| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The Fund's bias is likely to be net long under normal market conditions, with the core strategy being to construct a portfolio of listed equity securities priced at levels that do not adequately reflect their underlying value. The Fund will seek to boost returns and limit potential market downside by selective short selling of individual stocks which are priced at levels that are viewed as materially above their underlying value. The Fund will also use certain trading strategies both within its core portfolio (through rebalancing stock weights and overall market exposure in response to price movements) and in certain other situations (typically of a shorter-duration and/or opportunistic nature) with the objective of further increasing returns. |
| Manager Comments | The Trust's short positions contributed positively, however, most of the performance was driven by the long portfolio. Positive performers included CYBG, Automotive Holdings, Macquarie Bank and Janus, as well as the Trust's investment in lithium producers - Orecobre, Galaxy Resources and Pilbara Minerals. The Trust's increased exposure to retail REITs amid the Amazon-inspired sell-off also contributed positively. ARCO increased the Trust's long position in Telstra, however, this remained a drag on overall performance. They also moved to exit their investment in Santos, and closed their short position in Woodside. ARCO note that ultra-low interest rates may continue to underpin expensive equity valuations, however, they believe that this won't last much longer. They note that offshore central banks seem keen to lift rates and tighten liquidity, and that despite there being less immediate upward pressure on rates in Australia, Australian banks have been tightening credit for some time. ARCO remain wary about the outlook for housing and its implications for the banking sector and the economy more broadly. |
| More Information |
