Atrium Evolution Series – Diversified Fund AEF 5
As at 31 May 2025
Features
Information
Ratings & awards
A rating is only one factor to be taken into account when deciding whether to invest.
Accessing our solutions
Investment objective
To maximise returns while ensuring portfolio risk, or volatility, does not exceed 5% over a rolling three (3) year time period.
Investment strategy
The Fund has a Risk Targeted, multi asset investment strategy.
Atrium uses a dynamic, unconstrained approach to asset allocation providing flexibility to take full advantage of opportunities in the market and to mitigate downside risk.
The Fund may be invested in a broad universe of assets across multiple asset classes.
Atrium may also use derivatives to gain exposure to assets or asset classes more efficiently, for currency management, and to mitigate downside risk.
Building portfolios that smooth out volatility
Atrium’s Risk Targeted investment approach aims to offer investors a smoother investment journey. By challenging conventional thinking and allocating to a wide array of investments, we construct truly diversified portfolios that seek to maximise opportunity and manage risk.
During market downturns we focus on minimizing losses to help investors achieve consistent growth over the long-term with less volatility. This is important to us because we care about the entire investment journey, not just the destination.
Our disciplined process is underpinned by three core principles that have enabled us to effectively pursue our investment objectives over a long time horizon.
Focus on risk first
Seek consistency of returns
Seek to preserve capital
Source: Atrium, for illustrative purposes only. This graph is not a guarantee of future performance and undue reliance should not be placed upon it.
Important Information:
The information in this document (Information) has been prepared and issued by Atrium Investment Management Pty Ltd (ABN 17 137 088 745, AFSL 338 634) (Atrium). The Trust Company (RE Services) Limited (ABN 45 003 278 831, AFSL 235 150) is the Responsible Entity of the Atrium Evolution Series – Diversified Fund (ARSN 151 191 776) (Fund). The Information is of a general nature only and does not take into account the objectives, financial situation or needs of any person. Before acting on the Information, investors should consider its appropriateness having regard to their own objectives, financial situation and needs and obtain professional advice. No liability is accepted for any loss or damage as a result of any reliance on the Information. Investors should consider the Fund’s Product Disclosure Statement (PDS) and Target Market Determination (TMD) (available from www.atriuminvest.com.au) before making any investment decision. Past performance is not a reliable indicator of future performance. Future performance and return of capital are not guaranteed.
The rating issued 05/2024 Atrium Evolution Series – Diversified Fund AEF 5, 05/2024 Atrium Evolution Series – Diversified Fund AEF 7, 05/2024 Atrium Evolution Series – Diversified Fund AEF 7 P Units, 05/2024 Atrium Evolution Series – Diversified Fund AEF 9, 05/2024 Atrium Evolution Series – Diversified Fund AEF 9 P Units are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit www.lonsec.com.au for ratings information and to access the full report. © 2024 Lonsec. All rights reserved.
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Source: Atrium Investment Management, Bloomberg. Performance shown as at the date of this report. Inception date is 24/06/2011. Past performance is not a reliable indicator of future performance. Future performance and return of capital is not guaranteed. Performance is after fees and costs and assumes re-investment of all distributions. Return objectives are internal return objectives which are measures that Atrium considers internally when managing the portfolio. Internal return objectives are not performance benchmarks and are not features set out in the PDS. Note that the internal return objectives for AEF 7P Units and AEF 9P Units align to the performance return hurdles for these Units (as set out in the PDS for these performance-based fee products). Please refer to the Fund’s Product Disclosure Statement (PDS) for more information on returns.
Performance
| Since inception (% p.a.) | 10 Years (% p.a.) | 7 years (% p.a.) | 5 years (% p.a.) | 3 years (% p.a.) | 1 year | 6 months | 3 months | 1 month | |
|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 4.71% | 3.61% | 3.75% | 4.14% | 4.01% | 5.71% | 1.86% | 0.73% | 1.00% |
| Objective | 4.72% | 4.36% | 4.44% | 4.77% | 6.22% | 6.77% | 3.28% | 1.62% | 0.54% |
Objective refers to the Return objective as stated in the Key Facts table.
Distributions
| 31/12/2024 | 30/06/2024 | 31/12/2023 | 30/06/2023 | 31/12/2022 | |
|---|---|---|---|---|---|
| Cents per unit | 1.09 | 1.74 | 1.06 | 0.64 | 1.03 |
Important Information:
The information in this document (Information) has been prepared and issued by Atrium Investment Management Pty Ltd (ABN 17 137 088 745, AFSL 338 634) (Atrium). The Trust Company (RE Services) Limited (ABN 45 003 278 831, AFSL 235 150) is the Responsible Entity of the Atrium Evolution Series – Diversified Fund (ARSN 151 191 776) (Fund). The Information is of a general nature only and does not take into account the objectives, financial situation or needs of any person. Before acting on the Information, investors should consider its appropriateness having regard to their own objectives, financial situation and needs and obtain professional advice. No liability is accepted for any loss or damage as a result of any reliance on the Information. Investors should consider the Fund’s Product Disclosure Statement (PDS) and Target Market Determination (TMD) (available from www.atriuminvest.com.au) before making any investment decision. Past performance is not a reliable indicator of future performance. Future performance and return of capital are not guaranteed.
