Armytage Strategic Opportunities WS Performance Review | News

What is the Armytage Strategic Opportunities WS fund?

The Fund is managed with a view to offer investors long-term capital growth potential and a regular semi-annual income stream, from a portfolio of micro, small and large-capitalisation investments that Armytage considers to be of high quality and good value. The fund aims to provide a higher level of yield (2.5% above) than the S&P All Ordinaries, while matching or beating the total return of the index over the medium term. Armytage’s Value based investment style incorporates a bottom-up proprietary business valuation investment approach supplemented by top-down thematic overlays to identify the highest quality alpha opportunities in its investment universe. This approach allows Armytage to construct a portfolio of stocks providing relative-value over the investment time horizon.Consistent with Armytage’s business valuation approach, Armytage seeks to invest in businesses that have a clear and understandable business model, preferably have a history of generating profits, paying dividends and have forecast able future profits and cash flows. In this regard, Armytage tends to avoid investing in higher risk early stage companies that are research and development or exploration based. The total portfolio will be continually reviewed in order to assess whether the Fund’s objectives are being met.

Quick Links

Subscribe for Updates

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Latest News & Updates For Armytage Strategic Opportunities WS

Armytage Strategic Opportunities WS Fund Commentary September 30, 2023

The fund outperformed the benchmark by 42bps, largely attributed to our defensive positions.

During the month, nearly every sector experienced losses, except for the energy sector, driven by Crude Oil prices surpassing US$90 per barrel due to an extended OPEC production cut. In the portfolio, we maintained an overweight position in Woodside (WDS) due to its favourable valuation compared to peers, attractive dividend yield, and strong liquidity. Furthermore, we continued to favour Ampol (ALD) to gain exposure to convenience retail.

The Financials sector outperformed the market, driven by the major banks. ANZ, NAB, and WBC, along with Macquarie (MQG), are set to report their full-year results in November 2023. Investors are optimistic about reduced bad debt provisions, given the better-thanexpected performance of the property market and the absence of further interest rate hikes from the Reserve Bank.

Iron ore miners showed resilience compared to their counterparts, driven by market expectations of forthcoming economic stimulus measures from China following the conclusion of the Golden Week celebrations in October 2023. Consequently, the fund increased its allocation to BHP and held a slight overweight position in RIO and FMG. In a related Chinese context, Treasury Wine (TWE) defied the market’s downturn, with its share price rising by 5.6% for the month. Investors were anticipating the removal of tariffs on Australian wine by the Chinese government, which is expected to boost earnings.

In other developments, the competition for critical mineral resources, especially in the lithium sector, intensified with mining mogul Gina Rinehart acquiring a blocking stake in Liontown (LTR), a takeover target. This strategy echoes previous instances like Mineral Resources (MIN) obstructing DVP’s takeover of Essential Metals (ESS). These events reinforce our confidence in lithium investments, considering the ongoing shift toward renewable and clean energy. Our primary exposure to lithium remains Pilbara (PLS), a dedicated lithium producer with robust cash flows to support its operations.

During the month, the fund started to accumulate shares in Orora (ORA) after its capital raise. The packaging company raised $1.34 billion at $2.7 per share (a 20% discount) to fund the purchase of Saverglass, a global manufacturer of premium and luxury wine and spirit bottles. This strategic move aligns with ORA’s goal of establishing itself as a prominent global provider of sustainable packaging solutions.

In terms of stocks, Aussie Broadband (ABB), +14.7%, was the star of the month after launching a competing bid for Symbio (SYM), outbidding Superloop (SLC), in an attempt to diversify business. Shares in Viva Leisure (VVA) rallied +13% as the health group operator returned to profitability after years of COVID lockdown aftermath.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

Performance Review
Product Overview
Peer Comparison
Product Details

Performance Review

Fund Name	Last Month ? Returns after fees in the most recent (last) month).	3 Months Return ? Returns after fees in the most recent 3 months.	1 Year Return ? Trailing 12 month returns.	3 Years Average Return ? Average Annual returns from the last 3 years.	Since Inc. Average Return ? Average (annualised) returns since inception	1 Year Std. Dev. (Annual) ? The standard deviation (or annual volatility) of the last 12 months.	3 Years Std. Dev. (Annual) ? The average standard deviation (or annual volatility) from the last 3 years.	Since Inc. Std. Dev. (Annual) ? The average standard deviation (or annual volatility) since the fund inception.	1 Year Max Drawdown ? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	3 Year Max Drawdown ? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	Since Inc. Max Drawdown ? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Armytage Strategic Opportunities WS	2.82%	8.09%	21.83%	4.18%	5.1%	9.4%	13.23%	14.84%	-3.91%	-14.26%	-48.63%

