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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 | 3.90% | 7.06% | 32.20% | 8.53% | 13.04% |
| Appropriate Market Index (AMI)2 | 4.13% | 4.92% | 27.46% | 6.61% | 10.19% |
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 | 32.06% |
| Microsoft Corp | 3.78% |
| Amazon Com Inc | 3.28% |
| Nvidia Corp | 3.20% |
| Unitedhealth Group Inc Com Stk Us0.01 | 1.93% |
| Taiwan Semicon Manufacturing Co Ltd | 1.55% |
| Progressive Corp | 1.53% |
| Applovin Corp | 1.46% |
| Visa Inc - A | 1.23% |
| Safran Sa | 1.07% |
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Commentary
As of 30 November 2024
Market Overview
Fund Commentary
Among the underlying managers, the Growth manager WCM posted an exceptionally strong outperformance of 759 bps, driven by its top holding AppLovin Corp, which surged 100% over the month. The ad network and mediation platform company AppLovin Corp, was the fund’s top performer for the second consecutive month, soaring 100% in November after a nearly 40% return in October. WCM, the manager holding AppLovin, continues to view the company as a high-conviction idea. AppLovin has exceeded expectations for seven consecutive quarters, with average revenue growth well over 60% year-over-year, driven by the strong performance of Axon 2.0, AppLovin's AI-enabled ad-placement engine. Axon 2.0 is expected to drive 20-30% growth in AppLovin's software platform over the next several years. Following its earnings release in early November, WCM met with several company executives, which further reinforced their bullish position in the company. The opportunity in mobile games continues to grow, and there is a potentially significant opportunity in e-commerce that many investors may not yet have fully factored into their valuations.
Overweights to Amazon.com and UnitedHealth Group, both of which outperformed, also had a meaningful impact on the fund’s overall performance. Amazon.com recently delivered outstanding financial results, with Amazon Web Services (AWS) the primary growth driver. Meanwhile, the health insurer UnitedHealth Group rose 8.7% over the month, despite facing a significant legal challenge to its US$3.3 billion acquisition of Amedisys Inc. The US Justice Department raised antitrust concerns, citing potentially higher healthcare costs, as Amedisys competes directly with LHC Group, which UnitedHealth Group acquired for US$5.4 billion in 2022.
The fund’s key detractors from performance were primarily underweight positions in names which performed exceptionally well during the month. Electric vehicle maker Tesla was the top detractor, after its share price soared 39%, no doubt related to Elon Musk’s growing and powerful influence he is establishing with the incoming administration. The fund’s exposure of 0.27% is significantly less than Tesla’s weight of 1.25% in the benchmark. Similarly, the fund’s 1.76% exposure to Apple is markedly less than its benchmark weight of 4.54%. Additionally, the fund has no exposure to JP Morgan Chase & Co, which gained 13.2% over the month.