About us

Wheelhouse Investment Partners (Wheelhouse Partners) is a boutique asset manager with a mission to improve investment outcomes for Australian retirees. The managers’ core expertise, or ‘wheelhouse’, is the delivery of derivative based solutions that are designed to meet specific client objectives.

Established in partnership with Bennelong Funds Management in March 2017, the team comprises three experienced investors, Principals: Alastair MacLeod (Managing Director and Portfolio Manager), Sam Jacob (Chief Information Officer) and Andrew MacLeod (Trader/Analyst).

The Wheelhouse Global Equity Income Fund was launched to sophisticated and wholesale investors in May 2017.

Our Team

Alastair MacLeod Managing Director and Portfolio Manager

Alastair MacLeod

CFA, CA

Alastair has over 22 years of investment experience.

Prior to establishing Wheelhouse Partners, Alastair was a Senior Analyst and Portfolio Manager with Wingate Asset Management, focused on fundamental stock research, integrating derivatives into a long-only global equity portfolio, and trade execution.

Previously Alastair was a Director with ABN AMRO in New York, and covered the US Media sector before joining the European research sales team covering US-based institutional investors.

Alastair is a CFA charterholder, a Chartered Accountant (Australia), and received his Bachelor of Commerce from Queensland University.

Sam Jacob Chief Information Officer

Sam Jacob

Sam Jacob is a co-founder of Wheelhouse Partners and has over 19 years of experience in financial services.

Prior to establishing Wheelhouse Partners, Sam was Head of Quantitative Development and IT for Brevan Howard Israel. Brevan Howard is a leading global macro hedge fund, headquartered in London. During 10 years experience with Brevan Howard, Sam was responsible for design and building of risk management platforms globally covering listed and OTC derivative products across various asset classes including equities, commodities, FX and interest rates.

In addition to other responsibilities at Brevan Howard, Sam was also Head of Fintech division for Alternative Data Solutions, and was a Director of the Executive Management Committee.

Previously Sam worked for Bloomberg where he managed the Desktop Build group, which was responsible within Bloomberg for retrieving, storing and blending various types of financial data from Bloomberg and proprietary sources in a managed real time and/or analytical environment.

Sam holds a Bachelor of Economics (Hons), Second Class, from the University of Reading, majoring in Mathematical Techniques for Economists and Quantitative Methods.

Andrew MacLeod Trader/Analyst

Andrew MacLeod

Andrew MacLeod is a co-founder of Wheelhouse and has over 19 years of experience in financial services.

Prior to establishing Wheelhouse, Andrew was a Trader/ Analyst and founding employee with Brevan Howard. Brevan Howard is a leading global macro hedge fund, headquartered in London.  

During his 14 years with Brevan Howard, Andrew was based in London and Geneva, and was responsible for trade design, implementation strategy and execution across multiple asset classes including fixed income, foreign exchange, credit and equities.  Andrew has an extensive knowledge of derivative trading in both the OTC and exchange-based marketplaces.

Andrew holds a Bachelor of Commerce from The University of Queensland.

To find out more about our team, please contact us.

Methodology

Investment objective

Wheelhouse Partners’ mission is to improve investment outcomes for Australian retirees.

In retirement, an investor’s objectives have fundamentally changed. In addition to seeking high returns, retirees begin to require higher sources of income, as well as material protection of their capital in order to preserve their nest eggs for the duration of their retirement.

A genuine ‘retiree-friendly’ return profile integrates all of these considerations. At Wheelhouse, our singular focus is delivering a retirement solution that is tailor-made for Australian retirees, that takes into account the unique considerations of retirement investing and can deliver growth, high income, and capital protection when it is most needed.

With respect to the Wheelhouse Global Equity Income Fund, the additional performance objective is to outperform the Benchmark (MSCI World ex Australia in AUD).

