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Printed: 02 December 2023 4:01 AM


28 Nov 2022 - Performance Report: PURE Income & Growth Fund


Report Date28 November 2022
ManagerPURE Asset Management
Fund NamePURE Income & Growth Fund
Latest Return DateOctober 2022
Latest Return0.90%
Latest 6 Months-2.61%
Latest 12 Months-4.12%
Latest 24 Months (pa)-0.03%
Annualised Since Inception14.45%
Inception Date01 December 2018
FUM (millions)AU$151.9
Fund OverviewThe PURE Income & Growth Fund is a specialist hybrid credit fund with an absolute return focus, providing growth capital to Australian emerging industrial companies. The aim is to offer smaller Australian companies ($20-200m market cap) a less dilutive source of capital than equity, while partnering with them to achieve their potential.

For fund investors, The PURE Income & Growth Fund offers a unique risk/return profile. This includes a high yield, yet retains equity exposure to successful growth stories. The Fund's superior position in the investee Company's capital structure insulates investors from capital loss.

PURE targets a return of 15% per annum through the investment cycle from a mixture of Income (7-9%) and capital growth. While most investments involve ASX listed companies, the Fund's mandate retains some flexibility to capitalise on attractive pre-IPO opportunities.
Manager CommentsThe PURE Income & Growth Fund rose by +0.9% in October, a difference of -6.47% compared with the S&P/ASX Small Industrials TR Index which rose by +7.37%. Over the past 12 months, the fund has returned -4.12% compared with the index which has fallen -21.68%, for a difference of +17.56%.

The PURE Income & Growth Fund has a track record of 3 years and 11 months and therefore comparison over all market conditions and against its peers is limited. However, the fund has outperformed the S&P/ASX Small Industrials TR Index since inception in December 2018, providing investors with an annualised return of 14.45% compared with the index's return of 3.31% over the same period.

On a calendar year basis, the fund has only experienced a negative annual return once in the 3 years and 11 months since its inception. Over the past 12 months, the fund's largest drawdown was -3.81% vs the index's -26.59%, and since inception in December 2018 the fund's largest drawdown was -5.86% vs the index's maximum drawdown over the same period of -29.79%. The fund's maximum drawdown began in February 2020 and lasted 3 months, reaching its lowest point during March 2020. The fund had completely recovered its losses by May 2020.

The Manager has delivered these returns with 9.55% less volatility than the index, contributing to a Sharpe ratio which has fallen below 1 two times over the past three years and which currently sits at 1.09 since inception. The fund has provided positive monthly returns 72% of the time in rising markets and 50% of the time during periods of market decline, contributing to an up-capture ratio since inception of 22% and a down-capture ratio of -25%.
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