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Printed: 07 July 2022 9:21 PM

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07 Apr 2022 - Performance Report: AIM Global High Conviction Fund
By: FundMonitors.com

Report Date07 April 2022
ManagerAitken Investment Management
Fund NameAIM Global High Conviction Fund
StrategyEquity Long
Latest Return DateMarch 2022
Latest Return-0.97%
Latest 6 Months-1.73%
Latest 12 Months13.41%
Latest 24 Months (pa)16.87%
Annualised Since Inception13.23%
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 -0.97% in March, an outperformance of +0.05% compared with the Global Equity Index which fell by -1.02%.

The AIM Global High Conviction Fund has a track record of 2 years and 9 months and therefore comparison over all market conditions and against its peers is limited. However, the fund has outperformed the Global Equity Index since inception in July 2019, providing investors with an annualised return of 13.23% compared with the index's return of 10.89% over the same period.

On a calendar year basis, the fund hasn't experienced any negative annual returns in the 2 years and 9 months since its inception. Over the past 12 months, the fund's largest drawdown was -11.11% vs the index's -8.41%, and since inception in July 2019 the fund's largest drawdown was -11.11% vs the index's maximum drawdown over the same period of -13.19%. The fund's maximum drawdown began in January 2022 and has lasted 2 months, reaching its lowest point during March 2022. During this period, the index's maximum drawdown was -8.41%.

The Manager has delivered these returns with 0.67% more volatility than the index, contributing to a Sharpe ratio for performance over the past 12 months of 1 and for performance since inception of 1.1. The fund has provided positive monthly returns 90% of the time in rising markets and 0% of the time during periods of market decline, contributing to an up-capture ratio since inception of 112% and a down-capture ratio of 98%.
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