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Global Sharesmorningstarinvestments.com.au/wp-content/uploads/2015/04/1603-… · Quarterly...
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Global Shares Quarterly Performance Update: Q1 2016 Returns Relative to Benchmark As of Date: 31/03/2016 3 month YTD 1 year 3 years Since Incp %p.a -15.0 0.0 5.0 10.0 15.0 20.0 25.0 -2.5 -2.5 -5.9 13.3 14.2 -5.0 -5.2 -5.2 16.8 17.5 Global Shares Managed Account MSCI ACWI NR Index Return Investment Growth of $10,000 Time Period: 01/07/2012 to 31/03/2016 03/2013 09/2013 03/2014 09/2014 03/2015 09/2015 03/2016 8,000.0 10,000.0 12,000.0 14,000.0 16,000.0 18,000.0 20,000.0 22,000.0 Global Shares Managed Account MSCI ACWI NR Index Top Holdings Weighting % Ibbotson Core International Eqty H (SA) iShares MSCI Japan (AU) iShares MSCI Emerging Markets (AU) iShares Europe (AU) iShares MSCI BRIC (AU) Ibbotson Core International Eqty UH(SA) iShares MSCI South Korea Capped (AU) iShares MSCI Taiwan (AU) Cash Account 32.9 20.9 15.0 13.9 6.3 4.3 2.9 2.8 1.1 Bianca Rose Portfolio Manager +612 9276 4558 [email protected] Economic & Market Commentary The quarter began with heightened fear and volatility as investors grappled with comments from the U.S. Federal Reserve affirming their expectations for a more aggressive outlook for U.S. interest rate tightening. This combined with renewed concerns regarding the strength of global growth, sent shudders through global markets – major equity indices sank and safe haven assets such as the U.S. Dollar, Japanese Yen and higher quality bonds moved sharply higher. China, the largest of the Emerging Market economies, unexpectedly increased the rate of devaluation of their currency, raising concerns about the ability of policy makers to manage a slowdown in economic growth. By early February, worries had spread to Europe and Japan, induced by the Japanese Central Bank’s surprise decision to cut official interest rates into negative territory, in an effort to boost growth. Indeed, at the February 11 lows, the MSCI World Ex Australia (A$ Hedged) Index was down 12.5% since 1 January 2016. However, markets turned and rallied strongly following comments from the U.S. Federal Reserve Chairperson, Janet Yellen, stating that financial conditions "have become less supportive of growth". This eased market concerns that U.S interest rates would rise aggressively throughout 2016, as was first expected. Portfolio Performance The Global Shares portfolio delivered a return of -2.5%, for the quarter. Whilst a negative return is disappointing, this is a strong result under the circumstances, as our focus on assets offering the most attractive reward for risk ensured that the impact of weaker and more volatile equity markets was minimised. The performance of unhedged International equity allocations weighed on the portfolio’s returns this quarter, as the Australian dollar rallied against the U.S dollar and the British pound. Japanese and European equities detracted from performance due to negative market responses to the policies adopted by their respective Central Banks. Perhaps surprisingly, given the events of the quarter, Emerging Market equities also proved quite resilient. Portfolio Positioning & Outlook Following January and February’s weakness, we took the opportunity to reinstate an allocation to European and U.K. equities, given our favourable view of valuations in European energy stocks and our expectation that European financials had been oversold. Whilst this investment performed well (in local currency terms) as global fears receded, movements in currency have impacted Australian dollar returns to date. We continue to expect heightened volatility in markets as Central Bank policy plays out and investors get greater clarity with regard to the outlook for global growth. Whilst a number of key international equity markets remain expensive in our view, the portfolio remains nearly fully invested in global equity opportunities that we consider attractively priced. As such, we remain confident that the portfolio is well positioned to meet its long term objectives. THIS REPORT HAS BEEN PRODUCED USING PRESENTATION STUDIO, A MODULE OF MORNINGSTAR DIRECT This document is issued by Morningstar Investment Management Limited (ABN 54 071 808 501, AFS Licence No. 228986) (trading as ‘Ibbotson’ or 'Ibbotson Associates'). Ibbotson is a member of the Morningstar group of companies (‘Morningstar’). © Copyright of this document is owned by Ibbotson and any related bodies corporate that are involved in the document’s creation. As such the document, or any part of it, should not be copied, reproduced, scanned or embodied in any other document or distributed to another party without the prior written consent of Ibbotson. The information provided is for general use only. In compiling this document, Ibbotson has relied on information and data supplied by Morningstar and other third party information providers. Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Ibbotson, Morningstar nor their third parties accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information included. Past performance is not a reliable indicator of future performance. Neither Ibbotson nor Morningstar guarantees the performance of any investment or the return of capital. Ibbotson warns that (a) Ibbotson has not considered any individual person’s objectives, financial situation or particular needs, and (b) individuals should seek advice and consider whether the advice is appropriate in light of their goals, objectives and current situation. Before making any decision about whether to invest in a financial product, individuals should obtain and consider the disclosure document. For a copy of the relevant disclosure document, please contact our Distribution Team on 02 9276 4550.
