Atrium Evolution Series – Diversified Fund AEF 7 Class P Units
29 February 2024
Features
Information
Ratings & awards
A rating is only one factor to be taken into account when deciding whether to invest.
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 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 04/2023 Atrium Evolution Series – Diversified Fund AEF 5, 04/2023 Atrium Evolution Series – Diversified Fund AEF 7, 04/2023 Atrium Evolution Series – Diversified Fund AEF 7 P Units, 04/2023 Atrium Evolution Series – Diversified Fund AEF 9, 04/2023 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. © 2023 Lonsec. All rights reserved.
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Source: Atrium Investment Management. Performance shown as at the date of this report. Inception date is 11/11/2022. 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.
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 | 7.26% | 7.96% | 4.56% | 4.97% | 1.90% | ||||
| Objective | 7.34% | 7.58% | 3.79% | 1.90% | 0.60% |
Objective refers to the Return objective as stated in the Key Facts table.
Distributions
| 31/12/2023 | 30/06/2023 | |
|---|---|---|
| Cents per unit | 1.06 | 0.82 |
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 | 11.49% | |
| Cash | 14.09% | |
| Australian equities | 13.68% | |
| International equities | 28.60% | |
| Listed infrastructure | 4.07% | |
| Liquid alternatives | 19.65% | |
| Private markets | 8.41% |
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 |
|---|---|---|
| ANTIPODES GLOBAL FUND LONG UCITS CLASS S | 7.45% | Equities |
| CASH POSITION | 7.25% | Cash |
| SMARTER MONEY FUND - ASSISTED INVESTOR | 6.84% | Cash |
| ATRIUM GLOBAL EQUITIES MANDATE NO.1 (MANAGED BY MAGELLAN) | 5.66% | Equities |
| HYPERION GLOBAL GROWTH COMPANIES FUND CLASS C | 4.52% | Equities |
| FAIRLIGHT GLOBAL SMALL AND MID CAP (SMID) FUND - FOUNDATION CLASS | 4.52% | Equities |
| NORTHCAPE CAPITAL GLOBAL EQUITIES FUND | 4.27% | Equities |
| GLOBAL LISTED INFRASTRUCTURE MANDATE NO. 1 (MANAGED BY MAGELLAN) | 4.07% | Equities |
| CROWN DIVERSIFIED MACRO SEGREGATED PORTFOLIO SERIES | 3.85% | Liquid alternatives |
| SGH ICE PROFESSIONAL INVESTOR FUND | 3.63% | Equities |
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
The month of February saw further strength in equity markets, being driven again by a very small number of extremely large US technology stocks. Bond yields rose as markets assumed the Federal Reserve may be slower to cut rates, following higher than expected inflation data.
The US equity market gained 5.3% for the month, driven by
• Further buying in technology-linked stocks, notably Nvidia as it posted very strong revenue growth for the fourth quarter.
• Easing financial conditions, as the cash rate seems to have peaked.
The Australian market generated +0.8%, driven by
• Mixed results in the earnings reporting period, and notably
• BHP declined after it wrote off its Western Australian nickel operations.
10-year bond yields rose as the market pushed out cuts in interest rates, following a higher-than-expected inflation print in the US, and rhetoric from central bankers making clear nothing can be expected before June at the earliest. Australian 10-year bond yields rose to a lesser extent.
The Australian dollar fell, as the US dollar rose, reflecting the higher interest rate expectations. Weighing on the Australian dollar were a weak iron ore price in February, along with the sustained decline in nickel and lithium prices.
Performance
The strong start to the new year in markets continued into February with global equities continuing to drive portfolio performance. In a month where investor sentiment was buoyed by the prospect of lower interest rates, global equity markets continued to test their records.
Pleasingly, the portfolio had a range of strong contributors to performance with liquid alternatives also driving performance over the month. Systematic macro strategies were higher on the back of both equity and commodity positioning, and we also saw positive contribution from currency manager P/E Global FX Alpha on the back of their US dollar positions.
Hyperion was the standout in the global equities sector as the “magnificent 7” mega cap US stocks (Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Meta Platforms and Tesla) continue their onward march outperforming the broader market by over 5%. The fund has now delivered over 50% returns over the past 12 months. The Fairlight Global Small and Mid-Cap Fund was a laggard, as smaller stocks underperformed their larger counterparts. Our defensive listed infrastructure allocation also lagged in a strong market for risk assets.
Within domestic equities, the Atrium Equity Opportunities Fund, had a pleasing reporting season with solid performances from retailer Lovisa and recent addition WiseTech Global, while BHP was the largest detractor over February. The fund’s underperformance over the prior year has been analysed with negative factors coming from stock-specific decisions as well as the fund’s quality bias not being rewarded. Prior underperformance periods have been relatively short lived and we remain confident that the strategy is well positioned in high quality companies.
Portfolio changes
The risk of a “hard landing” recession in the US has reduced, and we have allowed our global equity exposures to drift higher. We continue to pivot the portfolio towards the segments of the equity market that exhibit better value – namely emerging markets and global small and midcap stocks. We continue to complete due diligence on a number of promising strategies in domestic small caps and liquid alternatives.
Outlook
Our positioning continues to reflect a cautious approach to asset allocation. In our view, inflation is likely to remain elevated above central bank targets which will place continued pressure on interest rates. Global markets have recovered strongly in anticipation of lower interest rates which has meant that many assets have, based on our analysis, moved into overvalued levels. This has led to some levels of complacency with the market consensus firmly in the “soft or no landing” camp, despite an apparent reacceleration in the US economy which could push out the timing of anticipated rate cuts and increase the chances of a further inflation spike – hence our caution on increasing equity exposure further.
In our view, with the market so strongly positioned for a buoyant economic environment, risk is often an afterthought. We see it as our role to position the portfolio to benefit from this environment, but also adjust for the factors that can drive market volatility. This should deliver the smoother return profile that is at the heart of our approach.
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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