IOOF. International Equities Portfolio NZD. Quarterly update

Transcription

1 IOOF NZD Quarterly update For the period ended 30 September 2018

2 Contents Overview 2 Portfolio at glance 3 Performance 4 Asset allocation 6 Overview At IOOF, we have been helping Australians secure their financial future since During that time we have grown into one of Australia's leading provider of quality financial services. Through our investment management expertise, we offer a range of highly rated investment products utilising a range of investment philosophies including multi-manager, quantitative and qualitative investing as well as sector specific investments expertise through Perennial Investment Partners. The QuantPlus team at IOOF aims to achieve an optimal risk and return outcome through efficient exposure to a highly diversified portfolio of assets. They seek to obtain a premium from holding securities with different risk characteristics than those provided by the most commonly used indices by employing a quantitative process with a qualitative overlay, together with a variety of trading strategies. This report outlines the performance and asset allocation of the in New Zealand dollars previously referred to as the Plan B, International Core Equities Portfolio. 2

3 IOOF QuantPlus NZD: Quarterly update September 2018 Portfolio at a Glance The portfolio seeks to achieve long term capital growth through structured exposure to listed global equities in both developed and developing markets. The portfolio seeks returns by maintaining some exposure to firms with either smaller capitalisation or greater value, placing a lesser emphasis on smaller capitalisation firms in developing markets. To manage the risks associated with these exposures the portfolio maintains a high level of diversification. At least 80 percent of net assets will be invested in securities or depository receipts of companies and property trusts listed on the stock exchanges of international developed and developing markets. Weighted average portfolio characteristics Portfolio Benchmark Market cap (m NZD) 183, ,274 Price to book Price to earnings Dividend yield () Fast facts Fund size (NZD) 586,297,784 Management fees and expenses Inception date Number of holdings Benchmark Tracking error 0.33 Jun-05 4,214 MSCI All Country World Ex AU Index Upper tracking error limit for the portfolio against its benchmarks is five per cent. Composition of versus benchmark by size Large Mid Small MSCI AC World ex AU Index 3

4 Performance Gross performance 3 month 6 month 1 year 3 years pa 5 years pa 10 years pa (gross return) MSCI All Country World ex Australia Outperformance (0.22) (0.92) (0.73) Net performance 3 month 6 month 1 year 3 years pa 5 years pa 10 years pa (net return) MSCI All Country World ex Australia Outperformance (0.31) (1.11) (1.12) 0.06 (0.17) 1.78 Performance figures are calculated using month end unit prices. Past performance is not predictive of future performance. Small discrepancies may occur due to rounding. Top ten holdings Portfolio Weight Benchmark Weight Active Weight APPLE INC (0.12) MICROSOFT CORP (0.60) AMAZON COM INC (0.93) JP MORGAN CHASE & CO (0.01) AT & T INC EXXON MOBIL CORPORATION (0.05) JOHNSON & JOHNSON (0.13) SAMSUNG ELECTRONICS TAIWAN SEMICONDUCT MANUFACTURING TENCENT HLDGS LIMITED

5 IOOF QuantPlus NZD: Quarterly update September 2018 Contributors to active returns of the porfolio Top 10 Contributors to active return for the quarter Total return of share for the quarter percent Average portfolio allocation percent Average active weight percent Contribution to active return percent Facebook Inc (13.57) 0.26 (0.70) 0.15 Alibaba Group Holding Ltd (9.31) 0.26 (0.21) 0.03 Bayer AG (17.61) 0.13 (0.08) 0.02 General Electric Co (14.48) 0.15 (0.11) 0.02 SK Hynix Inc (12.48) - (0.10) 0.02 Tesla Inc (21.15) 0.02 (0.06) 0.02 Housing Development Finance Corp Ltd (10.51) - (0.10) 0.02 Netflix Inc (2.39) 0.16 (0.19) 0.02 Molina Healthcare Inc United Continental Holdings Inc Detractors to active returns of the porfolio Top 5 Detractors to active return for the quarter Total return of share for the quarter percent Average portfolio allocation percent Average active weight percent Contribution to active return percent Amazon.com Inc (0.88) (0.11) Microsoft Corp (0.60) (0.07) Apple Inc (0.21) (0.04) Advanced Micro Devices Inc (0.04) (0.03) Berkshire Hathaway Inc (0.30) (0.03) 5

6 Asset allocation Holdings by region The Portfolio invests in the following countries: Developed Countries: Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States Emerging Countries: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey The following charts illustrate the percentage split of the portfolio s investment in developed versus emerging countries as compared to the MSCI All Country World Index (ex Australia). MSCI All Country World ex AU Index 11.3 Developed Market Emerging Market 10.7 Developed Market Emerging Market Allocations by region: Developed Markets MSCI AC World ex AU Index North America Western Europe Pacific Rim Middle East South America 6

7 IOOF QuantPlus NZD: Quarterly update September 2018 Allocations by region: Emerging Markets MSCI AC World ex AU Index 2 0 Pacific Rim Central Asia South America Eastern Europe Africa North America Western Europe Middle East Sector allocations To ensure that the remains diversified and is not over exposed to any one sector, the active weight of each GICS sector to the benchmark is maintained within ±10 percent. The sector allocations as at the end of the reporting period are outlined below MSCI AC World ex AU Index 5 0 Financials Information Technology Consumer Discretionary Industrials Health Care Consumer Staples Energy Materials Utilities Telecommunication Property Trusts Real Estate Other 7

8 This document is issued by IOOF Investment Management Limited (IIML) ABN , AFS Licence No IIML is a company within the IOOF Group of companies which consists of IOOF Holdings Ltd ABN and its related bodies corporate. IIML s contact details can be found on Past performance is not a reliable indicator of future performance. The information contained in this document is believed to be correct at the time of publication, however to the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on the information it contains. The information provided is general in nature and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this information, you should assess your own circumstances or consult a financial planner. QuantPlus is a trade mark of IOOF Investment Management Limited. INV-1904