Antares Income Fund (PPL0028AU) Report & Performance

What is the Antares Income Fund fund?

Antares Income Fund aims to provide regular income and a return (after fees) that exceeds the Benchmark over rolling three-year periods. The fund strategy is not currently available for this fund. The Fund provides investors with a highly diversified exposure to a range of cash, cash equivalent, and fixed interest and debt securities.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Antares Income Fund

Antares Income Fund Fund Commentary September 30, 2023

Yield curves bear steepened significantly over the quarter, with the sell-off in long bonds being driven by a sharp increase in real yields. With the macro backdrop remaining resilient, markets shifted towards Central Bank views that high-rate structures for longer are likely needed to bring inflation back down to target levels.

Rates price action over the quarter saw US 10-year yields increase 73bps, from 3.84% to 4.57%, and AU 10-year yields increase 46bps, from 4.08% to 4.54%. The US 10-year real yield rose 88bps and reached a high of 2.48%, while the AU 10-year real yield rose 36bps. The bear steepening curve also reduced the US curve inversion, with spreads between US 2-year and 10-year yields moving from -105bps to -47bps.

The sell-off in long end yields was driven by several factors, including the BOJ loosening its Yield Curve Control policy, a larger than expected US Treasury borrowing program, a surge in corporate bond issuance and Fitch’s US downgrade to AA+, and concerns around the ability of the US government to avoid a shutdown.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Antares Income FundPPL0028AUManaged FundsFixed IncomeDiversified CreditFixed Income - Diversified Credit IndexGlobal Aggregate Hdg Index117.73 M0.29%0.00%0.05%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Antares Income Fund0.49%1.52%6.29%3.72%2.75%0.34%1.14%0.85%0%-1.38%-1.41%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Antares Income FundFixed Income - Diversified Credit Index-1.98%-0.67%NA%NA%NA%0.032.12%1.71%0.180.58

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Antares Income FundYes105-153 Miller Street North Sydney, NSW 2060 Australia+61 03 8634 4721https://www.mlc.com.au/-

Product Due Diligence

What is Antares Income Fund

Antares Income Fund is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Diversified Credit Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Antares Income Fund has Assets Under Management of 117.73 M with a management fee of 0.29%, a performance fee of 0.00% and a buy/sell spread fee of 0.05%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Antares Income Fund has returned 0.49% in the last month. The previous three years have returned 3.72% annualised and 0.85% each year since inception, which is when the Antares Income Fund first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Antares Income Fund first started, the Sharpe ratio is NA with an annualised volatility of 0.85%. The maximum drawdown of the investment product in the last 12 months is 0% and -1.41% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Antares Income Fund has a 12-month excess return when compared to the Fixed Income - Diversified Credit Index of -1.98% and -0.67% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Antares Income Fund has produced Alpha over the Fixed Income - Diversified Credit Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Fixed Income - Diversified Credit Index category, you can click here for the Peer Investment Report.

What level of diversification will Antares Income Fund provide?

Antares Income Fund has a correlation coefficient of 0.58 and a beta of 0.03 when compared to the Fixed Income - Diversified Credit Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Antares Income Fund and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Antares Income Fund with the Global Aggregate Hdg Index?

For a full quantitative report on Antares Income Fund compared to the Global Aggregate Hdg Index, you can click here.

Can I sort and compare the Antares Income Fund to do my own analysis?

To sort and compare the Antares Income Fund financial metrics, please refer to the table above.

Has the Antares Income Fund been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Antares Income Fund?

If you or your self managed super fund would like to invest in the Antares Income Fund please contact 105-153 Miller Street North Sydney, NSW 2060 Australia via phone +61 03 8634 4721 or via email -.

How do I get in contact with the Antares Income Fund?

If you would like to get in contact with the Antares Income Fund manager, please call +61 03 8634 4721.

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Antares Income Fund. All data and commentary for this fund is provided free of charge for our readers general information.

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Historical Performance Commentary

Performance Commentary - August 31, 2023

Yield curves continued to bear steepen in August, led by higher real yields driven by the US Treasury’s large program of bond issuance, the impact of Japan loosening its yield curve control policy, and Fitch’s downgrade of the US from AAA to AA+, all of which increased term risk premia.

During the month, US ten-year bonds reached highs not seen since October last year, with the US ten-year yield peaking at 4.33% during the month. Expectations of rate cuts in the US pushed further out into next year as economic data showed overall continued resilience in the economy and labour market. Fed rhetoric maintained the higher rates for longer message, highlighting that inflation is still too high and that upside risks remain from ongoing services inflation and the energy sector with recent increases in oil prices.