Product Overview

Fund Name	APIR Code ? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.	Structure ?	Asset Class ? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.	Asset Category ? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.	Peer Benchmark Name ? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.	Broad Market Index ? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.	FUM ? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.	Management Fee ? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.	Performance Fee ? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.	Spread ? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Armytage Strategic Opportunities WS	ETL0139AU	Managed Funds	Domestic Equity	Australia Derivative Income	Domestic Equity - Derivative Income Index	ASX Index 200 Index	22.29 M	1.78%	10.25%	0.25%

Peer Comparison

Fund Name	Peer Index Name ? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.	12 Months Excess Return ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	Excess Return Annualised Since Inception ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	12 Months Alpha ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	Alpha Annualised Since Inception ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	12 Months Beta ? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	Beta Annualised Since Inception ? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	12 Months Tracking Error ? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	Tracking Error Since Inception ? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	12 Months Correlation ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.	Correlation Since Inception ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Armytage Strategic Opportunities WS	Domestic Equity - Derivative Income Index	4.65%	-0.19%	NA%	NA%	NA%	1.12	2.4%	4.14%	0.98	0.98

Product Details

Fund Name	Verifed by SMSF Mates	Manager Address	Phone	Website	Email
Armytage Strategic Opportunities WS	Yes	Armytage Private Ltd Level 13 30 Collins Street Melbourne VIC 3000 Australia	+61 3 9674 0600	https://www.armytage.com.au/	-

Product Due Diligence

What is Armytage Strategic Opportunities WS

Armytage Strategic Opportunities WS is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Derivative Income Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Armytage Strategic Opportunities WS has Assets Under Management of 22.29 M with a management fee of 1.78%, a performance fee of 10.25% and a buy/sell spread fee of 0.25%.

How has the investment product performed recently?

How is risk measured in this investment product?

What is the relative performance of the investment product?

Does the investment product produce Alpha over its Peers?

What are similar investment products?

What level of diversification will Armytage Strategic Opportunities WS provide?

How do I compare the investment product with its peers?

How do I compare the Armytage Strategic Opportunities WS with the ASX Index 200 Index?

Can I sort and compare the Armytage Strategic Opportunities WS to do my own analysis?

Has the Armytage Strategic Opportunities WS been independently verified by SMSF Mate?

How can I invest in Armytage Strategic Opportunities WS?

How do I get in contact with the Armytage Strategic Opportunities WS?

Comments from SMSF Mates

Subscribe for Updates

Historical Performance Commentary

Performance Commentary - June 30, 2023

The Fund distributed 1.3 cents per unit for the second half of FY2023, bringing the total FY2023 distribution to 3.3 cents per unit.

The Materials sector performed the best in June in anticipation of further stimulus from the Chinese government, particularly fiscal stimulus, after a few recent small symbolic short and medium term lending rate cuts. A virtually no inflation environment (0.2% YoY CPI) provides extra headspace for more profound stimulus. FMG, BHP and RIO advanced as iron ore surged 10%. We retained our market weight positions amongst those 3 iron ore stocks. Pure play lithium producer Pilbara (PLS) rallied 11% as the Australian government announced further investments in critical minerals, in a decarbonisation effort.

Financial stocks also performed well with the major banks recouped underperformances from previous months. At 10-11x PE (ex. CBA) and approx. 6% yield on average, the banks became attractive for value and yield hunters. Shares in Insurance Group (IAG) also traded higher after a positive update at its investor day, where the insurance company slightly lifted its forecast medium term ROE target. Tech stocks also followed the NASDAQ higher with market favoured the likes of Xero (XRO) and WiseTech (WTC). Previous month’s winners NextDC (NXT) and Altium (ALU) pared gains, which might be due to profit-taking.

