Watershed Emerging Leaders SMA beats ASX Small Ords by 22.51%
Independent boutique investment manager Watershed Funds Management (Watershed) has announced that its Emerging Leaders portfolio has outperformed the ASX Small Ordinaries Accumulation Index by 22.51% with a return of 19.74% over the year to July 2015.
Managed as an SMA on the OneVue platform, the medium to long term objective (three to five years) is to outperform the Index by 2-3% each year and the portfolio is well ahead of this performance target with performance since inception currently sitting at 36.98%.
Headquartered in Melbourne, Watershed is an independent boutique Australian owned investment manager that utilises an MDA service to deliver client-focused investment solutions to intermediaries, financial planners, accountants and high net worth investors.
In addition, Watershed Dealer Services provides alternative licensing solutions and support services for both advisers and accountants seeking a true IFA solution.
Watershed started its suite of SMA products with a Core Aus Share and Income portfolio which the group felt was appropriate as world markets gradually recovered from the GFC. Given the global market sell off and blow out in global credit spreads, Watershed forecast strong returns from these sectors in what was still a relatively risk adverse environment.
“Our Emerging Leaders SMA was introduced two years ago as value and increasing investor confidence/interest in the sector began to emerge and the decision has been validated by the SMA returning 36.98% since inception”, said Watershed Director Adam Rowley.
“This has drastically outperformed its benchmark the ASX Small Ordinaries Accumulation Index that has returned -2.77% in the same time period”.
Commenting further on the results, Rowley said the investment team that comprises Ben Bowen, Adrian Rowley and David Arter took an objective approach in some of the best performing stocks in the space as well as isolating the right sectors by going long asset managers and aged care providers – and avoiding resources and mining services.
With an investment team with depth and breadth of experience to deliver market leading performance, the past twelve months has seen all equity SMA’s outperform their respective benchmarks, including their direct US International SMA run by Fred Strauss.
Watershed’s marketplace reputation and profile has been built on a collaborative client service offering, regular sharing of insights and the rationale behind investment decisions, market views and portfolio strategy communication, on the back of solid performance. Financial Planners view Watershed as the Investment Arm of their business. The MDA service offered is an extension of their business and offering to their clients.
Rowley concluded, “Watershed provides a number of bespoke IMA offerings incorporating the use of an MDA license to deliver a truly unique solution. Innovative and market focussed, the utilisation of technology coupled with our MDA licensing capabilities allows us to implement these strategies efficiently and effectively”.
“We are confident that Watershed will continue to attract growing interest from advisers seeking access to SMA’s, MDA & Managed Account solutions as well as advisers / accountants looking for an independent non aligned licensee alternative in the post FoFA era”.
