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13 Jan 2022 - Performance Report: AIM Global High Conviction Fund


Report Date13 January 2022
ManagerAitken Investment Management
Fund NameAIM Global High Conviction Fund
StrategyEquity Long
Latest Return DateDecember 2021
Latest Return3.04%
Latest 6 Months14.11%
Latest 12 Months31.17%
Latest 24 Months (pa)22.39%
Annualised Since Inception20.17%
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 rose +3.04%, outperforming the Global Equity Index by +1.07% and taking performance over CY21 to +31.17% vs the Index's +25.41%.

The AIM Global High Conviction Fund has a track record of 2 years and 5 months and therefore comparison over all market conditions and against the fund's peers is limited. However, since inception in July 2019, the fund has outperformed the Global Equity Index, providing investors with an annualised return of 20.17%, compared with the index's return of 16.05% over the same time period.

On a calendar basis the fund has never had a negative annual return in the 2 years and 5 months since its inception. Its largest drawdown was -7.59% lasting 6 months, occurring between February 2020 and August 2020.

The Manager has delivered higher returns but with higher volatility than the index, resulting in a Sharpe ratio which has never fallen below 1 and currently sits at 1.77 since inception. The fund has provided positive monthly returns 90% of the time in rising markets, and 0% of the time when the market was negative, contributing to an up capture ratio since inception of 112% and a down capture ratio of 83%.
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