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Printed: 02 December 2023 3:24 AM


27 Jan 2023 - Performance Report: Argonaut Natural Resources Fund


Report Date27 January 2023
ManagerArgonaut Funds Management
Fund NameArgonaut Natural Resources Fund
StrategyEquity Long/Short
Latest Return DateDecember 2022
Latest Return-1.85%
Latest 6 Months21.46%
Latest 12 Months17.19%
Latest 24 Months (pa)36.96%
Annualised Since Inception42.35%
Inception Date21 January 2020
FUM (millions)AU$17.82
Fund Overview

Argonaut Natural Resources Fund ('ANRF') is an actively managed wholesale fund investing in listed resource and mining service companies. ANRF seeks to create a diversified portfolio of investments which will generate absolute returns in excess of the S&P ASX 300 Resources Index. The Fund typically holds between 10 and 25 separate equity investments. Its portfolio is built around a rigorous investment process that assesses Market conditions and Macro economic influences, then conducts detailed Micro stock specific analysis. At times, ANRF may consider holding higher levels of cash (max 30%) if valuations are full and it is difficult to find attractive investment opportunities. The Fund does not borrow for investment or any other purposes, but it may short sell securities as part of its portfolio protection strategies.

Manager CommentsThe Argonaut Natural Resources Fund returned -1.85% in December, an outperformance of +1.36% compared with the ASX 200 Total Return benchmark which fell by -3.21%.

The Argonaut Natural Resources Fund has a track record of 3 years and therefore comparison over all market conditions and against its peers is limited. However, the fund has outperformed the ASX 200 Total Return benchmark since inception in January 2020, providing investors with an annualised return of 42.35% compared with the benchmark's return of 5.55% over the same period.

On a calendar year basis, the fund hasn't experienced any negative annual returns in the 3 years since its inception. Over the past 12 months, the fund's largest drawdown was -19.06% vs the index's -11.9%, and since inception in January 2020 the fund's largest drawdown was -19.06% vs the index's maximum drawdown over the same period of -26.75%. The fund's maximum drawdown began in April 2022 and lasted 7 months, reaching its lowest point during June 2022. The fund had completely recovered its losses by November 2022. During this period, the index's maximum drawdown was -11.9%.

The Manager has delivered these returns with 3.51% more volatility than the benchmark, contributing to a Sharpe ratio which has only fallen below 1 once over the past three years and which currently sits at 1.66 since inception. The fund has provided positive monthly returns 83% of the time in rising markets and 33% of the time during periods of market decline, contributing to an up-capture ratio since inception of 200% and a down-capture ratio of 39%.
More Information

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