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| Strategy | |
| Latest Return Date | |
| Latest Return | |
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| Fund Overview | 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 Fund's capacity to protect investors' capital in falling and volatile markets is highlighted by the following statistics (since inception): Sortino ratio of 1.08 vs the Index's 0.56, maximum drawdown of -8.77% vs the Index's -26.75%, and down-capture ratio of 13.25%. The Fund underperformed in February with the rotation from defensive/growth companies into cyclical/value companies impacting both sides of the portfolio. Several companies facing structural challenges in the medium-term (short portfolio) outperformed in February at the expense of higher quality names (long portfolio). NWQ emphasise the Fund is an alternative to a typical balanced portfolio of stocks and bonds. The typical balanced portfolio has relied on falling bond yields to boost returns (prices rise as yields fall) and to provide a buffer against equity market risks. However, NWQ believe with bond yields on the rise this favourable dynamic for balanced fund investors may not be so reliable in future. With bonds having low or negative expected returns over the medium-term, NWQ expect investors will need to seek alternative return sources in order to realise attractive real returns. |
| More Information |
