| 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 | Harvest Lane Asset Management employs a conservative, highly selective and opportunistic approach. Using their extensive knowledge in the area of corporate actions, the Fund's managers assess each opportunity based on a thoughtful, diligent and disciplined process and invest where they believe an opportunity exists to generate above average investment returns relative to the risk incurred. Investment decisions are made without speculating on market direction, with rigid risk controls enforced to minimise the risk of large losses of investor capital. The Fund invests in securities that are predominantly listed on the ASX and occasionally in those listed in other developed markets. Equity swaps and other derivatives may be used at times to reduce risk. The fund typically holds high levels of cash in the absence of sufficiently attractive opportunities to deploy investor capital in accordance with its objectives. |
| Manager Comments | The Fund's capacity to significantly outperform in falling markets is highlighted by the following statistics (since inception): Sortino ratio of 1.39 versus the Index's 0.96, down-capture ratio of -23.56% (indicating that, on average, the Fund has risen during the months the market has fallen), largest drawdown of -6.46% versus the Index's -13.73%, and an average negative monthly return of -1.37% versus the Index's -2.55%. Harvest Lane noted they saw a reversal in February of the tightening in deal spreads they had observed over the past 12 months as investors shifted their focus from risk-adjusted returns to outright capital preservation. They have minimised the Fund's exposure to a number of deals which are as yet non-binding. The non-binding nature presents inherent risk to the transaction completing and are typically the first transactions to see widening spreads given the lack of a legal framework compelling the bidder to complete the offer. At the time of writing their February 2020 report, close to 60% of the portfolio's assets were invested in companies subject to binding transactions with a further 21% in cash and cash equivalents. Harvest Lane remain vigilant and continue to act with capital preservation at the forefront of their decision making process, particularly in the current market conditions. |
| More Information |
