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| Manager | |
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| Strategy | |
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| Latest Return | |
| Latest 6 Months | |
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| Latest 24 Months | |
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| FUM (millions) | |
| Fund Overview | The portfolio is constructed using Touchstone's Quality-At-a-Reasonable-Price ('QARP') investment process. QARP is a fundamental bottom-up process, however, it also incorporates a top-down risk management framework designed to successfully manage the portfolio during varying market conditions and economic cycles. The Touchstone Fund is concentrated, typically holding between 15-20 stocks. No individual stock will ever make up more than 10% of the portfolio at any one time. The Investment Manager may temporarily exceed the exposure limits of the Fund occasionally, particularly during periods of market volatility, to allow for holdings in excess of this 10% limit where the increase in value of the underlying security is due to market movement. The Fund may also hold between 0-50% of the portfolio in cash. The Fund has a high level of associated risk, therefore, the minimum suggested investment time-frame is 5 years. |
| Manager Comments | Positive performers included Treasury Wine (+20%) and Wesfarmers (+7.7%), while the Fund also benefited from not holding CBA (-6.9%). Negative performers included insurance companies QBE (-10.1%) and IAG (-3.9%). Given QBE is now trading at a discount of more than 20% to global peers, drivers for an earnings uplift are in place and the company has now initiated a $1bn buyback. Touchstone believe the rising AUD will be a headwind for companies with USD earnings. They also anticipate that commodity prices will decline, tempering their profit outlook for the resources and materials sector. Against this backdrop, their view is that valuations remain high and vulnerable to pullback. Given this, Touchstone's thesis remains unchanged that given the heightened uncertainty, the market remains vulnerable to an external shock, and as such they remain cautious. |
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