The Tribeca Alpha Plus Fund has been upgraded to a ‘Recommended’ rating by ratings house Zenith Investment Partners.
Following the departure of Sean Fenton (the Fund’s portfolio manager since inception) in April 2019, Jun Bei Liu assumed responsibility for the Fund with support from Tribeca’s investment team of 13. At that time, the fund had $354 million in funds under management – a little over two years later, it’s just shy of $1 billion ($938 million at 31 May 2021).
At the same time, performance* has experienced an uptick. Over the past year ended 31 May 2021, the fund returned 36.75%, a clear 8.52% ahead of its benchmark S&P/ASX-200 Accumulation Index. Over two years, the fund returned 17.78% pa, 8.40% ahead of the benchmark.
Jun Bei has over 18 years’ investment experience; according to the report, Zenith’s conviction in her portfolio management and leadership qualities continue to increase.
The Tribeca Alpha Plus Fund is an active extension fund, which Zenith notes can be used in place of a traditional long-only fund where the investor wishes to increase the “activeness” of their fund allocations in equities. That is, the fund can build a higher conviction portfolio by shorting stocks that it thinks will underperform and use the proceeds to invest long in stocks that may outperform.
While the Fund can be held as a standalone exposure to the Australian equities sector for investors with low investment amounts and with higher tolerance for less index-aware returns, Zenith believes the Fund should be blended with other Australian equities funds. The Fund can be blended with other style-neutral, value and/or growth-orientated Australian equities products to achieve a more diversified exposure to the asset class.
Finally, the report notes that Zenith’s conviction in the Fund has strengthened with the demonstrated stability of the investment team and strategy asset base. Overall, Zenith believes the Fund is well placed to meet its investment objectives.
Financial advisers who would like more information about Zenith’s report can contact their key account manager.
* Past performance is not a reliable indicator of future performance
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned June 2021) 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/Regulatory Guidelines.