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Printed: 07 July 2022 9:10 PM

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07 Oct 2021 - Performance Report: AIM Global High Conviction Fund
By: Australian Fund Monitors

Report Date07 October 2021
ManagerAitken Investment Management
Fund NameAIM Global High Conviction Fund
StrategyEquity Long
Latest Return DateSeptember 2021
Latest Return-3.86%
Latest 6 Months15.41%
Latest 12 Months22.73%
Latest 24 Months (pa)19.85%
Annualised Since Inception17.30%
Inception Date19 July 2019
FUM (millions)AU$96
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 -3.86% in September. Over the past 12 months, the fund has risen by +22.73% and since inception in July 2019, the fund has returned +17.3% per annum, a difference of +2.47% relative to the index which has returned +14.83% on an annualised basis over the same period.

The fund's Sharpe ratio is 1.89 for performance over the past 12 months, and over the past 24 months is 1.64. Since inception, the fund's Sharpe ratio is 1.49 vs the Global Equity Index's Sharpe of 1.3. Its Sortino ratio (which excludes volatility in positive months) is 4.16 for performance over the past 12 months, and over the past 24 months is 3.31. Since inception the fund's Sortino ratio is 3.01 vs the Global Equity Index's Sortino of 1.95.

Since inception in July 2019 in the months where the market was positive, the fund has provided positive returns 89% of the time, contributing to an up-capture ratio since inception of 102.88%. For performance over the past 12 month, the fund's up-capture ratio is 97.76%, and is 113.51% over the past 24 months. An up-capture ratio greater than 100% indicates that, on average, the fund has outperformed in the market's positive months.

The fund's down-capture ratio since inception is 82.83%, highlighting the fund's capacity to outperform in negative markets.
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