Key Facts

Index Used: Bloomberg AusBond Composite 0+ Yr Index Discretionary/Quantitative: Quantitative
Peer Group: Fixed Income - Bonds FUM (millions): AU$ 7.57m
Investment Style: Fund Inception Date: February 2019
Geographic Mandate: Global Latest Return Date: November 2022
Investor Type: Wholesale & Retail Status: Open
Minimum Investment: AU$ 100,000 Investment Frequency: Daily

Manager Details

Jamieson Coote Bonds (JCB) is an active Australian Bond fund manager founded by Charlie Jamieson and Angus Coote. The Firm aims to deliver high single digit returns with a strict focus on capital preservation as they invest in Australian Government Securities - the safest asset class in the country. Their investment portfolio approach is to use both domestic and global macro-economic factors to adjust duration and risk exposures to create added value.

Jamieson has spent 14 years in the financial services industry working for Merrill Lynch and Bank of America Merrill Lynch (BAML) as a Bond trader, trading in Tokyo, New York, London and Sydney. Charles holds a Bachelor of Commerce degree from Monash University majoring in Accounting and Finance

Coote started his career with JPMorgan in 2000 as a Government Bond salesman specialising in US Treasuries and European Government Bonds in London. He relocated to Asia with ANZ where he spent five years specialising in selling Australian Government Bonds and other debt products to the region's largest Central Banks and Sovereign Wealth Funds. Coote has a Bachelor of Business from RMIT majoring in Economics and Finance.

The JCB management team bring a combined 30 years' experience in a unique global network of bond market contacts, built over a number of years working in the world's major financial centres. These range from Central Bankers, Hedge Fund and Real Money managers to leading economists producing a global perspective to portfolio construction and allocation relevant to the Australian Bond market.
Jamieson Coote Bonds (JCB) is an active Australian Bond fund manager founded by Charlie Jamieson and Angus Coote. The Firm aims to deliver high single digit returns with a strict focus on capital preservation as they invest in Australian Government Securities - the safest asset class in the country.

Strategy Description

The Portfolio is designed to be part of the defensive allocation within an investor's portfolio. The Fund invests in high grade bonds in underlying markets with high levels of ongoing liquidity. The Fund will invest in the Underlying Fund. The Underlying Fund will invest in bond securities with geographical exposure primarily to developed markets:

- The core countries include the G7 defined countries - i.e. Canada, US (North America), France, Germany, Italy (Europe ex-UK Core), UK and Japan.

- The satellite countries to complete the Underlying Fund's investable universe may include allocations to: Austria, Belgium, Finland, Ireland, Netherlands, Portugal, Spain, Switzerland (Europe ex-UK satellites), Australia, China, Singapore, Korea and New Zealand (Asia-Pacific satellites).

- Individual bond securities that are outside of benchmark are not permitted to go lower than investment grade Baa2/BBB/BBB (Moody's, S&P, Fitch) from one of these providers. Allowable issuers (subject to individual securities meeting the following minimum credit rating):

- Global Sovereigns (as per the list above) - Semi-Government (e.g. NSW, Queensland) and Municipals/Provincials for given countries (e.g. California, Ontario)

- Agencies (e.g. Fannie Mae, Freddie Mac, Canadian Housing Trust) - Supra-Nationals (issued in the above countries in given currencies)
The Portfolio is designed to be part of the defensive allocation within an investor's portfolio. The Fund invests in high grade bonds in underlying markets with high levels of ongoing liquidity. The Fund will invest in the Underlying Fund. The Underlying Fund will invest in bond securities with geographical exposure primarily to developed markets. The core countries include the G7 defined countries - i.e. Canada, US (North America), France, Germany, Italy (Europe ex-UK Core), UK and Japan.

Fund Fees

Management Fee: 0.59% Performance Fee: %
Buy Spread: 0.05% Sell spread: 0.05%
High Water Mark: Hurdle:

Fund Structure

Offshore/Onshore: Onshore Fund Structure: Unit Trust
Share Classes: AU$ Trustee/RE: Channel Investment Management Limited
Administrator: Mainstream Fund Services Prime Broker:
Custodian: Morgan Stanley Legal: McCullough Robertson Lawyers

Ratings & Availability

Research Ratings

LonsecInvestment Grade (01 Sep 2021) ZenithRecommended (01 Mar 2022)

Platform Availability

BT Wrap, HUB24, Netwealth, Powerwrap, Asgard, MLC Wrap, BT Panorama, uXchange, Ausmaq, Mason Stevens, Praemium

Performance Review

The CC Jamieson Coote Bonds Global Bond Fund (Class B - Unhedged) has a track record of 3 years and 9 months and therefore comparison over all market conditions and against its peers is limited. However, the fund has outperformed the Bloomberg AusBond Composite 0+ Yr benchmark since inception in March 2019, providing investors with an annualised return of 1.02% compared with the benchmark's return of -0.33% over the same period.

The Manager has delivered these returns with 6.49% more volatility than the benchmark, contributing to a Sharpe ratio which has fallen below 1 three times over the past three years and which currently sits at 0.09 since inception. The fund has provided positive monthly returns 68% of the time in rising markets and 30% of the time during periods of market decline, contributing to an up-capture ratio since inception of 134% and a down-capture ratio of 107%.

