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The Multi-Manager global equity strategy has four underlying managers WCM Investment Management, Royal London Asset Management, Nikko Asset Management Europe Ltd and JP Morgan Asset Management. These managers select companies from around the world covering a diverse range of regions and sectors. The appointed global managers are responsible for the investment management of the assets. The multi-manager global equity strategy managed by Yarra Capital Management.
This fund combines four underlying managers WCM Investment Management, Royal London Asset Management, Nikko Asset Management Europe Ltd and JP Morgan Asset Management. Each manager selects companies from around the world covering a diverse range of regions and sectors based on their own investment process. The result is a portfolio that holds around 150-170 companies. The multi-manager global equity strategy is managed by Yarra Capital Management.
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 | -2.11% | 3.98% | 20.72% | 11.18% | 15.24% |
| Appropriate Market Index (AMI)2 | -2.66% | 4.60% | 17.48% | 10.00% | 12.32% |
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 |
|---|---|
| Jpm Global Select Equity X Acc Usd | 24.42% |
| Microsoft Corp | 4.12% |
| Amazon Com Inc | 3.35% |
| Nvidia Corp | 2.98% |
| Suspense A/C Uut | 2.36% |
| Unitedhealth Group Inc Com Stk Us0.01 | 2.29% |
| Progressive Corp | 1.70% |
| Visa Inc - A | 1.33% |
| Constellation Software Com | 1.28% |
| Taiwan Semicon Manufacturing Co Ltd | 1.24% |
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Commentary
As of 31 August 2024
The underlying managers delivered mixed performance over the month. Stock selection contributed positively to the fund’s performance in the information technology, financials, consumer discretionary and communication services sectors. However, it detracted in the healthcare, consumer staples and materials sectors. Top contributors: Progressive - growth in car insurance policies is accelerating as the company continues to win market share, and the loss ratio continues to improve, resulting in higher profitability. The ad network and mediation platform company AppLovin Corp reported robust Q2 results. Operating within the rapidly growing mobile app industry, AppLovin benefits from increasing digital ad spend, as its software is designed to help game developers monetize players’ experience through in-app purchases and collect and use data analytics to improve content. MercadoLibre’s share price was boosted by solid Q2 results and an announcement by the company that it will invest USD 7 billion in Brazil and in Mexico during 2024. Both countries currently have below expected e-commerce penetrations in terms of real GDP growth, which demonstrates that MercadoLibre still has room to grow in both markets.
Top detractors: Dollar General’s share price plunged more than 30%. The market punished the discount retailer after it reported fiscal second-quarter profit and sales below expectations and slashed its full-year outlook. The company’s management attributed the weaker outlook to low-income households, that are feeling more ‘financially constrained’ compared to six months ago. Steel Dynamics fell almost 15% after a decline in steel pricing and increased uncertainty in the steel market. The company remains optimistic about steel demand and pricing dynamics for 2024 and sees strong market potential in Mexico for high-value products. The company also reported strong financial and operational performance in the second quarter of 2024 and continues to leverage its low carbon footprint for a competitive edge. Online retailer Amazon fell 9% in sympathy with its mega cap technology peers. An extremely high bar has been set for these players and investors are becoming increasingly nervous about the AI capex and depreciation cycle ahead. Furthermore, Amazon’s customers in the retail business are starting to trade down, driving lower-than-expected guidance for Q3. Despite this, there remains significant growth potential for Amazon Web Services (AWS), driven by the ongoing transition from on-premise to the cloud.