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Sydney-Based Fund Delivers Exceptional Performance in Unprecedented Market Volatility

Tim Montague-Jones

Tim Montague-Jones has over 20 year investment management experience working in the financial markets. Previous experience includes a ten year stint at Morningstar as a Senior Equity Analyst/Portfolio Manager, founding the Morningstar Growth Portfolio and a founding member of their Investment Committee. Tim was also a Senior Equity Analyst for Macquarie Group and a member of the winning team to obtain the 2016 LONSEC Fund Manager of the Year award.

Fears surrounding the global economic impact of a widespread COVID-19 “Coronavirus” outbreak have shaken investor confidence and sent markets around the world into meltdown. It was as recently as February that the market was sitting at all-time highs off the back of a decade long bull run. Since then we have seen the market crash significantly coupled with wild swings in both directions.  

This type of unprecedented market volatility would make most people want to run and hide, however, there has been one Sydney-based fund manager who has continued to deliver returns for investors where others have failed.

The Atlantic Pacific Australian Equity Fund (APAEF) from APSEC Funds Management has been operating since 2013 with a risk management mantra and a natural instinct to protect investor capital. Given the current market climate this strategy has been particularly effective and throughout this difficult period, the Managed Fund has performed exceptionally well versus the market.

Since 20th February to 27th March the S&P/ASX 200 has fallen dramatically by over 30.1%. The Fund, however, has performed exceptionally well by comparison and as at 27th March the Fund is currently up over 11%.

apaef-performance-29.03.20

Note: The estimate for the Fund's performance up to the end of 27 March 2020, is a preliminary internal estimate only. This has not been validated by the Fund's administrator. Things can change rapidly in current market conditions. Chart is accurate as of 27 March 2020. Returns have been calculated to include management and performance fees.

Proven Performance in Down Markets

While the Fund's performance has been nothing short of exceptional in an extremely volatile market, it is the result of careful, meticulous investment strategy coupled with the use of cutting edge investment research technology from fund managers Nicolas Bryon and George Paxton

Nic and George started Atlantic Pacific Australian Equity Fund (APAEF) back in June of 2013 with the goal of outperforming the market by capturing upside returns while minimising downside risk. The team bring a wealth of experience to the table with a combined experience of over 30 years of successfully navigating financial markets and have demonstrated how this experience can reap rewards. After all, they have been here before. Co-fund manager George Paxton has over 15 years experience in financial markets and has a history of outperforming when the market is down:

Historically we have tended to outperform in falling markets, in fact, since the inception of the fund we have outperformed in every period where the market has fallen except one. Looking forward, once we get past this current volatility we look forward to buying good businesses at bargain basement prices.

Since inception to 27th March 2020, the Fund has returned over 8.1%pa vs the S&P/ASX200 Accumulation Index returning 4.2%pa. The Fund has also exhibited two-thirds of the volatility of the market an important metric to understand the risk profile of the Fund.

apaef-relative-returns

Co-fund manager Nicolas Bryon has been managing mutli-billion dollar portfolios for global financial institutions for over 20 years and has seen many crashes, corrections and recessions: 

Due to our experience in these market environments, in that we have seen most of it before, we will use all the techniques we know of to protect capital first and foremost.

A Winning Investment Strategy

The Fund itself is a long-bias equity market product, also known as a hedge fund, which typically buys or short sells Australian listed securities and derivatives. The team employs a Quadruple Alpha Investment Strategy which provides investors with strong capital growth and lower than market volatility. This allows the fund to generate solid returns with downside protection in place.

The fund solves a common problem faced by many investors and retirees right now, that is, the dilemma of moving into Cash and getting almost zero real returns or moving into Shares and face the risk of significant capital loss in the event of a market correction or crash. 

Fortunately, for those investors who are risk-averse and need decent returns to fund their lifestyle into retirement, the APAEF offers an attractive solution especially in current market conditions. 


Competitive Technical Edge

Since the middle of 2017, the team has had the added competitive advantage of a cutting-edge piece of software that has been instrumental in optimising their investment performance. The HALO Investment Research Platform is a proprietary technology created and developed by Fund Manager Nicolas Bryon to help make smarter, more accurate investment decisions. 

The platform uses a variety of scans, monitors and indicators combined with predictive consensus data to give users unparalleled insight into the market, companies and their own portfolios. 

 Without HALO and its multi-strategy focus, we would not have been able to navigate markets as well as we have.

 

Investing with APSEC Funds Management

As the market continues to fall investors and financial advisers need to be looking at their downside protection. The APAEF's recent performance and proven track record has seen an influx of new and additional fund applications. The APAEF accepts applications monthly with the next cut off date being 31st of March 2020. You can invest in the fund directly or find it on the Netwealth platform.

The Fund will remain open until the $200m cap is reached and will not extend this limit so don't delay and get in contact with us now. 

If you would like to learn more about the fund for yourself and your clients please give us a call on 1300 379 307 or email us at enquiries@apsec.com.au.


Important Information:

This document is distributed by Australian Stock Report Pty Ltd (ABN 94 106 863 978) (AFSL 301 682). APSEC Funds Management Pty Ltd ACN 152 440 723 (APSECFM) is a corporate authorised representative (CAR: 411859) of APSEC Compliance and Administration Pty Limited (AFSL 345 443 ACN 142 148 409). APSECFM is the investment manager of the Atlantic Pacific Australian Equity Fund (ARSN 158 861 155) (Fund). Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity of the Fund. Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX:EQT). A Product Disclosure Statement (PDS) for the Fund is available at www.eqt.com.au/insto and can be obtained by calling APSEC on +612 8356 9356. The PDS should be considered in deciding whether to acquire, or to continue to hold, an investment in the Fund. This material is for general information purposes only. It is not an offer or a recommendation to purchase or sell any security and is not intended to substitute for the Fund’s PDS which will outline the risks involved and other relevant information. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Please note that past investment performance is not a reliable indicator of future investment performance. Equity Trustees do not express any view about the accuracy or completeness of information that is not prepared by Equity Trustees and no liability is accepted for any errors it may contain. The performance of the Fund or the repayment of any investor’s capital is not guaranteed. This information has not been prepared taking into account your objectives, financial situation or particular needs. This document may contain information provided directly by third parties. To the maximum extent permitted by law, APSECFM excludes liability for material provided by third parties. APSECFM does not warrant that such information is accurate, reliable, complete or up-to-date, and to the fullest extent permitted by law, disclaims all liability of APSECFM and its associates. APSECFM believes that the information contained in this document is accurate when issued. To the maximum extent permitted by law, APSECFM excludes liability for any loss or damage arising as a result of reliance placed on the contents of this document. HALO is an analytical tool developed and owned by HALO Technologies Pty Ltd (ABN: 54 623 830 866) (HALO Tech) a Corporate Authorised Representative (CAR: 1261916) of Amalgamated Australian Investment Solutions Pty Ltd (ABN: 61 123 680 106. AFSL: 314 614) (AAIS) and a related party to ASPEC FM. HALO only contains factual and forecast information. Information presented or extracted from HALO should not be considered advice or a recommendation. Any forecast information relates to the intent, belief and current expectations of various analysts via Factset with respect to the performance of the respective stocks based on historical and projected performance data. You should not place undue reliance on these forward-looking statements. While all due care has been used in the preparation of the forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside of HALO Tech’s or AAIS’s control. If you would like more detail in relation to HALO please contact APSEC FM / or your Adviser.

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