| Report Date | 18 December 2018 |
| Manager | NWQ Capital Management Pty Ltd |
| Fund Name | NWQ Fiduciary Fund |
| Strategy | Multi Strategy |
| Latest Return Date | November 2018 |
| Latest Return | -2.22% |
| Latest 6 Months | -5.97% |
| Latest 12 Months | -0.35% |
| Latest 24 Months | 8.24% |
| Annualised Since Inception | 5.51% |
| Inception Date | 01 May 2013 |
| FUM (millions) | AU$77 |
| Fund Overview | The NWQ Fiduciary Fund (Fund), managed by NWQ Capital Management, is a diversified multi-manager portfolio, modelled on NWQ's Fiduciary Model Portfolio. The principal investment objective of the Fund is to produce attractive positive returns irrespective of market direction. This is achieved through active allocations to selective fund managers that employ a variety of traditional and absolute return strategies. The Fund places emphasis on managers who demonstrate a rigorous and repeatable investment process that has delivered a strong track record.
The Fund aims to produce returns, after management fees and expenses of between 8% to 11% p.a. over rolling five-year periods. Furthermore, the Fund aims to achieve these returns with volatility that is a fraction of the Australian equity market, in order to smooth returns for investors. |
| Manager Comments | The NWQ Fiduciary Fund has returned +5.51% per annum with an annualised volatility of only 4.97% since inception in May 2013. By contrast, the ASX200 Accumulation Index has returned +6.21% p.a. with a volatility of 11.06% over the same period. The Fund's performance statistics, such as the Sortino ratio of 1.16 versus the Index's 0.55, average negative return of -0.98% versus the Index's -2.61% and down-capture ratio of 5.87%, highlight the Fund's strength in protecting investors' capital in falling markets (on average). In light of the Fund's recent underperformance relative to longer term performance, NWQ expect an upcoming period of outperformance to return the Fund to its long-term average.
The Fund returned -2.22% in November, with bonds providing only modest support (+0.24%). NWQ noted the relative weakness of high-quality growth stocks (favoured by the underlying managers) compared with defensive value stocks continued into November as markets were choppy and driven more by macro issues than company fundamentals. These macro issues included uncertainty around the Fed tightening cycle and the outlook for US interest rates, the issues faced by PM May in the UK on Brexit and the ongoing trade tensions between the US and China. NWQ believe that as markets gain clarity on these issues company fundamentals will once again be the dominant factor driving stock prices. In addition, they noted the Fund is well placed to benefit from such a shift. |
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