Atrium Evolution Series – Diversified Fund AEF 5

31 May 2024

Features

Information

Inception date24 June 2011
Product codeCOL0029AU
Product typeManaged Fund
Investment strategyDiversified - Risk Targeted
Volatility limit (p.a.)5.00%
Return objectiveRBA Cash + 2.5%
Investment horizon3 years
Super/pensionYes
Investment (IDPS)Yes
Distribution frequencyHalf yearly
PricingWeekly

Ratings & awards

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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

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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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Growth of $100,000

ResetPerformance line chart
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Since Inception10 years7 years5 years3 years1 year6 months3 months1 month
Fund79.56%46.42%27.98%19.32%7.94%4.27%3.97%1.01%0.09%
Objective78.01%50.59%32.06%22.10%15.18%6.75%3.38%1.68%0.56%

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 year6 months3 months1 month
Portfolio4.63%3.89%3.59%3.60%2.58%4.27%3.97%1.01%0.09%
Objective4.56%4.18%4.05%4.07%4.82%6.75%3.38%1.68%0.56%

Objective refers to the Return objective as stated in the Key Facts table.

Distributions

31/12/202330/06/202331/12/202230/06/202231/12/2021
Cents per unit1.060.641.032.681.09

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

Breakdown donut chart
Rates & credit31.08%
Cash20.87%
Australian equities5.61%
International equities9.51%
Listed infrastructure4.10%
Liquid alternatives18.76%
Private markets10.06%

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.

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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.

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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.

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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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Diversification within each asset class

Breakdown pie chart

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

HoldingWeightAsset Class
CASH POSITION12.66%Cash
KAPSTREAM ABSOLUTE RETURN INCOME FUND CLASS I8.66%Rates & credit
SMARTER MONEY FUND - ASSISTED INVESTOR8.21%Cash
ARDEA REAL OUTCOME FUND CLASS A5.42%Rates & credit
DAINTREE CORE INCOME TRUST4.74%Rates & credit
GLOBAL LISTED INFRASTRUCTURE MANDATE NO. 1 (MANAGED BY MAGELLAN)4.10%Equities
CROWN ATRIUM SEGREGATED PORTFOLIO SERIES 1 USD3.58%Liquid alternatives
COOLABAH SHORT TERM INCOME FUND3.42%Rates & credit
ANTIPODES GLOBAL FUND LONG UCITS CLASS S3.20%Equities
MAN ALTERNATIVE RISK PREMIA - CLASS A SHARES (AUD)3.16%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 rose in May, continuing the firm run since the start of 2024. Government bond yields generally fell over the month. The Australian dollar rose, as did the gold price.

US equities rose 5.0% in May with the main contributors being:
• Utilities, which were again very strong during May (+9.0%), having been one of the few positive sectors in April;
• Information Technology – one of the best performing sectors year to date and the largest sector, again rose very sharply, gaining 10%. Nvidia continued to be a very strong performer in May (+27%), particularly after its earnings release, driving other tech stocks higher.

The Australian market underperformed gaining 0.9%, driven by:
• Rising Utilities and Information Technology sectors. Information Technology is not as significant in size within the Australian market though, when compared to the US market;
• A further pullback in Consumer stocks, as markets looked for underlying consumer weakness, driven by higher rates for longer; and
• The largest stock, BHP, gained 3.4%, slightly ahead of the market.

In the US, 10-year bond yields fell noticeably as the market shifted back to a story of weaker economic growth than had previously been expected. Australian bond yields did not slide, as the markets believe that the Reserve Bank of Australia may need to hold rates higher than elsewhere, due to persistent services price pressures.

The Australian dollar was higher over the month, partly reflecting the divergent move in bond yields. Gold remained firm for the month, and markets assume much of the buying has come out of Russia and China, as they diversify their foreign exchange holdings.

Performance

Global equity markets rebounded strongly over the month as investor sentiment and fundamentals continue to surprise to the upside. The Fund was higher over the month, with the liquid alternatives sleeve the only detractor after strong positive performance over prior months, while all other asset classes contributed positively to returns.

Our rates and credit exposure was a solid contributor, with the key performers including JP Morgan Global and the CQS Credit Multi Asset Fund, as credit has continued to perform well on the back of an improving global economic backdrop.

Our equity exposure was a positive contributor to the portfolio with the Northcape Capital Global Equities Fund the standout, outperforming the index primarily due to its large exposure to market darling Nvidia, which has continued its stellar run. Our listed infrastructure exposure also performed well.

Liquid alternatives were the only significant detractor over the month. The Crown Diversified Macro Segregated Portfolio gave back some performance primarily due to declining commodity prices over the month. The P/E Global FX Alpha Fund was also negatively impacted by a reversal in US dollar strength. Our risk premia strategies however continue to deliver solid returns.

Portfolio changes

We continue to pivot the portfolio towards the segments of the equity market that exhibit better value as the risks of a hard landing globally have abated and we have begun to take some profits in selective liquid alternative exposures that have performed well year-to-date.

Outlook

While economic indicators in the US and Australia continue to improve, risks of a second inflation wave have continued to increase. It remains our view that global central banks will tolerate inflation outside of their target zones for longer, which reduces the risk of restrictive monetary policy coinciding with slower economic growth over 2024.

Recent core inflation readings however remain a challenge for central banks in Australia and the US, predominantly driven by high services inflation. The balancing act for central banks also comes at a time of rich valuations in some segments of the global equity markets. We continue to look for attractive investment opportunities while maintaining our risk targeted approach to investing and focus on delivering investors a smoother return profile.

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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NameAtrium Evolution Series – Diversified Fund AEF 5
PDSPDS
TMDTMD
Performance reportPerformance report
Annual reportAnnualReport

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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