Aoris International Fund
30 June 2024
Key Facts
| Index Used: | All Countries World Index (AUD) | Discretionary/Quantitative: | Discretionary |
| Peer Group: | Equity Long - Large Cap - Global | FUM (millions): | AU$ 1,356.98m |
| Investment Style: | Growth | Fund Inception Date: | April 2018 |
| Geographic Mandate: | Global | Latest Return Date: | June 2024 |
| Investor Type: | Wholesale & Retail | Status: | Open |
| Minimum Investment: | AU$ 20,000 | Investment Frequency: | Daily |
Manager Details
Strategy Description
- Own high quality businesses;
- Emphasis is on businesses earning high returns on capital that are both durable and resilient;
- Aoris's definition of quality is rigorous and demanding and excludes many companies and sectors of the equity market;
- Aoris achieve diversification by owning businesses with significant breadth in the end markets they serve;
- The portfolio is long-only and concentrated.
Aoris have a conservative investment approach. They believe that, over time, avoiding the bottom 20% of the equity market has a powerful positive impact on investment returns.
In the manager's view, businesses in the bottom 20% are those with poor returns on capital; trading on high earnings multiples; those with onerous debt levels; and companies run by expansionist, aggressive and acquisitive management. Their approach is to avoid such companies and instead invest in businesses with high returns on capital; with conservative balance sheets; and run by judicious management, where they can own them at undemanding multiples of earnings.
Aoris's approach to diversification is to own a small number of businesses, each of which is highly diversified in its own right, serving many different end markets and many different geographies.
They believe owning a concentrated portfolio of such diversified businesses allows them to apply very demanding criteria in terms of both the business quality and the valuation at which they own them.
Aoris have a conservative investment approach. They believe that, over time, avoiding the bottom 20% of the equity market has a powerful positive impact on investment returns.
Fund Fees
| Management Fee: | 1.5% | Performance Fee: | 0% |
| Buy Spread: | 0.1% | Sell spread: | 0.1% |
| High Water Mark: | Yes | Hurdle: | N/A |
Fund Structure
| Offshore/Onshore: | Onshore | Fund Structure: | Unit Trust |
| Share Classes: | AU$ | Trustee/RE: | The Trust Company (Perpetual) |
| Administrator: | Mainstream Fund Services | Prime Broker: | BTIG/CITI |
| Custodian: | Mainstream Fund Services | Legal: | N/A |
Ratings & Availability
Research Ratings
Platform Availability
Performance Review
The Aoris International Fund has a track record of 6 years and 3 months and has outperformed the All Countries World (AUD) benchmark since inception in April 2018, providing investors with an annualised return of 16% compared with the benchmark's return of 11.93% over the same period.
The Manager has delivered these returns with 3.53% more volatility than the benchmark, contributing to a Sharpe ratio which has fallen below 1 two times over the past five years and which currently sits at 0.97 since inception. The fund has provided positive monthly returns 89% of the time in rising markets and 32% of the time during periods of market decline, contributing to an up-capture ratio since inception of 133% and a down-capture ratio of 101%.
The Aoris International Fund rose by +1.87% in June, an outperformance of +1.87% compared with the All Countries World (AUD) benchmark which ended the month flat. Over the past 12 months, the fund's best monthly return was +6.79% compared with the benchmark's best return of +5.32%, and its worst monthly return was -4.92% vs the benchmark's worst return over the same period of -3.27%.
