Genomics Revolutions returns +28.25%*
Over the past 12 months* we have seen remarkable returns on our International thematic share portfolios. In spite of the recent difficult market conditions 17 out of our 23 International portfolios have outperformed the ASX 200.
Our top performer was the Genomic Revolution, which returned +28.25% compared to the ASX 200 which returned a negative 14.42%.
See below how our other top performers stacked up against the ASX 200.
Performance comparison table
Performance calculations are based on exit price with distributions reinvested, after ongoing fees and expenses but excluding individual tax, member fees and entry fees (if applicable). *Performance is for the period 31 March 2019 – 31 March 2020.
What makes these returns so remarkable?
These returns are all the more remarkable since over the past 12 months, the ASX 200 (including dividends) has provided a negative return of 14.42%.
To put it bluntly, an investor would be 42.27% ahead by investing in the Genomics Revolution Vue instead of an ASX 200 ETF or managed
fund that matched the index (most don’t) Australian based investors have TWO choices when investing in equities: the domestic market
(ASX 200) or investing overseas. Clearly the overseas option has significant advantages in the up and down markets as we have had in the last 12 months.
How has Macrovue managed such a significant outperformance? There are a number of reasons.
First, Macrovue is a “Thematic” investor and builds its portfolios RELATIVE to the theme and not a benchmark like the ASX 200 or MSCI All Country. The themes we choose are long term in nature
with significant upside for investors irrespective of economies and markets. Once we have decided on a suitable theme, all the companies in the portfolio are chosen as to their exposure to that theme and by how much they will benefit (in terms of revenue and earnings growth) from that theme.
Secondly, Macrovue is a high conviction investor and comfortable with concentrated portfolios. Each thematic portfolio holds just 10 stocks-the ten best stocks that fit with the theme. That’s very different from a managed fund that may hold 50, 60, or even 70 stocks. An ETF holds all the stocks in the index- literally hundreds of companies. Outperformance by the former after fees is rare and ETFs give you an index return- nothing more, nothing less.
Third, Macrovue is above all a stock picker, spending all their time on researching and analysing individual companies from all around the world. We don’t waste our time trying to anticipate the latest economic release or trying to time markets.
And that leads to the fourth reason we outperform- Macrovue is a global investor and can take advantage of the myriad of opportunities in over 20 stock markets- the other 98.5% of global equity markets.
Comments from Mr Clay Carter, Head of Investments, Macrovue.
If you would like more information on Macrovue's International Share portfolios please contact us on 1300 720 292.