Sage Capital’s Australian equities long/short funds receive ‘Recommended’ ratings from Lonsec

The CC Sage Capital Equity Plus Fund and the CC Sage Capital Absolute Return Fund have both received a ‘recommended’ rating from Lonsec, six months following a recommended rating from Zenith Investment Partners and within the first year of operating.

Lonsec noted the strength of the investment process, which differs from peers by employing a blend of quantitative analysis and fundamental research which combined, facilitates the opportunity to generate multiple sources of alpha, through a highly collegiate investment team.

The CC Sage Capital Equity Plus Fund is an active extension long/short strategy that takes both long and short positions where the proceeds from the short positions are reinvested in long positions to retain exposure to the equity market and typically holds between 100-120 positions. Since inception on 20 August 2019, the CC Sage Capital Equity Plus Fund has delivered 4.41% p.a. net of fees to 31 August 2020, outperforming its benchmark (S&P/ASX200 Accumulation Index) by 8.20% p.a.

The CC Sage Capital Absolute Return Fund is a market neutral or absolute return strategy where short positions and long positions offset each other, giving investors exposure to Sage Capital’s stock selection skills while eliminating exposure to the underlying equity market, and typically holds between 100-120 positions. Since the launch on 20 August 2019, the CC Sage Capital Absolute Return Fund has delivered 13.05% p.a. net of fees to 31 August 2020, outperforming its benchmark (RBA Cash Rate) by 12.54% p.a.

Sage Capital’s commitment to responsible investment has also been recognised. Its integration of ESG within the investment process was stronger relative to peers in the Active Extension and Alternatives sectors.

Managing Director and Chief Investment Officer Sean Fenton said “this independent endorsement further validates the strength and cohesion of our experienced investment team, as well as the robustness of our investment process − evidenced by both Sage Capital funds achieving their performance objectives, since inception in August 2019.

It provides investors with broader access to long/short strategies that may prove to be a good additional diversifier of long-only Australian equities exposures in the current volatile market environment.

Our ability to short companies removes the constraint around index weights. The distribution of weights across the index becomes irrelevant and our stock selection process gives us the freedom to select portfolio weights for stocks that are independent of the index weight, subject only to liquidity. The greater diversification resulting from this can mean a better risk/reward trade-off and potentially more consistent returns for investors over time.”

The rating issued 09/2020 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2020 Lonsec. All rights reserved.

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) ratings (assigned 9 June 2020 for the CC Sage Capital Equity Plus Fund and assigned 18 February 2020 for the CC Sage Capital Absolute Return Fund) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs.  Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at https://www.zenithpartners.com.au/our-solutions/investment-research/ratings-definitions/

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