Watermark Australian Leaders Fund
31 January 2021
Key Facts
| Index Used: | ASX 200 Total Return | Discretionary/Quantitative: | Discretionary |
| Peer Group: | Equity Alternative - Australia | FUM (millions): | AU$ 211.08m |
| Investment Style: | Blend | Fund Inception Date: | July 2007 |
| Geographic Mandate: | Australia | Latest Return Date: | January 2021 |
| Investor Type: | Retail | Status: | Closed |
| Minimum Investment: | US$ 100,000 | Investment Frequency: | Daily |
Manager Details
The Fund's Portfolio will be managed by Watermark Funds Management Pty Limited (Manager), a licensed financial services provider owned by an entity associated with Justin Braitling. The Fund provides investors with the opportunity to invest in an actively managed portfolio and gain access to the investment experience and expertise of the Manager.
Watermark is an active, high conviction fund manager investing in Australian public companies. Established in 2003 by Justin Braitling, who has over 30 years experience managing portfolios of Australian and International shares, Watermark comprises a team of experienced investment professionals based in Sydney.
Strategy Description
The fund uses a long/short strategy to provide a more active approach to portfolio construction and balance sheet management then a traditional fund. It allows shareholders to profit from mispricing in all segments of the market, not just from buying undervalued shares but from short selling expensive ones as well. It also provides greater flexibility in managing portfolio risk through the cycle as short positions are a natural hedge for the company's assets if shares fall in value.
As a Listed Investment Company investors can invest by buying the Company's shares through a stockbroker. The shares are listed on the Australian Securities Exchange under the code ALF.
Fund Fees
| Management Fee: | 1% | Performance Fee: | 20% |
| Buy Spread: | 0% | Sell spread: | 0% |
| High Water Mark: | No | Hurdle: | All Ordinaries |
Fund Structure
| Offshore/Onshore: | Onshore | Fund Structure: | LIC |
| Share Classes: | AU$ | Trustee/RE: | N/A |
| Administrator: | Link Fund Solutions | Prime Broker: | UBS |
| Custodian: | UBS Nominees | Legal: | Watson Mangioni |
Ratings & Availability
Research Ratings
Platform Availability
Performance Review
The Watermark Australian Leaders Fund has a track record of 17 years and has outperformed the ASX 200 Total Return benchmark since inception in February 2004, providing investors with an annualised return of 9.74% compared with the benchmark's return of 8.77% over the same period.
The Manager has delivered these returns with 1.53% less volatility than the benchmark, contributing to a Sharpe ratio which has fallen below 1 five times over the past five years and which currently sits at 0.54 since inception. The fund has provided positive monthly returns 76% of the time in rising markets and 39% of the time during periods of market decline, contributing to an up-capture ratio since inception of 24% and a down-capture ratio of 70%.
The Watermark Australian Leaders Fund returned -0.19% in January, a difference of -0.5% compared with the ASX 200 Total Return benchmark which rose by +0.31%. Over the past 12 months, the fund's best monthly return was +1.94% compared with the benchmark's best return of +10.21%, and its worst monthly return was -3.27% vs the benchmark's worst return over the same period of -20.65%.
| Year | Jan % | Feb % | Mar % | Apr % | May % | Jun % | Jul % | Aug % | Sep % | Oct % | Nov % | Dec % | YTD % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | -0.19 | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | -0.19 |
| 2020 | 1.25 | -1.17 | -3.27 | 1.19 | -0.92 | -1.53 | 1.34 | 1.40 | -0.32 | 1.94 | 1.84 | -0.33 | 1.28 |
| 2019 | 0.53 | 0.73 | -0.98 | -2.28 | -0.85 | 0.67 | 2.08 | 0.98 | -0.70 | 1.30 | 0.02 | -0.36 | 1.08 |
| 2018 | -0.61 | 0.74 | 0.94 | 0.92 | 0.03 | -0.58 | 2.61 | -1.61 | 0.20 | -1.99 | -2.90 | -1.40 | -3.71 |
| 2017 | -0.69 | -0.10 | 0.12 | 1.22 | 0.74 | -0.54 | 0.26 | -1.84 | -0.39 | -3.07 | 1.29 | 0.07 | -2.97 |
| 2016 | 0.01 | -2.08 | 1.41 | -0.37 | 1.88 | 0.98 | -0.32 | -0.56 | 3.91 | -0.52 | -0.91 | -0.25 | 3.11 |
| 2015 | -1.19 | 0.99 | 3.04 | 0.83 | -0.55 | 3.14 | 3.76 | 3.00 | 1.48 | -1.60 | 0.37 | 1.97 | 16.17 |
| 2014 | -0.22 | 4.04 | -1.37 | 2.71 | 1.25 | 0.33 | -3.63 | -2.38 | 1.30 | -1.26 | -2.53 | -1.10 | -3.09 |
| 2013 | 3.41 | 1.64 | 2.96 | 2.74 | 0.51 | 2.23 | 3.81 | 3.46 | 2.79 | 3.96 | -0.63 | -0.03 | 30.24 |
| 2012 | 4.88 | 4.74 | 3.26 | 1.20 | -2.36 | 0.73 | 3.72 | 3.62 | 0.26 | -1.30 | 6.54 | 3.43 | 32.34 |
