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.
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.
