Australian Fund Monitors recently interviewed APSEC BDM and Client Relationship Manager Habib Chebli to learn more about the Atlantic Pacific Australian Equity Fund (APAEF).
In the video, Habib discusses:
- Assets the fund invests in and the return and risk objectives of the fund
- The fund’s investment philosophy
- The fund’s competitive edge
Watch the full interview here, and you can also find a full written transcript below.
Full interview transcript.
Click on the plus sign to see the full answer to each question:
What assets does the fund invest in and what are the return & risk objectives of the fund?
- The APAEF Buys and Short-sells Aust listed equities and ASX 200 futures, it is a variable beta long short fund, variable beta means we can change our net exposure to the market.
- Our aim is to outperform the ASX 200 by capturing upside volatility while minimising downside volatility.
- We strive to deliver strong absolute returns, irrespective of the market direction. Thus, the fund can provide investors with a return profile that is very different to the market.
- Our core focus is on downside protection, we don’t tolerate large capital drawdowns for our investors…we seek returns that outperform the market, however doing so with significantly less downside volatility than the market.
What is the fund’s investment philosophy?
- Our investment philosophy in centred around the belief that markets are inefficient and we look for asymmetrical trade opportunities, ie. where the upside potential is greater than the downside risk.
- Our aim to outperform the ASX 200 by capturing upside volatility while minimising downside volatility.
- We also believe that no one particular style of investing will always outperform. Therefore, we adopt a style neutral approach, adapting to the dominant style that is best suited depending on where the market is within its investment cycle.
- The Fund follows an investment process called Quadruple Alpha, which covers 4 key elements, these are: Fundamentals, Events, Macroeconomic factors and Quantitative Analysis.
- For Financial Advisers, our Fund may be seen as a great way of meeting the best interests duty of your clients, who might be looking for a more defensive, less volatile equity investment, which can provide diversification and is a highly differentiated offering with little or no correlation to the overall market.
What is your competitive edge?
- One of the Fund’s key competitive advantages is that the APSEC FM Team have the tools and experience to manage volatility, thus reducing downside risks through proactive hedging and trading strategies.
- Quant Analysis is conducted via the use of HALO, which is a sophisticated in-house developed research & investment management tool that (among a host of other things), provides signals for optimal timing of entering and exiting of positions.
- The ability to quickly change our net market exposure and hedge out market volatility by actively trading ASX 200 futures contracts, means the Fund can be seen as an “all-weather type fund”, where we can deliver strong returns in the medium to long-run, while preserving investor capital along the way with much lower drawdowns than the overall market.
- Fund managers who are long-only can experience large capital drawdowns when markets move against them. Our ability to minimise these drawdowns, via effective hedging, means we can build long-term compounding growth for investors and doing so in a manner that is uncorrelated to the market, providing a real point of differentiation for our investors.
- The team at APSEC FM look forward to assisting you in successfully navigating the market through all conditions, to help you achieve your investment goals – thank you for your time.
How prepared is your portfolio for the next major correction?
If you’re looking for appreciable long-term investment returns to support the future you deserve, but are concerned about and want help navigating share market risk, the APAEF has historically helped manage downside market risk.
Get in touch today and we’ll send you all the information you need to help decide how the APAEF’s long/short investment approach could help diversify and add protection to your investment portfolio.