Airlie Australian Share Fund
31 March 2024
Key Facts
| Index Used: | ASX 200 Total Return | Discretionary/Quantitative: | Discretionary |
| Peer Group: | Equity Long - Large Cap - Australia | FUM (millions): | AU$ 528.39m |
| Investment Style: | Blend | Fund Inception Date: | June 2018 |
| Geographic Mandate: | Australia | Latest Return Date: | March 2024 |
| Investor Type: | Retail | Status: | Open |
| Minimum Investment: | AU$ 10,000 | Investment Frequency: | Daily |
Manager Details
Airlie Funds Management Pty Ltd ("AFM") was founded in 2012 by John Sevior and David Cooper to predominantly service institutional clients.
AFM was acquired by Magellan in early 2018.
Airlie is a specialist Australian equities fund manager with an active, value-based investment style that aims to deliver attractive long-term capital growth and regular income to its investors.
Megallan is the Responsible Entity and Investment Manager for the Airlie Australian Share Fund.
Strategy Description
The Fund is long-only with a bottom-up focus. It has a concentrated portfolio of 15-35 stocks (target 25). The fund has a maximum cash holding of 10% with an aim to be fully invested.
Airlie employs a prudent investment approach that identifies companies based on their financial strength, attractive durable business characteristics and the quality of their management teams. Airlie invests in these companies when their view of their fair value exceeds the prevailing market price.
It is jointly managed by Matt Williams and Emma Fisher. Matt has over 25 years' investment experience and formerly held the role of Head of Equities and Portfolio Manager at Perpetual Investments. Emma has over 8 years' investment experience and has previously worked as an investment analyst within the Australian equities team at Fidelity International and, prior to that, at Nomura Securities.
The Fund is long-only with a bottom-up focus. It has a concentrated portfolio of 15-35 stocks with a target of 25. Maximum cash holding is 10% with an aim to be fully invested.
Fund Fees
| Management Fee: | 0.78% | Performance Fee: | % |
| Buy Spread: | 0.14% | Sell spread: | 0.14% |
| High Water Mark: | Hurdle: | N/A |
Fund Structure
| Offshore/Onshore: | Onshore | Fund Structure: | Unit Trust |
| Share Classes: | AU$ | Trustee/RE: | Magellan Asset Management |
| Administrator: | N/A | Prime Broker: | N/A |
| Custodian: | The Northern Trust Company | Legal: | N/A |
Ratings & Availability
Research Ratings
Platform Availability
Performance Review
The Airlie Australian Share Fund has a track record of 5 years and 10 months and has outperformed the ASX 200 Total Return benchmark since inception in June 2018, providing investors with an annualised return of 11.6% compared with the benchmark's return of 9% over the same period.
The Manager has delivered these returns with 0.07% more volatility than the benchmark, contributing to a Sharpe ratio which has fallen below 1 three times over the past five years and which currently sits at 0.69 since inception. The fund has provided positive monthly returns 98% of the time in rising markets and 12% of the time during periods of market decline, contributing to an up-capture ratio since inception of 111% and a down-capture ratio of 96%.
The Airlie Australian Share Fund rose by +3.13% in March, a difference of -0.14% compared with the ASX 200 Total Return benchmark which rose by +3.27%. Over the past 12 months, the fund's best monthly return was +7.46% compared with the benchmark's best return of +7.26%, and its worst monthly return was -4.53% vs the benchmark's worst return over the same period of -3.78%.