The RBA paused in August, with softer wages and monthly CPI data allowing more time to assess the impact of the tightening cycle to date. Australian ten-year yields reached a high of 4.33% during the month, ending the month at 4.00%.

There are increased concerns over an economic slowdown in China, driven by the property sector and a muted policy response by the Chinese government. The potential risks for the Australian economy were reflected in market pricing, with Aussie iTraxx widening 19 basis points to an intra month high above 90 intra before falling back to 77 by the end of the month.

Weaker economic data coming out of Europe, in particular Germany and the UK, showed increased stagflation risks compared to the US economy, which remains strong.

Performance Commentary - July 31, 2023

July saw a steepening in the back end of yield curves as Japan loosened its Yield Curve Control, allowing long term rates to trade in a wider range, and the US Treasury increased its borrowing estimates for the third quarter of 2023 to over one trillion dollars.

Market pricing reflected an increased probability of a soft landing as inflation eased amid a resilient US economy, overall strong US corporate earnings, and a perceived reduction in recession risk. In contrast, Europe and China are experiencing a more pronounced slowdown. China GDP was +6.3% in July vs +7.1% expected, and Eurozone GDP came in at +0.6%. There is uncertainty around the global impact of a slowing China but there is a growing consensus that it will continue to export disinflation in manufactured goods.

Central bank rhetoric over the month was that additional policy action may be required but that forward guidance would be data dependent from meeting to meeting given the uncertainty around the economic impact of the hiking cycle to date. Although headline inflation continues to fall, core inflation remains sticky, particularly around services, which was evident in the Australian July CPI data. Of particular concern is inflation from housing and rents, as strong demand is being met with supply shortages, reflecting a structural imbalance in the property and construction sectors.

Performance Commentary - June 30, 2023

Markets continue to unwind their expectations around imminent recession risks with continued strong economic data and sticky core inflation, causing markets to push out rate cut expectations from 2023 into 2024.

Term premiums were negative in June as yields moved higher in response to most major central banks continuing to raise rates. Even the Fed’s pause was deemed hawkish, as Powell acknowledged there is more work to do to ensure rates are restrictive enough for long enough to combat inflation. Major yield curves continued to invert.

Market pricing of the US terminal cash rate increased from 5.28% at the end of May to 5.41% at the end of June. Market timing of the terminal rate also pushed it out from July to November. Over the month, there was mixed US economic data, but overall, the data showed the economy remained strong, showing no clear slowdown trend. US housing starts and building permits beat market estimates, as did JOLTS Job openings, non-farm payrolls, ADP employment, and retail sales. GDP came in at 2.0% vs 1.4% expected, and US consumer sentiment was stronger than expected. On the inflation front, core inflation came in higher than expected at 5.3%, but other measures of inflation, including headline and the Fed’s preferred core PCE deflator, came in lower than expected. Unit labour costs, ISM prices paid, and ISM services also came in lower than expected.

There was softer economic data in the Eurozone, with inflation printing lower than expected except for the UK where both headline and core inflation came in stronger than expected and the Bank of England raised rates by 50 basis points. Most European central banks also raised rates, with ECB’s Lagarde providing forward guidance for further hikes. China’s recovery continues to stall. Annual inflation came in at 0.2%, the PBOC cut rates by 10bps, retail sales disappointed, and plans were announced for more stimulus and support for the property sector.

Australian yields were higher in June as the RBA made a hawkish pivot, hiking 25bps as the economy and labour market remained strong. Headline inflation came in lower than expected, driven by sharp falls in energy and travel. However, excluding these categories, inflation increased 0.5% month on month, showing core inflation remains sticky. Credit securities outperformed over the month as spreads narrowed in response to markets pushing out the timing of monetary policy tightening on corporate earnings.

Performance Commentary - May 31, 2023

Risk sentiment increased in May, driven by uncertainty around ongoing US debt ceiling negotiations, which saw a resolution towards the end of the month. Despite the ten plus rate hikes delivered by central banks over the past year, there is still a lack of definitive evidence of their impact in the economic data. This, coupled with continued strong wage, labour market, and sticky services inflation saw most major central banks hike 25bps in May. Markets responded by pushing bond yields higher and pricing in a higher rate structure for the remainder of 2023 to be more in line with hawkish central bank rhetoric.

