Long-Short 130/30 Quality Fund

Long: Established Australian companies with a sustainable forward advantage.

Short: Australian companies with a weakening forward advantage and increasing risk.

Overview

The Blackwattle Long-Short 130/30 Quality Fund aims to buy businesses with a competitive advantage and good corporate governance, priced below intrinsic value at the right price.

We aim to outperform the S&P/ASX 200 Accumulation Index (after fees and before taxes) over the long term.

Fundamental research and sound risk management drives fund investments. Quality stocks at low or reasonable valuations underpin long positions while poor quality stocks with high valuations facing near-term pressures underpin short positions. Risk is managed through portfolio diversification, pair trades, strict exposure limits and process discipline

Partnership

We truly are a partnership.
100% of our staff own equity.

Investment

Zero personal trading (PA) is allowed. We are 100% invested in our portfolios. We have all committed significant personal capital.

Re-Investment

Our corporate profits are reinvested into our portfolios. Our personal salaries are reinvested into our portfolios.

Profit Share

Our Portfolio Managers are aligned with our clients (and their investment results) via clearly defined profit share mechanisms.

Transparency

Timely and transparent communication with our investors. Providing regular access to our investment teams.

Investment Team

Joseph Koh
Portfolio Manager and Partner

Joseph Koh has over 25 years’ experience in investment and finance, beginning in 1997 at Bankers Trust and 8 years at Regal Funds Management.

Recently, Joseph was co-portfolio manager of a high performing long-short fund at Schroder Investment Management.

Joseph holds a Bachelor of Business (majoring in Accounting and Finance) and is a CFA charterholder.

Joseph is the Portfolio Manager of the Blackwattle Long Short 130/30 Quality Fund and the Blackwattle Large Cap Quality Fund.

Ray David
Portfolio Manager and Partner

Ray David has over 20 years’ of investing and finance experience.

Prior to joining BlackWattle Investment Partners, Ray David was portfolio manager at Schroders Australia, where he spent over 10 years and was co-portfolio manager of the Schroder Australian Equity Long Short Fund.

Prior to joining Schroders, Ray David was an Investment Director of the Emerging Companies Team at UBS Investment Bank Australia.

Ray holds a Bachelor of Economics and Econometrics from the Sydney University, a Graduate Diploma of Applied Finance, Banking, Corporate Finance and Securities Law.

Ray is the Portfolio Manager of the Blackwattle Long Short 130/30 Quality Fund and the Blackwattle Large Cap Quality Fund.

Fund Details

Benchmark S&P/ASX 200 Accumulation Index
Management Fee 0.92% of the Net Asset Value of the Fund of the Fund. Inclusive of Goods and Services Tax (GST) and net of any Reduced Input Tax Credits (RITC)
Performance Fee 17.94% (inclusive of GST and net of any RITC) of the total return of the fund (after deducting Management fees) in excess of the return of the Benchmark during a relevant performance period and provided any underperformance from previous periods has been recovered
Portfolio Allocation Australian and New Zealand listed equities-long: 70 - 150%
Australian and New Zealand listed equities-short: 0 - 50%
International (except Australian & New Zealand)-long: 0 - 10%
International (except Australian & New Zealand)-short: 0 - 10%
Unlisted Equities (expected to be listed within 24 months)-long: 0 - 10%
Cash & Cash Equivalents: 0 - 30%
Portfolio Holdings 35 to 55 long securities
15 to 25 short securities
Suggested Timeframe 5 years or more
Distribution Semi-annually
Minimum Initial Investment $25,000

Performance

Blackwattle Long-Short 130/30 Quality Fund Performance (net of fees)1

  • Date
  • Entry ($)
  • NAV ($)
  • Exit ($)
  • Unit Price History
  • Daily Unit Price
  • 22/02/2024
  • 1.0707
  • 1.068
  • 1.0653
  • Click Here

Net Performance as at 31 January 2024

  • 1 Month
  • 3 Month
  • 1 Year
  • 3 Years (p.a.)
  • 5 Years (p.a.)
  • Since Inception (p.a.)2
  • Fund Return (Net)
  • 1.11%
  • 12.33%
  • -
  • -
  • -
  • 6.71%
  • Benchmark3
  • 1.19%
  • 13.99%
  • -
  • -
  • -
  • 7.25%
  • Active Return
  • -0.08%
  • -1.66%
  • -
  • -
  • -
  • -0.54%

