| Report Date | January 2019 |
| Manager | NWQ Capital Management Pty Ltd |
| Fund Name | NWQ Fiduciary Fund |
| Strategy | Multi Strategy |
| Latest Return Date | January 2019 |
| Latest Return | 0.44% |
| Latest 6 Months | -5.32% |
| Latest 12 Months | -3.50% |
| Latest 24 Months | 8.02% |
| Annualised Since Inception | 5.34% |
| Inception Date | 01 May 2013 |
| FUM (millions) | AU$76 |
| 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 rose +0.44% in January, taking annualised performance since inception in May 2013 to +5.34% with an annualised volatility of only 4.92%. By contrast, the ASX200 Accumulation Index has returned +6.71% p.a. with an annualised volatility of 11% over the same period. The Fund's Sortino ratio (1.12 versus the Index's 0.62), in conjunction with its average negative return of -0.96% versus the Index's -2.52% and down-capture ratio of 6.79%, together indicate that the Fund has successfully avoided much of the market's downside volatility over the long term.
NWQ noted there was a distinct shift in sentiment from 'risk-off' to 'risk-on' with the US Federal Reserve signalling that it would hold off on further rate rises, reversing a position it took less than two months prior. This shift in sentiment was an indiscriminate tailwind for stocks and this, NWQ say, provided its own set of challenges for the long/short strategies of the Fund's underlying managers. Against this backdrop, the Fund's underlying managers positioned their portfolios to generate modest positive returns and are well positioned for when company fundamentals - as opposed to market sentiment - become the primary driver of stock returns as is most often the case following reporting season. |
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