The Lucerne Composite Fund continues its year of solid returns with an outstanding performance in August across all strategies.
In a month where the S&P/ASX 200 was down -3.06%, including suffering its worst day since February 2018 amid fears of a recession, each sub-strategy within the fund’s portfolio delivered positive returns for August, as did each share class.
The Ordinary Share Class returned +3.74% and the Preferred Share Class +0.58%. The Liquid Strategy Share Class, linked to only one of the fund’s sub-strategies, performed particularly well with a +8.77% return.
At a time when investors around the world face turbulent market conditions, Head of Funds Management Aaryn Nania highlighted the importance of designing a portfolio with substantially less fundamental risk.
“In the current environment, we believe constructing a portfolio of uncorrelated assets goes a long way to improving our likelihood of success beyond the whims of the market. The August returns have demonstrated this.” he said.
“One of the great features of the Lucerne Composite Fund’s multi-strategy nature is that it not only enhances our own portfolio management, but it also inspires some of our investors to adopt similar strategies within their own broader portfolios”.
August performance continues a strong 2019 for the Composite Fund. The Liquid Strategy Share Class is up +46.07% calendar year to date, with a correlation to the ASX 200 of 0.4, a Sharpe ratio of 3.36 and Sortino of 6.74.
This high-performing share class is linked to only one of the fund’s sub-strategies – the Liquid Strategy – which is designed to balance the broader fund’s long exposure to equity markets. Despite buoyant equity markets, the strategy has performed strongly since the fund’s inception with a CAGR of 105% and a correlation to the ASX 200 of only 0.04.
Separate from their investment in the Composite Fund, investors can also access the Liquid Strategy via the Liquid Strategy Share Class. Having no management or performance fees, the Liquid Strategy Shares’ performance is linked to 70% of the positive performance of the Liquid Strategy, with the balance of any profits remaining in the Composite Fund for the benefit of its investors.
The Liquid Strategy Shares are available to Lucerne Composite Fund investors via monthly application.
If you have any questions or would like further information on the Lucerne Composite Fund, please email Aaryn Nania at Aaryn.Nania@lucernepartners.com or call +61 3 8560 1458.