Transcript of Global Sharesmorningstarinvestments.com.au/wp-content/uploads/2015/04/1603-… · Quarterly...
Global SharesQuarterly Performance Update: Q1 2016
Returns Relative to Benchmark
As of Date: 31/03/2016
3 month YTD 1 year 3 years Since Incp %p.a
-15.0-10.0-5.00.05.010.015.020.025.0
-2.5 -2.5-5.9
13.3 14.2
-5.0-5.2 -5.2
16.8 17.5
Global Shares Managed Account MSCI ACWI NR Index
Retu
rn
Investment Growth of $10,000
Time Period: 01/07/2012 to 31/03/2016
03/2013 09/2013 03/2014 09/2014 03/2015 09/2015 03/20168,000.0
10,000.0
12,000.0
14,000.0
16,000.0
18,000.0
20,000.0
22,000.0
Global Shares Managed Account MSCI ACWI NR Index
Top Holdings
Weighting %
Ibbotson Core International Eqty H (SA)
iShares MSCI Japan (AU)
iShares MSCI Emerging Markets (AU)
iShares Europe (AU)
iShares MSCI BRIC (AU)
Ibbotson Core International Eqty UH(SA)
iShares MSCI South Korea Capped (AU)
iShares MSCI Taiwan (AU)
Cash Account
32.9
20.9
15.0
13.9
6.3
4.3
2.9
2.8
1.1
Bianca RosePortfolio Manager+612 9276 [email protected]
Economic & Market Commentary
The quarter began with heightened fear and volatility as investors grappled with comments from the U.S. Federal Reserve affirming their expectations for a more aggressive outlook for U.S. interest rate tightening. This combined with renewed concerns regarding the strength of global growth, sent shudders through global markets – major equity indices sank and safe haven assets such as the U.S. Dollar, Japanese Yen and higher quality bonds moved sharply higher. China, the largest of the Emerging Market economies, unexpectedly increased the rate of devaluation of their currency, raising concerns about the ability of policy makers to manage a slowdown in economic growth.
By early February, worries had spread to Europe and Japan, induced by the Japanese Central Bank’s surprise decision to cut official interest rates into negative territory, in an effort to boost growth. Indeed, at the February 11 lows, the MSCI World Ex Australia (A$ Hedged) Index was down 12.5% since 1 January 2016. However, markets turned and rallied strongly following comments from the U.S. Federal Reserve Chairperson, Janet Yellen, stating that financial conditions "have become less supportive of growth". This eased market concerns that U.S interest rates would rise aggressively throughout 2016, as was first expected.
Portfolio PerformanceThe Global Shares portfolio delivered a return of -2.5%, for the quarter. Whilst a negative return is disappointing, this is a strong result under the circumstances, as our focus on assets offering the most attractive reward for risk ensured that the impact of weaker and more volatile equity markets was minimised.
The performance of unhedged International equity allocations weighed on the portfolio’s returns this quarter, as the Australian dollar rallied against the U.S dollar and the British pound. Japanese and European equities detracted from performance due to negative market responses to the policies adopted by their respective Central Banks. Perhaps surprisingly, given the events of the quarter, Emerging Market equities also proved quite resilient.
Portfolio Positioning & OutlookFollowing January and February’s weakness, we took the opportunity to reinstate an allocation to European and U.K. equities, given our favourable view of valuations in European energy stocks and our expectation that European financials had been oversold. Whilst this investment performed well (in local currency terms) as global fears receded, movements in currency have impacted Australian dollar returns to date.
We continue to expect heightened volatility in markets as Central Bank policy plays out and investors get greater clarity with regard to the outlook for global growth. Whilst a number of key international equity markets remain expensive in our view, the portfolio remains nearly fully invested in global equity opportunities that we consider attractively priced. As such, we remain confident that the portfolio is well positioned to meet its long term objectives.
