Quarterly Fact Sheet - September 2017
'The 130/30 Focus Fund1 amplifies Ausbil's successful stock selection skills by allowing both long and short equity options'
The aim of the Fund is to outperform the S&P/ASX 200 Accumulation Index over the long term by investing primarily in listed Australian securities (long and short) and international securities.
Why Long Short?
The three main benefits of introducing a long short strategy into a diversified portfolio are;
• potentially delivers superior returns to a long only Australian equities portfolio.
• provides a moderate to low level of correlation with other asset class returns.
• takes advantage of expected falls (as well as rises) in stock prices.
Key features of the strategy
• fundamental process with quantitative inputs
• target allocation of 130% Long, 30% short.
• short positions generally comprise either a pairs trade or fundamental shorts.
• short positions individually managed from an absolute risk management perspective.
• security lending arrangement that significantly reduces client counter-party risk.
We classify ourselves as ‘core’; wherein at certain stages of the
cycle the Fund may have a value or growth tilt. Ausbil employs a four stage process to provide the framework for portfolio construction consistent with its investment philosophy. The process is summarised in the diagram below:
Latest investment report
The Fund is a concentrated equity fund which primarily invests in listed or expected to be listed Australian securities that are generally chosen from the S&P/ASX 200 Index. The Fund may also use short selling. The Fund may invest in companies listed overseas. The Fund may also invest in exchange traded derivatives and cash or cash equivalents.
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