Atrium Evolution Series — Diversified Fund AEF 9 (COL0031AU) Report & Performance

What is the Atrium Evolution Series — Diversified Fund AEF 9 fund?

Atrium Evolution Series — Diversified Fund AEF 9 aims to maximise the return on the Portfolio while remaining within a pre-determined risk or volatility limit. The fund also aiming to outperform the RBA Cash Rate by 4.5% p.a. (after fees) over 5 to 7 year. The Portfolios are diversified across cash related investments, equity related investments and non-equity related investments. The Portfolios may be invested directly and through underlying funds managed by specialist managers. The Portfolios are designed to be diversified across investments in equities, interest rates and credit (such as cash and fixed income), liquid alternatives, currencies, and private markets (including real assets).

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Atrium Evolution Series — Diversified Fund AEF 9

Atrium Evolution Series — Diversified Fund AEF 9 Fund Commentary August 31, 2023

Performance was notably positive during a month marked by declines in both domestic and global equity markets. This underscores our commitment to achieving a smoother and more consistent return profile for our portfolios.

The standout contributors to our performance included our liquid alternative strategies, particularly the P/E Global FX Alpha Fund, which delivered an impressive return for the month driven by a short position on the Australian dollar. Additionally, the Crown Diversified Macro Fund made a significant positive contribution.

Among our global equity managers, our listed infrastructure exposure lagged due to the impact of higher real yields on performance. However, the Atrium Global Equities Mandate, managed by Magellan, and the Fairlight Global Small and Mid-Cap Fund delivered robust positive returns for the month.

In the realm of Australian equities, the Atrium Equity Opportunities Fund posted positive results despite a negative index return, with Carsales.com being a key contributor to this performance.

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.
Atrium Evolution Series — Diversified Fund AEF 9COL0031AUManaged FundsMulti-AssetSpecialisedMulti-Asset - Specialised IndexMulti-Asset Growth Investor Index310.67 M2.11%0.00%0.3%

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.
Atrium Evolution Series — Diversified Fund AEF 9-0.03%0.07%6.11%2.7%7.02%5.82%6.26%6.06%-3.51%-9.99%-9.99%

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.
Atrium Evolution Series — Diversified Fund AEF 9Multi-Asset - Specialised Index-3.09%1.24%NA%NA%NA%0.91.99%2.15%0.950.94

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Atrium Evolution Series — Diversified Fund AEF 9YesLevel 9, 10 Spring St, Sydney NSW 200002 9248 8090https://www.atriuminvest.com.au/investors@atriuminvest.com.au

Product Due Diligence

What is Atrium Evolution Series — Diversified Fund AEF 9

Atrium Evolution Series — Diversified Fund AEF 9 is an Managed Funds investment product that is benchmarked against Multi-Asset Growth Investor Index and sits inside the Multi-Asset - Specialised 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 Atrium Evolution Series — Diversified Fund AEF 9 has Assets Under Management of 310.67 M with a management fee of 2.11%, a performance fee of 0.00% and a buy/sell spread fee of 0.3%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Atrium Evolution Series — Diversified Fund AEF 9 has returned -0.03% in the last month. The previous three years have returned 2.7% annualised and 6.06% each year since inception, which is when the Atrium Evolution Series — Diversified Fund AEF 9 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 Atrium Evolution Series — Diversified Fund AEF 9 first started, the Sharpe ratio is NA with an annualised volatility of 6.06%. The maximum drawdown of the investment product in the last 12 months is -3.51% and -9.99% 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 Atrium Evolution Series — Diversified Fund AEF 9 has a 12-month excess return when compared to the Multi-Asset - Specialised Index of -3.09% and 1.24% 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. Atrium Evolution Series — Diversified Fund AEF 9 has produced Alpha over the Multi-Asset - Specialised 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 Multi-Asset - Specialised Index category, you can click here for the Peer Investment Report.

What level of diversification will Atrium Evolution Series — Diversified Fund AEF 9 provide?

Atrium Evolution Series — Diversified Fund AEF 9 has a correlation coefficient of 0.94 and a beta of 0.9 when compared to the Multi-Asset - Specialised 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 Atrium Evolution Series — Diversified Fund AEF 9 and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Atrium Evolution Series — Diversified Fund AEF 9 with the Multi-Asset Growth Investor Index?

For a full quantitative report on Atrium Evolution Series — Diversified Fund AEF 9 compared to the Multi-Asset Growth Investor Index, you can click here.

Can I sort and compare the Atrium Evolution Series — Diversified Fund AEF 9 to do my own analysis?

To sort and compare the Atrium Evolution Series — Diversified Fund AEF 9 financial metrics, please refer to the table above.

Has the Atrium Evolution Series — Diversified Fund AEF 9 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 Atrium Evolution Series — Diversified Fund AEF 9?