Investment philosophy

Wheelhouse Partners believes that derivatives offer an investor many desirable return characteristics, which are not always available to pure equity investors. While eschewing the use of any type of leverage, the team believes the integration of derivatives into an investment portfolio, applied with skill and experience, can lower the risk via reduced volatility, improve capital preservation, and generate income which can act as a source of return in otherwise low-return markets. This combination, diligently applied and managed, can serve to significantly improve investor outcomes.

Within the Wheelhouse Global Equity Income Fund, and in addition to our philosophy on derivatives, the team has adopted our partner Morningstar’s fundamental investment philosophy which relies on the concept of economic moats. This philosophy is based on the central principle that capital flows to the areas of highest potential return, so all firms face competition that seeks to force down high returns on capital. However, some firms are successful in generating excess returns over a very long time. The primary reason is that they benefit from an economic moat that protects their ability to generate excess returns. An economic moat is a structural business characteristic that permits a firm to generate excess economic returns for an extended period of time.

Firms with moats have the ability to invest incremental capital at high rates of return, which can lead to faster earnings growth and/or higher free cash flow. They also have more predictable cash flows, which lowers forecasting risks. Identifying businesses with moats, and then buying these businesses when they trade at a discount to intrinsic value, is central to Morningstar’s investment philosophy.

Stock universe

The Wheelhouse Global Equity Income Fund is based upon the Morningstar®1 Developed Markets ex Australia Wide Moat Focus IndexTM, which is in turn drawn from a universe of approximately 1,400 stocks that are actively researched by Morningstar’s global equity analyst team. Morningstar employs over 100 equity analysts globally that apply the same consistent economic moat investment philosophy in their research and valuation activities.

Furthermore, all stocks that appear in the index are required to be rated ‘Wide Moat’, as defined by Morningstar.

Risk management

Wheelhouse Partners relies upon a proprietary risk management platform for the management and monitoring of all portfolios. The purpose of the platform is to assist in maximising the structural benefits of short option positions (namely lowered volatility, improved capital preservation, and income generation), while at the same time assisting in managing and monitoring the structural negatives (variable delta, option expiries, collateral management and asymmetric return profiles).

The platform is also relied upon to manage our active tail risk management program, which is an ‘always-on’ insurance policy designed to minimise losses in times of market crisis, yet allows the full weight of our capital to pursue equity returns at all times.

From a fundamental perspective, the team disavows net leverage in any portfolio or within any individual position.

For the Wheelhouse Global Equity Income Fund, all derivative positions are either 100% covered by cash in the underlying currency, or 100% covered by stock holdings. In other words there can be no leverage in any individual position or within the Fund.

1Morningstar disclaimer
The Fund is not sponsored, endorsed, sold or promoted by Morningstar Australasia Pty Ltd or its affiliated companies (collectively, ‘Morningstar’). Morningstar makes no representation or warranty, express or implied, to the Unitholders of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund in particular or the ability of the Fund to track general stock market performance. Morningstar’s only relationship to Wheelhouse Investment Partners Pty Ltd is the licensing of: (i) certain service marks and service names of Morningstar; and (ii) the Morningstar® Developed Markets ex Australia Wide Moat Focus IndexTM which is determined, composed and calculated by Morningstar without regard to Wheelhouse Investment Partners Pty Ltd or the Fund. Morningstar has no obligation to take the needs of Wheelhouse Investment Partners Pty Ltd or the Unitholders of the Fund into consideration in determining, composing or calculating the Index. Morningstar is not responsible for and has not participated in the determination of the prices and amount of the Fund or the timing of the issuance or sale of the Fund or in the determination or calculation of the equation by which the Fund is converted into cash. Morningstar has no obligation or liability in connection with the administration, marketing or trading of the Fund. Morningstar does not guarantee the accuracy and/or the completeness of the Index or any data included therein and Morningstar shall have no liability for any errors, omissions, or interruptions therein. Morningstar makes no warranty, express or implied, as to results to be obtained by Wheelhouse Investment Partners Pty Ltd, owners or users of the Fund, or any other person or entity from the use of the Index or any data included therein. Morningstar makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Index or any data included therein. Without limiting any of the foregoing, in no event shall Morningstar have any liability for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.