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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 | 1.61% | 5.39% | 21.42% | 23.99% | |
| Appropriate Market Index (AMI)2 | 3.10% | 7.49% | 24.66% | 19.55% |
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 | 1.62% | 5.42% | 21.71% | 24.57% | |
| Appropriate Market Index (AMI)2 | 3.10% | 7.49% | 24.66% | 19.55% |
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 |
|---|---|
| Microsoft Corp USD0.00005 | 6.97% |
| Accenture Plc | 4.08% |
| Carlisle Cos Inc | 3.78% |
| Amazon Com Inc | 3.68% |
| Abbott Labs | 3.34% |
| Sony Corp Y50 | 3.30% |
| Taiwan Semicon Manufacturing Co Ltd | 3.21% |
| Adobe Inc Com USD0.0001 | 3.10% |
| Compass Group Ord GBP0 1105 | 3.05% |
| Emerson Electric Co | 2.85% |
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Commentary
As of 31 December 2021
Market Highlights
The strategy returned 7.09% for the quarter, 0.40% behind the benchmark. Positive contributors to fund performance over the quarter were Accenture, Schneider, Carlisle and Microsoft. Accenture outperformed after releasing stronger than expected fiscal Q1 earnings and delivering an upbeat outlook for 2022. On Schneider and Carlisle – both benefitted from positive sentiment towards construction spending going into 2022 and management teams at both companies have been putting forward very confident messages about how they see their mid-term growth opportunities in recent months. In both cases, demand for their products is underpinned by the need to make commercial buildings more energy efficient. Spending on these measures would have been given a boost by the US ‘Build Back Better’ infrastructure plans. Microsoft outperformed this quarter on the back of extremely strong quarterly results. Azure, Microsoft’s cloud solution, grew 50% YOY, exceeding guidance, and is now 21% of total revenue. Main detractors were Palomar, HelloFresh and LHC Group. Palomar was weak over the period with no stock specific news driving the weakness. Recent weeks have seen some underperformance from small and mid-cap stocks with investors preferring the relative liquidity of large cap stocks as the Federal Reserve begins to tighten monetary policy. HelloFresh fell after guiding to weaker than expected profit margins in 2022 as the company continue to invest heavily in expanding their competitive advantage. LHC Group underperformed over the period. News of the discovery of a new COVID-19 variant threatened potential future disruption to US nurse availability when that variant arrives in the US and if vaccination / natural immunity has not improved before it does.