The RBA’s 25bps hike in May was driven by mixed economic data and concerns over a wage price spiral without the productivity gains to match. The Fair Work Commission delivered a 5.75% increase to the minimum wage at the end of May. Rhetoric from the RBA throughout the month suggests the board is reviewing its stance on the tradeoff between preserving the gains made in employment vs their price stability mandate.

Performance Commentary - April 30, 2023

After multiple bank collapses in March, market volatility fell in April. However, markets remain nervous about broader global contagion risks from the US regional banking system. Macro data over the month showed increased risks to a stagflation scenario with elevated inflation and signs of weaker growth. The US continued to see mixed economic data with mixed manufacturing data, lower factory and durable goods orders, lower than expected GDP, mixed services data, higher one year inflation expectations, and stronger retail sales.

The labour market remains resilient despite some weaker data during the month. This was against a backdrop of Fed rhetoric questioning if they have achieved an adequately restrictive cash rate to bring inflation back down to their 2% target and markets trying to pick the peak of the rate hiking cycle. US core inflation levels remain at elevated levels. There was also mixed economic data globally, with lower than expected inflation in Germany and Spain and higher than expected inflation in the UK and France. Domestically, the RBA paused in April, waiting for the quarterly CPI data which showed sticky core services inflation and goods inflation coming off recent peaks. A key takeout from the RBA review was a change in the inflation target to the midpoint of the 2-3% target band and a new monetary policy board to be created.

Performance Commentary - March 31, 2023

Bond yields rallied, yield curves bull steepened, and credit spreads widened as the collapse of three US banks; Signature Bank, Silvergate Bank, and Silicon Valley Bank (SVB) and Credit Suisse rattled financial markets in March, raising fears of contagion across the banking sector and the broader economy.

The month started with markets pricing in a Fed terminal rate of 5.50% and an RBA terminal rate of around 4.20% off the back of continued strong economic and labour market data and a hawkish Fed reiterating rates would need to be higher for longer to bring inflation back to 2%. Markets were at odds with the Fed, pricing in a hard economic landing in the second half of 2023.

On March 10, 2023, Silicon Valley Bank (SVB) failed after a bank run, marking the second-largest bank failure in United States history and the largest since the 2007–2008 financial crisis. The response from US regulators and the Fed was swift to minimise the risk of market contagion. US regulators announced that all insured and uninsured depositors at SVB would have access to their funds. The Fed then established a Bank Term Funding Program (BTFP) which offered qualifying US banks the ability to borrow funds for up to 1 year by allowing long term US treasuries to be posted as collateral at par to avoid realising losses. There was also a strong global central bank response with liquidity provisions in addition to the Fed’s discount window liquidity facility. California’s First Republic Bank avoided a potential collapse after a group of firms provided a cash injection.

After the collapse of SVB, Credit Suisse (CS) also faced a similar bank run, which escalated after its largest shareholder, Saudi National Bank, refused to provide additional funding. CS sought assistance from the Swiss National Bank (SNB), and a deal was done for UBS to acquire CS for less than half the market value of its last closing price.

Performance Commentary - February 28, 2023

February was characterised by continued stronger than expected global economic data, sticker core and services inflation, strong labour markets and more hawkish higher rates for longer rhetoric from the Fed and other central banks. This has meant markets have pivoted from expecting that central banks were approaching the end of the hiking cycle, that peak inflation had past and a likely soft economic landing this year, to the prospect of reinflation and an extended hiking cycle. As a result, markets repriced terminal rates higher and pulled back on rate cut expectations for this year. In the US, unemployment reached a 50-year low, reiterating the strength of the labour market. After a spectacularly strong US payrolls print, markets also pushed out the timing of recession risks. Wages growth also remained strong, with the Fed acknowledging that the current level of wages growth is inconsistent with their 2% inflation target. This highlights the challenge central banks face in determining appropriate monetary policy settings to create a sufficient tightening in financial conditions to bring inflation back down to target while balancing the impact on the economy. The Bank of England and European Central Bank both hiked 50bps in February and flagged further hikes after upgraded growth forecasts and higher than expected inflation across the Eurozone. The RBA maintained its 25bps hike cadence after monthly CPI data suggested inflation had peaked, unemployment rose, tighter financial conditions impacted household consumption, and softer Wage Price Index (WPI) data suggested the risks of a wage price spiral remain low for now. However, it is recognised there was some seasonality in the unemployment data and limited scope of the monthly CPI and WPI metrics. As at the end of February global and domestic credit spreads remained contained with recession risks being pushed out off the back of continued strong economic data over the month.

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