Atrium Evolution Series – Diversified Fund AEF 5
As at 28 February 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 Global Listed Infrastructure Mandate No.1 is a separately managed portfolio managed by Magellan Asset Management Limited in a manner consistent with the Magellan Infrastructure Fund.
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 | 4.74% | 3.68% | 3.82% | 3.57% | 3.95% | 6.00% | 3.03% | 1.12% | -0.06% |
| Objective | 4.68% | 4.32% | 4.35% | 4.58% | 5.89% | 6.85% | 3.34% | 1.65% | 0.51% |
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. The Global Listed Infrastructure Mandate No.1 is a separately managed portfolio managed by Magellan Asset Management Limited in a manner consistent with the Magellan Infrastructure Fund.
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Asset allocation
| Rates & credit | 35.31% | |
| Cash | 11.15% | |
| Australian equities | 6.44% | |
| International equities | 13.43% | |
| Liquid alternatives | 21.07% | |
| Private markets | 12.59% |
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. The Global Listed Infrastructure Mandate No.1 is a separately managed portfolio managed by Magellan Asset Management Limited in a manner consistent with the Magellan Infrastructure Fund.
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Top holdings
| Holding | Weight | Asset Class |
|---|---|---|
| KAPSTREAM ABSOLUTE RETURN INCOME FUND CLASS I | 10.93% | Rates & credit |
| CASH POSITION | 10.47% | Cash |
| DAINTREE CORE INCOME TRUST | 4.87% | Rates & credit |
| COOLABAH SHORT TERM INCOME FUND | 4.82% | Rates & credit |
| SFE S&P ASX 200 INDEX FUTURE EXP 20/03/2025 | 4.80% | Equities |
| CROWN ATRIUM SEGREGATED PORTFOLIO SERIES 1 USD | 3.85% | Liquid alternatives |
| KEYVIEW CREDIT OPPORTUNITIES FUND | 3.34% | Private markets |
| LGT (LUX) DYNAMIC CAT BOND FUND AUD CLASS S | 3.31% | Liquid alternatives |
| ARDEA REAL OUTCOME FUND CLASS A | 3.30% | Rates & credit |
| JPMORGAN GLOBAL STRATEGIC BOND FUND | 3.27% | Rates & credit |
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 Global Listed Infrastructure Mandate No.1 is a separately managed portfolio managed by Magellan Asset Management Limited in a manner consistent with the Magellan Infrastructure Fund.
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Market update
In February 2025, global share markets fell due to uncertainty surrounding US trade policy and tariff threats by the Trump Administration against Canada, Mexico, and China. Trump delayed tariffs on Canada and Mexico but imposed additional tariffs on Chinese imports, leading to retaliatory levies from China and raising the risk of a trade war. The Federal Reserve held its benchmark rate steady, with Chairman Jerome Powell indicating no hurry to adjust rates further. US inflation rose slightly, and the economy showed robust growth with significant job additions. The Bank of England cut its policy rate, citing rising inflation and lowering growth forecasts. The European Central Bank cut its deposit rate, signalling a potential pause in rate cuts, while the Bank of Japan maintained its rate after a recent hike due to rising inflation.
Geopolitical tensions increased as the US excluded European allies and Ukraine from talks with Russia, straining US-Ukraine relations. Major US tech stocks, including Tesla, Alphabet, and Amazon, saw declines, partly due to competition from a new Chinese AI model. Positive corporate updates from companies like Coca-Cola and Airbnb limited market declines. US indices, including the S&P 500, Dow Jones, and NASDAQ, fell, while stocks in China, Europe, and the UK rose. Sector-wise, consumer discretionary performed poorly, while consumer staples and energy saw gains.
In Australia, shares fell due to US trade policy uncertainty and a hawkish interest rate cut by the Reserve Bank of Australia (RBA). The RBA cut the cash rate to 4.10%, noting easing inflation but remaining cautious about the economic outlook. The Australian dollar declined modestly, influenced by trade war fears and the RBA’s rate cut.
Looking ahead, the US economy is expected to achieve a 'soft landing,' though risks remain. Non-US equities are attractively valued, and fixed income assets offer reasonable value. The USD appears overvalued, while the AUD and JPY offer relative value.
Performance
The Fund fell over the month as US and Australian stocks declined. Liquid alternatives strategies were mostly lower giving back some of the strong prior month’s gains. Rates and credit were positive contributors as US government bonds rallied on the back of global trade fears.
In global equities the rotation away from last year’s winners in US tech and growth was evident with value manager Antipodes Global Fund – Long Only outperforming and Hyperion Global Growth Companies Fund underperforming. The allocation to US Equal Weight ETFs outperformed as the mega-cap US stocks faltered on concerns tariffs would hurt global growth.
The liquid alternatives sleeve had a negative month driven by trend following strategies including the Crown Diversified Macro Segregated Portfolio and One River Systematic Trend. There were positive returns in other sectors including insurance linked bonds and our AI focused hedge fund strategy, Creighton AI (CAI Global Market Neutral Fund).
In rates and credit, government bond futures added to returns, and the Atrium Enhanced Fixed Income strategy had a strong month.
Portfolio changes
In Australian equities the Fund transitioned to a new model advised by Russell Investments late in the month. This brings diversification across return drivers in this sleeve, adding 3 new active strategies across broad market, small caps, and systematic Australian equities.
Outlook
The outlook for equities remains positive despite February’s policy related volatility. The effect of lower interest rates is feeding through to improved sentiment and valuations outside of the US are fair. This is where we expect to see market leadership in the near-term and have positioned the portfolios accordingly.
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 Global Listed Infrastructure Mandate No.1 is a separately managed portfolio managed by Magellan Asset Management Limited in a manner consistent with the Magellan Infrastructure Fund.
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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. The Global Listed Infrastructure Mandate No.1 is a separately managed portfolio managed by Magellan Asset Management Limited in a manner consistent with the Magellan Infrastructure Fund.
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