Atrium Evolution Series – Diversified Fund AEF 5
As at 31 July 2024
Features
Information
Ratings & awards
A rating is only one factor to be taken into account when deciding whether to invest.
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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 is not guaranteed. The Atrium Global Equities Mandate No. 1 is a separately managed portfolio managed by Magellan Asset Management Limited in a manner consistent with the Magellan Global Fund. 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 | 4.73% | 4.07% | 3.98% | 3.52% | 2.66% | 6.20% | 4.12% | 2.15% | 1.63% |
| Objective | 4.59% | 4.21% | 4.12% | 4.18% | 5.06% | 6.80% | 3.36% | 1.68% | 0.56% |
Objective refers to the Return objective as stated in the Key Facts table.
Distributions
| 30/06/2024 | 31/12/2023 | 30/06/2023 | 31/12/2022 | 30/06/2022 | |
|---|---|---|---|---|---|
| Cents per unit | 1.74 | 1.06 | 0.64 | 1.03 | 2.68 |
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 is not guaranteed. The Atrium Global Equities Mandate No. 1 is a separately managed portfolio managed by Magellan Asset Management Limited in a manner consistent with the Magellan Global Fund. 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 | 33.47% | |
| Cash | 12.90% | |
| Australian equities | 6.23% | |
| International equities | 10.66% | |
| Listed infrastructure | 4.60% | |
| Liquid alternatives | 20.90% | |
| Private markets | 11.23% |
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). This predominantly comprises equities but also includes other assets that are highly correlated to equities such as listed property and infrastructure. |
 | DiversifiersAssets that generate additional real returns, with performance that is typically uncorrelated to the growth drivers and preservers within the portfolio.Importantly, they are a source of portfolio diversification away from equity market and interest rate risks, such as liquid alternatives and private markets. |
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 is not guaranteed. The Atrium Global Equities Mandate No. 1 is a separately managed portfolio managed by Magellan Asset Management Limited in a manner consistent with the Magellan Global Fund. 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 | 9.61% | Rates & credit |
| CASH POSITION | 8.82% | Cash |
| ARDEA REAL OUTCOME FUND CLASS A | 5.84% | Rates & credit |
| CROWN ATRIUM SEGREGATED PORTFOLIO SERIES 1 USD | 4.95% | Liquid alternatives |
| DAINTREE CORE INCOME TRUST | 4.71% | Rates & credit |
| GLOBAL LISTED INFRASTRUCTURE MANDATE NO. 1 (MANAGED BY MAGELLAN) | 4.60% | Equities |
| SMARTER MONEY FUND - ASSISTED INVESTOR | 4.08% | Cash |
| COOLABAH SHORT TERM INCOME FUND | 3.51% | Rates & credit |
| ANTIPODES GLOBAL FUND LONG UCITS CLASS S | 3.47% | Equities |
| MAN ALTERNATIVE RISK PREMIA - CLASS A SHARES (AUD) | 3.34% | 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 is not guaranteed. The Atrium Global Equities Mandate No. 1 is a separately managed portfolio managed by Magellan Asset Management Limited in a manner consistent with the Magellan Global Fund. 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
Equities were firm in the first half of July, then drifted lower into month end. Government bond yields fell over the month. The Australian dollar fell. The gold price remained firm, closing at around record levels.
US equities gained 1.2% in July, with the main contributors being:
• Home Furnishings and Home Builders – which were amongst the strongest sectors, partly reflecting the expectation for lower policy interest rates; and
• Information Technology – whilst stocks such as Apple rose during the month, the standout was Nvidia, which fell quite sharply from the early part of the month following its exceptional recent rise, as investors re-assessed the growth and earnings’ risks.
The Australian market was strong, gaining 4.2%, driven by:
• A very strong Consumer Discretionary Sector, driven by large gains in Star Entertainment, Harvey Norman, Super Retail Group and JB Hi-Fi. Real Estate and the Banks were also very strong.
Further gains were made by US Treasuries in July, particularly into month end, as a range of economic indicators showed mounting signs of a cooling in the labour force. The US Federal Reserve also gave signals that policy easing may be expected before year end. In Australia, Government Bonds moved similarly, although fell slightly less in yield than their US counterparts.
In currency markets, the standout move was the Japanese Yen. Late in the month, the Bank of Japan unexpectedly raised interest rates, leading to Yen buying which was also assisted by the generally weaker US dollar, in the face of falling bond yields. The Australian dollar also slid during the month, with decent gains again being made in the gold price.
Performance
The Fund delivered a strong return in July, despite a setback in equity markets towards the end of the month. Global Equities were the key contributor to performance, with the majority of our underlying managers outperforming the broader market, while the fall in the Australian dollar provided a tailwind to performance.
Our rates and credit exposure was a solid contributor for the month. Key contributors included our high yield managers (CQS, and KKR), the JP Morgan Global Strategic Bond Fund and the Kapstream Absolute Return Income Fund. As bond yields declined, further performance was added through our futures’ positions. The Ardea Real Outcome Fund lagged over the month.
Our equity exposure was a strong contributor to the Portfolio with most strategies outperforming their respective indices. A standout was our listed infrastructure mandate (managed by Magellan), which delivered a stellar return over the month. This strategy had been lagging over the last 12 months, and we are starting to see early signs of investors pivoting back towards undervalued defensive sectors and small cap strategies which were left behind in the recent Tech led rally. Pleasingly, our global small and mid-cap manager, Fairlight, was able to take advantage of the investor rotation towards the smaller end of the equity market.
Liquid alternatives were the only detractor over the month, with the Crown Diversified Macro Segregated Portfolio in particular lagging in an environment where markets and trends are at an inflection point.
Portfolio changes
During the month, we fully redeemed our holdings in the Atrium Global Equity Mandate (managed by Magellan). Although this strategy had been performing well recently, we are looking to implement a more cost-effective, and better tailored strategy that will complement our total portfolio approach. In the interim, funds have been reallocated within the global equity sleeve.
Outlook
Although markets were strong in July, towards the end of the month and into early August, we have started to see a change of momentum and leadership in global equity markets. This has coincided with our own RBA highlighting the persistence of domestic inflation and the need to remain vigilant to upside risks. While markets have been calibrated for a soft landing, our view is that the range of possible outcomes is more nuanced and that investors need to be risk aware and prepared for a number of possible scenarios.
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 is not guaranteed. The Atrium Global Equities Mandate No. 1 is a separately managed portfolio managed by Magellan Asset Management Limited in a manner consistent with the Magellan Global Fund. 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 is not guaranteed. The Atrium Global Equities Mandate No. 1 is a separately managed portfolio managed by Magellan Asset Management Limited in a manner consistent with the Magellan Global Fund. 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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