Ausbil 130/30 Focus Fund

Quarterly Fact Sheet - September 2016

'The 130/30 Focus Fund1 amplifies Ausbil's successful stock selection skills by allowing both long and short equity options'
 

Investment aim
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.
 

Investment style
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:


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Product Features 2

 
Characteristic Comments
Benchmark S&P/ASX 200 Accumulation Index
Minimum Investment3 $20,000
Pricing Frequency Daily
Distribution Timetable Half yearly
Fees Management fee: 1.00% pa
Performance fee: 20.5% of the returns above the performance hurdle
Performance hurdle: S&P/ASX 200
Accumulation Index + 2%

 

Performance after all fees 2

 
Period Fund
Return%
Benchmark%  3 Out/Under
Performance%
3 months 5.50 5.14 0.36
FYTD 5.50 5.14 0.36
1 year 19.55 13.17 6.38
3 years pa 7.29 5.99 1.30
5 years pa 13.03 11.19 1.84
Since inception
Date: July 2010
9.39 8.05 1.33

 

Sector allocations

  Fund%   Index%  3 Tilt %
Energy 4.13 4.07 0.05
Materials 18.01 15.46 2.56
Industrials 4.47 7.52 -3.05
Consumer Discretionary 2.39 5.25 -2.86
Consumer Staples 10.75 7.12 3.63
Healthcare 7.09 7.24 -0.15
Financials (x REITs) 31.98 35.85 -3.87
IT 3.19 1.16 2.03
Telecommunications 5.93 5.04 0.89
Utilities 0.75 2.50 -1.76
Real Estate 5.19 8.79 -3.60
Cash 6.13 0.00 6.13
Total 100.00 100.00 0.00


 

Top 10 stock holdings

  Position%   Index%   Tilt %
Commonwealth Bank 8.73 8.70 0.03
Westpac Bank 8.35 6.92 1.43
BHP Billiton 7.51 5.03 2.48
Telstra 5.93 4.44 1.49
National Australia Bank 5.80 5.19 0.61
ANZ Bank 4.12 5.66 -1.54
Wesfarmers 3.89 3.42 0.46
CSL 3.89 3.42 0.47
Ramsay Health Care 3.15 0.71 2.43
Oil Search 2.70 0.58 2.11

1. Ausbil 130/30 Focus Fund (ARSN 124 196 621)
2. All data is as at 30 September 2016.
3. Ausbil has the discretion to waive these minimums.
4. Figures assume that distributions are reinvested and are net of fees but before taxes.
5. S&P/ASX 200 Accumulation Index.


Unless otherwise specified, any information contained in this publication is current as at the date of this report and is prepared by Ausbil Investment Management Limited (ABN 26 076 316 473 AFSL 229722) (Ausbil). Ausbil is the issuer of the Ausbil 130/30 Focus Fund (ARSN 124 196 621) (Fund). References to Ausbil 130/30 Focus Fund or Fund are to the retail class unit in the Fund. This report contains general information only and the information provided is factual only and does not constitute financial product advice. It does not take account of your individual objectives, financial situation or needs. Before acting on it, you should seek independent financial and tax advice about its appropriateness to your objectives, financial situation and needs. Securities and sectors mentioned in this report are presented to illustrate companies and sectors in which the Fund has invested and should not be considered a recommendation to purchase, sell or hold any particular security. Holdings are subject to change daily. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Past performance is not a reliable indicator of future performance. Unless otherwise stated, performance figures are calculated net of fees and assume distributions are reinvested. Due to rounding the figures in the holdings, breakdowns may not add up to 100%. No guarantee or warranty is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained herein (any of which may change without notice) and should not be relied upon as a representation express or implied as to any future or current matter. You should consider the Product Disclosure Statement which is available at www.ausbil.com.au before acquiring or investing in the fund. .