Australian Equity Long Short

This strategy aims to deliver superior long-term returns by actively investing in undervalued companies and short-selling overvalued companies listed on the Australian Securities Exchange. The strategy generally maintains a long exposure of 130% and a short exposure of -30%.

INVESTMENT UNIVERSE

1000+ Australian stocks (includes ex-index stocks to maximise opportunity set)

RETURN FORECAST

Daily analysis at stock-specific, peer group, and macro level results in objective risk and return forecast

PORTFOLIO CONSTRUCTION & TRADING

Forecasts enter proprietary portfolio optimisation system, weighing expected return against risk, liquidity, T-costs, real-world frictions

Investment philosophy

Financial assets are often mispriced due to behavioural errors, such as incorrectly processing information or acting on incomplete information.

Top-performing companies display many qualities. Their success is multi-faceted and cannot be attributed to any single factor.

Market inefficiencies and attractive opportunities are best captured using systematic processes.

Curated application of artificial intelligence (AI) and machine learning (ML) technology can help extract pertinent information from large, complex datasets.

Investment processes must be dynamic and adapt to changes in investor behaviour and the investment environment.

Acadian’s edge comes from embracing innovative ideas and continuously investing in people, technology, and data.

Erol Ahmed

Why Australian long short?

  • A long short strategy may be suitable for investors who want exposure to the Australian share market and are prepared to accept a higher level of risk to achieve higher relative returns over the long term.
  • Long short strategies have the potential to deliver enhanced returns in many different market environments.
  • Long-only strategies seek to invest in attractive, undervalued companies but ignore unattractive, overpriced companies. Long short funds can profit from both, significantly expanding the number of potential investment opportunities.
  • Short-selling involves borrowing and selling shares you believe will decrease in value, with the intention of buying them back when the price falls.
  • A systematic approach is well-suited to long short investing because systematic managers cover a broader number of companies and integrate risk controls into portfolio construction processes to maximise alpha and control risk.

As of March 2024

APIR Code FSF0789AU   
 Inception Date 27 February 2006  
 Management Cost 0.75%  
 Buy / Sell spread 0.15/0.15% 
 Product Size   $152million
 Benchmark  S&P / ASX 300 Accumulation Index
Colonial First State Investments Limited (“CFS”) is the responsible entity for this fund, ABN 98 002 348 352, AFS Licence 232468. You can find the target market determinations (TMD) for this fund at www.cfs.com.au/tmd, which include a description of who a financial product might suit. You should also read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. You can get the PDS and FSG at www.cfs.com.au or by calling CFS on 13 13 36. All Fund (NAV) returns are calculated on an annualised basis using exit price to exit price with distributions reinvested, net of management costs, transaction costs. All return calculations exclude any individual taxes payable by the investor and all other fees and rebates disclosed in the relevant product disclosure statements available on our website or by calling us. The ‘distribution’ component is the amount paid by the way of distribution, which may include net realised capital gains. Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell individual securities. Reference to the benchmark is for comparative purposes only and is not intended to indicate that the Fund will contain the same investments as the benchmark. Investors have the opportunity for losses as well as profits. Past performance is no guarantee of future results. Index Source: Copyright © 2024, Standard & Poor’s Financial Services LLC. All rights reserved.

As of March 2024

  Fund (Gross)  Fund (NAV)  Benchmark  Value-Added vs. Benchmark
One Month Return 4.0 3.9 3.3 0.6
Three Month Return 7.4 7.1 5.4 1.7
Year-to-Date Return 7.4 7.1 5.4 1.7 
One Year Annualized Return 16.7 15.4 14.4 1.0
Three Year Annualized Return 13.0 11.7 9.4 2.3
Five Year Annualized Return 12.0 10.7 9.1 1.6
Ten Year Annualized Return 10.1 8.9  8.3 0.7
Since Inception Annualized Return 8.5 7.2 7.4 -0.2
Colonial First State Investments Limited (“CFS”) is the responsible entity for this fund, ABN 98 002 348 352, AFS Licence 232468. You can find the target market determinations (TMD) for this fund at www.cfs.com.au/tmd, which include a description of who a financial product might suit. You should also read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. You can get the PDS and FSG at www.cfs.com.au or by calling CFS on 13 13 36. All Fund (NAV) returns are calculated on an annualised basis using exit price to exit price with distributions reinvested, net of management costs, transaction costs. All return calculations exclude any individual taxes payable by the investor and all other fees and rebates disclosed in the relevant product disclosure statements available on our website or by calling us. The ‘distribution’ component is the amount paid by the way of distribution, which may include net realised capital gains. Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell individual securities. Reference to the benchmark is for comparative purposes only and is not intended to indicate that the Fund will contain the same investments as the benchmark. Investors have the opportunity for losses as well as profits. Past performance is no guarantee of future results. Index Source: Copyright © 2024, Standard & Poor’s Financial Services LLC. All rights reserved.