THIS REPORT HAS BEEN PRODUCED USING PRESENTATION STUDIO, A MODULE OF MORNINGSTAR DIRECTThis document is issued by Morningstar Investment Management Limited (ABN 54 071 808 501, AFS Licence No. 228986) (trading as ‘Ibbotson’ or 'Ibbotson Associates'). Ibbotson is a member of the Morningstar group of companies (‘Morningstar’). © Copyright of this document is owned by Ibbotson and any related bodies corporate that are involved in the document’s creation. As such the document, or any part of it, should not be copied, reproduced, scanned or embodied in any other document or distributed to another party without the prior written consent of Ibbotson. The information provided is for general use only. In compiling this document, Ibbotson has relied on information and data supplied by Morningstar and other third party information providers. Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Ibbotson, Morningstar nor their third parties accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information included. Past performance is not a reliable indicator of future performance. Neither Ibbotson nor Morningstar guarantees the performance of any investment or the return of capital. Ibbotson warns that (a) Ibbotson has not considered any individual person’s objectives, financial situation or particular needs, and (b) individuals should seek advice and consider whether the advice is appropriate in light of their goals, objectives and current situation. Before making any decision about whether to invest in a financial product, individuals should obtain and consider the disclosure document. For a copy of the relevant disclosure document, please contact our Distribution Team on 02 9276 4550.
Global Shares Managed Account As of 31/03/2016
Rescaled Weight
Banks
Capital Goods
Automobiles and Components
Technology Hardware and Equipment
Materials
Telecommunication Services
Software and Services
Food, Beverage and Tobacco
Pharmaceuticals and Biotechnology
Energy
Insurance
Semiconductors and Semiconductor Equipment
Real Estate
Transportation
Utilities
Consumer Durables and Apparel
Diversified Financials
Household and Personal Products
Retailing
Food and Staples Retailing
Health Care Equipment and Services
Media
Commercial Services and Supplies
Consumer Services
0.0 2.0 4.0 6.0 8.0 10.0
7.2
5.0
4.8
4.6
3.5
3.5
3.4
3.0
3.0
2.6
2.3
2.2
2.0
1.9
1.7
1.6
1.6
1.2
1.2
0.9
0.8
0.7
0.5
0.4
Transactions in the Quarter
IEU-AUINT00016AUINT00017AUIJP-AUIEM-AUIBK-AUITW-AUIKO-AUMA_CASH
iShares Europe ETF Depository InterestsInternational Shares Core (Hedged)International Shares Core (Unhedged)iShares MSCI Japan ETF CDIiShares MSCI Emerging Markets ETF Depository InterestsiShares MSCI BRIC ETF CDIiShares MSCI Taiwan ETF Depository InterestsiShares MSCI South Korea Capped ETF Depository InterestsCash Account
AddedIncreasedDecreasedDecreasedDecreasedDecreasedDecreasedDecreasedDecreased
Equity Sectors (GICS)
Portfolio Date: 31/03/2016
%Energy 4.7Materials 5.8Industrials 12.8Healthcare 11.6Consumer Discretionary 14.3Consumer Staples 12.1Financials 14.6Information Technology 16.0Telecom Services 5.4Utilities 2.8Total 100.0
Equity Region Exposure
Portfolio Date: 31/03/2016%
North America 22.8Latin America 3.1United Kingdom 6.3Africa/Middle East 2.4Europe dev 14.4Europe emrg 2.1Japan 24.6Asia dev 11.5Asia emrg 12.8Australasia 0.0Total 100.0
Asset Allocation
Portfolio Date: 31/03/2016
%
Equity 98.9
Cash 1.1
Total 100.0
THIS REPORT HAS BEEN PRODUCED USING PRESENTATION STUDIO, A MODULE OF MORNINGSTAR DIRECTThis document is issued by Morningstar Investment Management Limited (ABN 54 071 808 501, AFS Licence No. 228986) (trading as ‘Ibbotson’ or 'Ibbotson Associates'). Ibbotson is a member of the Morningstar group of companies (‘Morningstar’). © Copyright of this document is owned by Ibbotson and any related bodies corporate that are involved in the document’s creation. As such the document, or any part of it, should not be copied, reproduced, scanned or embodied in any other document or distributed to another party without the prior written consent of Ibbotson. The information provided is for general use only. In compiling this document, Ibbotson has relied on information and data supplied by Morningstar and other third party information providers. Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Ibbotson, Morningstar nor their third parties accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information included. Past performance is not a reliable indicator of future performance. Neither Ibbotson nor Morningstar guarantees the performance of any investment or the return of capital. Ibbotson warns that (a) Ibbotson has not considered any individual person’s objectives, financial situation or particular needs, and (b) individuals should seek advice and consider whether the advice is appropriate in light of their goals, objectives and current situation. Before making any decision about whether to invest in a financial product, individuals should obtain and consider the disclosure document. For a copy of the relevant disclosure document, please contact our Distribution Team on 02 9276 4550.
