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9 Jun 2022 - Performance Report: Delft Partners Global High Conviction Strategy


Report Date09 June 2022
ManagerDelft Partners
Fund NameDelft Partners Global High Conviction Strategy
StrategyEquity Long
Latest Return DateMay 2022
Latest Return1.46%
Latest 6 Months-1.38%
Latest 12 Months2.92%
Latest 24 Months (pa)14.24%
Annualised Since Inception14.68%
Inception Date15 July 2011
FUM (millions)AU$11.6
Fund OverviewThe Global High Conviction Strategy seeks to outperform the MSCI World Index by 3-5% p.a. over rolling 5 year periods. The Fund invests in companies listed on major global developed market exchanges by combining 'fundamental' analysis with quantitative stock selection tools. There is typically a bias to large caps and a 'value' tilt resulting in higher dividend yield than the index.

The quantitative model is proprietary and designed in-house. The critical elements are Valuation, Momentum, and Quality (VMQ) and every stock in the global universe is scored and ranked. Verification of the quant model scores is then cross checked by fundamental analysis in which a company's Accounting policies, Governance, and Strategic positioning is evaluated.

The manager believes strategy is suited to investors seeking returns from investing in global companies, diversification away from Australia and a risk aware approach to global investing. It should be noted that this is a strategy in an IMA format and is not offered as a fund. An IMA solution can be a more cost and tax effective solution, for clients who wish to own fewer stocks in a long only strategy.
Manager CommentsThe Delft Partners Global High Conviction Strategy rose by +1.46% in May, an outperformance of +2.76% compared with the Global Equity Index which fell by -1.3%.

The Delft Partners Global High Conviction Strategy has a track record of 10 years and 10 months and has outperformed the Global Equity Index since inception in August 2011, providing investors with an annualised return of 14.68% compared with the index's return of 12.98% over the same period.

On a calendar year basis, the strategy has experienced a negative annual return on 2 occasions in the 10 years and 10 months since its inception. Over the past 12 months, the strategy's largest drawdown was -6.74% vs the index's -11.86%, and since inception in August 2011 the strategy's largest drawdown was -13.33% vs the index's maximum drawdown over the same period of -13.19%. The strategy's maximum drawdown began in February 2020 and lasted 1 year, reaching its lowest point during July 2020. The strategy had completely recovered its losses by February 2021.

The Manager has delivered these returns with 1.28% more volatility than the index, contributing to a Sharpe ratio which has fallen below 1 four times over the past five years and which currently sits at 1.09 since inception. The strategy has provided positive monthly returns 88% of the time in rising markets and 15% of the time during periods of market decline, contributing to an up-capture ratio since inception of 100% and a down-capture ratio of 90%.
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