Single Sector Fund
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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 | Very 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 | 1.97% | 6.85% | 25.44% | 24.43% | 17.21% |
| Appropriate Market Index (AMI)2 | 3.10% | 7.49% | 24.66% | 19.55% | 14.82% |
| Security Name | Percentage |
|---|---|
| Microsoft Corp USD0.00005 | 5.44% |
| Amazon Com Inc | 3.46% |
| Progressive Corp | 2.77% |
| Old Dominion Freight Line Inc | 2.20% |
| Anglo American Plc | 2.19% |
| Steel Dynamics Inc | 2.13% |
| Constellation Software Com | 2.05% |
| Taiwan Semiconduct Manufacturing Usd | 2.04% |
| Reliance Steel & Aluminum Co | 2.04% |
| Unitedhealth Group Inc Com Stk Us0.01 | 2.02% |
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Commentary
As of 30 September 2021
Market Highlights
The fund returned 1.55% in the third quarter to outperform the Benchmark return of 0.22% by 1.33%. All three underlying managers outperformed, while in terms of style drivers, Growth modestly outperformed Value. The fund benefitted from its overweight exposures to HCA Healthcare, Old Dominion Freight Line, West Pharma Services and Constellation Software, as well as nil exposure to China’s Alibaba Group which plunged 34% over the quarter. The main detractors from performance were underweight exposures to Apple and Tesla, which both outperformed over the quarter, as well overweight exposures to Magazine Luiza, LHC Group and Tencent Holdings which all underperformed over the quarter. WCM added three new holdings over the quarter (Lam Research, Floor & Décor Holdings and Repligen Corp), while selling out of Tencent Holdings. US-based Lam Research is a leading manufacturer of equipment used to make semiconductors. Floor & Décor (FND) Holdings is a hard flooring retailer with a differentiated business model, talented management team, good box economics and a long reinvestment runway. Repligen Corp is a bioprocessing company focused on the development, production, and commercialisation of innovative products used in the process of manufacturing biologic drugs. Regarding Tencent, the Chinese government has taken significant steps this year to reign in its large technology companies that have enjoyed home field advantage and years of unfettered growth.