| Year | Jan % | Feb % | Mar % | Apr % | May % | Jun % | Jul % | Aug % | Sep % | Oct % | Nov % | Dec % | YTD % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 1.88 | 1.60 | 3.13 | NA | NA | NA | NA | NA | NA | NA | NA | NA | 6.74 |
| 2023 | 7.01 | -2.55 | -0.71 | 1.24 | -1.55 | 1.04 | 2.61 | 1.86 | -2.83 | -4.53 | 6.21 | 7.46 | 15.39 |
| 2022 | -6.59 | -0.21 | 5.02 | -0.90 | -4.45 | -9.70 | 7.53 | 2.79 | -5.76 | 6.32 | 5.91 | -3.46 | -5.22 |
| 2021 | 0.02 | 0.52 | 3.95 | 4.48 | 3.56 | 2.88 | 2.61 | 3.22 | -1.14 | 1.93 | 0.48 | 3.21 | 28.76 |
| 2020 | 3.41 | -5.79 | -19.12 | 9.27 | 5.12 | 4.10 | 0.60 | 4.18 | -3.42 | 1.15 | 10.22 | 1.86 | 8.30 |
| 2019 | 3.06 | 4.32 | 0.55 | 2.57 | 1.61 | 2.33 | 3.46 | -1.41 | 3.90 | -0.04 | 3.42 | -1.55 | 24.36 |
| 2018 | NA | NA | NA | NA | NA | 4.11 | 1.15 | 1.51 | -1.87 | -7.12 | -2.94 | -0.92 | -6.30 |
Annual Returns
Over the past 12 months, the fund has risen by +18.96% compared with the benchmark which has returned +14.45%, for a difference of +4.51%. Since inception in June 2018, the fund has returned +11.6% per annum, a difference of +2.6% relative to the benchmark which has returned +9% on an annualised basis over the same period.
Cumulative Returns
On a cumulative basis (assuming reinvestment of distributions), $100 invested since inception would have become $189. The same amount invested in the benchmark over the same period would have become $165.
Annual Returns %
Volatility and Risk
Annual Standard Deviation
The fund's returns over the past 12 months have been achieved with a volatility of 11.25% vs the index's 10.87%. The annualised volatility of the fund's returns since inception in June 2018 is 15.72% vs the index's 15.65%. Over all other periods, the fund's volatility relative to the benchmark has been varied.
Sharpe Ratio
The fund's Sharpe ratio has ranged from a high of 1.25 for performance over the most recent 12 months to a low of 0.45 over the latest 24 months, and is 0.69 for performance since inception. By contrast, the ASX 200 Total Return Index's Sharpe for performance since June 2018 is 0.54.
Annual Standard Deviation
Sharpe Ratio
Performance in Positive Markets
Since inception in June 2018 in the months where the market was positive, the fund has provided positive returns 98% of the time, contributing to an up-capture ratio for returns since inception of 111.11%. Over all other periods, the fund's up-capture ratio has ranged from a high of 116.17% over the most recent 48 months to a low of 105.11% over the latest 12 months. An up-capture ratio greater than 100% indicates that, on average, the fund has outperformed in the market's positive months.
Performance in Negative Markets
Since inception in June 2018 in the months where the market was negative, the fund has provided positive returns 12% of the time, contributing to a down-capture ratio for returns since inception of 96.27%. Over all other periods, the fund's down-capture ratio has ranged from a high of 101.6% over the most recent 24 months to a low of 73.03% over the latest 12 months. A down-capture ratio less than 100% indicates that, on average, the fund has outperformed in the market's negative months.
Average Return in +ve Market %
Average Return in -ve Market %
Sortino Ratio
The fund's Sortino ratio (which excludes volatility in positive months) has ranged from a high of 2.2 for performance over the most recent 12 months to a low of 0.56 over the latest 24 months, and is 0.85 for performance since inception. By contrast, the ASX 200 Total Return Index's Sortino for performance since June 2018 is 0.62.
Drawdown
Over the past 12 months, the fund's largest drawdown was -7.23% vs the index's -7.19%, and since inception in June 2018 the fund's largest drawdown was -23.8% vs the index's maximum drawdown over the same period of -26.75%.
Sortino Ratio
Drawdown%
Quintile Ranking vs. Average Equity Long - Large Cap - Australia as of March 2024
The performance of the Airlie Australian Share Fund ranked it in the first quintile for Total Return over 1, 3 & 5 years, and in the first or second quintile for all other KPIs except Volatility over 1 & 5 years, while over 3 years it ranked in the first quintile for Sharpe and Sortino.
Over the past 12 months, the fund has risen by +18.96% compared with the peer group which has returned an average of +13.29%, for a difference of +5.67%.
The fund's returns over the past 12 months have been achieved with a volatility of 11.25% vs the peer group's average volatility of 10.4%. The annualised volatility of the fund's returns since inception in June 2018 is 15.72% vs the peer group's 11.54%. Over all other periods, the fund's returns have been more volatile than the peer group.