Healthcare was the worst performing sector of the month with the heavy-weight CSL to blame. Shares in CSL crashed 9.47% as market caught off-guard with a new FY24 NPATA guidance, an approx. 15% downgrade to consensus as well as accelerating FX pressure, which has risen to $230m – $250m (June) vs $175m (Feb). Some positive news flows into Ramsay Health (RHC) as the private hospital operator’s Sime Darby assets were up for sale.

Other outstanding performers of the month include HomeCo (HMC), +15%, which own its first institutional mandate in form of a $350m equity commitment from an Aussie superfund for its Last Mile Logistics fund. Praemium (PPS) rallied 10% as the group’s bid to the regulator to reduce NTA requirement was approved, which was expected to provide PPS more efficiency and flexibility to pursue growth opportunities.

Performance Commentary - May 31, 2023

Performance Commentary - April 30, 2023

Performance Commentary - February 28, 2023

Performance Commentary - December 31, 2022

The fund edged down 4.42% in December on the back of a weaker stock market The 1st Half of Financial Year 2023 came in at 2 cents per unit, payable the 10th business day of January 2023.

The Materials sector stood out. supported by strong commodity prices (iron ore +14%. nickel +11%). BHP’s takeover of OZ Minerals (OIL) became effective in December after 5 weeks of due diligence. OD_ shareholders could receive a fully franked final dividend of up to 51.75. which is the equivalent to an approx. 6% yield. Other iron ore stocks such as RIO and FMG also performed well, whereas lithium producers PIS and AKE underperformed. We took the opportunity to top up our positions in both companies on price pullbacks.

Consumer staples, Telecommunication and Utilities all fared better than market, thanks to their defensive nature. Woolworths (WOW) has sold 5.5% of the issued shares in Endeavour Group (EDV) to fund its PET Inspiration (PETstock) acquisition. Post-sate, WOW will retain 9.1% interest in WV with no intention of further selling in the immediate to medium term. The 2 supermarkets. WOW and COL. have consistently underperformed market in the past 6 months. We believe the dynamic for these stocks will soon change as the demand for recession proof stocks returned. Treasury Wine (TWE) performed well as the China/Australia relation improved. Shares in Telstra MS) firmed despite the ACCC opposing its regional tower sharing agreement with TPG. Aussie Broadband (ABB) also outperformed market.

On the stock front, Bendigo Bank (BEN) came out from left field with a prof it upgrade and a better than expected exit NIM of 2.01%. We subsequently saw a rebound in share prices of the big 4 banks. and to a lesser extent. Macquarie (MAGI. Unfortunately for Star Casino (SGR) shareholders. the NSW’s newly proposed casino tax regime sent the stock into panic mode, which saw Star’s share price down nearly 35%. Nevertheless, we suspect this will attract a lot of attention from overseas Private Equity firms who would like to have an exposure in the Australian duopolistic casino industry.

Performance Commentary - November 30, 2022

Performance Commentary - October 31, 2022

Kind words from Aussies managing
their own self funded futures

SMSF Mate provides a unique insight into superannuation and financial topics in a way that is easier to understand than conventional websites. The colloquial nature of the site makes it easy to understand and they often speak about complicated topics in lamens terms so I can wrap my head around them. The investment product information is a great way to research funds that I am interested in investing in with my SMSF and there is a lot of helpful information on the site for better structuring my investment portfolio. In comparison to other websites which offer similar information, SMSF Mate excels as the information is free to access whereas many other sites charge a subscription fee for the same thing. Overall, I think SMSF Mate is a great resource for SMSF trustees and is worth looking at for a variety of super-related topics. Thanks.

Tim B, Business Owner, SMSF Trustee

SMSF Mate is a unique website because it has ideas about how to approach SMSFs, insurance and other financial topics that come straight from first hand experience. It's much more useful than what you find on all the other financial websites that just offer generic info that you could easily get on the ATO's website. It's also nice to know there's no financial incentive behind the information, it's legitimately there to help people understand self-managed super funds and how to get the most out of them, not to get an affiliate commission from a broker or other financial services provider. The investment product information is also incredibly useful, I've never seen this kind of functionality on any other website that let's you look at such a wide range of products, sort by what info is most interesting or important to you, and subscribe to updates for different funds and financial products all in one place. Definitely worth checking out if you own or are considering an SMSF!

Armytage Strategic Opportunities WS (ETL0139AU) Report & Performance