vizio will decrease shelf space for Roku TVs at the retailer, we believe that Roku is well-diversified in its distribution channel. Shares of Teladoc detracted from performance this month after the company reported fourth-quarter results, including single digit quarterly and annual revenue growth and guidance of single-digit growth for the first quarter and full year, all of which were lower than expected. Twilio detracted from fund performance after the company reported their fourth quarter earnings. Quarterly revenue grew 5% year-over-year, similar to last quarter. Twilio's management is also conducting an operational review of Segment, their customer data platform, which they say is growing below their expectations.