CC Sage Capital Equity Plus Fund
31 March 2024
Key Facts
| Index Used: | ASX 200 Total Return | Discretionary/Quantitative: | Combination |
| Peer Group: | Equity Alternative - Australia | FUM (millions): | AU$ 409.12m |
| Investment Style: | Blend | Fund Inception Date: | August 2019 |
| Geographic Mandate: | Australia | Latest Return Date: | March 2024 |
| Investor Type: | Wholesale & Retail | Status: | Open |
| Minimum Investment: | AU$ 100,000 | Investment Frequency: | Daily |
Manager Details
Sage Capital is led by Sean Fenton, Managing Director and Portfolio Manager for the Fund who is supported by three senior and experienced Portfolio Managers, James Delaney, Kelli Meagher and Peter Moore. The Sage Capital investment team has a combined investment experience of more than 60 years gained from diverse and complimentary careers in equities, including research, analysis and portfolio management.
Strategy Description
The Fund is a long/short strategy with the typical asset classes held by the Fund comprising Australian listed shares, cash and cash equivalent instruments and exchange traded derivatives.
The Fund may invest between 90% and 150% of its net assets in long positions and between 0% to 50% of its net assets in short positions. The aggregate maximum level of gross exposure is 200% (i.e.150% long + 50% short).
Sage Capital may use exchange traded derivatives to more efficiently manage the Fund's portfolio and its risks. The use of derivatives may be a more cost effective way of gaining exposure to a particular asset class or sector as compared to holding a physical asset.
Derivatives used will be covered by cash (delta adjusted), physical securities or a combination of both. Derivatives will not be used to leverage the Fund.
The Fund is a long/short strategy with the typical asset classes held by the Fund comprising Australian listed shares, cash and cash equivalent instruments and exchange traded derivatives.
Fund Fees
| Management Fee: | 0.79% | Performance Fee: | 20.5% |
| Buy Spread: | 0.2% | Sell spread: | 0.2% |
| High Water Mark: | Yes | Hurdle: | S&P/ASX200 Accumulation Index |
Fund Structure
| Offshore/Onshore: | Onshore | Fund Structure: | Unit Trust |
| Share Classes: | AU$ | Trustee/RE: | Channel Investment Management Limited ( Responsible Entity) |
| Administrator: | Mainstream Fund Services | Prime Broker: | Morgan Stanley |
| Custodian: | Morgan Stanley | Legal: | McCullough Robertson Lawyers |
Ratings & Availability
Research Ratings
Platform Availability
Performance Review
The CC Sage Capital Equity Plus Fund has a track record of 4 years and 8 months 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 August 2019, providing investors with an annualised return of 12.29% compared with the benchmark's return of 7.38% over the same period.
The Manager has delivered these returns with 1.83% less volatility than the benchmark, contributing to a Sharpe ratio which has fallen below 1 three times over the past four years and which currently sits at 0.76 since inception. The fund has provided positive monthly returns 100% of the time in rising markets and 14% of the time during periods of market decline, contributing to an up-capture ratio since inception of 105% and a down-capture ratio of 86%.
The CC Sage Capital Equity Plus Fund rose by +4.26% in March, an outperformance of +0.99% 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 +5.03% compared with the benchmark's best return of +7.26%, and its worst monthly return was -3.06% 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 | 2.16 | 0.48 | 4.26 | NA | NA | NA | NA | NA | NA | NA | NA | NA | 7.02 |
| 2023 | 5.91 | -1.48 | -0.52 | 2.62 | -2.00 | 1.50 | 2.49 | -2.55 | -2.21 | -3.06 | 4.14 | 5.03 | 9.74 |
| 2022 | -5.40 | 3.37 | 7.01 | -0.62 | -2.62 | -6.70 | 3.31 | 2.50 | -5.09 | 6.64 | 4.97 | -3.76 | 2.30 |
| 2021 | 1.26 | 1.78 | 3.30 | 4.30 | 2.53 | 1.27 | 1.48 | 3.80 | -1.07 | 0.76 | 0.61 | 2.74 | 25.12 |
| 2020 | 4.25 | -7.07 | -16.92 | 9.35 | 4.58 | 2.84 | 2.09 | 2.79 | -3.72 | 2.26 | 9.91 | 1.01 | 8.56 |
| 2019 | NA | NA | NA | NA | NA | NA | NA | 1.43 | 1.61 | -0.11 | 3.96 | -1.65 | 5.26 |
Annual Returns
Over the past 12 months, the fund has risen by +13.14% compared with the benchmark which has returned +14.45%, for a difference of -1.31%. Since inception in August 2019, the fund has returned +12.29% per annum, a difference of +4.91% relative to the benchmark which has returned +7.38% 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 $171. The same amount invested in the benchmark 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 9.58% vs the index's 10.87%. The annualised volatility of the fund's returns since inception in August 2019 is 14.92% vs the index's 16.75%. Over all other periods, the fund's returns have been consistently less volatile than the benchmark.
Sharpe Ratio
The fund's Sharpe ratio has ranged from a high of 1.36 for performance over the most recent 48 months to a low of 0.37 over the latest 24 months, and is 0.76 for performance since inception. By contrast, the ASX 200 Total Return Index's Sharpe for performance since August 2019 is 0.43.
Annual Standard Deviation
Sharpe Ratio
Performance in Positive Markets
Since inception in August 2019 in the months where the market was positive, the fund has provided positive returns 100% of the time, contributing to an up-capture ratio for returns since inception of 105.23%. Over all other periods, the fund's up-capture ratio has ranged from a high of 105.92% over the most recent 48 months to a low of 90.97% over the latest 24 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 August 2019 in the months where the market was negative, the fund has provided positive returns 14% of the time, contributing to a down-capture ratio for returns since inception of 85.57%. Over all other periods, the fund's down-capture ratio has ranged from a high of 99.14% over the most recent 12 months to a low of 85.79% over the latest 36 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 2.44 for performance over the most recent 48 months to a low of 0.47 over the latest 24 months, and is 0.96 for performance since inception. By contrast, the ASX 200 Total Return Index's Sortino for performance since August 2019 is 0.45.
Drawdown
Over the past 12 months, the fund's largest drawdown was -7.61% vs the index's -7.19%, and since inception in August 2019 the fund's largest drawdown was -22.79% vs the index's maximum drawdown over the same period of -26.75%.
Sortino Ratio
Drawdown%
Quintile Ranking vs. Average Equity Alternative - Australia as of March 2024
The performance of the CC Sage Capital Equity Plus 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 second quintile for Total Return, Sharpe and Sortino.
Over the past 12 months, the fund has risen by +13.14% compared with the peer group which has returned an average of +10.33%, for a difference of +2.81%.
The fund's returns over the past 12 months have been achieved with a volatility of 9.58% vs the peer group's average volatility of 7.05%. The annualised volatility of the fund's returns since inception in August 2019 is 14.92% vs the peer group's 8.99%. Over all other periods, the fund's returns have been more volatile than the peer group.