Financial news channel Ausbiz interviews Alastair MacLeod on the outlook for growth vs value stocks, in light of the COVID bounce this week.
Continue readingZenith initiates coverage of Wheelhouse Global with ‘Recommended’ rating
Research house Zenith has awarded a ‘Recommended’ rating to the Wheelhouse Global Equity Income Fund managed by Australian-based specialist income manager Wheelhouse Partners.
The fund’s global equity strategy aims to deliver a 7-8% annual income return, plus some capital growth, while assuming 40-50% less risk than the equity benchmark.
”Zenith believes Wheelhouse has thoughtfully designed the derivative overlay to generate a growing and consistent income stream. Furthermore, Wheelhouse has efficiently managed the costs of its protection and has demonstrated an ability to deliver upon its capital preservation objectives,” the Zenith report says.
“Wheelhouse’s investment approach is differentiated and appealing for investors who are income focused. In addition, we draw confidence from the investment outcomes produced by the Fund in periods of market distress, which were consistent with expectations.
“Overall, Zenith believes the Wheelhouse team has a wealth of experience relating to the options market and risk management, which ensures that the Fund’s risk management processes are strong.”
Alastair MacLeod, Managing Director of Wheelhouse Partners commented, “We are very pleased that Zenith’s first rating of the global fund acknowledges the quality of the investment strategy, as well as the scarcity of genuine income generative investments in the current market environment.
“The fund’s focus on capital preservation has also been recognised, an element we believe is paramount with markets touching new highs amidst widespread economic uncertainty. These defensive characteristics were amply demonstrated when the coronavirus pandemic spread globally, with the Fund posting a positive year-to date performance through to March 31, 2020,” MacLeod said.
Over the past three years to 31 July 2020, the Wheelhouse Global Equity Income Fund has delivered a total income return of 7.4%, plus unit price growth of 2.0%, for a total annualised return of 9.4% per annum. From a risk perspective, the fund beta has been 0.59 during this period, reflecting the meaningfully lower risk investment approach. A beta of 1.0 means equivalent risk to the benchmark.
The fund’s investment approach is based upon integrating a systematic, rules based derivative overlay with a portfolio of quality focused, global listed securities. In addition, actively managed downside protection strategies, known as ‘tail hedging’, are designed to protect capital in a drawdown and limit losses.
Wheelhouse Partners was launched in April 2017 and has recently completed a successful transition to an independent fund manager with specialisation in income generation and capital protection.
The Zenith rating follows on from the ‘Investment grade’ rating issued by Lonsec in 2019.
Wheelhouse Partners is an established Australian investment manager that targets income generation and capital preservation by applying systematic derivative overlays to a global equity portfolio. Its flagship fund, the Wheelhouse Global Equity Income Fund, has generated 7.01% for the 12 months to June 2020, demonstrating the team’s ability to deliver a genuine defensive equity return with high income generation. Wheelhouse commenced investment operations in 2017.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned 20 August 2020) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines
Further information
Queries regarding Wheelhouse Partners can be directed to:
Emma Cullen-Ward at OneProfile Communications
0414 989 137 or [email protected]
Why gold is the ‘canary in the coal mine’ for this fund manager
Wheelhouse completes independent structure, announces new partners
Australian-based specialist income manager Wheelhouse Partners (Wheelhouse) today completed its transition to its new independent structure following recently agreed terms for its executives to acquire Bennelong Funds Management’s stake in its business.
The revised structure includes a new co-investor in Wheelhouse, Alan Howard. Mr Howard is a co-founder of Brevan Howard Asset Management LLP, the UK hedge fund where Wheelhouse trader Andrew MacLeod and chief information officer Sam Jacob worked for many years across several markets. Mr Howard replaces Bennelong in the capital structure of the business.
Managing Director of Wheelhouse, Alastair MacLeod, said Mr Howard’s investment represents a tremendous vote of confidence for the business which began operating under Bennelong’s structure over three years ago.
“While volatile market conditions have played to our strengths, we remain steadfastly committed to the core objectives on which Wheelhouse is founded; to generate a reliable, consistent income stream whilst preserving investor capital from market downturns,” MacLeod said.
“For the first time in decades, investors are facing falling dividends, fewer traditional income yielding options and inflated asset prices across the board, which is transferring more risk to capital bases.
