Airlie Australian Share Fund
31 May 2022
Key Facts
| Index Used: | ASX 200 Total Return | Discretionary/Quantitative: | Discretionary |
| Peer Group: | Equity Long - Large Cap - Australia | FUM (millions): | AU$ 336.15m |
| Investment Style: | Blend | Fund Inception Date: | June 2018 |
| Geographic Mandate: | Australia | Latest Return Date: | May 2022 |
| 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: | N/A | 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 4 years and therefore comparison over all market conditions and against its peers is limited. However, the fund has outperformed the ASX 200 Total Return Index since inception in June 2018, providing investors with an annualised return of 10.78% compared with the index's return of 8.65% over the same period.
The Manager has delivered these returns with 0.34% less volatility than the index, contributing to a Sharpe ratio which has fallen below 1 three times over the past four years and which currently sits at 0.7 since inception. The fund has provided positive monthly returns 97% of the time in rising markets and 13% of the time during periods of market decline, contributing to an up-capture ratio since inception of 106% and a down-capture ratio of 95%.
The Airlie Australian Share Fund returned -4.45% in May, a difference of -1.85% compared with the ASX 200 Total Return Index which fell by -2.6%. Over the past 12 months, the fund's best monthly return was +5.02% compared with the index's best return of +6.89%, and its worst monthly return was -6.59% vs the index's worst return over the same period of -6.35%.
| Year | Jan % | Feb % | Mar % | Apr % | May % | Jun % | Jul % | Aug % | Sep % | Oct % | Nov % | Dec % | YTD % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | -6.59 | -0.21 | 5.02 | -0.90 | -4.45 | NA | NA | NA | NA | NA | NA | NA | -7.30 |
| 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 +5.55% compared with the index which has returned +4.84%, for a difference of +0.71%. Since inception in June 2018, the fund has returned +10.78% per annum, a difference of +2.13% relative to the index which has returned +8.65% 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 $150. The same amount invested in the index over the same period would have become $139.
Annual Returns %
Volatility and Risk
Annual Standard Deviation
The fund's returns over the past 12 months have been achieved with a volatility of 11.28% vs the index's 11.02%. The annualised volatility of the fund's returns since inception in June 2018 is 15.68% vs the index's 16.02%. Over all other periods, the fund's volatility relative to the index has been varied.
Sharpe Ratio
The fund's Sharpe ratio has ranged from a high of 1.57 for performance over the most recent 24 months to a low of 0.53 over the latest 12 months, and for returns over the past 48 months (since inception), the fund's Sharpe ratio is 0.7 vs the ASX 200 Total Return Index's Sharpe of 0.57.
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 97% of the time, contributing to an up-capture ratio for returns over the past 48 months (since inception) of 105.72%. Over all other periods, the fund's up-capture ratio has ranged from a high of 111.78% over the most recent 24 months% to a low of 94.57% 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 13% of the time. Over all periods since inception, the fund's down-capture ratio has ranged from a high of 94.87% over the most recent 48 months (since inception) to a low of 88.39% 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 2.86 for performance over the most recent 24 months to a low of 0.65 over the latest 12 months, and for returns over the past 48 months (since inception), the fund's Sortino ratio is 0.82 vs the ASX 200 Total Return Index's Sortino of 0.62.
Drawdown
Over the past 12 months, the fund's largest drawdown was -7.3% vs the index's -6.35%, 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 April 2022
The performance of the Airlie Australian Share Fund ranked it in the first or second quintile for all KPIs except Volatility over 3 years, while over 1 year the fund ranked in the first quintile for Total Return and second quintile for Sharpe and Sortino.
Over the past 12 months, the fund has risen by +5.55% compared with the peer group which has returned an average of +3.79%, for a difference of +1.76%.
The fund's returns over the past 12 months have been achieved with a volatility of 11.28% vs the peer group's average volatility of 10.06%. The annualised volatility of the fund's returns since inception in June 2018 is 15.68% vs the peer group's 11.31%. Over all other periods, the fund's returns have been more volatile than the peer group.