| Year | Jan % | Feb % | Mar % | Apr % | May % | Jun % | Jul % | Aug % | Sep % | Oct % | Nov % | Dec % | YTD % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 4.69 | 6.79 | 1.51 | -4.81 | 0.12 | 1.87 | NA | NA | NA | NA | NA | NA | 10.18 |
| 2023 | 3.70 | 2.81 | 5.83 | 3.05 | 1.41 | 3.28 | -0.76 | 2.39 | -4.92 | 1.11 | 6.14 | 3.56 | 30.76 |
| 2022 | -7.04 | -7.16 | 1.05 | -3.08 | -3.61 | -2.00 | 11.17 | -4.74 | -2.14 | 9.09 | 4.22 | -6.64 | -12.17 |
| 2021 | -4.82 | 1.62 | 7.52 | 4.63 | -0.21 | 5.86 | 7.47 | 4.36 | -4.77 | 4.10 | 6.10 | 4.23 | 41.33 |
| 2020 | 3.22 | -5.07 | -11.30 | 3.57 | 5.72 | -1.33 | -0.39 | 0.70 | 4.17 | 0.03 | 4.28 | -1.82 | 0.48 |
| 2019 | 3.30 | 8.40 | 2.90 | 4.60 | -2.80 | 6.20 | 2.20 | 0.76 | 2.88 | -0.80 | 5.19 | -0.72 | 36.55 |
| 2018 | NA | NA | NA | 0.40 | 2.20 | 2.30 | 2.00 | 4.00 | 0.10 | -6.40 | 0.90 | -2.10 | 3.06 |
Annual Returns
Over the past 12 months, the fund has risen by +18.3% compared with the benchmark which has returned +21.18%, for a difference of -2.88%. Since inception in April 2018, the fund has returned +16% per annum, a difference of +4.07% relative to the benchmark which has returned +11.93% on an annualised basis over the same period.
Cumulative Returns
On a cumulative basis (assuming reinvestment of distributions), $100 invested since inception would have become $252.
Annual Returns %
Volatility and Risk
Annual Standard Deviation
The fund's returns over the past 12 months have been achieved with a volatility of 12.37% vs the index's 10.52%. The annualised volatility of the fund's returns since inception in April 2018 is 14.87% vs the index's 11.34%. Over all other periods, the fund's returns have been more volatile than the benchmark.
Sharpe Ratio
The fund's Sharpe ratio has ranged from a high of 1.38 for performance over the most recent 24 months to a low of 0.85 over the latest 36 months, and is 0.97 for performance since inception. By contrast, the All Countries World (AUD) Index's Sharpe for performance since April 2018 is 0.92.
Annual Standard Deviation
Sharpe Ratio
Performance in Positive Markets
Since inception in April 2018 in the months where the market was positive, the fund has provided positive returns 89% of the time, contributing to an up-capture ratio for returns since inception of 132.7%. Over all other periods, the fund's up-capture ratio has ranged from a high of 161.08% over the most recent 36 months to a low of 85.56% over the latest 12 months. An up-capture ratio greater than 100% indicates that, on average, the fund has outperformed in the market's positive months.
Performance in Negative Markets
Since inception in April 2018 in the months where the market was negative, the fund has provided positive returns 32% of the time, contributing to a down-capture ratio for returns since inception of 100.66%. Over all other periods, the fund's down-capture ratio has ranged from a high of 117.65% over the most recent 36 months to a low of 72.35% over the latest 12 months. A down-capture ratio less than 100% indicates that, on average, the fund has outperformed in the market's negative months.
Average Return in +ve Market %
Average Return in -ve Market %
Sortino Ratio
The fund's Sortino ratio (which excludes volatility in positive months) has ranged from a high of 2.42 for performance over the most recent 24 months to a low of 1.24 over the latest 60 months, and is 1.46 for performance since inception. By contrast, the All Countries World (AUD) Index's Sortino for performance since April 2018 is 1.38.
Drawdown
Over the past 12 months, the fund's largest drawdown was -4.92% vs the index's -6.22%, and since inception in April 2018 the fund's largest drawdown was -20.16% vs the index's maximum drawdown over the same period of -16.02%.
Sortino Ratio
Drawdown%
Quintile Ranking vs. Average Equity Long - Large Cap - Global as of May 2024
The performance of the Aoris International Fund ranked it in the first or second quintile for Total Return over 1, 3 & 5 years, and in the first quintile for Sharpe and Sortino and second quintile for Largest Drawdown over 3 & 5 years, while over 1 year the fund ranked in the second quintile for Largest Drawdown.
Over the past 12 months, the fund has risen by +18.3% compared with the peer group which has returned an average of +17.29%, for a difference of +1.01%.
The fund's returns over the past 12 months have been achieved with a volatility of 12.37% vs the peer group's average volatility of 10.46%. The annualised volatility of the fund's returns since inception in April 2018 is 14.87% vs the peer group's 11.56%. Over all other periods, the fund's returns have been more volatile than the peer group.