| Report Date | 14 May 2019 |
| Manager | NWQ Capital Management Pty Ltd |
| Fund Name | NWQ Fiduciary Fund |
| Strategy | Multi Strategy |
| Latest Return Date | April 2019 |
| Latest Return | 0.16% |
| Latest 6 Months | -1.05% |
| Latest 12 Months | -3.70% |
| Latest 24 Months (pa) | 4.52% |
| Annualised Since Inception | 5.33% |
| Inception Date | 01 May 2013 |
| FUM (millions) | AU$70 |
| 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 +0.16% in April, taking annualised performance since inception in May 2013 to +5.33% with an annualised volatility of 4.86%. By contrast, the ASX200 Accumulation Index has returned +8.01% p.a. with an annualised volatility of 11% over the same period. The Fund's average negative return of -0.94% versus the Index's -2.52%, maximum drawdown of -7.04% versus the Index's -13.73% and down-capture ratio of 6.79% collectively illustrate the Fund's capacity to avoid the market's downside, thus protecting investors' capital from significant losses over the long-term.
The 'melt up' as the S&P500 entered new territory was a tailwind for the Fund's Beta managers, however, it was a more challenging environment for the Alpha managers with fundamentally supported relative value opportunities scarce as stocks rose indiscriminately.
NWQ noted the trend of desynchronization in growth outlooks and policy settings across the major global economies continued in April. They pointed out the latest manufacturing PMI data (a barometer of economic activity) indicates that the US economy is relatively strong compared with those in Europe and Asia. However, they added, due to stubbornly low inflation in the US, traders are betting the next move from the Fed will be a rate cut. |
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