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| Manager | |
| Fund Name | |
| Strategy | |
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| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
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| Inception Date | |
| FUM (millions) | |
| Fund Overview | The Fund seeks to preserve capital and maximise absolute returns through active and constant risk management, targeting monthly a net market exposure of 0% to hedge broader market risks by generally holding up to 50 S&P/ASX-100 positions (up to 25 long positions & 25 short positions). Historically, the strategy has been uncorrelated to traditional asset classes with a negative beta to equity markets. Qato Capital's process is entirely systematic - stock selection and risk management are all employed in a rules based approach. Positions in Qato's long-portfolio and short-portfolio are rotated monthly dependent upon their Q-Score ranking. The strategy employs no financial leverage/gearing to purchase securities, no derivatives and no financial products to imitate leverage. |
| Manager Comments | The telecommunications sector, down -30.88% over the past 12 months, continued its decline in March and added +1.20% to the Fund's performance with Qato holding short positions in Telstra (-6.27%) and TPG Telecomm (-10.15%). The Fund's short positions in the Financial sector also contributed positively as the sector fell due to increasing global funding costs and the ramifications of the Royal Commission, these included short positions in Bank of Queensland (-13.22%), Bendigo Bank (-10.44%), ANZ (-7.54%), NAB (-5.60%) and Westpac (-6.99%) which contributed +0.99% overall. Whilst the Fund's short weightings to the Financial sector were reduced at the end of the month, Qato still see headwinds for the sector with loan growth slowing and offshore borrowing costs increasing. Insurance Australia Group also contributed positively to performance (+0.45) after falling steadily throughout March (-8.78%). Other positive contributors included Evolution Mining (long, +0.42%), Graincorp (long, +0.28%). |
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