ALC Active International Equities Fund
ARSN 669 327 173
A fund for investors who are looking for international exposure, with dynamically hedged currency risk.
Inception Date
Fund Inception Date
Size
Investment objectives
The Fund seeks to generate returns in excess of the MSCI World index over a rolling 5-year period. The Fund seeks to do this by investing in internationally listed equities, generating excess returns from stock selection, regional capital allocation and currency hedging.
Key features
- 3 Sources of Alpha – Designed to create alpha through currency hedging, regional allocation and stock picking
- Diversified – A globally diverse portfolio of securities to complement the typical Australian Investor
- Global Exposure – Accessing all major international markets for direct exposure
- Weekly Liquidity – in normal market conditions, access to funds weekly
- Core Risk Management – AL Capital has Risk Management at its core, assessing and managing all risks of the portfolio
Summary Details
| Unit Price: | Entry: A$1.0663 Exit: A$1.0705 as at 30 Jun 2024 |
| APIR Code: | ETL7724AU |
| Investment Manager: | AL Capital Holding Pty Ltd |
| Responsible Entity: | Equity Trustees Limited |
| Minimum Initial Investment: | A$50,000 |
| Management Fee | 2.15% p.a. of the NAV (including GST less RITCs) |
| Performance Fee: | 20.00% over the performance benchmark |
| Buy/sell spread: | +/- 0.20% on applications into the Fund, and withdrawals out of the Fund. |
| Liquidity | Weekly (in normal market conditions) |
| Portfolio managers(s): | Wim Steemers |
For full details please see PDS below
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Performance*
Monthly Returns*
| 1 month | 3 month | 6 Month | Since Inception | |
|---|---|---|---|---|
| ALC Active International Equities Fund | 0.21% | -1.97% | 6.88% | 7.09% |
| Benchmark | 1.61% | 0.42% | 14.36% | 13.59% |
| Over/Under Performance | -1.40% | -2.39% | -7.48% | -6.50% |
*Performance is reported net of all fees. Returns greater than one year are annualized. This information has been provided for illustrative purposes only. Past performance is not a reliable indicator of future returns.
Investment Strategy
The Investment approach is based on a mix of fundamentals and quantitative techniques. The global universe of stocks is divided into four groups: USA, Europe, Asia ex Japan, and Japan. In each geographic group, the Fund will only invest in major, liquid exchanges. In each group AL Capital selects approximately 25 stocks, based on in-depth fundamental research, as well as quantitative analysis (AL Capital have developed a proprietary quantitative screening process that produces a ranking of stocks according to attractiveness in terms of potential upside. This process is run frequently, separately for the four regions). The team will draw upon research done by its global team. Capital allocation to each of the four groups is dynamically managed, based on the team’s outlook for the respective regions, informed by both macro and market parameters.
The investments will be done in the native currency of each stock exchange, and the resulting currency exposure is dynamically managed through the application of currency hedges, again based on the team’s outlook for the likely direction of future exchange rate movements. Finally, the team may from time to time apply derivatives to hedge overall stock market risk, if deemed appropriate. The combined portfolio is reviewed, discussed and, if necessary, updated in the weekly portfolio review meeting, with a view to target regional allocation, currency exposure, risk parameters, stock parameters, and the market and macro environment.
Updates & Reports
Monthly Investor Update
Prices & Distributions
Unit Price History
| Date | Entry (A$) | NAV per unit (A$) | Exit (A$) |
|---|---|---|---|
| 30 Jun 2024 | $1.0663 | $1.0684 | $1.0705 |
| 28 Jun 2024 | $1.0663 | $1.0684 | $1.0705 |
| 21 Jun 2024 | $1.0656 | $1.0677 | $1.0698 |
| 14 Jun 2024 | $1.0626 | $1.0647 | $1.0668 |
| 7 Jun 2024 | $1.0692 | $1.0713 | $1.0734 |
| 31 May 2024 | $1.0676 | $1.0654 | $1.0633 |
| 24 May 2024 | $1.0689 | $1.0667 | $1.0646 |
| 17 May 2024 | $1.0759 | $1.0737 | $1.0716 |
| 10 May 2024 | $1.0691 | $1.0670 | $1.0649 |
| 3 May 2024 | $1.0538 | $1.0517 | $1.0496 |
Distribution History
The Fund is yet to pay its first distribution.
Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the ALC Active International Equities Fund (“the Fund”). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).
The Investment Manager for the Fund is AL Capital Holding Pty Ltd (“AL Capital”) ABN 29 613 750 682, AFSL 523648. This publication has been prepared by AL Capital to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither AL Capital, Equity Trustees nor any of its related parties, their employees or directors, provide and warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product.
ALC Active International Equities Fund’s Target Market Determination is available https://www.eqt.com.au/insto. A Target Market Determination describes who this financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where the Target Market Determination for this financial product may need to be reviewed.