| 2011 | 1.95 | 1.93 | 3.61 | 1.67 | -1.76 | -1.75 | -4.11 | -6.84 | -8.40 | 6.45 | -1.49 | 0.86 | -8.56 |
| 2010 | -3.45 | 2.23 | 4.21 | -2.06 | -7.07 | -2.29 | 2.82 | -3.86 | 2.33 | 0.00 | 2.67 | 12.01 | 6.41 |
| 2009 | 2.23 | 2.88 | 16.03 | 6.65 | 7.89 | 7.00 | 9.18 | 12.36 | 6.54 | -0.65 | 0.81 | 0.12 | 96.90 |
| 2008 | -11.47 | -8.37 | 1.36 | 4.40 | 1.48 | -7.16 | -1.31 | 5.14 | -5.43 | -16.30 | -6.62 | 2.97 | -36.13 |
| 2007 | 3.09 | -1.61 | 3.55 | 1.15 | 2.67 | 2.03 | -1.03 | 3.43 | 3.33 | 1.05 | -0.30 | -1.90 | 16.33 |
| 2006 | 1.52 | 1.96 | 6.39 | 2.94 | -2.11 | 1.35 | -3.19 | 4.35 | 1.68 | 7.25 | 2.83 | 2.52 | 30.61 |
| 2005 | 0.25 | 1.27 | -0.95 | -6.11 | -0.36 | 4.84 | 2.02 | 2.69 | 4.79 | -3.02 | 3.85 | 3.74 | 13.17 |
| 2004 | NA | 0.40 | 1.40 | 0.21 | -0.05 | 2.25 | 1.08 | -0.32 | 4.59 | 2.83 | 4.43 | 2.39 | 20.82 |
Only seven years of data shown. Click here to view all data.
Annual Returns
Over the past 12 months, the fund has returned -0.16% compared with the benchmark which has fallen -3.11%, for a difference of +2.95%. Since inception in February 2004, the fund has returned +9.74% per annum, a difference of +0.97% relative to the benchmark which has returned +8.77% on an annualised basis over the same period.
Cumulative Returns
On a cumulative basis (assuming reinvestment of distributions), $100 invested since inception would have become $485. The same amount invested in the benchmark over the same period would have become $417.
Annual Returns %
Volatility and Risk
Annual Standard Deviation
The fund's returns over the past 12 months have been achieved with a volatility of 5.27% vs the index's 26.83%. The annualised volatility of the fund's returns since inception in February 2004 is 12.33% vs the index's 13.86%. Over all other periods, the fund's returns have been consistently less volatile than the benchmark.
Sharpe Ratio
The fund's Sharpe ratio has ranged from a high of 0.05 for performance over the most recent 24 months to a low of -0.41 over the latest 48 months, and is 0.54 for performance since inception. By contrast, the ASX 200 Total Return Index's Sharpe for performance since February 2004 is 0.43.
Annual Standard Deviation
Sharpe Ratio
Performance in Positive Markets
Since inception in February 2004 in the months where the market was positive, the fund has provided positive returns 76% of the time, contributing to an up-capture ratio for returns since inception of 24.32%. Over all other periods, the fund's up-capture ratio has ranged from a high of 12.78% over the most recent 12 months to a low of 3.01% over the latest 48 months.
Performance in Negative Markets
Since inception in February 2004 in the months where the market was negative, the fund has provided positive returns 39% of the time, contributing to a down-capture ratio for returns since inception of 70.44%. Over all other periods, the fund's down-capture ratio has ranged from a high of 21.75% over the most recent 60 months to a low of 8.76% over the latest 24 months. A down-capture ratio less than 100% indicates that, on average, the fund has outperformed in the market's negative months.
Average Return in +ve Market %
Average Return in -ve Market %
Sortino Ratio
The fund's Sortino ratio (which excludes volatility in positive months) has ranged from a high of 0.04 for performance over the most recent 24 months to a low of -0.54 over the latest 48 months, and is 0.73 for performance since inception. By contrast, the ASX 200 Total Return Index's Sortino for performance since February 2004 is 0.49.
Drawdown
Over the past 12 months, the fund's largest drawdown was -4.5% vs the index's -20.65%, and since inception in February 2004 the fund's largest drawdown was -39.33% vs the index's maximum drawdown over the same period of -47.19%.
Sortino Ratio
Drawdown%
Quintile Ranking vs. Average Equity Alternative - Australia as of
The Watermark Australian Leaders Fund is not ranked in the first or second quintile for any KPI.
Over the past 12 months, the fund has returned -0.16% compared with the peer group which has returned an average of +11.12%, for a difference of -11.28%.
The fund's returns over the past 12 months have been achieved with a volatility of 5.27% vs the peer group's average volatility of 6.75%. The annualised volatility of the fund's returns since inception in February 2004 is 12.33% vs the peer group's 8.97%. Over all other periods, the fund's returns have been consistently less volatile than the peer group.
Quintile data is pending for Watermark Australian Leaders Fund.