The CC Jamieson Coote Bonds Global Bond Fund (Class B - Unhedged) returned -2.42% in November, a difference of -3.97% compared with the Bloomberg AusBond Composite 0+ Yr benchmark which rose by +1.55%. Over the past 12 months, the fund's best monthly return was +3.57% compared with the benchmark's best return of +3.36%, and its worst monthly return was -5.52% vs the benchmark's worst return over the same period of -3.75%.

YearJan %Feb %Mar %Apr %May %Jun %Jul %Aug %Sep %Oct %Nov %Dec %YTD %
20221.56-3.78-5.522.95-1.213.060.37-1.043.570.49-2.42NA-2.37
2021-0.12-2.571.43-1.34-0.183.483.480.290.11-4.056.81-3.333.54
20207.275.375.67-5.69-1.55-3.51-3.15-4.103.841.87-4.57-4.40-4.09
2019NANA2.020.633.45-0.022.295.22-0.94-2.441.41-4.357.14

General Notes

February 2019 return shown is for performance from 25 Feb 2019 - 28 Feb 2019. As a result, the 'Annualised Return Since Inception' figure shown in the Performance & Risk tab differs slightly from that shown in the manager's monthly report.

Annual Returns

Over the past 12 months, the fund has returned -5.62% compared with the benchmark which has fallen -7.72%, for a difference of +2.1%. Since inception in March 2019, the fund has returned +1.02% per annum, a difference of +1.35% relative to the benchmark which has fallen -0.33% 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 $103. The same amount invested in the benchmark over the same period would have become $98.

Annual Returns %

 
 

Volatility and Risk

Annual Standard Deviation

The fund's returns over the past 12 months have been achieved with a volatility of 9.78% vs the index's 6.29%. The annualised volatility of the fund's returns since inception in March 2019 is 11.75% vs the index's 5.26%. Over the past 24 and 36 month periods, the fund's returns have had an annualised volatility of 10.36% and 12.38% respectively, higher than the benchmark's annualised volatility over each of those periods; 6.19% (24 months), 5.49% (36 months).

Sharpe Ratio

The fund's Sharpe ratio has ranged from a high of -0.17 for performance over the most recent 24 months to a low of -0.65 over the latest 12 months, and is 0.09 for performance since inception. By contrast, the Bloomberg AusBond Composite 0+ Yr Index's Sharpe for performance since March 2019 is -0.16.

Annual Standard Deviation

 

Sharpe Ratio

 

Performance in Positive Markets

Since inception in March 2019 in the months where the market was positive, the fund has provided positive returns 68% of the time, contributing to an up-capture ratio for returns since inception of 133.68%. Over all other periods, the fund's up-capture ratio has ranged from a high of 104.05% over the most recent 36 months to a low of -80.44% 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 March 2019 in the months where the market was negative, the fund has provided positive returns 30% of the time, contributing to a down-capture ratio for returns since inception of 107.4%. Over all other periods, the fund's down-capture ratio has ranged from a high of 99.56% over the most recent 36 months to a low of 6.25% 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 -0.31 for performance over the most recent 24 months to a low of -0.84 over the latest 12 months, and is 0.05 for performance since inception. By contrast, the Bloomberg AusBond Composite 0+ Yr Index's Sortino for performance since March 2019 is -0.23.

Drawdown

Over the past 12 months, the fund's largest drawdown was -9.09% vs the index's -10.05%, and since inception in March 2019 the fund's largest drawdown was -23.23% vs the index's maximum drawdown over the same period of -12.97%.

Sortino Ratio

 

Drawdown%

 
Fund Index Peer group

Quintile Ranking vs. Average Fixed Income - Bonds as of October 2022

The performance of the CC Jamieson Coote Bonds Global Bond Fund (Class B - Unhedged) ranked it in the second quintile for Total Return, Sharpe and Sortino over 3 years, while over 1 year the fund ranked in the first quintile for Total Return, Sharpe and Sortino.

Over the past 12 months, the fund has returned -5.62% compared with the peer group which has fallen an average of -6.1%, for a difference of +0.48%.

The fund's returns over the past 12 months have been achieved with a volatility of 9.78% vs the peer group's average volatility of 3.85%. The annualised volatility of the fund's returns since inception in March 2019 is 11.75% vs the peer group's 2.83%. Over the past 24 and 36 month periods, the fund's returns have had an annualised volatility of 10.36% and 12.38% respectively, higher than the peer group's annualised volatility over each of those periods; 3.37% (24 months), 3.46% (36 months).

1 Year
3 Year
5 Year
7 Year
CC Jamieson Coote Bonds Global Bond Fund (Class B - Unhedged)
Bloomberg AusBond Composite 0+ Yr Index
Quintile Rankings display Key Performance Indicators (KPI's) against the fund's Peer Group. Each green square ranks the fund in one quintile (or 20%) of its peer group - five green squares indicate the fund is in the best quintile for each KPI. The performance of the peer group's underlying index is shown by a red dot.