“Our global strategy seeks to address these concerns, targeting a high-income yield whilst safeguarding our investors’ capital.
“The time is right for a differentiated investment approach and we are excited to be in a position to invest in our business and create solutions for investors to help navigate this challenging environment.”
The MacLeod brothers are based at Wheelhouse’s headquarters in Brisbane, while Sam is based in Sydney.
The team will be supported by recently appointed Chief Operating Officer Tony Hammond, well known in Australia’s funds management industry for his stewardship of fast-growing boutique investment managers.
Hamel Strategic Partners will head up distribution efforts for Wheelhouse, led by Andrew Aitken, the former Head of Distribution at Bennelong, and Cameron Dickman, formerly Head of Distribution at AMG and Australian Unity.
The Trust Company (RE Services) Limited (Perpetual) is now the Responsible Entity for the Wheelhouse Global Equity Income Fund.
The team has completed extensive testing of an Australian equities focused fund, applying the same rules-based and disciplined derivatives strategy to that of its flagship global fund, however over an index of Australian listed securities. The local fund is expected to be rolled out to Australian retail and wholesale investors later this year.
Notes
Wheelhouse Partners is an established Australian investment manager that targets income generation and capital preservation by applying systematic derivative overlays to a global equity portfolio. Its flagship fund, the Wheelhouse Global Equity Income Fund, has generated 7.01% for the 12 months to June, demonstrating the team’s ability to deliver a genuine defensive equity return with high income generation. Wheelhouse commenced investment operations in 2017.
Further information
Queries regarding Wheelhouse Partners can be directed to:
Emma Cullen-Ward at OneProfile Communications, 0414 989 137 or [email protected]
The debate (or fight) over tail risk hedging
Wheelhouse pursues independent growth
Bennelong Funds Management (Bennelong) and Wheelhouse Investment Partners (Wheelhouse) have agreed for Wheelhouse executives to acquire Bennelong’s stake in the Australian boutique manager after a successful three-year partnership.
Under its independent ownership structure, Wheelhouse will continue to focus on delivering purpose-built investment solutions that target income and protection for Australian retail and wholesale investors, including its flagship Global Equity Income Fund.
The fund’s net positive returns year-to-date are attributed to its rules-based systematic approach to preserving capital, particularly in market crises, while continuing to generate consistent income.
Alastair MacLeod, Managing Director of Wheelhouse, said, “We are excited to take full ownership of our business and extremely grateful to Bennelong for its support in establishing and positioning Wheelhouse for future success.
“We remain fully committed to delivering defensive income for Australian investors challenged by today’s ‘lower for longer’ equity growth environment and historically low interest rates. We look forward to leveraging our track record and momentum to pursue new opportunities.”
Bennelong CEO, Craig Bingham, said “We are proud to have partnered with Wheelhouse, and look forward to seeing them continue to flourish.
“Over the past three years, Wheelhouse has focused on its objectives of generating income, protecting capital and lowering volatility – timely offers for today’s market. We wish them well as they enter their next phase of growth and development.”
“Across the industry, this is a time of change and undeniable challenges, but we’re also seeing the arrival of new opportunities,” said Craig. “At Bennelong, we continue to refine and strengthen our global capabilities, managing the business to deliver the best possible outcomes for our clients.”
Wheelhouse has agreed terms with new distribution partners and has appointed a new responsible entity for its offerings, which will be announced later this month. The team also plans to launch an Australian equities focused fund, which will apply the same rules-based and disciplined derivatives strategy used for the global fund.
The buyout and transition arrangements will be finalised by 31 July 2020.
Is it time to consider a buy-write strategy?
Volatility – precursor to bear market, or correction?
Watch this interview with Alastair MacLeod of Wheelhouse Partners, appearing on YourMoney, to hear his views on:
- Whether current volatility is a portent to a bear market, or the correction we’ve been wanting;
- The effect of a protracted period of low interest rates;
- Performance of growth versus value stocks; and
- Why we feel short-term losses so acutely – even though we logically know investing is most effective over the long term.
Lack of market liquidity leading to increased volatility
Alastair MacLeod, Managing Director of Wheelhouse Investment Partners, joins the Sky News Business team to discuss the reasons behind increasing market volatility, including the impact of the US corporate buyback black-out period and the long-term interest rate cycle.