This fund invests in a selection of companies from around the world, covering a diverse range of regions and sectors where the manager believes there is potential for quality and future value.
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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 | 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.
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Commentary
As of 31 May 2022
Market Highlights
The strategy was up 0.58% for the month, 0.75% ahead of the index. Positive contributors to fund performance over the month were AdaptHealth, Palomar and Progressive Corp. AdaptHealth shares recovered this month after the company’s quarterly results indicated there is light at the end of the tunnel on CPAP issues. The long-term growth opportunity for this business remains substantial as healthcare delivery continues to pivot from the hospital to the home. Palomar outperformed in May following strong quarterly results. Most importantly, the company’s business mix is becoming increasingly diverse. This is driving sustained high premium growth levels, margin consistency and a lower risk profile. Progressive shares rose this month, benefitting from its sensitivity to rising interest rates, via its large investment book. Additionally, recent monthly results illustrated that the company continues to see margin improvement in its personal auto business. Main detractors included Intercontinental Exchange, Box and LivaNova. Intercontinental Exchange (ICE) underperformed in May following an announcement that the company would acquire Black Knight Inc (BKI), a software, data and analytics company that serves the housing finance continuum. While the strategic rationale of the transaction has not received a lot of pushback, the purchase price, potential regulatory scrutiny and timing are key areas of investor concern. Box gave up some of the gains it made earlier in the year, a function of the broader sell-off of high-growth, technology names. Despite this weaker market sentiment, Box delivered strong quarterly results, beating consensus expectations. LivaNova underperformed despite announcing solid quarterly results, with their core epilepsy and cardiopulmonary businesses doing well. Although the updates shared by the company on their pipeline were in line with previous comments, there was probably some mild disappointment that they hadn’t achieved statistical significance at their first read outs.