If you or your self managed super fund would like to invest in the Atrium Evolution Series — Diversified Fund AEF 9 please contact Level 9, 10 Spring St, Sydney NSW 2000 via phone 02 9248 8090 or via email investors@atriuminvest.com.au.

How do I get in contact with the Atrium Evolution Series — Diversified Fund AEF 9?

If you would like to get in contact with the Atrium Evolution Series — Diversified Fund AEF 9 manager, please call 02 9248 8090.

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Atrium Evolution Series — Diversified Fund AEF 9. 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 - July 31, 2023

The commencement of the new fiscal year witnessed the continuation of a robust upward trend in global equity markets. During this period, the Fund registered a favourable performance, largely attributed to the contributions from equities.

Among equities, both domestic and international stocks yielded substantial gains throughout the month. Standout performers included Fairlight Global Small and Midcap Fund, Hyperion Global Growth Companies Fund, and Antipodes Global Fund – Long Only. The latter effectively capitalized on a vigorous recovery in emerging markets and cyclical stocks. On the other hand, certain areas of our listed infrastructure exposure struggled to keep pace, as investor sentiment shifted towards growth and cyclical stocks while steering away from defensive assets.

The performance of our liquid alternative investments exhibited a more varied pattern. The Crown Diversified Macro Segregated Portfolio achieved positive returns, while our risk premia and currency strategies experienced a downturn over the same period. Our recent venture into insurance bonds has proven to be fruitful thus far.

Performance Commentary - June 30, 2023

The Fund concluded the financial year on a strong note, achieving solid returns in the last quarter. The primary driver behind this performance was global equities, complemented by notable contributions from liquid alternatives and private markets.

Regarding growth allocations, our decision to overweight global equities compared to domestic equities continued to yield positive results. The standout performer during the quarter was the Hyperion Global Growth Companies Fund, which excelled due to its positioning in mega-cap US technology and consumer discretionary companies like Tesla and Amazon. These holdings played a crucial role in driving market performance during this period. However, it’s worth mentioning that in a market driven by a limited set of stocks, some of our global equity managers, such as Antipodes Global Long Only and Northcape Global Equities, lagged the broader index. On the contrary, our global small and mid-cap manager, Fairlight, outperformed its benchmark as underlying companies delivered solid revenue and earnings even in a slowing economy.

Additionally, our Global Equities mandate managed by Magellan delivered a strong performance in line with global markets throughout the quarter.

On the other hand, our listed global infrastructure exposure continued to lag due to rising real interest rates, which acted as a hindrance for long-duration assets.

In terms of domestic equity exposure, the performance was mixed during the quarter. The Atrium Equity Opportunities Fund fell behind its benchmark primarily because it had an overweight allocation to defensive sectors like Consumer Staples, Infrastructure, and Healthcare. Treasury Wine Estates and CSL were the key detractors during this period, with CSL announcing a slight downgrade to earnings. Pilbara Minerals added to relative returns and two recent additions, Carsales.com and Worley, were also positive contributors. The SGH ICE Fund delivered positive performance as smaller companies outperformed their larger equivalent after a period of underperformance.

Our liquid alternatives exposure made a positive contribution to our performance throughout the quarter and continues to fulfill its role as a portfolio diversifier. Notably, the Crown Diversified Macro Fund benefited from strong performances driven by its underlying trend-following strategies. Similarly, the P/E Global FX Alpha Fund performed well due to its long US dollar and short Yen positioning. On the flip side, our recently added Commodity Long/Short strategy faced challenges in an environment where macro and micro influences on prices conflicted.

The allocation to private markets within the portfolio has continued to meet our expectations with a number of positive revaluations over the calendar year. Given the backdrop of more difficult trading conditions in the sector (particularly commercial real estate), we remain diversified across sectors and geographies which in our opinion will position us favourably as asset values, particularly in lower-grade commercial properties in major East Coast capital markets, face increasing pressure.

Performance Commentary - May 31, 2023

As global markets continue to navigate an environment of rising interest rates and sticky inflation, the portfolios continue to be positioned well in this environment. Pleasingly, our liquid alternatives strategy continued to play the diversifier role while also delivering strong risk adjusted returns, with the majority of our managers positive for the month. The liquid alternatives allocation was the major positive contributor to performance over the month due to P/E Global FX Alpha benefiting from a long US dollar position, followed by trend and macro strategies performing well.

Offsetting the strong returns in Alternatives, Australian equities underperformed along with listed infrastructure. Global share managers allocations were marginally positive, outperforming the global share indices. Within our global equity sleeve, Hyperion Global Growth Companies was the standout yet again given the recent tech rally. Our exposure to Global Small and Mid-Cap equity manager Fairlight also delivered a positive return during the month, as quality equities overall continue to perform well. The Atrium Equity Opportunities Fund was a detractor from performance, with Treasury Wine Estates suffering from an earnings downgrade.

