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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 | -2.05% | 2.55% | 23.05% | 18.11% | 17.57% |
| Appropriate Market Index (AMI)2 | 0.28% | 5.89% | 25.10% | 16.22% | 15.10% |
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 | 30.33% |
| Amazon Com Inc | 3.33% |
| Microsoft Corp | 3.25% |
| Nvidia Corp | 2.57% |
| Visa Inc - A | 1.95% |
| Applovin Corp | 1.64% |
| Progressive Corp | 1.58% |
| Unitedhealth Group Inc Com Stk Us0.01 | 1.49% |
| Taiwan Semicon Manufacturing Co Ltd | 1.29% |
| Booking Hldgs Inc Com Usd0.008 | 1.23% |
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Commentary
As of 28 February 2025
Market Overview
Fund Commentary
The fund recorded a return of -0.97% in February, underperforming the global equity index (MSCI ACWI) return of 0.28%.
The underlying managers had mixed fortunes over the month, although none delivered particularly strong performance. WCM struggled the most, with their top holding, AppLovin, falling 11%, and their exposures to Amazon.com, TSMC and Microsoft also weighing on returns. The key drivers of the fund’s underperformance during the month were overweights in Amazon.com, AppLovin and UnitedHealth.
Online retailer Amazon.com reported robust Q4 2024 results, with a 10% increase in net sales and significant growth in operating income. Despite these positive figures, its shares dropped 10%, driven by broader market sentiment and concerns about the sustainability of AI spend and its subsequent returns. AppLovin’s share price was negatively impacted by several short-seller reports, which have generated investor concerns. WCM believes a considerable amount of misinformation is being circulated, which contradicts with their findings and provides no clear evidence that undermines their investment thesis. Following its recent de-rating, WCM views AppLovin’s valuation as extremely attractive, given the company’s long-term growth potential.
The top contributors to relative performance were underweight positions in Tesla and Alphabet (which both performed poorly) and overweights to Progressive Corp, SAAB and Yum! Brands, all of which outperformed.
The US insurance company Progressive Corp (held by NAME and Royal London) reported impressive results, with net premiums written increasing by 18% year-over-year and net income surging by 59%. Despite the estimated US$43 million in losses from the Los Angeles wildfires, the company's strong financial performance and robust growth in policies in force across personal and commercial lines have driven its stock higher. Swedish defence company SAAB (held by WCM) saw its shares surge 38%, in line with the strong performance of its European defence peers on the announcement of an increase in defence spending over a 3-year view, bringing spending close to 3% of GDP across the European Union.