CC Sage Capital Equity Plus Performance Review | News

What is the CC Sage Capital Equity Plus fund?

CC Sage Capital Equity Plus aims to achieve positive returns in excess of the Fund Benchmark, after fees and expenses, over the long term by taking both long positions and short positions in selected Australian shares. The Fund uniquely blends fundamental and quantitative strategies to develop opportunities to generate returns. This strategy generates concentrated and uncorrelated returns from fundamental investing, improving on returns derived from the breadth of the quantitative process.

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CC Sage Capital Equity Plus Fund Commentary September 30, 2023

The CC Sage Capital Equity Plus Fund returned -2.21% in September, outperforming the S&P/ASX 200 Accumulation Index by 0.63% which returned -2.84%.

The Sage Groups that were the strongest contributors to performance were Yield, Growth and Defensives with Global Cyclicals being a detractor. The key derivers for performance in Yield was driven by long positions in insurers QBE Insurance (ASX: QBE +5%) and Suncorp Group (ASX: SUN +2%) as insurers benefitted from rising long term bond yields. Growth was driven by a short position in Xero (ASX: XRO -10%) as global technology names were hit hard, especially those trading at very high valuations and a long position in Telix (ASX: TLX +3%) on the back of positive sentiment surrounding the growth of the radiopharmaceutical industry. On the negative side, the Global Cyclicals Sage Group was impacted by a short position in Seven Group Holdings (ASX: SVW +12%) as the market became more positive on the growth of its major business Westrac.

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Product Snapshot

Product Overview
Performance Review
Peer Comparison
Product Details

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.
CC Sage Capital Equity Plus	CHN8862AU	Managed Funds	Domestic Equity	Australian Long Short	Domestic Equity - Long Short Index	ASX Index 200 Index	31.82 M	0.89%	0.00%	0.4%

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.
CC Sage Capital Equity Plus	3.56%	7.32%	23.53%	10.85%	12.84%	8.03%	11.8%	14.3%	-3.06%	-9.71%	-22.79%

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.
CC Sage Capital Equity Plus	Domestic Equity - Long Short Index	1.34%	1.17%	NA%	NA%	NA%	0.72	4.57%	6.22%	0.91	0.94

Product Details

Fund Name	Verifed by SMSF Mates	Manager Address	Phone	Website	Email
CC Sage Capital Equity Plus	Yes	Level 26, 1 O’Connell Street,, Sydney NSW 2000	+61 499 783 701	https://www.channelcapital.com.au/	registry@mainstreamgroup.com

Product Due Diligence

What is CC Sage Capital Equity Plus

CC Sage Capital Equity Plus is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Long Short 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 CC Sage Capital Equity Plus has Assets Under Management of 31.82 M with a management fee of 0.89%, a performance fee of 0.00% and a buy/sell spread fee of 0.4%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the CC Sage Capital Equity Plus has returned 3.56% in the last month. The previous three years have returned 10.85% annualised and 14.3% each year since inception, which is when the CC Sage Capital Equity Plus first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since CC Sage Capital Equity Plus first started, the Sharpe ratio is NA with an annualised volatility of 14.3%. The maximum drawdown of the investment product in the last 12 months is -3.06% and -22.79% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The CC Sage Capital Equity Plus has a 12-month excess return when compared to the Domestic Equity - Long Short Index of 1.34% and 1.17% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. CC Sage Capital Equity Plus has produced Alpha over the Domestic Equity - Long Short Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Domestic Equity - Long Short Index category, you can click here for the Peer Investment Report.

What level of diversification will CC Sage Capital Equity Plus provide?

CC Sage Capital Equity Plus has a correlation coefficient of 0.94 and a beta of 0.72 when compared to the Domestic Equity - Long Short Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on CC Sage Capital Equity Plus and its peer investments, you can click here for the Peer Investment Report.

How do I compare the CC Sage Capital Equity Plus with the ASX Index 200 Index?

For a full quantitative report on CC Sage Capital Equity Plus compared to the ASX Index 200 Index, you can click here.

Can I sort and compare the CC Sage Capital Equity Plus to do my own analysis?

To sort and compare the CC Sage Capital Equity Plus financial metrics, please refer to the table above.

Has the CC Sage Capital Equity Plus been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in CC Sage Capital Equity Plus?

If you or your self managed super fund would like to invest in the CC Sage Capital Equity Plus please contact Level 26, 1 O’Connell Street,, Sydney NSW 2000 via phone +61 499 783 701 or via email registry@mainstreamgroup.com.

How do I get in contact with the CC Sage Capital Equity Plus?

If you would like to get in contact with the CC Sage Capital Equity Plus manager, please call +61 499 783 701.

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the CC Sage Capital Equity Plus. All data and commentary for this fund is provided free of charge for our readers general information.

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Historical Performance Commentary

Performance Commentary - August 31, 2023

The CC Sage Capital Equity Plus Fund returned -2.55% in August underperforming the S&P/ASX 200 Accumulation Index by -1.82% which returned -0.73%.

