| Report Date | 23 July 2019 |
| Manager | NWQ Capital Management Pty Ltd |
| Fund Name | NWQ Fiduciary Fund |
| Strategy | Multi Strategy |
| Latest Return Date | June 2019 |
| Latest Return | -0.03% |
| Latest 6 Months | 0.93% |
| Latest 12 Months | -5.40% |
| Latest 24 Months (pa) | 3.27% |
| Annualised Since Inception | 5.05% |
| Inception Date | 01 May 2013 |
| FUM (millions) | AU$67 |
| 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 was flat in June, returning -0.03%. Since inception in May 2013 the Fund has returned +5.05% p.a. with an annualised volatility of 4.82%. By contrast, the ASX200 Accumulation Index has returned +8.72% p.a. with an annualised volatility of 10.93% over the same period. The Fund's down-capture ratio of 6.79%, maximum drawdown of -7.04% versus the Index's -13.73% and average negative return of -0.90% versus the Index's -2.52% highlight the Fund's focus on protecting investor capital over the long-term.
NWQ's view is that equity and bond market pricing reflect two very different outlooks for the global economy; equity investors are looking through falling earnings and expecting the Fed to step in and cut interest rates to justify current multiples, while bond investors see deteriorating economic fundamentals and geopolitical risks as potentially leading to a recession in the near term. NWQ believe we are likely to see higher levels of volatility whilst these conflicting outlooks resolve themselves. In this scenario they consider having a 'market neutral' portfolio of long/short managers a sound way of navigating the potentially challenging times ahead. |
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