Analytic Global Managed Volatility FundA diversified, low volatility portfolio of global equities

Please note: this Fund is now closed to applications. Please contact your financial adviser for more information.

What the Analytic Global Managed Volatility Fund aims to offer

Low volatility exposure

Potential for high long-term returns at significantly lower risk than the benchmark

Active quantitative investment approach

Identifying low-risk securities

Defensive investing

Focus on providing downside protection in volatile markets

Fund facts
Investment objective The Analytic Global Managed Volatility Fund aims to achieve a long-term return (before fees and expenses) that equals to or exceeds the MSCI World ex Australia Index, in $A unhedged, with net dividends reinvested (Benchmark), at a lower volatility level (measured by the standard deviation of returns).
Benchmark MSCI World ex Australia Index, in $A unhedged with net dividends reinvested
Portfolio managers Harin de Silva, Dennis Bein and David Krider
Inception date 21 August 2012
Fund size $A77.8m (current as at 30 September 2018)
Management fee 0.62%pa of the net asset value of the Fund
Performance fee 0.00%
Minimum investment $A20,000
Distribution frequency Generally semi-annually
APIR code MAQ0796AU
Macquarie Professional Series The Analytic Global Managed Volatility Fund is proudly brought to you by Macquarie Professional Series. Learn more

Read the Product Disclosure Statement for more details on fees and expenses that may be charged.

Investment strategy

The Fund provides exposure to global equities with lower forecasted volatility when compared to the Benchmark.

Analytic believes that while financial theory would suggest that the more risk an investor takes on the higher their return will be, the reality is that this has seldom played out in equity markets.

Through detailed internal research and published academic research, Analytic has found that there is no material long-term relationship between risk and return in equity markets. In essence, stocks with low volatility have kept pace with stocks with high volatility over the long term.

In constructing a portfolio of low volatility global equities with benchmark-like returns, Analytic uses a quantitative, risk-based approach that focuses on identifying the risk characteristics (volatility measures) of individual securities and forecasting risk. It also uses an optimisation process, which attempts to calculate the most efficient combination of securities to produce a low volatility portfolio.

Analytic's investment team believes that there is no long-term relationship between risk and return in equity markets. In other words, over the long term, stocks with low volatility tend to keep pace with stocks with high volatility.

Analytic's investment team also takes the view that the level of risk in global markets is constantly changing. Its dynamic investment process takes this into account by continually assessing both long-term and short-term risk levels. The investment team monitors the Fund's portfolio of stocks daily and changes the portfolio composition both as market risks change, and as individual security risk and return forecasts change.

Performance

Net returns as at 31 August 2018

 
Period 1m (%) 3m (%) 6m (%) 1y (%) 2y (%pa) 3y (%pa) 5y (%pa) Inception* (%pa)
Analytic Global Managed Volatility Fund** 0.26 4.30 8.03 11.66 8.24 12.66 14.36
Benchmark*** 0.56 7.35 13.36 20.82 12.42 15.24 18.35

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Past performance is not a reliable indicator of future performance. Total returns are calculated based on changes in net asset values and assumes the reinvestment of distributions.

* Inception date is 21 August 2012

** Total net returns are quoted after the deduction of all fees and expenses. Due to individual investor circumstances, your net returns may differ from the net returns quoted above

*** The benchmark is the MSCI World ex Australia Index, in $A unhedged with net dividends reinvested

Managers

Harin De Silva
Dennis Bein
David Krider

Meet the managers

29 October 2015

As the pioneers in low volatility investing, Dennis Bein, Chief Investment Officer and Portfolio Manager at Analytic Investors LLC, discusses Analytic’s investment approach and what the Analytic Global Managed Volatility Fund could offer investors.

Risks

All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying assets. Generally, the higher the potential return of an investment, the greater the risk. The risks of investing in this Fund include:

Investment risk: The Fund has exposure to share markets. The risk of an investment in the Fund is higher than an investment in a typical bank account or fixed income investment. Amounts distributed to unitholders may fluctuate, as may the Fund’s unit price. The unit price may vary by material amounts, even over short periods of time, including during the period between a redemption request or application for units being made and the time the redemption unit price or application unit price is calculated.

Market risk: Share markets can be and have been volatile, and have the potential to fall by large amounts over short periods of time. The investments of the Fund are likely to have a broad correlation with share markets in general, and hence poor performance or losses in domestic and/or global share markets are likely to negatively impact the overall performance of the Fund.

International investments risk: The fund invests in a range of international securities, and in companies that have exposure to a range of international economies. Global and country specific macroeconomic factors may impact the fund's international investments. Governments may intervene in markets, industries, and companies; may alter tax and legal regimes; and may act to prevent or limit the repatriation of foreign capital. Such interventions may impact the fund's international investments.

More information on the risks of investing in the Fund is contained in the Product Disclosure Statement, which should be considered before deciding to invest in the Fund.

How to invest

Resources

Insights

Lifting the lid on low volatility investing

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Currency insights: beyond the lucky country

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The low volatility anomaly

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