Acadian Defensive Income Fund - Class A
The fund’s strategy is to adopt an active approach to managing a portfolio of money market and fixed income securities along with stocks listed on the ASX. (For Wholesale Investors Only)
The Acadian Defensive Income Fund aims to deliver consistent returns above the RBA cash rate with low volatility.
The fund combines cash and fixed income investments with a market-neutral equity strategy, seeking to benefit from both income and potential capital appreciation. By carefully managing equity exposure and leveraging sophisticated investment models, the fund aims to generate steady returns while mitigating market risk.
With a focus on high-quality assets, the fund offers investors a defensive income option that can provide diversification benefits and potential tax advantages through franking credits.
Objective
To provide investment returns in excess of the Reserve Bank of Australia cash rate over rolling three-year periods before fees and taxes, with a relatively low degree of volatility. This will be achieved by combining cash and fixed interest investments with long and short equity holdings chosen using Acadian Australia’s equity investment process. Sophisticated portfolio construction techniques will be used to implement this in a way that limits equity market exposure.
Strategy
The fund’s strategy is to adopt an active approach to managing a portfolio of money market and fixed income securities along with stocks listed on the Australian Securities Exchange.
The majority of assets will be actively invested in high quality money market securities with short duration. The fund will then seek to enhance returns by taking long and short positions in securities generally listed on the Australian Securities Exchange. Acadian will dynamically manage the exposure of the long/short component of the portfolio, with the net market exposure being typically close to 0%. The long/short structure aims to minimise equity market risk whilst benefiting from franking credits and Acadian Australia’s sophisticated analytical models for stock selection.
Investment Universe
Short term cash instruments and 1000+ Australian stocks (includes ex-index stocks to maximise the 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 and T-costs.
- Cash-based strategies aim to produce stable, consistent returns above the cash rate.
- Defensive income strategies can provide a differentiated source of return, downside capital protection, and diversification benefits.
- For investors who want to limit their equity exposure, defensive income can provide returns lowly correlated to equities and other traditional asset classes.
- Acadian’s strategy generates franking credits on selected long-only equity holdings while maintaining a 0% net equity exposure, and may provide taxation advantages.
- Limited exposure to equity and bond market risk, and credit and duration risk.
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Acadian LLC is a Boston based investment adviser registered with the United States Securities and Exchange Commission. Acadian LLC has four wholly-owned investment advisory affiliates. Acadian Asset Management (Singapore) Pte Ltd is located in Singapore and is registered with the Monetary Authority of Singapore. Acadian Asset Management (Japan) is located in Tokyo and is registered with the Kanto Local Financial Bureau. Acadian Asset Management (UK) Limited is located in London and is authorised and regulated by the Financial Conduct Authority. Acadian Asset Management (Australia) Limited is located in Sydney and is the holder of Australian financial services license number (AFSL) 291872. All Acadian entities specialise in active equity strategies.
Acadian LLC evolved from a non-US all-cap equity manager to a global manager with the launch of Acadian LLC’s global strategy in 1992. In 2002, Acadian LLC began to apply its stock selection process to attempt to find the poorest performing companies as well as the strongest, opening the doors for Acadian’s long/short strategies. In 2006, based on research showing that a portfolio of low-risk stocks has the potential to offer market-like returns at lower risk than the overall equity market, Acadian launched its managed volatility strategy. Acadian’s commitment to research, the flexibility of its process and the collaborative nature of its client relationships suggests that Acadian’s suite of strategies will have the potential to continue to grow and evolve in an effort to meet the needs of its clients.
For further information go to Acadian’s website www.acadian-asset.com
JC joined Acadian in 2017 as a consultant before joining Acadian Australia in his current role in 2018.
Prior to joining Acadian, he was a managing director and head of active emerging market equity portfolio management at State Street Global Advisors. In this role, he drove the top-down and bottom-up research agenda while managing a global team of investment professionals. He also represented active long-only and long/short emerging and frontier equity strategies with clients and consultants.
Prior to taking this leadership role within the group, JC was a portfolio manager on the core active EM equity team in Boston and Paris, developing and managing a wide range of strategies. JC started his career in Paris, at the CCF (now HSBC) fixed income derivative proprietary desk.
JC earned an Advanced Master in financial techniques from ESSEC, a D.E.A. in numerical analysis from Pierre and Marie Curie University and Ecole Polytechnique, and an M.S. in mathematics from Pierre and Marie Curie University. He is a CFA charterholder and member of CFA Society Boston.
Katrina joined Acadian Asset Management (Australia) Limited in 2009 and is a Portfolio Manager, focusing on Australian equity strategies.
Prior to joining Acadian, Katrina was a senior quantitative analyst at ING. Previous to that, she held various quantitative roles at IFS Equities, BT Funds Management, Country Investment Management, and Mercantile Mutual Investment Management.
Katrina holds a Graduate Diploma in applied finance and investments from Securities Institute of Australia and a Bachelor’s in mathematics and finance (Hons) from University of Technology, Sydney. Katrina is a CFA charterholder.
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The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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