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Asset allocation
| Rates & credit | 37.06% | |
| Cash | 9.53% | |
| Australian equities | 6.80% | |
| International equities | 13.25% | |
| Listed infrastructure | 3.10% | |
| Liquid alternatives | 20.48% | |
| Private markets | 9.77% |
Atrium aims to achieve its investment objectives by investing across a range of asset classes on a global basis that provide exposure to different risk factors.
Each asset is included in the Portfolio for its ability to contribute to returns on a stand alone basis.
The investment universe comprises of 3 broad categories - Preservers, Growth Drivers and Diversifiers.
 | PreserversAssets that protect the portfolio during periods of heightened equity market volatility and preserve capital, such as cash, government bonds and high quality investment grade bonds. |
 | Growth DriversAssets that are expected to deliver higher rates of return over time with higher levels of associated volatility (risk). |
 | DiversifiersAssets that generate additional real returns, with performance that is typically uncorrelated to the growth drivers and preservers within the portfolio. |
Important Information:
The information in this document (Information) has been prepared and issued by Atrium Investment Management Pty Ltd (ABN 17 137 088 745, AFSL 338 634) (Atrium). The Trust Company (RE Services) Limited (ABN 45 003 278 831, AFSL 235 150) is the Responsible Entity of the Atrium Evolution Series – Diversified Fund (ARSN 151 191 776) (Fund). The Information is of a general nature only and does not take into account the objectives, financial situation or needs of any person. Before acting on the Information, investors should consider its appropriateness having regard to their own objectives, financial situation and needs and obtain professional advice. No liability is accepted for any loss or damage as a result of any reliance on the Information. Investors should consider the Fund’s Product Disclosure Statement (PDS) and Target Market Determination (TMD) (available from www.atriuminvest.com.au) before making any investment decision. Past performance is not a reliable indicator of future performance. Future performance and return of capital are not guaranteed.
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Top holdings
| Holding | Weight | Asset Class |
|---|---|---|
| KAPSTREAM ABSOLUTE RETURN INCOME FUND CLASS I | 9.24% | Rates & credit |
| CASH POSITION | 8.83% | Cash |
| COOLABAH SHORT TERM INCOME FUND | 6.57% | Rates & credit |
| RUSSELL AUSTRALIAN EQUITY OPPORTUNITIES FUND | 5.19% | Equities |
| JP MORGAN GLOBAL STRATEGIC BOND FUND | 4.44% | Rates & credit |
| CROWN ATRIUM SEGREGATED PORTFOLIO SERIES 1 USD | 3.83% | Liquid alternatives |
| DAINTREE CORE INCOME TRUST | 3.79% | Rates & credit |
| ARDEA REAL OUTCOME FUND CLASS A | 3.45% | Rates & credit |
| MAN ALTERNATIVE RISK PREMIA - CLASS A SHARES (AUD) | 3.43% | Liquid alternatives |
| LGT (LUX) DYNAMIC CAT BOND FUND AUD CLASS S | 3.40% | Liquid alternatives |
Important Information:
The information in this document (Information) has been prepared and issued by Atrium Investment Management Pty Ltd (ABN 17 137 088 745, AFSL 338 634) (Atrium). The Trust Company (RE Services) Limited (ABN 45 003 278 831, AFSL 235 150) is the Responsible Entity of the Atrium Evolution Series – Diversified Fund (ARSN 151 191 776) (Fund). The Information is of a general nature only and does not take into account the objectives, financial situation or needs of any person. Before acting on the Information, investors should consider its appropriateness having regard to their own objectives, financial situation and needs and obtain professional advice. No liability is accepted for any loss or damage as a result of any reliance on the Information. Investors should consider the Fund’s Product Disclosure Statement (PDS) and Target Market Determination (TMD) (available from www.atriuminvest.com.au) before making any investment decision. Past performance is not a reliable indicator of future performance. Future performance and return of capital are not guaranteed.
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Market update
Global share markets rallied in May, buoyed by a temporary improvement in US-China trade relations. Following heightened tariff tensions in April, the two countries agreed to a 90-day reduction in tariffs, sparking renewed investor optimism. However, sentiment softened later in the month as the US introduced new technology restrictions on China, causing trade talks to stall.
Meanwhile, the US initiated trade negotiations with the UK, lifting tariffs on British steel and giving the EU a July deadline to finalise a trade agreement.
