ironbark copper rock emerging markets opportunities...

Ironbark Copper Rock Emerging Markets Opportunities Fund Monthly Investment Report as at 30 November 2018

Contact details T: 1800 034 402 | E: [email protected] | W: www.ironbarkam.com

Performance review

The Ironbark Copper Rock Emerging Markets Opportunities Fund (the ‘Fund’) returned 1.38% (net) in November, underperforming the benchmark return of 2.37% by 0.99%.

The emerging markets small cap asset class recovered substantially in the month of November and returned approximately 5.5% (in US dollar terms). Although many of the factors that have contributed to the volatility in the asset class, including unstable oil prices, a rising US rates program, trade tensions, and Chinese headline news, many predictors remain cautiously optimistic for the asset class in 2019. Markets in November recovered in response to some uncertainty subsiding near term. Strong contributors to return in the MSCI Emerging Markets Small Cap index included the health care, telecommunication services, information technology, industrials and consumer discretionary sectors while energy declined approximately 5.8%. November was the worst month for crude oil prices since 2008. Within the Fund, there was good individual stock selection in the consumer staples, consumer discretionary, and financials sectors while the leading detractor from relative return in the Fund was stock selection in the information technology sector.

In November, most countries registered positive returns with the exception of Malaysia, Pakistan, the United Arab Emirates, Colombia, Czech Republic, Mexico and Thailand. China had a positive return of 2% within the MSCI Emerging Markets Small Cap index in November, following a decline of more than 10% in the prior month. However, the combination of the Fund’s overweight to Chinese country and stock selection detracted from overall relative return. In Korea, where the Fund had faced some underperformance, stocks such as Orion Corporation, which had been under pressure in the prior quarter, recovered and rose 19% in November. Fila Korea also rose about 23%. However, stock selection within the information technology segment of Korea was a contributor to the relative underperformance. Thailand declined in the month due to overall negative market sentiment more than fundamental concerns, although the country will face general elections in 2019 which does cast some uncertainty over the markets. The Fund has maintained a meaningful overweight relative to the index in this market which impacted returns negatively. Regardless, the investment manager continues to have high conviction in the stocks within Thailand and for the market which is well positioned financially to weather longer term rate increases and other effects from slowing global growth.

Performance

Asset class

Global Shares

Investment objective

To outperform the benchmark net of fees over rolling 5 year periods

APIR code

MGL0019AU

ARSN

124 220 202

Fund inception date

19 March 2007

Manager appointed

30 September 20161

Benchmark

MSCI Emerging Markets Small Cap Index AUD

Distribution frequency

Semi-annually

Minimum investment

$20,000

Fund size

$85.4m

Exit price

0.7366

Net returns (%) 1 month 3 months 1 year 3 years

p.a. 5 years

p.a. 10 years

p.a.

Since inception

p.a. 4

Ironbark Copper Rock Emerging Markets Opportunities Fund1

1.38 -12.79 -16.04 -1.04 -1.01 7.55 1.89

MSCI Emerging Markets Small Cap NR2

2.37 -9.64 -10.50 3.72 6.40 11.52 5.68

Active return -0.99 -3.15 -5.54 -4.76 -7.41 -3.97 -3.79

1Shaded Fund performance prior to 30 September 2016 is not attributable to Copper Rock, but the previous investment manager. The Fund invests in the Copper Rock Emerging Markets Small Cap Strategy, returns are presented below for reference.

Copper Rock Emerging Markets Small Cap Strategy3

1.23 -12.94 -16.00 2.76 5.24 n/a 9.15

MSCI Emerging Markets Small Cap NR

2.37 -9.64 -10.50 4.31 6.13 n/a 8.36

Active return -1.14 -3.30 -5.49 -1.55 -0.89 n/a 0.79

Past performance is not an indicator of future performance. Net performance figures are calculated using exit prices, net of fees and reflect the annual reinvestment of distribution. Returns are rounded to two decimal places. Slight variations to actual calculations may occur. 2 The MSCI Emerging Markets Small Cap NR AUD was adopted as the Fund’s performance benchmark on 30 September 2016. Benchmark calculations prior to this date are based on the MSCI World ex Australia Index Hedged AUD. 3The Copper Rock Emerging Markets Small Cap Strategy AUD referred to is based on the Copper Rock Emerging Markets Small Cap Equity Composite USD share class converted to AUD. The composite inception date is 1 October, 2012. Performance for the strategy is stated net of fees with a 1.25% p.a. fee applied, calculated monthly. Source: Copper Rock and Morningstar Direct. 4 This figure represents the annualised performance from the first full month of operation.

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http://www.ironbarkam.com/



Top 5 holdings

Stock Country Sector Weight (%)

Taidoc Technology Corporation Taiwan Health Care 1.77

KrungThai Card Public Company Thailand Financials 1.70

IRB Brasil Resseguros Brazil Financials 1.69

Muangthai Capital Public Company Thailand Financials 1.66

Fila Korea Korea Consumer Discretionary 1.61

Asset allocation

Sector weights (%)

Regional weights (%)

0.0

7.6

11.1

3.8

77.5

1.3

4.5

9.2

5.8

79.2

0 10 20 30 40 50 60 70 80 90 100

Cash

Middle East & Africa

Latin & South America

Emerging Europe

Emerging Asia

%

Fund

Benchmark

0.0

12.3

7.0

4.3

1.9

16.8

15.9

7.6

8.7

1.2

14.3

10.0

1.3

11.7

8.1

0.8

1.1

17.5

17.3

5.1

12.1

0.0

10.9

14.1

0 3 6 9 12 15 18 21

Cash

Materials

Consumer Staples

Utilities

Energy

Consumer Discretionary

Information Technology

Real Estate

Health Care

Telecommunications

Industrials

Financials

%

Fund

Benchmark





Top 5 and bottom 5 contributors for the month

Stock Country Active position %

Fila Korea Korea Overweight 0.27

Taidoc Technology Corporation Taiwan Overweight 0.23

Jubilant Life Sciences India Overweight 0.22

Yuzhou Properties Company China Overweight 0.17

Jubilant Foodworks India Overweight 0.16

Stock Country Active position %

China Oriental Group Company China Overweight -0.29

Star Petroleum Refining Public Company Thailand Overweight -0.24

HyVISION System Korea Overweight -0.23

Maanshan Iron & Steel Company China Overweight -0.23

Inventec Corporation Taiwan Overweight -0.22

Important information

Issued by Ironbark Asset Management Pty Limited ABN 53 136 679 420 AFSL 341020 (‘Ironbark’). Data in AUD. This document is not an offer of securities or financial products, nor is it financial product advice. As this document has been prepared without taking account of any investors’ particular objectives, financial situation and needs, you should consider its appropriateness having regard to your objectives, financial situation and needs. The Ironbark Copper Rock Emerging Markets Opportunities Fund is issued by Ironbark Asset Management (Fund Services) Limited ABN 63 116 232 154 AFSL 298626. To acquire units in the Fund, complete the application form that accompanies the current PDS, which you can obtain from www.ironbarkam.com or by calling client services on 1800 034 402. You should consider the PDS in deciding to acquire or to continue to hold units in the Fund. Although specific information has been prepared from sources believed to be reliable, we offer no guarantees as to its accuracy or completeness. The information stated, opinions expressed and estimates given constitute best judgement at the time of publication and are subject to change without notice to you. Consequently, although this document is provided in good faith, it is not intended to create any legal liability on the part of Ironbark or any other entity and does not vary the terms of a relevant disclosure statement. Past performance is not an indicator of future results. All dollars are Australian dollars unless otherwise specified.



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