The Sage Groups that were the strongest contributors to performance were REITs and Resources with Growth and Defensives being detractors. The key drivers of performance in REITs were long positions in Goodman Group (ASX: GMG +14%) which reported its full year results highlighting a strong pipeline for Data Centre development, Mirvac (ASX: MGR +3%) which reported stronger second half apartments sales and a short position in Charter Hall Long Wale REIT (ASX: CLW -14%) which fell on disappointing guidance due to higher interest costs. Resources were driven by a short position in Alumina (ASX: AWC -24%) which gave lower bauxite volume and free cash flow guidance, and a short position in Iluka Resources (ASX: ILU -17.5%) which lowered its production guidance citing weaker demand for synthetic rutile due to subdued economic activity in China.

On the negative side, the Growth Sage Group was impacted by a long position in Resmed (ASX: RMD -24%) which fell after reporting weaker gross margins in its Q4 results, with investor fears that new GLP-1 weight loss drugs would in time materially reduce the market for sleep apnoea masks.

Also, within Growth, a short position in Cochlear (ASX: COH +14%) detracted after guiding to stronger than expected FY24 growth driven by increasing referral rates for adults. The Defensives Sage Group performance was impacted by long positions in Coles Group (ASX: COL -10%) which fell after reporting increased theft impacts on gross margin and delivery centre cost blowouts, and AGL (ASX: AGL -7%) which fell after profit taking following an incredible run into August.

Performance Commentary - July 31, 2023

The CC Sage Capital Equity Plus Fund returned 2.49% in July underperforming the S&P/ASX 200 Accumulation Index by -0.39% which returned 2.88%.

The Sage Groups that were the strongest contributors to performance were Resources and Global Cyclicals with Growth and Yield being detractors.

The key drivers of performance in Resources included short positions in iron ore producer Fortescue Metals Group (ASX: FMG -2%) which gave soft volume and higher capex guidance and Sims Metals (ASX: SGM -4%) on the back of lower scrap prices and a long position in oil producer Santos (ASX: STO +6%) which was driven by a higher oil price. Global Cyclicals were driven by long positions in Corporate Travel (ASX: CTD +17%) which reiterated guidance and gave a positive trading update, along with James Hardie Industries (ASX: JHX +9%) which was driven by an improvement in US housing demand and Incitec Pivot (ASX: IPL +10%) which rallied on indications there may be multiple potential buyers of its fertiliser business.

On the negative side, Growth was impacted by short positions in Megaport (ASX: MP1 +41%) which moved to cashflow profitability and Seek (ASX: SEK +15%) which was strong on speculation that job ad numbers may be bottoming. Within the Yield Sage Group, performance was impacted by a long position in Macquarie Group (ASX: MQG -2%) which fell after guiding to a weaker profit outlook at their AGM, with a long position in QBE Insurance (ASX: QBE +1%) and short positions in Commonwealth Bank (ASX: CBA +5%) and Westpac (ASX: WBC +5%) that saw investors take profits in insurers and rotated into banks on signs that aggressive competition in mortgages is abating.

Performance Commentary - June 30, 2023

The CC Sage Capital Equity Plus Fund returned 1.50% in June underperforming the S&P/ASX 200 Accumulation Index by 0.26% which returned 1.76%.

The Sage Groups* that were the strongest contributors to performance were Defensives and Yield, with Domestic Cyclicals and Resources Groups being detractors. The key drivers of performance in Defensives included a long position in AGL Energy (ASX: AGL +15%), which rose after providing strong FY24 guidance, well ahead of consensus expectations driven by sustained higher wholesale electricity prices. Within the Defensives Group, a short position in ASX (ASX -6%) contributed strongly as the market digested its investor day which outlined double digit cost growth over the next two years as it works to replace the archaic CHESS settlements system and meet regulatory commitments. Within the Yield Sage Group, performance was aided by long positions in Insurance Australia Group (ASX: IAG +10%) following its investor day during the month which highlighted margin expansion into FY24 driven by strong insurance premium growth and slowing claims inflation. Another strong contributor within the Yield Sage Group was a long position in QBE Insurance (ASX: QBE +7%). It rallied on the back of broker research highlighting several halves of conservative claims reserving across their US insurance business leading to increased confidence in the company’s earnings outlook. On the negative side, Domestic Cyclicals was impacted by a long position in Qantas (ASX: QAN -7%), which fell on profit taking post its investor day at the end of May and concerns around slowing consumer spend domestically. While in Resources, a short position in Fortescue Metal Group (ASX: FMG +15%) turned unfavourable as the market anticipated possible Chinese stimulus support for housing during key policy meetings in July.

Performance Commentary - May 31, 2023

The CC Sage Capital Equity Plus Fund returned -2.00% in May outperforming the S&P/ASX 200 Accumulation Index by 0.53% which returned -2.53%. The Sage Groups* Domestic Cyclicals and Resources were the strongest contributors to performance with Global Cyclicals and Gold Groups being detractors.

