Atrium Evolution Series – Diversified Fund AEF 7
As at 31 August 2024
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 7% 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.
Powered by data from FE fundinfo
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 | 6.27% | 5.39% | 5.17% | 3.95% | 1.75% | 7.04% | 2.77% | 2.37% | -0.59% |
| Objective | 5.60% | 5.23% | 5.15% | 5.24% | 6.18% | 7.82% | 3.88% | 1.92% | 0.64% |
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 | 1.80 | 1.15 | 0.32 | 1.10 | 3.57 |
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.
Powered by data from FE fundinfo
Asset allocation
| Rates & credit | 11.74% | |
| Cash | 18.57% | |
| Australian equities | 13.77% | |
| International equities | 24.12% | |
| Listed infrastructure | 4.23% | |
| Liquid alternatives | 18.51% | |
| Private markets | 9.05% |
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 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.
Powered by data from FE fundinfo
Top holdings
| Holding | Weight | Asset Class |
|---|---|---|
| CASH POSITION | 11.08% | Cash |
| ANTIPODES GLOBAL FUND LONG UCITS CLASS S | 7.57% | Equities |
| SMARTER MONEY FUND - ASSISTED INVESTOR | 7.49% | Cash |
| CROWN ATRIUM SEGREGATED PORTFOLIO SERIES 1 USD | 4.63% | Liquid alternatives |
| FAIRLIGHT GLOBAL SMALL AND MID CAP (SMID) FUND - FOUNDATION CLASS | 4.47% | Equities |
| NORTHCAPE CAPITAL GLOBAL EQUITIES FUND | 4.38% | Equities |
| GLOBAL LISTED INFRASTRUCTURE MANDATE NO. 1 (MANAGED BY MAGELLAN) | 4.23% | Equities |
| HYPERION GLOBAL GROWTH COMPANIES FUND CLASS C | 3.93% | Equities |
| SGH ICE PROFESSIONAL INVESTOR FUND | 3.69% | Equities |
| MAN ALTERNATIVE RISK PREMIA - CLASS A SHARES (AUD) | 2.99% | 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. 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.
Powered by data from FE fundinfo
Market update
Equities were hit by significant volatility early in the month, but recovered over the month to end higher. The volatility was triggered to some extent by an unexpected policy rate hike by the Bank of Japan. Government bond yields fell more so at the front end reflecting expectations of US policy rate accommodation (interest rate cuts). The Australian dollar strengthened as the US dollar declined, reflecting the lower US rate expectations. The gold price remained firm, again closing at around record levels.
US equities gained 2.4% in August, with the main contributors being:
• Consumer staples sector was strong, along with some sub-sectors within the Consumer discretionary sector, partly reflecting the expectation for lower policy interest rates; and
• Gold and Real Estate Investment Trusts, sectors which may benefit from lower yields, were also firm.
• Nvidia remained extremely volatile ahead of its earnings late in the month, with its market capitalisation moving in a US$700+ Billion dollar range.
The Australian market also recovered from a weak start, gaining 0.5%, driven by:
• Sharp gains in the Information Technology Sector, led in the main by Wisetech.
• The Energy Sector and Materials were weak.
Further gains were made by US Treasuries in August, as economic indicators continued to point to a cooling labour force. The US Federal Reserve also gave signals that policy easing should be expected from September. In Australia, Government Bonds also moved lower, and despite the Reserve Bank of Australia stating the opposite, markets continued to price in policy rate cuts in Australia.
In currency markets, the standout move was again the Japanese Yen. Yen buying was aggressive, reflecting the late July shift in Bank of Japan monetary policy stance, and an already very weak Japanese currency. The Australian dollar rose over the month, with decent gains also being made in the gold price, both of which reflected a weaker US dollar.
Performance
The Fund was lower in August, despite a recovery in equity markets towards the end of the month. The key positive contributors to performance included our Australian equity and rates and credit exposure, while global equities and our liquid alternative sleeve in particular was a key detractor due in no small part to the dramatic reversal in markets over August.
Our rates and credit exposure has continued to be a solid contributor. Key contributors included our high yield managers (CQS, and KKR), the JP Morgan Global Strategic Bond Fund and the Kapstream Absolute Return Income Fund, which all had a strong August.
Our global equity managers were all lower over the month – the resurgent Australian dollar was a key headwind, while our listed infrastructure strategy has continued to outperform broader equity markets and was flat over the month. This strategy has recently served us well as a ballast during periods of equity market falls.
The Atrium Equity Opportunities Fund outperformed the index over the month – on the back of a strong performance from Wisetech and Resmed.
The sudden rotation in global markets whipsawed many of our liquid alternative strategies over the month. Our currency manager PE was a major detractor, as the US dollar weakened significantly against a basket of currencies, along with our systematic strategies.
Portfolio changes
During the month, there was significant activity within the Atrium Equity Opportunities Fund, where we have taken advantage of the strong performance of CBA, which is trading at a record price to book ratio, to exit and redeploy capital to the other three major banks which are trading at lower multiples, while the team remain confident that the banking sector will continue to prove resilient.
We have further increased global equity exposure, as the risks of a hard landing abate and taken advantage of the market volatility to top-up our global equity exposure, primarily via a Global Equity ETF exposure.
Outlook
Markets have reverted to pricing in the Goldilocks scenario in the US, with falling inflation allowing the US Federal reserve to potentially reduce interest rates and support economic growth. Risks however do remain that a resurgent spike in inflation could derail efforts to reduce interest rates.
Domestically, the RBA has lifted interest rates less than global counterparts and inflation remains a long way from target. They will undoubtedly lag key global central banks in cutting interest rates.
While markets are firmly in the soft landing camp, our view is that the range of possible outcomes remains nuanced and that investors need to be risk aware and prepared for a number of possible adverse 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 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.
Powered by data from FE fundinfo
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.
Powered by data from FE fundinfo