| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months (pa) | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The investment process involves a combination of top-down analysis with fundamental bottom-up qualitative and quantitative research to derive a risk-adjusted discounted cash flow (DCF) valuation of companies in the target universe. The investment team will generally buy stocks from the pool of securities that are trading below Loftus Peaks' valuation and sell them when they are trading above Loftus Peak's valuation. The approach allows for both fundamental accounting information as well as market-oriented inputs to be factored into the portfolio construction process. Loftus Peak's model typically does not rely on leverage to deliver investment returns and specifically takes into account risk in the valuation process. Capital preservation can be managed by holding up to 50% cash. Index and currency options and futures may also be used to manage risk. |
| Manager Comments | In their latest report, Loftus Peak highlight the acceleration of the move towards digitisation seen over the past three months as a result of the COVID-19 pandemic. They noted that, while this has been in train for twenty years, the virus has forced significant additional adoption of digital tools to facilitate work, banking, shopping and entertainment. They expect a good number of these practices to stick post-pandemic. This in turn has driven very strong growth in revenues for a number of Loftus Peak's well-placed investee companies. Top contributors in April included Roku, Amazon and Qualcomm. Key detractors included BlackBerry, Alibaba and Baidu. The Australian dollar appreciated +7.0% over the month against the US dollar which decreased the value of the Fund's US dollar positions. As at 30 April 2020, the Fund carried a foreign currency exposure of 95%. The Fund ended the month 91% invested in 24 holdings with the balance in cash. |
| More Information |