The key drivers to performance in Domestic Cyclicals were long positions in Ampol (ASX: ALD +5%) as the market gained increasing confidence in the prospect of a continued recovery in fuel volumes and a more stable margin environment and Graincorp (ASX: GNC +12%) which reported a strong first half result and upgraded full year guidance by 20%. Resources performance was aided by long positions in lithium producers Pilbara Minerals (ASX: PLS +4%) as the lithium price rallied on a recovery in Chinese EV sales, Allkem (ASX: AKE +21%) which announced a merger with US lithium processor Livent Corp to become a vertically integrated producer of lithium and a short position in Fortescue Metals Group (ASX: FMG -8%) which fell on the back of iron ore price weakness due to weak China steel prices and soft demand. On the negative side, Global Cyclicals was impacted by a short position in James Hardie (ASX: JHX +13%) which reported and gave better than expected guidance for the next quarter and a long position in ALS Limited (ASX: ALQ -12%) which reported a weaker than expected result in its Life Sciences business and more challenging conditions for sample volumes in the Geochemistry division.

Performance Commentary - April 30, 2023

The CC Sage Capital Equity Plus Fund returned 2.62% in April outperforming the S&P/ASX 200 Accumulation Index by 0.77% which returned 1.85%. The Growth and Resources Sage Groups* were the strongest contributors to performance.

The key driver in Growth was a long position in Telix Pharmaceuticals (ASX: TLX +47%) which reported a very strong quarterly result which indicated that the total addressable market for its key product Illuccix may be larger than expected, leading to significant earnings upgrades. Resources was driven by short positions in iron ore exposed companies Fortescue Metals Group (ASX: FMG -7%) and Mineral Resources (ASX: MIN -9%) which fell on the back of a -17% drop in the iron ore price due to lower demand from China and a long position in lithium producer Pilbara Minerals (ASX: PLS +8%) which got a boost from M&A activity in the lithium sector.

The Domestic Cyclicals Sage Group was a detractor for the month driven by a long position in Ampol (ASX: ALD -2%) which delivered a solid quarterly result but was weak on concerns about lower refining margins going forward and a short position in Boral (ASX: BLD +17%) which rallied on the back of the Reserve Bank of Australia (RBA) pausing rates and signs of stabilisation in the Australian property market.

Performance Commentary - March 31, 2023

The CC Sage Capital Equity Plus Fund returned -0.52% in March versus the S&P/ASX 200 Accumulation Index return of -0.16%.

The Yield and Defensives Sage Groups* were the strongest contributors with the weakest being the Growth and REITs Sage Groups. In Yield, performance was driven by a short position in Computershare (ASX: CPU -13%) which fell with declining US interest rate expectations and short positions in Westpac Banking Corporation (ASX: WBC -4%) and Commonwealth Bank of Australia (ASX: CBA -2%) which underperformed as competition for deposits and home loans intensified. Defensives outperformance was driven by a short position in A2 Milk Company (ASX: A2M -12%) following a profit warning from milk supplier Synlait and a long position in Sonic Healthcare (ASX: SHL +10%) which continued its strong momentum from its result last month.

On the negative side, key detractors in the Growth Sage Group were short positions in REA Group (ASX: REA +13%) which rallied on proposed price increases and a stabilisation in property prices and Cochlear (ASX: COH +7%) which benefited from a market preference for quality defensive earnings. The REITs Sage Group were also a detractor this month with long positions in Charter Hall (ASX: CHC -17%) and Dexus (ASX: DXS -8%) underperforming with unlisted market valuation fears following the collapse of Silicon Valley Bank in the US.

Performance Commentary - February 28, 2023

The CC Sage Capital Equity Plus Fund returned -1.48% in February versus the S&P/ASX 200 Accumulation Index return of -2.45%. The REITs and Global Cyclicals Sage Groups* were the strongest contributors to performance, with Growth and Resources Sage Groups being detractors. REITs performance was driven by long positions in Charter Hall Group (ASX: CHC +15%) and Goodman Group (ASX: GMG +15%) which rose due to combination of falling bond rates and strong results from Prologis, an overseas competitor, which cited continued high rental growth for industrial property. Global Cyclicals was driven by a short position in Amcor (ASX: AMC -5%) which fell on uncertainties about the outlook for consumer packaging volumes and a long position in Corporate Travel Management (ASX: CTD +25%) which was strong on the back of an expected pick-up in activity following China’s reopening. On the negative side, Growth Sage Group performance was impacted by short positions in Pro Medicus (ASX: PME +21%) which announced several new client wins, and Breville Group (ASX: BRG +23%) which rallied on a short squeeze as industry data indicated trading over the Christmas period was stronger than expected. The Resources Sage Group performance was impacted by a long position in Santos (ASX: STO 0%) which gave guidance for lower than expected production due to the temporary shut down of the John Brookes platform in Western Australia and a short position in Sims Limited (ASX: SGM +17%) which bounced on perceived improvements in the scrap metal market since the last weak trading update.

CC Sage Capital Equity Plus (CHN8862AU) Report & Performance