IPS Strategic 100 Quarterly Report

Transcription

1 IPS Strategic 100 Quarterly Report As of 31/03/2018 First quarter 2018 The volatility that we experienced in financial markets during early February resurfaced in March, with Australian and international share markets falling over the month and quarter. The portfolio delivered a positive return over the month, despite very difficult market conditions. Performance over the quarter was slightly negative, while over the past 3 years performance has been sound and in the 1st quartile when compared to similar funds. Your portfolio continues to incorporate a mix of different investment strategies with a strong growth orientation designed to seek positive returns. After two years in which share markets advanced steadily with unusually low volatility, suddenly in the first quarter of 2018 we saw a sharp increase in financial market instability. Why has this happened? While there are always a multitude of factors at work, in our view, the main culprit is U.S. central bank policy. The U.S. Federal Reserve has now raised interest rates five times and is several months into unwinding its very accommodative monetary policy. After the global financial crisis (GFC) in 2009, central banks around the world responded by pushing interest rates to extremely low levels and flooding the banking system with capital through a program referred to as Quantitative Easing. This was designed both to stimulate the economy directly and, to some degree, push up financial market valuations in the hope that rising asset prices would lead to increased confidence in the real economy. After a period of unprecedented stimulus, central banks are now gradually unwinding the emergency measures they put in place almost a decade ago. In many ways, this is good news. Central banks confidence suggests that they believe many economies have finally recovered from the GFC and that interest rates can now start to return to more normal levels. However, the transition from quantitative easing and near-zero interest rates is without precedent and the market s adjustment to a world without stimulus will continue to be more volatile than some anticipated. Justin McLaughlin Chief Investment Officer

2 IPS Strategic 100 As of 31/03/2018 Portfolio objective The IPS Strategic 100 model is a portfolio of actively managed assets designed to achieve significant returns over the long term. Performance^ Since inception (p.a)** 3 years (p.a) 2 years (p.a) 1 year (p.a) 6 months () 3 months () 1 month () Total Return Volatility **Inception Date: 26/11/2014 Growth of $100 invested at inception ^ Time Period: 27/11/2014 to 31/03/ / / / / / / /2018 ^ Performance data is after fund manager fees, but before any other applicable fees or taxes and assumes the reinvestment of dividends. Past performance is not indicative of future performance. Due to the flexibility of rebalancing and variations between accounts, performance shown is indicative only and assumes rebalancing occurs at the end of each calendar month, and also assumes that there are no deposits, withdrawals nor exceptions to regular rebalancing in the model portfolio. Return and risk vs. peer group Time Period: 1/04/2017 to 31/03/2018 Peer Group (5-95): Open End Funds - Australia - Multisector Aggressive Return () What is a risk and return chart? The chart to the left shows the returns and associated risk of the model portfolio (darker shape) against its peers (light grey circles), over the past year. The past years return (as a percentage) is shown on the vertical axis. The risk (as measured by the standard deviation) of the investment over the past year is shown on the horizontal axis. Risk Underlying funds APIR Code Global Broad Category Group Portfolio Weighting CFML Antipodes Global Fund CFML Colonial Infrastructure CFML RARE Emerging Markets CFML Schroder Equity Opportunities CFML Stewart Investors Worldwide Bennelong ex-20 Australian Equities CFML Listed Property Hyperion Australian Growth Companies Platinum European Fund CFML Cash CVW1890AU Alternative NRM0036AU Equity NRM0038AU Equity NRM0028AU Equity NRM0032AU Equity BFL0004AU Equity 5.00 NRM0034AU Equity 5.00 BNT0003AU Equity 5.00 PLA0001AU Equity 5.00 NRM0026AU Money Market 2.00 Page 1 of 5

3 IPS Strategic 100 Performance of current underlying funds 5 Yr (pa) 3 Yr (pa) 2 Yr (pa) 1 Yr () 6 Mth () 3 Mth () 1 Mth () CFML Antipodes Global Fund CFML Colonial Infrastructure CFML RARE Emerging Markets CFML Schroder Equity Opportunities CFML Stewart Investors Worldwide Platinum European Fund Bennelong ex-20 Australian Equities Hyperion Australian Growth Companies CFML Listed Property CFML Cash Please note: The CFML Antipodes Global Fund was established 8th May Asset class breakdown Cash 8.9 Australian Equities 24.2 Australian Property 4.8 International Equities 62.1 Equities: Market capitalisation Equities: Industry exposure Giant 24.1 Large 43.4 Mid 25.8 Small 4.3 Micro 2.5 Equities: Geographical exposure North America 19.3 Latin America 6.8 United Kingdom 4.8 Europe developed 13.5 Europe emerging 0.5 Australasia 30.6 Japan 5.8 Asia developed 2.6 Asia emerging 16.1 Energy 6.6 Industrials 17.8 Consumer Staples 6.9 Financials 10.5 Telecom Services 4.3 Utilities 18.5 Materials 6.4 Consumer Discretionary 8.6 Healthcare 5.4 Information Technology 8.5 Real Estate 6.6 Page 2 of 5

