Ausbil Investment Management August updates

KEY TAKEAWAYS: 

• Ausbil Investment Management provide an update of all the latest Ausbil performance reports from August 2018.
• The Australian Equity market had a positive month, returning 1.4%,
  driven primarily by the Health Care, Information Technology and
  Telecommunication Services sectors.
• Ausbil MicroCap Fund successfully navigated through the bi-annual reporting season.

The Ausbil Australian Active Equity Fund

The Ausbil Australian Active Equity Fund performance for August 2018 was 1.17% versus the benchmark return of 1.40%. This fund was set up to achieve returns (before fees and taxes) in excess of the benchmark over the medium to long term with moderare tax effective income.

This was a positive month for the fund,  returning 1.4%, driven primarily by the Health Care, Information Technology and Telecommunication Services sectors.

The Ausbil Australian Emerging Leaders Fund

Performance for the month of August 2018 was 1.85% versus the benchmark return of 2.81%. The fund benefited from an overweight position in the industrials sector.

Against a backdrop of rising operating costs, the near-term outlook for the Resources sector is likely to be significantly determined by fiscal policy in China, where authorities are confronting the competing priorities of reducing the demand for debt and sustaining their target pace of economic expansion.

Ausbil MicroCap Fund

The August reporting season highlighted generally positive operating conditions for small cap companies.

The performance for the month of August was +5.10% versus the benchmark return of -0.35%. The Fund performed well during August, successfully navigating through the bi-annual reporting season.

Among the largest positive contributors to performance for the month were Bingo, Acrow Formwork and Service Stream.

Ausbil Australian Concentrated Equity Fund

Fund performance for August 2018 was 1.11% (net of fees) versus the benchmark return of 1.40%. The Australian equity market had a positive month, returning +1.4%, driven primarily by the Health Care, Information Technology and Telecommunication Services sectors. Globally, there was significant divergence between Developed (MSCI World: +1.3%) and Emerging (-2.7%) equity markets.

Ausbil 130/30 Focus Fund

Fund performance for August 2018 was 1.22% (net of fees) versus the benchmark return of 1.42%.

At a sector level, the Fund benefited from an overweight position in the Consumer Staples sector. The underweight positions in the Financials and Utilities sectors also added value.

Ausbil Active Sustainable Equity Fund

In the month of August, Ausbil presented investor perspectives on slavery and the upcoming Slavery Act at the Thomson-Reuters Stop Slavery Summit in Hong Kong.

Fund performance was 2.28% versus the benchmark return of 1.42%. Ausbil outlined what we would like to see companies do in
order to manage the risk of slavery and how slavery risk fits into Ausbil’s investment philosophy, e.g. business models relying on underpaid workers means that current earnings will unlikely be sustainable.

Candriam Sustainable Global Equity Fund

In Europe, equities suffered on the back of Turkey’s economic problems and currency crisis, as the lira plunged 17% in one day, setting off a sharp fall in other EM currencies, and hitting the euro.

In Asia, the focus remained on the US-China trade war, Trump appears to be moving ahead on the proposed additional $200 bn of tariffs with China, putting further pressure on APAC equities.

MacKay Shields Unconstrained Bond Fund

The MacKay Shields Unconstrained Bond strategy benefitted from strong positive carry during the month, offsetting the impact from wider spreads across most markets, including the developing markets.

US interest rates fell across the curve in August, led by an 11 bps decline in the 5-year note.

 

About Ausbil Investment Management

Ausbil Investment Management Limited is a leading Australian based investment manager. Ausbil’s core business is the management of Australian equities for major superannuation funds, institutional investors, master trust and retail clients.

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