Top Ten Holdings

As of March 2024

 BHP GROUP LTD  9.7%
 COMMONWEALTH BANK OF AUSTRALIA   6.7%
 AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED  5.2%
 WESTPAC BANKING CORP   4.9%
 CSL LTD
  4.2%
 NATIONAL AUSTRALIA BANK LTD   2.8%
 WESFARMERS LTD  2.8%
 RIO TINTO LTD
  2.6%
 ARISTOCRAT LEISURE LTD  2.5%
 QBE INSURANCE GROUP LTD
  2.5%
NUMBEROF SECURITIES  185
% OF PORTFOLIO FOR TOP 10 CURRENT HOLDINGS  43.9%
% OF NON-BENCHMARK PORTFOLIO HOLDINGS  4.2%

 

To view a full list of quarterly holdings in the Fund, visit Colonial First State.

 

Colonial First State Investments Limited (“CFS”) is the responsible entity for this fund, ABN 98 002 348 352, AFS Licence 232468. You can find the target market determinations (TMD) for this fund at www.cfs.com.au/tmd, which include a description of who a financial product might suit. You should also read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. You can get the PDS and FSG at www.cfs.com.au or by calling CFS on 13 13 36. All Fund (NAV) returns are calculated on an annualised basis using exit price to exit price with distributions reinvested, net of management costs, transaction costs. All return calculations exclude any individual taxes payable by the investor and all other fees and rebates disclosed in the relevant product disclosure statements available on our website or by calling us. The ‘distribution’ component is the amount paid by the way of distribution, which may include net realised capital gains. Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell individual securities. Reference to the benchmark is for comparative purposes only and is not intended to indicate that the Fund will contain the same investments as the benchmark. Investors have the opportunity for losses as well as profits. Past performance is no guarantee of future results. Index Source: Copyright © 2024, Standard & Poor’s Financial Services LLC. All rights reserved.

Current Positioning - Sector

Colonial First State Investments Limited (“CFS”) is the responsible entity for this fund, ABN 98 002 348 352, AFS Licence 232468. You can find the target market determinations (TMD) for this fund at www.cfs.com.au/tmd, which include a description of who a financial product might suit. You should also read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. You can get the PDS and FSG at www.cfs.com.au or by calling CFS on 13 13 36. All Fund (NAV) returns are calculated on an annualised basis using exit price to exit price with distributions reinvested, net of management costs, transaction costs. All return calculations exclude any individual taxes payable by the investor and all other fees and rebates disclosed in the relevant product disclosure statements available on our website or by calling us. The ‘distribution’ component is the amount paid by the way of distribution, which may include net realised capital gains. Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell individual securities. Reference to the benchmark is for comparative purposes only and is not intended to indicate that the Fund will contain the same investments as the benchmark. Investors have the opportunity for losses as well as profits. Past performance is no guarantee of future results. Index Source: Copyright © 2024, Standard & Poor’s Financial Services LLC. All rights reserved.

Acadian Asset Management (Australia) Limited (“Acadian Australia”) ABN 41 114 200 127 is the holder of Australian financial services license ("AFSL") number 291872. It is also registered as an investment adviser with the U.S. Securities and Exchange Commission ("SEC"). Under the terms of its AFSL, Acadian Australia is limited to providing the financial services under its license to wholesale clients only.
Acadian Australia is a wholly owned subsidiary of Acadian Asset Management LLC (“Acadian”), a U.S. registered investment adviser regulated by the U.S. SEC. Acadian is exempt from the requirement to hold an AFSL under the Corporations Act 2001 (Cth) ("Corporations Act"). Acadian is regulated by the SEC under United States of America laws, which differ from Australian laws. This website is intended only to provide a summary of the subject matter covered. It does not purport to be comprehensive or to provide legal, taxation or other advice on the subject matter. No reader should act on the basis of any matter contained in this website without first obtaining specific professional advice.
The information on this web page is provided to you because Acadian Australia reasonably believes that you are a "wholesale client" within the meaning of that term under the Corporations Act and not any other class of persons. This information is not an advertisement and is not intended to induce retail clients to invest in any product. Retail clients who are interested in products referenced on this website should contact their financial adviser.
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