| Report Date | 23 March 2020 |
| Manager | NWQ Capital Management Pty Ltd |
| Fund Name | NWQ Fiduciary Fund |
| Strategy | Multi Strategy |
| Latest Return Date | February 2020 |
| Latest Return | -1.87% |
| Latest 6 Months | 2.71% |
| Latest 12 Months | 5.66% |
| Latest 24 Months (pa) | 1.59% |
| Annualised Since Inception | 5.58% |
| 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 RBA Cash Rate + 4.0-5.0% 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 outperformed the ASX200 Accumulation Index by +5.82% in February, returning -1.87%. Since inception in May 2013, the Fund has returned +5.58% p.a. with an annualised volatility of 4.84%. By contrast, the Index has returned +7.82% p.a. with an annualised volatility of 11.20% over the same period. The Fund's Sortino ratio of 1.29 versus the Index's 0.77 and down-capture ratio for performance since inception of 4.09% highlight the Fund's focus on avoiding the market's downside. The largest drawdown the Fund has experienced since inception is -7.04%, whereas over the same period the largest drawdown experienced by the Index is -13.73%.
The NWQ Fiduciary Fund substantially hedged out the fall in the Australian equity market in February (-1.87% versus the Index's -7.69%). Two of the eight managers in the portfolio were up during the month with a further three managers recording modest losses of less than 2%. NWQ noted that while results were mixed, all managers operated within their parameters and made adjustments consistent with expectations.
NWQ's investment committee believe the prospective environment to be favourable for stock picking as dispersion increases and will be putting additional capital to work in the coming months. |
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