4 Top holdings of the underlying infrastructure, property and equity funds CFML Colonial Infrastructure - Top Holdings National Grid PLC Transurban Group American Tower Corp Kinder Morgan Inc P Dominion Energy Inc NextEra Energy Inc East Japan Railway Co Atlantia SpA Southern Co Enbridge Inc Utilities 8.17 Industrials 8.02 Communication Services 5.93 Energy 5.38 Utilities 5.36 Utilities 5.15 Industrials 5.12 Industrials 5.09 Utilities 4.37 Energy 4.17 CFML Schroder Equity Opportunities - Top Holdings Woolworths Group Ltd Rio Tinto Ltd BHP Billiton Ltd National Australia Bank Ltd CYBG PLC DR Australia and New Zealand Banking Group Ltd Fletcher Building Ltd Westpac Banking Corp Commonwealth Bank of Australia Alumina Ltd Consumer Defensive 4.37 Basic Materials 4.17 Basic Materials 3.94 Financial Services 3.93 Financial Services 3.80 Financial Services 3.69 Basic Materials 3.50 Financial Services 3.47 Financial Services 3.43 Basic Materials 3.14 CFML Stewart Investors Worldwide S - Top Holdings Portfolio Date: 31/12/2017 Henkel AG & Co KGaA Unilever PLC Tata Consultancy Services Ltd Merck KGaA Novo Nordisk A/S B Waters Corp Beiersdorf AG Ansys Inc Varian Medical Systems Inc Consumer Defensive 7.68 Consumer Defensive 6.37 Technology 4.00 Healthcare 3.98 Healthcare 3.89 Healthcare 3.77 Consumer Defensive 3.14 Technology 3.12 Healthcare 2.51 Page 3 of 5

5 Top holdings of the underlying infrastructure, property and equity funds CFML RARE Emerging Markets - Top Holdings Malaysia Airports Holdings Bhd Gujarat State Petronet Ltd Bharti Infratel Ltd NTPC Ltd Compania de Saneamento de Minas Gerais - COPASA MG China Merchants Port Holdings Co Ltd Telesites SAB de CV B-1 PT Jasa Marga (Persero) Tbk Class B Power Grid Corp Of India Ltd Industrials 5.89 Utilities 5.83 Communication Services 5.63 Utilities 4.90 Utilities 4.71 Industrials 4.38 Communication Services 4.36 Industrials 4.18 Utilities 4.07 Hyperion Australian Growth Companies - Top Holdings REA Group Ltd Seek Ltd Cochlear Ltd Macquarie Group Ltd Domino's Pizza Enterprises Ltd BT Investment Management Ltd Brambles Ltd Technology One Ltd IRESS Ltd Technology Technology Healthcare 9.67 Financial Services 9.31 Consumer Cyclical 8.54 Financial Services 4.13 Industrials 3.95 Technology 3.70 Technology 3.33 CFML Antipodes Global Fund - Top Holdings Gilead Sciences Inc Cisco Systems Inc Ping An Insurance (Group) Co. of China Ltd H Electricite de France SA Healthcare 3.94 Technology 3.56 Financial Services 3.38 Utilities 3.36 Page 4 of 5

6 Top holdings of the underlying infrastructure, property and equity funds Bennelong ex-20 Australian Equities - Top Holdings Aristocrat Leisure Ltd Flight Centre Travel Group Ltd Treasury Wine Estates Ltd Reliance Worldwide Corp Ltd Domino's Pizza Enterprises Ltd Fisher & Paykel Healthcare Corp Ltd Costa Group Holdings Ltd Ramsay Health Care Ltd Orora Ltd Cochlear Ltd Technology Consumer Cyclical Consumer Defensive 9.24 Basic Materials 6.82 Consumer Cyclical 6.51 Healthcare 5.78 Consumer Defensive 4.43 Healthcare 4.10 Consumer Cyclical 3.67 Healthcare 3.16 Platinum European Fund - Top Holdings Portfolio Date: 28/02/2018 Raiffeisen Bank International AG Glencore PLC TechnipFMC PLC Siemens AG Daimler AG Pandora A/S RELX PLC Erste Group Bank AG. Scout24 AG Financial Services 4.72 Basic Materials 3.22 Energy 3.15 Industrials 3.11 Consumer Cyclical 2.89 Consumer Cyclical 2.82 Consumer Cyclical 2.49 Financial Services 2.40 Technology 2.38 CFML Listed Property - Top Holdings Scentre Group Westfield Corp Goodman Group Stockland Corp Ltd Dexus GPT Group Mirvac Group Vicinity Centres Charter Hall Group Investa Office Fund Real Estate Real Estate Real Estate Real Estate 8.98 Real Estate 8.61 Real Estate 7.78 Real Estate 7.29 Real Estate 7.09 Real Estate 2.43 Real Estate 1.95 Important Information In relation to the SMA, this document is issued by ClearView Financial Management Ltd (CFML) ABN AFSL as the Operator of ClearView Investments, an Investor Directed Portfolio Service. In relation to the IPS, this document is issued by ClearView Life Nominees Pty Ltd (CLN) ABN AFS as Trustee for the ClearView Retirement Plan ABN which includes ClearView Superannuation and Retirement Income, USI CLN and CFML together are referred to as ClearView. This document is not intended to represent investment or professional advice. This information does not take into account your individual objectives, financial circumstances or needs. You should assess whether the information is appropriate for you, having regard to your objectives, financial circumstances and needs. You should consider the disclosure documents when deciding whether or not to acquire or to continue to hold the investment. No representation or warranty is made as to the accuracy, completeness or reliability of any estimates, opinions, conclusions or other information contained in this document. This document may contain certain forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of ClearView. You should not place reliance on forward-looking statements. To the maximum extent permitted by law, ClearView and its related entities and each of their respective directors, officers and agents disclaims all liability and responsibility for any direct or indirect loss or damage which may be suffered as a result of relying on anything in this document including any forward-looking statements. Past performance is not an indication of future performance. Page 5 of 5