Performance Commentary - April 30, 2023

Global markets continued to climb despite global central bank rate hikes, regional bank failures in the US and looming recession worries. All of the Fund’s underlying sectors contributed positively to performance for the month, with global equities the standout. The majority of our equity managers outperformed their respective benchmarks over the month. Their focus on quality companies has been rewarded by markets in the last few months as investors sought safer havens with a global slowdown beckoning. Standout performers over the month included our global equity mandate managed by Magellan and the Northcape Global Equities Fund. Within liquid alternatives, it was pleasing to see the strong recovery amongst our trend following strategies as heightened volatility and dispersion between markets and sectors continued to enhance their opportunity set. The key driver of performance within the sleeve was the Crown Diversified Trend Access Fund, with positive drivers from positions in sugar and Yen.

Performance Commentary - March 31, 2023

The first quarter of 2023 has proven to be quite tumultuous, with bond markets in particular showing levels of volatility unseen in decades. While global equity markets finished the quarter higher, the risk of recession is rising as higher interest rates slow economic activity and corporate earnings.

The Fund was positive for the quarter on the back of the allocation to global shares, global credit, private markets and Australian shares. All asset classes contributed positively to performance over the quarter, with the exception of liquid alternatives which gave back some of the strong returns generated in 2022. Within our Growth allocation, global equities were a strong positive driver of returns with key standouts including Hyperion Global Growth Companies which delivered a stellar 30% return on the back of holdings in Tesla, Spotify, ServiceNow and Airbnb. The was complemented across our other global equity managers, all performing strongly with the pivot towards quality companies rewarded.

The Fairlight Global Small and Mid Cap Fund outperformed its respective benchmark by almost 5% in March alone. Offsetting this was our allocation to Australian equities which modestly underperformed the benchmark over the quarter. Key positive contributors included Woolworths, toll road operator Transurban, and Gold Miner Northern Star, while detractors included Domino’s which reported a weaker than forecast result. Within our Diversifiers allocation, the unprecedented volatility notably in the bond market caused many of our trend following strategies to rapidly adjust positions. Many of these strategies were positioned for a further bond sell-off, just as the regional banking crisis emerged in the US. This highlights one of the benefits of these strategies which is the ability to move to cash in an uncertain environment. On the other side of the ledger, our discretionary long short manager Zebedee Capital Partners performed well, helped by a welltimed European financials exposure, while our currency strategy P/E Global FX Alpha Fund and risk premia strategy Two Sigma Alternative Risk Premia also delivered positive returns over a very volatile quarter. Our private markets exposure continues to perform well and deliver strong risk adjusted returns. Our investment in refurbishing 388 Hay Street in the upmarket Perth suburb of Subiaco, has delivered positive results, with a large majority of the site now leased at substantially improved terms from an income and leasing profile perspective. This has delivered an uplift in asset valuation and will see capital returned to the Fund. The investment team have continued to focus on developing the pipeline of investments which we expect to crystalise within the next two quarters. These include opportunistic value add realestate projects, infrastructure assets and unlisted debt exposures.

Performance Commentary - February 28, 2023

The optimism of January gave way to realism in February, as markets digested news that inflation was “stickier” than first thought and that global central banks would need to lift interest rates higher than anticipated for a much longer period to rein in price growth. Whilst domestic equity and bond markets were lower for the month, the Fund was able to protect capital, highlighting the importance of genuine diversification. The contributors to performance included liquid alternatives and global equities, with the majority of our global equity managers delivering a positive return over the month. Positive contributors included P/E Global FX Alpha Fund, which benefitted from the sharp rise in the US dollar, and the Hyperion Global Growth Companies Fund which performed well on the back of a continued strong rise in Tesla. The main detractor to performance included the Atrium Equity Opportunities Fund, which was negatively impacted by both BHP Group and Domino’s exposure.

Performance Commentary - January 31, 2023

The Fund was positive in January as markets showed a significant bounce after a torrid 2022. The key driver of performance was equities, which performed exceptionally well as the case for an economic “soft landing” was revisited with inflation looking to have moderated globally. Investments within rates and credit as well as private markets also contributed to positively to performance, while our liquid alternatives exposure was the only detractor. Amongst our equity exposures, the Atrium Equity Opportunities Fund performed broadly in-line with the market, while the Hyperion Global Growth Companies Fund delivered more than 10% above benchmark for the month after a very strong rebound in both Tesla and Amazon.

Our allocation to global equities significantly outperformed the index, with the Antipodes Global Fund – Long continuing to perform exceptionally well. Within our diversifiers, a number of our underlying exposures gave back some of last year’s strong performance as markets aggressively rebounded. These managers had largely been positioned for a weaker macro environment which worked against them in January. Key detractors included the Crown Diversified Macro Segregated Portfolio and P/E Global FX Alpha Fund.

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