Global experience, local focus.
The Wheelhouse Partners Story
Wheelhouse Partners is a specialised investment manager with a dedicated focus on generating stable, reliable income, in addition to protecting, preserving and growing our investor’s capital base.
Our core expertise, or ‘wheelhouse’, is the delivery of systematic derivative based solutions that are designed to meet specific client objectives.
Established in 2017, the team comprises three experienced investors with over 60 cumulative years of international experience in equity markets. The team comprises Principals, Alastair MacLeod (Managing Director & Portfolio Manager), Sam Jacob (Chief Information Officer) and Andrew MacLeod (Trader/ Implementation strategy).
The Wheelhouse Global Equity Income Fund was launched to sophisticated and wholesale investors in May 2017.
In August 2020, Wheelhouse Partners completed their transition to an independent fund manager, after a successful three-year partnership with Bennelong Funds Management.
The Wheelhouse Australian Enhanced Income Fund was launched to sophisticated and wholesale investors in February 2021.
Through prudent use of systematic and highly rules-based option strategies, we convert ‘hoped for’ equity growth, which is unpredictable, into more certain income streams. This increases the predictability, and therefore the dependability, of equity returns. A similar investment approach is utilised for both strategies.
Income and Protection
The Wheelhouse Global Equity Income Fund seeks to deliver a 7-8% real income return, while only assuming around half the market risk (targeted beta of 0.5).
As such, the Global strategy is a risk-minimisation strategy, or a goals-based strategy, where the objective is to reduce risk as much as possible while still achieving a return similar to equities. This approach stands in contrast to most other long-only strategies which are return-maximising and assume full market risk.
In addition to managing a rules-based option overlay, active ‘always-on’ tail protection is used to help defend against capital losses during acute market drawdowns. When combined with the historical defensiveness of the Australian dollar during times of crisis (the fund is unhedged on currency), capital integrity has been meaningfully enhanced during times of crisis.
High yield for minimal risk, or as we like to say, Income and Protection.
Income and Growth
The Wheelhouse Australian Enhanced Income Fund seeks to deliver a 7-8% real income return (including enhanced franking), plus capital growth, while assuming full market risk (targeted beta of 1.0).
In contrast to our Global fund, the Australian fund is a ‘return-maximising’ strategy and designed to deliver outperformance (or alpha) relative to its Benchmark. The investment process is an extension of the Global strategy, with the exception that leverage is utilised to increase targeted market risk.
An important difference of the Australian strategy is the focus on after-tax returns for a zero-tax investor, where the value of franking credits are treated equally to the value of cash returns. The return from franking credits is expected to be meaningfully higher than the Benchmark.
With consistent risk parity versus the Benchmark, the Australian fund is better placed to deliver on its second investment objective… Income and Growth.