The US Federal Reserve held interest rates steady at 4.25%–4.50%, noting that the US economy remains “solid” and resilient despite ongoing trade uncertainties. In contrast, the Reserve Bank of Australia lowered its cash rate to 3.85% after core inflation returned to the 2–3% target range. The RBA also revised its 2025 growth forecast down to 2.1%, citing increased global uncertainty and heightened market volatility.
Equity markets delivered strong performances. The NASDAQ Composite surged 9.6%, led by gains in technology giants such as NVIDIA, Tesla, and Meta Platforms. Australian equities also advanced, supported by easing US-China tensions and the RBA’s rate cut. However, investor sentiment was tempered by Moody’s downgrade of the US credit rating, concerns over the sustainability of the US fiscal position, and rising government bond yields.
We see compelling opportunities in non-US equities, government bonds, private credit, and listed real assets. The US dollar appears increasingly vulnerable, while currencies such as the Australian dollar and Japanese yen offer relative value. In a climate of ongoing market volatility and uncertain global trade policy, diversification remains essential.
Performance
The Fund delivered strong results in May 2025, supported by rising equity markets. Gains came from Australian shares, global shares, emerging markets, and listed real assets. However, our currency positions slightly detracted from performance due to a weaker US dollar, and rising government bond yields also had a small negative impact (as bond prices fall when yields rise).
In global equities, the US led the way, but other developed markets also performed well. The Hyperion Global Growth Companies Fund outperformed the market, helped by a 22% gain in Tesla, its largest holding. In contrast, the Antipodes Global Fund underperformed, as did our equal-weight US index ETF, which lagged behind due to strong performance from large US tech companies and weaker performance from defensive stocks. Among Australian funds, the Australian Equity Opportunities Fund outperformed, while SGH ICE lagged. Our listed real asset holdings rose but didn’t keep pace with broader equity markets, which were driven by higher-risk investments.
Our liquid alternatives fell during the month. Strategies that rely on global macro trends and momentum were hurt by sharp price volatility in commodity and currency markets. PE Global FX Alpha declined, while Crown Diversified Macro and Man Alternative Risk Premia posted gains.
In credit markets, higher-yield investments rebounded strongly as fears of a recession—triggered by April’s trade tensions—faded. Funds like KKR Global Credit Opportunities and CQS Credit Multi Asset performed well, as credit spreads narrowed. Rising government bond yields led to small losses on bond futures, but the Atrium Enhanced Fixed Income Fund added value.
Portfolio changes
As equity markets rose, we replaced some of our long equity futures with options. This strategy helps lock in recent gains, limits potential losses if markets fall, and retains participation in potential future equity market upside.
Outlook
We remain cautiously optimistic despite escalated geopolitical risks surrounding US involvement in the Israel Iran conflict. Markets are on watch for a broader fallout, however outside of higher oil prices, the impact of this conflict looks to be regionalised. While easier monetary policy continues to support markets, increased uncertainty around tariffs and government policies has raised overall risk. Traditional safe-haven assets like the US dollar and US government bonds are now behaving more like equities, so diversifying beyond bonds is increasingly important. Our portfolio is well-positioned to manage potential volatility, with a strong focus on diversification.
Important Information:
The information in this document (Information) has been prepared and issued by Atrium Investment Management Pty Ltd (ABN 17 137 088 745, AFSL 338 634) (Atrium). The Trust Company (RE Services) Limited (ABN 45 003 278 831, AFSL 235 150) is the Responsible Entity of the Atrium Evolution Series – Diversified Fund (ARSN 151 191 776) (Fund). The Information is of a general nature only and does not take into account the objectives, financial situation or needs of any person. Before acting on the Information, investors should consider its appropriateness having regard to their own objectives, financial situation and needs and obtain professional advice. No liability is accepted for any loss or damage as a result of any reliance on the Information. Investors should consider the Fund’s Product Disclosure Statement (PDS) and Target Market Determination (TMD) (available from www.atriuminvest.com.au) before making any investment decision. Past performance is not a reliable indicator of future performance. Future performance and return of capital are not guaranteed.
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Important Information:
The information in this document (Information) has been prepared and issued by Atrium Investment Management Pty Ltd (ABN 17 137 088 745, AFSL 338 634) (Atrium). The Trust Company (RE Services) Limited (ABN 45 003 278 831, AFSL 235 150) is the Responsible Entity of the Atrium Evolution Series – Diversified Fund (ARSN 151 191 776) (Fund). The Information is of a general nature only and does not take into account the objectives, financial situation or needs of any person. Before acting on the Information, investors should consider its appropriateness having regard to their own objectives, financial situation and needs and obtain professional advice. No liability is accepted for any loss or damage as a result of any reliance on the Information. Investors should consider the Fund’s Product Disclosure Statement (PDS) and Target Market Determination (TMD) (available from www.atriuminvest.com.au) before making any investment decision. Past performance is not a reliable indicator of future performance. Future performance and return of capital are not guaranteed.
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