Atrium Evolution Series – Diversified Fund AEF 7 Class P Units
As at 30 November 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 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 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. 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 | 7.96% | 12.13% | 6.21% | 3.63% | 1.99% | ||||
| Objective | 7.53% | 7.87% | 3.86% | 1.90% | 0.62% |
Objective refers to the Return objective as stated in the Key Facts table.
Distributions
| 30/06/2024 | 31/12/2023 | 30/06/2023 | |
|---|---|---|---|
| Cents per unit | 2.87 | 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 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 | 12.94% | |
| Cash | 12.92% | |
| Australian equities | 13.88% | |
| International equities | 28.72% | |
| Listed infrastructure | 3.87% | |
| Liquid alternatives | 18.61% | |
| Private markets | 9.06% |
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.
 | 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 |
|---|---|---|
| ANTIPODES GLOBAL FUND LONG UCITS CLASS S | 7.98% | Equities |
| CASH POSITION | 7.64% | Cash |
| FAIRLIGHT GLOBAL SMALL AND MID CAP (SMID) FUND - FOUNDATION CLASS | 6.41% | Equities |
| SMARTER MONEY FUND - ASSISTED INVESTOR | 5.28% | Cash |
| CROWN ATRIUM SEGREGATED PORTFOLIO SERIES 1 USD | 4.87% | Liquid alternatives |
| HYPERION GLOBAL GROWTH COMPANIES FUND CLASS C | 4.81% | Equities |
| GLOBAL LISTED INFRASTRUCTURE MANDATE NO. 1 (MANAGED BY MAGELLAN) | 3.87% | Equities |
| KAPSTREAM ABSOLUTE RETURN INCOME FUND CLASS I | 3.57% | Rates & credit |
| SGH ICE PROFESSIONAL INVESTOR FUND | 3.56% | Equities |
| NORTHCAPE CAPITAL GLOBAL EQUITIES FUND | 3.52% | 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 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
November was a very strong month for equities, with the US market rallying after the US election results removed considerable uncertainty. The US market gained 5.9%, well ahead of the local market which gained 3.8%. Bond yields rose sharply on the election result, although the market calmed with the nomination of a market-friendly Secretary of the Treasury and bond yields ended the month slightly lower than where they began. The US dollar moved higher when bond yields initially rose, leaving the Australian dollar lower by 1.2% for the month, and gold fell as some near-term uncertainty was removed.
US equities gained 5.9% in October, the best month of the year, driven by:
• The removal of the election uncertainty which saw equities gain sharply, particularly sectors which are seen to potentially benefit from reduced regulation such as the Banks and Energy sectors,
• Automobiles were up very strongly, reflecting the strong post-election gains in Tesla, given the CEO’s assistance with the Republican party’s campaign, but also GM and Ford, seen as benefitting from less focus on environmental concerns,
• Nvidia was firm, although lagged the broader market, despite the strong performance of Information Technology.
The Australian market gained 3.8%, the strongest month since July, driven by:
• Sharp gains in Industrials, offset by significant falls in Resources,
• Information Technology was the strongest sector, with strong gains seen in stocks such as Technology One, Xero and Wisetech,
• Small caps lagged notably, in contrast to the US market.
Bond yields declined over the month, but this belied the increased volatility around the US election early in the month. Following the sharp rise in yields in October, yields continued rising into the middle of month on concerns around less focus on fiscal rectitude. The appointment of hedge fund manager Scott Bessent somewhat alleviated these concerns, seeing prices rise (yields falling) into month end. In Australia, Bonds yields also declined, with markets now pricing no policy rate cuts in Australia over the remainder of the year.
Performance
The Fund delivered a strong return in November, led primarily by continued strength in global equities with all other segments also contributing positively to returns.
The global equities allocation was the key driver of performance, with the Hyperion Global Growth Companies Fund in particular delivering a stellar return on the back of a resurgent Tesla and Amazon. Fairlight Global Small and Mid-Cap Fund also performed well after lagging over the prior month, while the Vanguard FTSE Emerging Markets ETF was the only detractor over the month.
The Atrium Equity Opportunities Fund was positive over the month, but lagged the broader index due primarily to its exposure to BHP.
Our Diversifiers were positive in aggregate over the month, with our currency manager the key standout, taking advantage of the stronger US dollar.
Amongst the Preserver allocations, the JP Morgan Strategic Bond Fund and CQS Credit Multi Asset Fund were amongst the strongest contributors to performance.
Portfolio changes
During the month we modestly added to our equity exposure, primarily via the Betashares S&P 500 Equal Weight ETF, which provides a more diversified exposure to the smaller end of the large cap index and offers compelling valuations and opportunity at this point in the cycle. To date this segment of the market has been performing well.
Over the month we took advantage of cheap option prices to purchase S&P 500 call options (participating in the rally in equity markets).
Outlook
With the uncertainty of the US election behind us, global economic fundamentals improving and likely easing of financial conditions from global central banks, assets such as equities remain well supported. However, with Australian core inflation above the RBA target, it may be some time into 2025 before we see any easing of interest rates by the RBA.
With the improving macroeconomic backdrop, our decision to increase our weighting to equities throughout the year has been rewarded with strong performance across the Funds. We continue to hold equity exposures above our longer-term averages with a preference for global over domestic equities. Nevertheless, the fund remains well diversified with a number of levers to deliver a smoother return profile over the full market cycle while controlling for risk.
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