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Printed: 07 July 2022 11:26 PM

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08 Jul 2021 - Performance Report: AIM Global High Conviction Fund
By: Australian Fund Monitors

Report Date08 July 2021
ManagerAitken Investment Management
Fund NameAIM Global High Conviction Fund
StrategyEquity Long
Latest Return DateJune 2021
Latest Return5.01%
Latest 6 Months14.95%
Latest 12 Months25.82%
Latest 24 Months (pa)17.78%
Annualised Since Inception17.78%
Inception Date19 July 2019
FUM (millions)AU$102
Fund OverviewThe Fund began on 7 July 2015. The strategy and investment team changed on 19 July 2019. Performance data shown is from July 2019.

AIM are 'business-first' rather than 'security-first' investors, and see themselves as part owners of the businesses they invest in.

AIM look for the following characteristics in the businesses they want to own:

- Strong competitive advantages that enable consistently high returns on capital throughout an economic cycle, combined with the ability to reinvest surplus capital at high marginal returns.
- A proven ability to generate and grow cash flows, rather than accounting based earnings.
- A strong balance sheet and sensible capital structure to reduce the risk of failure when the economic cycle ends or an unexpected crisis occurs.
- Honest and shareholder-aligned management teams that understand the principles behind value creation and have a proven track record of capital allocation.

They look to buy businesses that meet these criteria at attractive valuations, and then intend to hold them for long periods of time.

AIM intend to own between 15 and 25 businesses at any given point.

They do not seek to generate returns by constantly having to trade in and out of businesses. Instead, they believe the Fund's long-term return will approximate the underlying economics of the businesses they own.

They are bottom-up, fundamental investors. They are cognizant of macro-economic conditions and geo-political risks, however, they do not construct the Fund to take advantage of such events.

AIM intend for the portfolio to be between 90% and 100% invested in equities.

AIM do not engage in shorting, nor do they use leverage to enhance returns.

The Fund's investable universe is global, and AIM look for businesses that have a market capitalisation of at least $7.5bn to guarantee sufficient liquidity to investors.
Manager CommentsThe AIM Global High Conviction Fund returned +5.01% in June, a difference of +0.47% compared with the Global Equity index, which rose by +4.54%. Since inception in July, 2019, the fund has returned +17.78% per annum, a difference of +2.34% vs the index which has returned +15.45% over the same period. Over the past 12 months the fund has returned +25.82%.

Over the past 12 months, the fund's volatility has been 9.71% compared with the index's volatility of 7.95%. Since inception the fund's volatility has been 10.61% vs the index's volatility of 11.02%, and over all other time periods the fund's volatility has been lower than the Global Equity index.

The fund's Sharpe ratio has ranged from a high of 2.42 over the most recent 12 months, to a low of 1.56 over the past 2 years. Since inception the fund's Sharpe ratio has been 1.56.

The fund's Sortino ratio (which excludes volatility in positive months) ranged from a maximum of 7.49 over the most recent 12 months, to a low of 3.35 over the past 2 years. Since inception the fund's Sortino ratio has been 3.35.
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