Global Shares Managed Account As of 31/03/2016
Risk-Reward
Time Period: 01/07/2012 to 31/03/2016
Std Dev
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0
0.0
3.0
6.0
9.0
12.0
15.0
18.0
21.0
Global Shares Managed Account Australia OE Equity World Large Blend
Retu
rn
Multiple Investment Sector Exposure Chart
Portfolio Date: 31/03/2016
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0
Basic Materials
Consumer Cyclical
Financial Services
Real Estate
Consumer Defensive
Healthcare
Utilities
Communication Services
Energy
Industrials
Technology
Global Shares Managed Account MSCI ACWI NR USD
Performance Relative to Peer Group
Peer Group (5-95%): All Managed Investments - Australia - Equity World Large Blend
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
-10.0
-5.0
0.0
5.0
10.0
3 Month CYTD 1 year 2 Years Since Incp %p.a
15.0
20.0
25.0
Global Shares Managed Account MSCI ACWI NR
Retu
rn
Market Performance
Time Period: Since Inception to 31/03/2016
Inv Bmk1
Up Period Percent
Down Period Percent
Best Month
Worst Month
Best Quarter
Worst Quarter
66.67
33.33
7.97
-3.52
13.41
-5.20
64.44
35.56
7.23
-4.84
13.86
-6.25
Risk
Time Period: Since Inception to 31/03/2016
Inv Bmk1
Return % pa
Std Dev
Max Drawdown
10.04
17.55
-9.78
14.21
10.92
-11.67
Core Portfolio - Complete List of Holdings
Portfolio Date: 31/03/2016
CodeStyle Box
TotalRet 3Mo
(Qtr-End)
PortfolioWeight
%
Ibbotson Core International Eqty H (SA)
iShares MSCI Japan (AU)
iShares MSCI Emerging Markets (AU)
iShares Europe (AU)
iShares MSCI BRIC (AU)
Ibbotson Core International Eqty UH(SA)
iShares MSCI South Korea Capped (AU)
iShares MSCI Taiwan (AU)
Cash Account
11745 È 32.9
IJP È 20.9
IEM È 15.0
IEU È 13.9
IBK È 6.3
11743 È 4.3
IKO Ç 2.9
ITW Ç 2.8
1.1
-11.66
2.08
-0.18
1.59
0.58
-7.88
-0.79
-2.05
-4.24
THIS REPORT HAS BEEN PRODUCED USING PRESENTATION STUDIO, A MODULE OF MORNINGSTAR DIRECTThis document is issued by Morningstar Investment Management Limited (ABN 54 071 808 501, AFS Licence No. 228986) (trading as ‘Ibbotson’ or 'Ibbotson Associates'). Ibbotson is a member of the Morningstar group of companies (‘Morningstar’). © Copyright of this document is owned by Ibbotson and any related bodies corporate that are involved in the document’s creation. As such the document, or any part of it, should not be copied, reproduced, scanned or embodied in any other document or distributed to another party without the prior written consent of Ibbotson. The information provided is for general use only. In compiling this document, Ibbotson has relied on information and data supplied by Morningstar and other third party information providers. Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Ibbotson, Morningstar nor their third parties accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information included. Past performance is not a reliable indicator of future performance. Neither Ibbotson nor Morningstar guarantees the performance of any investment or the return of capital. Ibbotson warns that (a) Ibbotson has not considered any individual person’s objectives, financial situation or particular needs, and (b) individuals should seek advice and consider whether the advice is appropriate in light of their goals, objectives and current situation. Before making any decision about whether to invest in a financial product, individuals should obtain and consider the disclosure document. For a copy of the relevant disclosure document, please contact our Distribution Team on 02 9276 4550.
Global Shares Managed Account As of 31/03/2016
THIS REPORT HAS BEEN PRODUCED USING PRESENTATION STUDIO, A MODULE OF MORNINGSTAR DIRECTThis document is issued by Morningstar Investment Management Limited (ABN 54 071 808 501, AFS Licence No. 228986) (trading as ‘Ibbotson’ or 'Ibbotson Associates'). Ibbotson is a member of the Morningstar group of companies (‘Morningstar’). © Copyright of this document is owned by Ibbotson and any related bodies corporate that are involved in the document’s creation. As such the document, or any part of it, should not be copied, reproduced, scanned or embodied in any other document or distributed to another party without the prior written consent of Ibbotson. The information provided is for general use only. In compiling this document, Ibbotson has relied on information and data supplied by Morningstar and other third party information providers. Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Ibbotson, Morningstar nor their third parties accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information included. Past performance is not a reliable indicator of future performance. Neither Ibbotson nor Morningstar guarantees the performance of any investment or the return of capital. Ibbotson warns that (a) Ibbotson has not considered any individual person’s objectives, financial situation or particular needs, and (b) individuals should seek advice and consider whether the advice is appropriate in light of their goals, objectives and current situation. Before making any decision about whether to invest in a financial product, individuals should obtain and consider the disclosure document. For a copy of the relevant disclosure document, please contact our Distribution Team on 02 9276 4550.
