| Report Date | 17 June 2020 |
| Manager | NWQ Capital Management Pty Ltd |
| Fund Name | NWQ Fiduciary Fund |
| Strategy | Multi Strategy |
| Latest Return Date | May 2020 |
| Latest Return | 2.31% |
| Latest 6 Months | -2.02% |
| Latest 12 Months | 2.99% |
| Latest 24 Months (pa) | -1.36% |
| Annualised Since Inception | 4.83% |
| 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 rose +2.31% in May, taking annualised performance since inception in May 2013 to +4.83% with an annualised volatility of 5.57%. By contrast, the ASX200 Accumulation Index has returned +5.95% p.a. with an annualised volatility of 14.01% over the same period. The Fund's down-capture ratio for performance since inception of 13.93% and maximum drawdown of -8.77% versus the Index's -26.75% over the same period highlight its capacity to protect investors' capital in falling markets.
The Fund has hedged out 70% of the fall in the Australian market for the calendar year (-3.64% for the Fund vs -12.70% for the market). NWQ believe the Fund is well positioned for a full recovery. The Fund's recovery began in April and continued in May with the Alpha managers taking advantage of both relative value opportunities and corporate activity. NWQ expect these sources of alpha to persist as the Australian economy reopens and businesses and consumers come to terms with the 'new normal'. |
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