Which funds will benefit from allocation to CSL?
With large cap Australian Securities Exchange (ASX) biotech company CSL announcing it is producing a COVID vaccine, Money Management looked at which funds have a high allocation to the stock.
On Sunday, CSL had announced it would produce 30 million doses of the vaccine in Melbourne.
According to FE Analytics, there were over 100 funds that held CSL in their top 10 holdings.
Within the Australian Core Strategies universe, specifically in the Australian equities sector, there were over 50 funds that held CSL it in their top 10.
Mutual 50 Leaders Australian Shares had the highest allocation, with 26.3% allocated to the healthcare stock.
IML Concentrated Australian Share had the next highest allocation at 13.86%, IML Australian Share with 13.84%, BlackRock iShares S&P/ASX 20 ETF with 13.8%, and Platypus Australian Equities Trust with 12.19%.
In its quarterly update, IML said CSL had finished the quarter at a higher price, but the firm had used the volatility during the quarter to their advantage to trim their holdings in the stock.
Out of the funds with the highest allocation to CSL, only the Platypus fund had made a positive return over the last 12 months with 13.75%.
In its September quarter update, Platypus said it had topped up on CSL due to share price pull back.
Performance of Australian equity funds with the highest allocation to CSL
The best-returning fund holding CSL was Bennelong Australian Equities fund, which returned 16.64% over the past 12 months to 31 October, 2020, while having an allocation of 12.34%.
CSL had returned 116.67% over the last three years to 6 November, 2020, and was one of the top-performing large cap stocks in 2019, returning 50.78% during the calendar year.
Performance of CSL over the last three years to 6 November 2020
AUTHOR
Chris Dastoor
Recommended for you
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
Prime Financial Group has expanded its reach into wealth management by over 3,000 investors with a binding agreement to acquire investment research and fund management business Lincoln Indicators.
Private markets secondaries specialist Coller Capital has appointed an Australian and New Zealand director who will work closely with private wealth managers and family offices.
