Sunday, March 6, 2016

The AIM Class of 2016 and the Performance of the International Equity Fund through February 2016

AIM International Fund Performance for the Class of 2016 (through February)

The AIM Class of 2016 has managed the International Equity Fund for 11 months – with just March 2016 left. In a highly challenging market environment the International AIM Fund is off 156 basis points versus the Russell Global ex US benchmark. As the attribution table below shows, the stock selections have actually accounted for almost all of the underperformance. The Consumer Discretionary sector has had an especially challenging holding period (down over 40% since April 1, 2015).

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The monthly return charts shows that the AIM International Fund outperformed the benchmark in only 3 of the 11 months since assuming responsibility for managing the portfolio. The chart also illustrates how challenging an environment the students experienced – with only two months where the benchmark has been greater than zero during the holding period.


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The next chart contains various portfolio performance metrics since April 1, 2015. The Beta for the AIM International Fund has averaged 0.95 versus 1.00 for the benchmark. A close look at some of the return/risk metrics reveals that the portfolio’s performance is quite close to the Russell Global ex US Index.

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The final chart shows the AIM International Fund has a greater Growth tilt than the Index and is smaller in size. While not shown on this chart, the Fund also has a higher mix of Emerging Market holdings than the Russell Global ex US Index – which explains much of the underperformance.

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The next chart shows the mix of international holdings by region. Asia is underweight and North America is overweight.

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The students will prepare a detailed performance report for each fund in April to summarize the results and to document their experiences in managing the AIM Funds.  


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