1 Returns are calculated after fees have been deducted and assume distributions have been reinvested. No allowance is made for tax when calculating these figures. Past performance is not a reliable indicator of future performance. Source: Apex. 2 The inception date for the Fund is 8 Aug 2023. 3 S&P/ASX 200 Accumulation Index

Track Record of Investment Strategy

Historical performance of the investment strategy applicable to the fund (net of fees)1,4

Net Performance as at 31 January 2024

  • 1 Month
  • 3 Month
  • 1 Year
  • 2 Years (p.a.)
  • 3 Years (p.a.)
  • Since Inception (p.a.)2
  • Fund Return (Net)
  • 1.11%
  • 12.33%
  • 9.34%
  • 10.94%
  • 13.16%
  • 14.60%
  • Benchmark3
  • 1.19%
  • 13.99%
  • 7.09%
  • 9.62%
  • 9.56%
  • 11.06%
  • Active Return
  • -0.08%
  • -1.66%
  • 2.25%
  • 1.32%
  • 3.60%
  • 3.54%

1 Returns are calculated after fees have been deducted and assume distributions have been reinvested. No allowance is made for tax when calculating these figures. Past performance is not a reliable indicator of future performance. Source: Apex. 2 The inception date for the Fund is 8 Aug 2023. 3 S&P/ASX 200 Accumulation Index

4 The Blackwattle Australian Long-Short 130/30 Quality Fund (Fund) has been operating since 8 Aug 2023. The Fund employs the same Long Short strategy, investment philosophy and investment universe that was used by Ray David and Joseph Koh who managed the Schroder Australian Equity Long Short Fund. To give a longer-term view of our performance using this investment strategy, we have shown longer returns for the Schroder Australian Equity Long Short Fund. Schroder Investment Management Australia Limited, ABN 22 000 443 274 was the responsible entity of the Schroder Australian Equity Long Short Fund and was managed by the investment team whilst they were part of the investment team at Schroder Investment Management Australia Limited. Returns shown for the period from 27 August 2020 to 31 March 2023 reflect the returns of the Schroder Australian Equity Long Short Fund calculated based on exit price with distributions reinvested, after ongoing fees and expenses but excluding taxation (historical performance). This historical performance has been provided for information purposes and has been adjusted to reflect the ongoing fees applicable to the Fund. Past performance is not a reliable indicator of future performance.

This information is issued by Blackwattle Investment Partners Pty Limited (ABN 24 663 839 094) (BIP) corporate authorised representative of Blackwattle Licensing Pty Limited (ACN 665 711 839 AFSL 547 617) (corporate authorised representative no. 001304362) the investment manager of the Blackwattle Mid Cap Quality Fund. Equity Trustees Limited (ABN 46 004 031 289, AFSL No. 240975) (EQT) is the responsible entity of the Fund. This document is intended to provide general information only and is subject to change. It does not constitute an offer to subscribe for units in the Fund. The information does not consider the investment objectives, financial situation, or particular needs of any individual. You should seek advice from your licenced financial adviser and read the product disclosure statement (PDS) before making an investment decision. The PDS and target market determination (TMD) for the Fund can be obtained for free by visiting our website www.blackwattlepartners.com. The Fund commenced on [xx July 2023]. Returns shown for the Fund have been calculated using exit prices after taking into account fund ongoing fees and assuming reinvestment of distributions. No allowance has been made for taxation. Neither BIP, EQT or their related body corporates guarantee repayment of capital or any particular rate of return. An investment may achieve a lower-than-expected return and investors risk losing some or all of their principal investment. BIP has obtained information from sources it considers to be reliable but does not represent that such information is accurate or complete, or that it should be relied upon. Neither BIP nor EQT make any representations or warranties, express or implied, as to the accuracy or completeness of the information it provides and to the maximum extent permitted by law, neither BIP, EQT nor its directors, employees or agents accept any liability for any loss caused by using this information.