Company at a Glance

As at 31/10/18

  • Fund size (mil)

    $74.7
  • Net Assets Per Share

    $0.93

    Pre-tax NTA

  • Equity Exposure

    2.3%

    Net Equity exposure is equal to the size of the long portfolio minus the size of the short portfolio, expressed as a percentage of the Company's capital

  • Gross Exposure

    175.2%

    Gross exposure is the combined value of the long and short portfolios expressed as a percentage of the Company's capital

WMK Portfolio Return

The investment returns depicted in this graph are cumulative on A$100 invested in the portfolio of Watermark Market Neutral Fund Ltd relative to the return on an equivalent cash investment at the RBA Cash Rate for the specified period. Investment returns are calculated using the Fund’s portfolio returns and are to be distinguished from the return on an investment in the Company’s shares over the same period. They are net of fees but do not take account of the costs associated with running the company, nor any tax payments which are reflected in the Company’s NTA, published on this website and lodged with the ASX. The investment returns shown are historical and no warranty can be given for future performance. You should be aware that historical performance is not a reliable indicator of future performance. Due to the volatility of the underlying assets of the Fund and other risk factors associated with investing, investment returns can be negative (particularly in the short-term)

About the fund

Watermark Market Neutral Fund Limited (WMK) is a listed investment company, investing in Australian and international shares. The Company’s portfolio is managed by Watermark Funds Management, a specialist absolute return manager.

In a market neutral structure, returns are derived from the difference in performance between a long and a short portfolio of shares. As both portfolios are of equal size, the fund is fully hedged, retaining little or no net exposure to the share market. Irrespective of whether the portfolios are rising or falling, a positive return is achieved when the long portfolio outperforms the short. In this way, returns from a market neutral strategy will have no correlation with the performance of the broader share market, reflecting instead the investment manager’s success in selecting the right securities.

While the share market is generally efficient in valuing companies, there will always be a select group of companies that are mispriced at any given point in time. WMK’s investment strategy allows investors to benefit from Watermark’s success in identifying “strong” companies to invest in and “weaker” companies to sell short, without being fully exposed to the volatility and risks of the share market.

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Board of Directors

Matthew Kidman

Chairman

Matthew Kidman has over 20 years' experience in the finance industry. He spent four years as finance journalist at the Sydney Morning Herald, during which time he was appointed finance editor of the newspaper. In 1998 Matthew joined the funds management group Wilson Asset Management as a portfolio manager, his roles since then included positions as stock analyst, dealer, portfolio manager and senior executive of the management group. He was appointed to the board of WAM Capital Pty Limited in 1999.

Justin Braitling

Non-Independent Director

Justin has over 22 years experience in investing in Australian and international securities. Justin was an Investment Analyst and Portfolio Manager at Bankers Trust for 12 years from January 1991 to June 2002. Justin was a key member of the investment team at Bankers Trust that was consistently ranked in the top quartile of managers by InTech. Justin established Watermark in 2003 as an Absolute Return manager of Australian shares. Justin has been a Director of Australian Leaders Fund Ltd since October 2003 and became Chairman in February 2007.

John Abernethy

Non-Executive Director

John Abernethy has over 30 years' experience in funds management and corporate advisory. He holds a Bachelor of Commerce and Bachelor of Laws (BCom/LLB) from the University of New South Wales. He spent ten years at NRMA Investments as Head of Equities. In 1994 he joined Poynton Corporate Limited as an Executive Director before forming Clime Investment Management Limited in 1996.

Stephen Van Eyk

Non-Executive Director

Stephen has over 25 years’ experience in the financial services industry, with over 15 years as Managing
Director of research house van Eyk Research. Stephen was presented with the Lifetime Achievement Award at the 2013 Fund Manager awards.

Robert Ferguson

Non-Executive Director

Robert Ferguson’s career spans over 30 years' in research, finance, investment management and property. Robert commenced employment in 1971 with Bankers Trust Australia Ltd and was its CEO between 1985 and 1999 and Chairman from 1999 to 2001. Robert has extensive experience in both executive and non-executive roles.