Which funds are riding the Amazon stream?
As Amazon chief executive Jeff Bezos announces his transition from that role to executive chair, Money Management looks at which funds have allocated the most to the multinational e-commerce firm.
In an email to Amazon employees, Bezos said he would transition to executive chair on the Amazon board in Q3, while Andy Jassy, current Amazon web services chief executive, would be his successor.
“In the exec chair role, I intend to focus my energies and attention on new products and early initiatives,” Bezos said.
“Andy is well known inside the company and has been at Amazon almost as long as I have. He will be an outstanding leader, and he has my full confidence.”
According to FE Analytics, within the Australian Core Strategies universe, there were 78 funds that included Amazon in its top 10 holdings.
The fund with the highest percentage was ETF Securities FANG exchange traded fund (ETF) which had just over a tenth (10.18%) invested, as it tracked the New York Stock Exchange (NYSE) FANG+ index.
Located in the specialist equities sector, it had returned 57.52% since its launch on 27 February, 2020, to the end of the year.
Although 10% was a high holding for a single fund, particularly an index-tracking ETF, the FANG ETF only held 10 stocks, which included Apple, Alphabet (Google), Tesla, Facebook and Alibaba.
Other funds with significant holdings were Hyperion Global Growth Companies (9.16%), BetaShares NASDAQ 100 ETF (8.8%), BlackRock iShares Global 100 AUD Hedged ETF (8.62%), and CFS FC Baillie Gifford Wholesale Long Term Global Growth (7.72%).
The CFS Ballie Gifford fund was the best-performing fund in the global equities sector for 2020, returning over 86%.
The Hyperion fund, which was sixth place in the global equities sector, returned 43.68%.
The BetaShares ETF, located in the North American equities sector, returned 34.8%; while BlackRock’s iShares ETF, in the global equities hedged sector, returned 12.13%.
Performance of funds with the highest allocation to Amazon for 2020
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