AUT
Australian Equity Fund
Seeking high-quality opportunities in Australian companies with positive structural industry dynamics, strong competitive positions and which can sustainably grow at attractive rates of return.
3YR Return Annualised (Net)
(View Total Returns)
Total Assets
(AUD)
1YR Return (Net)
(View Total Returns)
Manager Tenure
Information Ratio
(5 Years)
Tracking Error
(5 Years)
Inception Date 26-Apr-2012
Performance figures calculated in AUD
Strategy
The clouds are parting and a clearer picture of 2021 is emerging. The prospect of the rollout of an effective COVID-19 vaccine, coupled with strong ongoing fiscal and monetary support, bodes well for economic growth and earnings recovery. The risks to markets are morphing to the more familiar ones of potentially higher inflation and rising bond yields. However, given the extreme and unusual nature of the pandemic, the policy response, and consumer behaviour, it is wise to expect the unexpected! The key near-term issue is the time frame for the rollout of the vaccines and the real-world effectiveness of these treatments.
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Despite the recent small COVID-19 outbreak in Sydney, and reaction from states in closing their borders to New South Wales or to residents of Greater Sydney, this is expected to be a short-term hiccup in the successful suppression of COVID-19 in Australia. This bodes well for the economic recovery, job creation, and earnings growth. With high levels of government support expected to continue, we believe the risks look to be to the upside going into 2021.
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Despite our positive view on economic growth, we expect interest rates to remain low to support the recovery. The recent announcement of quantitative easing by the RBA signals this intent. As a result, we expect growth stocks to continue to do well.���
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Investment Objective
The Fund's investment objective is long-term capital appreciation through investment primarily in a portfolio of securities of Australian companies listed on the S&P/ASX200 Accumulation Index (ASX200). The portfolio will include the securities of a broad range of companies across the market capitalisation. Additionally the portfolio may contain investments in the Securities of companies outside of the ASX200 including certain New Zealand and ASX dual listed companies.Investment Approach
- Our investment approach focuses on bottom-up company fundamentals but recognizes that sector and industry analysis are also critical to understanding growth drivers. The portfolio manager ultimately seeks to construct a growth-oriented portfolio of stocks, ranging across all market capitalization segments and maintaining sector diversification.
- One of the core tenets of our investment philosophy is that quality growth stocks are frequently mispriced. Our long-term investment approach provides us with the opportunity to take advantage of near-term trends that can often be overemphasized by the market and our competitors.
- We implement fundamental analysis to identify companies with positive structural industry dynamics, strong competitive positions and those that we believe can grow sustainably at attractive rates of return. In seeking out these higher-quality businesses, we focus on industry attractiveness, competitive advantage, management quality, free cash flow, return on capital and financing/balance sheet structure.
- Our global research platform enables us to access and use information from local and global perspectives, generating unique insights. The fund comprises some of the highest-conviction ideas from our research platform, as well as the insights of our global sector and regional equity portfolios. We expect these businesses to compound value faster than the overall market and outperform over time, focusing on opportunities where our fundamental views differ from market expectations.
- We assess valuations relative to other local market opportunities, seeking high-growth companies with attractive valuations relative to their long-term intrinsic value.
- Systematic and integrated risk management are hallmarks of our investment process.
Portfolio Construction
- The portfolio may contain investments in the securities of companies outside of the ASX200 including certain New Zealand and ASX dual listed companies.
- Typically 30-50 holdings, ranging across all market capitalization segments
- Individual positions range from +/- 5% relative to benchmark
- Expected Tracking Error: typically 3.0 to 6.0% over rolling three-year period
- Cash target range: Cash Reserves are typically less than 5% but will not exceed 10% of the Fund's total market value
- Turnover range: 30 – 50% per annum
Performance - Net of Fees
Annualised Performance
1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
Since Manager Inception Annualised |
|
---|---|---|---|---|---|
Fund % | -5.00% | 5.64% | 9.94% | 9.49% | 9.49% |
Benchmark % | -3.11% | 7.00% | 10.03% | 9.30% | 9.30% |
Excess Return % | -1.89% | -1.36% | -0.09% | 0.19% | 0.19% |
1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
---|---|---|---|---|
Fund % | -0.82% | 5.35% | 8.47% | 9.50% |
Benchmark % | 1.40% | 6.73% | 8.73% | 9.36% |
Excess Return % | -2.22% | -1.38% | -0.26% | 0.14% |
Recent Performance
Month to DateData as of 04-Mar-2021 | Quarter to DateData as of 04-Mar-2021 | Year to DateData as of 04-Mar-2021 | 1 MonthData as of 31-Jan-2021 | 3 MonthsData as of 31-Jan-2021 | |
---|---|---|---|---|---|
Fund % | 0.67% | 3.47% | 3.47% | 0.73% | 10.64% |
Benchmark % | 1.89% | 3.69% | 3.69% | 0.31% | 11.89% |
Excess Return % | -1.22% | -0.22% | -0.22% | 0.42% | -1.25% |
Past performance is not a reliable indicator of future performance.
Source for performance: T Rowe Price. Net of fees performance is based on end of month redemption prices after the deduction of fees and expenses and the reinvestment of all distributions. Figures include changes in principal value. Investment return and principal value will vary, and an account may be worth more or less at termination than at inception.
Daily performance (MTD, QTD, and YTD) data is based on the latest available NAV minus one business day.
Returns for time periods greater than one year are annualised.
Holdings
Total
Holdings
36
Largest Top Contributor^
Bhp
By 3.03%Largest Top Detractor^
CSL
By -1.92%Top Purchase
Eagers Automotive (N)
2.30%Top Sale
CSL
5.94%Sectors
Total
Sectors
9
Top Contributor^
Communication Services
Net Contribution 0.71%Top Detractor^
Financials
Net Contribution -1.48%Largest Overweight
Consumer Discretionary
Largest Underweight
Financials
Countries
Total
Countries
4
Largest Overweight
New Zealand
Largest Underweight
Australia
Team (As of 25-Feb-2021)

Randal Jenneke is a portfolio manager and head of Australian equities in the International Equity Division. He is a director of T. Rowe Price Australia, Ltd. He is also a vice president of T. Rowe Price Group, Inc.
Randal’s investment experience began in 1991, and he has been with T. Rowe Price since 2010, beginning in the International Equities Group. Prior to this, Randal was employed by Schroders in the area of investment management.
Randal earned a B.Ec. in accounting and finance from Macquarie University. He also earned a graduate diploma in applied finance and investment from the Securities Institute of Australia.
- Fund manager2012
since - Years at10
T. Rowe Price - Years investment29
experience
Fees
APIR | Minimum Initial Investment (AUD) | Minimum Subsequent Investment (AUD) | Buy/Sell Spread | Management Fees |
---|---|---|---|---|
ETL0328AU | $500,000 | $100,000 | Buy +0.10%/ Sell -0.05% | 0.60% pa |
Randal Jenneke is a portfolio manager and head of Australian equities in the International Equity Division. He is a director of T. Rowe Price Australia, Ltd. He is also a vice president of T. Rowe Price Group, Inc.