OVERVIEW
The Watermark Absolute Return Fund (WARF) is an actively managed long/short (variable beta) equity strategy, focused on companies listed on the Australian Securities Exchange (ASX).
WARF offers investors a highly diversified portfolio of long and short positions based on our fundamental bottom-up research process. The Fund aims to deliver positive absolute returns in excess of the benchmark (the RBA cash rate), with a focus on capital preservation. The fund would be suitable for investors who are looking for capital growth and income while hedging equity market risk.
FUND INCEPTION: May 2019
TYPE OF INVESTMENTS: Australian shares, index futures, equity derivatives
INVESTMENT OBJECTIVE: Positive absolute returns in excess of the benchmark
TIME HORIZON: At least 5 years
INVESTOR TYPE: Retail/Sophisticated
BENCHMARK: RBA cash rate
GEARING: Yes
SHORTING: Yes
POSITIONS: (typical) 80-100 positions long, 80-100 positions short
TYPICAL NET EXPOSURE: 0-30%
MAX NET EXPOSURE: 150%
MAX GROSS EXPOSURE: 300%
MONTHLY NET PERFORMANCE (%)
| YEAR | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | FY |
| FY04 | 0.3 | 1.1 | 0.2 | 0.0 | 1.8 | 3.4 | |||||||
| FY05 | 1.0 | -0.3 | 3.7 | 2.3 | 3.6 | 2.0 | 0.3 | 1.0 | -0.7 | -4.9 | -0.4 | 3.9 | 11.7 |
| FY06 | 2.0 | 2.2 | 3.9 | -2.3 | 3.1 | 3.1 | 1.3 | 1.6 | 5.3 | 2.7 | -1.0 | 0.9 | 25.0 |
| FY07 | -3.1 | 4.4 | 1.8 | 6.3 | 2.5 | 2.0 | 2.8 | -1.7 | 2.8 | 1.1 | 2.2 | 1.8 | 25.0 |
| FY08 | -1.0 | 4.1 | 2.5 | 0.8 | -0.1 | -1.4 | -11.7 | -8.3 | 1.4 | 4.4 | 1.5 | -7.1 | -15.1 |
| FY09 | -1.1 | 5.3 | -5.2 | -16 | -6.3 | 3.2 | 2.5 | 3.1 | 16.2 | 7.3 | 10.1 | 7.1 | 24.5 |
| FY10 | 9.3 | 11.2 | 6.0 | 0.1 | 0.5 | -0.5 | -2.3 | 1.9 | 3.5 | -1.7 | -5.7 | -1.9 | 20.8 |
| FY11 | 2.9 | -3.8 | 2.4 | 0.1 | 2.7 | 10.8 | 2.2 | 1.7 | 3.6 | 2.0 | -1.2 | -1.3 | 23.6 |
| FY12 | -4.0 | -6.7 | -8.3 | 6.5 | -1.3 | 1.0 | 5.0 | 4.8 | 3.8 | 0.9 | -2.3 | 0.8 | -1.0 |
| FY13 | 3.8 | 4.2 | 0.0 | -1.2 | 6.7 | 3.0 | 2.7 | 1.2 | 3.0 | 2.2 | 1.6 | 2.9 | 34.2 |
| FY14 | 3.9 | 3.6 | 2.9 | 3.7 | -0.2 | -0.1 | 0.4 | 3.1 | -1.3 | 2.4 | 1.1 | 0.6 | 21.8 |
| FY15 | -3.6 | -2.4 | 1.4 | -1.2 | -2.5 | -1.1 | -1.2 | 1.0 | 3.0 | 0.8 | -0.5 | 3.1 | -3.5 |
| FY16 | 3.8 | 4.6 | 1.9 | -2.1 | 0.6 | 2.6 | 0.4 | -2.6 | 1.8 | -1.0 | 1.7 | 1.8 | 13.9 |
| FY17 | -0.3 | -0.6 | 3.9 | -0.5 | -0.9 | -0.2 | -0.7 | -0.1 | 0.2 | 1.2 | 0.8 | -0.5 | 2.3 |
| FY18 | 0.2 | -1.9 | -0.4 | -3.1 | 1.3 | 0.1 | -0.6 | 0.7 | 0.9 | 0.9 | 0.0 | -0.6 | -2.4 |
| FY19 | 3.0 | -2.0 | 0.2 | -2.0 | -2.9 | -1.4 | 0.5 | 0.7 | -0.9 | -2.3 | -0.60 | 1.1 | -6.6 |
| FY20 | 2.1 | 1.5 | -0.5 | 1.4 | -0.4 | -0.1 | 0.7 | -1.1 | -2.4 | 0.9 | -0.7 | -1.2 | 0.3 |
| FY21 | 1.2 | 1.1 | 0.1 | 1.4 | 2.8 | -1.1 | 0.8 | 3.9 | -1.1 | 1.0 | -0.5 | -2.4 | 7.0 |
| FY22 | 0.7 | 0.5 | 0.0 | 2.9 | 1.1 | 0.4 | -0.2 | 0.1 | 0.4 | -0.1 | 5.9 |
The above Monthly Net Performance table includes the performance of the Australian Leaders Fund (ASX:ALF) from February 2004 until May 2019 net of fees and charges. From June 2019 the performance figures provided are that of the Watermark Absolute Return Fund (WARF) net of fees and charges. The strategy of ALF and WARF is identical in all respects. Past performance may not necessarily be an indicator or projection of future results.
