Wheelhouse Global Equity Income aims to generate 7-8% in annual income while only taking half the risk of Global equities. In addition, to outperform the Benchmark over a rolling 5-year period. Systematic income generative overlay (Buywrite) with integrated tail protection.
What is Wheelhouse Global Equity Income Wheelhouse Global Equity Income is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Other 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 Wheelhouse Global Equity Income has Assets Under Management of 43.76 M with a management fee of 0.79%, a performance fee of 0 and a buy/sell spread fee of 0.6%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Wheelhouse Global Equity Income has returned 3.16% in the last month. The previous three years have returned 3.67% annualised and 7.55% each year since inception, which is when the Wheelhouse Global Equity Income 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 Wheelhouse Global Equity Income first started, the Sharpe ratio is 0.61 with an annualised volatility of 7.55%. The maximum drawdown of the investment product in the last 12 months is -5.88% and -8.51% 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 Wheelhouse Global Equity Income has a 12-month excess return when compared to the Foreign Equity - Other Index of -11.48% and -4.89% 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. Wheelhouse Global Equity Income has produced Alpha over the Foreign Equity - Other Index of -0.6% in the last 12 months and 0.05% since inception.
What are similar investment products?
For a full list of investment products in the Foreign Equity - Other Index category, you can click here for the Peer Investment Report.
What level of diversification will Wheelhouse Global Equity Income provide?
Wheelhouse Global Equity Income has a correlation coefficient of 0.68 and a beta of 0.48 when compared to the Foreign Equity - Other 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 Wheelhouse Global Equity Income and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Wheelhouse Global Equity Income with the Developed -World Index?
For a full quantitative report on Wheelhouse Global Equity Income compared to the Developed -World Index, you can click here.
Can I sort and compare the Wheelhouse Global Equity Income to do my own analysis?
To sort and compare the Wheelhouse Global Equity Income financial metrics, please refer to the table above.
Has the Wheelhouse Global Equity Income 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 Wheelhouse Global Equity Income?
How do I get in contact with the Wheelhouse Global Equity Income?
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Wheelhouse Global Equity Income. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 2022 The Wheelhouse Global Equity Income Fund seeks to deliver a 7-8% real income return, while only assuming around half the market risk (targeted beta of 0.5). This results in consistent absolute return characteristics for Australian investors.
As such, the Global strategy is a risk-minimisation strategy, or a goals-based strategy, where the objective is to reduce risk as much as possible while still achieving a return similar to equities. This approach stands in contrast to most other long-only strategies which are return-maximising and assume full market risk.
In addition to managing a rules-based option overlay, active ‘always-on’ tail protection is used to help defend against capital losses during acute market drawdowns. When combined with the historical defensiveness of the Australian dollar during times of crisis (the fund is unhedged on currency), capital integrity has been meaningfully enhanced during times of crisis.
High yield for minimal risk, or as we like to say, Income and Protection.
Performance Commentary - June 30, 2021 The Fund distributed 2.88c per unit for the June quarter taking the trailing annual income distribution to 8.68c. This is consistent with the fund objective of 7-8% income yield, while only taking around half the market risk (measured in Beta). This meaningfully lower risk is reflected in a very stable capital value, which has hovered around $1.00 despite all the gyrations in the market since the Wheelhouse Fund inception in May 2017. Underlying income generation has averaged 90bps per month in recent years, even excluding the unusually high-income generation produced over the Coronavirus quarter in March 2020. Looking forward, we remain comfortable that a 7-8% income return is achievable whilst assuming only around half of the equity market’s risk.
Performance Commentary - December 31, 2020 The Fund distributed 1.90c per unit for the September quarter taking the annual income distributed per unit to 7.37 cents. The Fund is designed to deliver a 7-8% annual yield, while only taking around half the market risk (measured in Beta). This low market risk is reflected in a very stable capital value, which has hovered around $1.00 despite all the gyrations in the market since the Wheelhouse Fund inception in May 2017. Income generation has been consistent over the years and as expected has provided most of the fund’s returns. Importantly, the income generation has been nearly entirely funded by real return over this period, leaving a stable capital base that we believe will grow over time.
Distributions are paid quarterly and as previously advised, we are targeting a similar cents per unit each quarter that matches the underlying income generation during that period. Historically the June quarter was a larger ‘catch-up’ quarter however going forward we expect it to be similar to the three interim payouts The distribution is principally comprised of option premium, with dividend income typically accounting for around 1.2% of the total yield. After drastic cuts during 2020 due to the pandemic, dividend expectations are increasing for the S&P500 and are now approaching levels seen pre-COVID.
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