This rating complements the manager’s “Superior” rating from SQM Research^[2] and reaffirms its ability to generate risk adjusted returns in line with its stated objectives.

“Swell considers itself a quality-focused value investor but has also described its style as closely resembling a blend approach as some holdings have growth characteristics,” the Lonsec report stated.

“Swell’s strong emphasis on a company’s quality, competitive advantage and economic moat is viewed as introducing a growth dimension to the philosophy, which has been observed empirically, and more closely resembling a growth at reasonable price approach.”

Swell Chief Executive Officer, Stephen Poole said the group’s unique investment process had delivered strong investment outcomes for wholesale investors for the past six years, leading to the September launch of the Swell Global Portfolio to give retail investors access to the manager’s capabilities.

“We are looking forward to working with financial advisers and investment consultants,’’ he said.

Swell’s global portfolio is a concentrated portfolio of between 10-20 large companies.

It aims to return 9 per cent per annum (net of fees) over rolling three-year periods.

The fund’s “Superior” rating from SQM Research reflects Swell’s “appreciable potential to outperform over the medium-to-long term”.

According to SQM, Swell has a “robust” investment philosophy, and stock selection and portfolio construction process.

“The strategy employs rigorous and demanding investment criteria with an emphasis on screening for superior business quality, growth and valuation. Sectors deemed high risk are generally avoided,” the SQM report stated.

As at August 31, 2021, Swell Asset Management had $105.5 million under management.

For the five years to October 31, 2021, Swell’s absolute return strategy has returned 19.96% annualised.

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[1] The rating issued is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2021 Lonsec. All rights reserved.
[2] The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product

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The Swell Global Fund replicates the group’s highly successful absolute return strategy, which recently surpassed $100 million in funds under management, after a period of strong inflows and stellar outperformance.

In the five years to July 31, 2021, the Swell Global Portfolio has delivered an annualised return of 20.67 per cent, outperforming the MSCI World Index by 5.61 per cent (after fees).

Previously only accessible to wholesale investors, including high net wealth investors and family offices, the launch of Swell’s retail trust coincides with the appointment of Stephen Poole to the role of Chief Executive Officer.

The Swell Global Fund, which invests in a concentrated portfolio of around 15 companies, has appointed Perpetual as responsible entity and Mainstream Group as fund administrator.

According to Lachlan Hughes, Swell Chief Investment Officer, the decision to launch a retail fund, after six years of managing money exclusively for wholesale investors, was driven by increasing retail demand for an active strategy that didn’t hug the index and delivered strong returns.

“Since our inception, we have built a track record of consistent performance,” he said.

“In the past 12-18 months, during one of the most tumultuous periods in history, our robust investment systems, processes and philosophy have proven resilient and performed strongly. We continue to demonstrate the value and effectiveness of our conservative approach.”

Mr Poole added: “Our aim is to make it easy for investors and advisers to access our capabilities.”

“We want to facilitate choice and allow investors and advisers to choose how they invest with us, be that a wholesale fund, separately managed account or a retail trust.”

The Swell Global Fund is currently available to advised clients on the Hub24 platform.

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