| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months (pa) | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | To pursue this objective, the Investment Manager is responsible for actively managing, monitoring and tailoring the integration of derivative contracts alongside the Morningstar Portfolio, while taking into account changing market and stock specific conditions. The Investment Manager is responsible for maximising the structural benefits of short option positions (lowered Volatility, improved capital preservation, higher income generation), whilst mitigating, minimising and monitoring the structural negatives (variable market exposure, option expiries, collateral management and asymmetric return profiles). In addition, long derivatives positions are also used to enhance the capital preservation characteristics of the Fund in more extreme market movements. As a consequence of the integration of Derivatives, returns of the strategy, intra-cycle, are expected to vary from the underlying Morningstar Portfolio due to these characteristics. For example in weak markets, or in extended sideways markets, the Fund is expected to outperform relative to the Morningstar Portfolio. Conversely in strong positive markets the Fund is expected to underperform. |
| Manager Comments | The Fund returned -2.25% in December. The return comprised a return of +1.57% from the portfolio (in USD) and a negative return of -3.82% from the strengthening of the Australian dollar versus the US dollar. Income distributions were 1.5c for the December quarter, taking the rolling 12-month income return to +8.49%. Over 2019 the Fund's return (+14.69%) came mostly from income generation. Wheelhouse noted that due to the capped but more certain nature of the Fund's income generation program the Fund's 2019 return is in line with their expectations of relative underperformance in strong markets and more stable and predictable returns throughout the whole cycle. |
| More Information |
