Lonsec has rated the Ten Cap Alpha Plus Fund Complex ETF ‘Recommended’, citing confidence in the ETF’s underlying investment process and portfolio management ownership.
In its rating report Lonsec said lead portfolio manager Jun Bei Liu is a capable investor and has taken full ownership of the implementation of the Fund’s longstanding investment process.
“Liu brings a differentiated perspective to the process reflecting her cultural background and investment experience, with stock insights and portfolio management skill, including shorting, deemed to be strong. Liu's two supporting investment analysts are considered to be quite capable and are adequately experienced, with an additional experienced dealing resource. The centralised team is aided by a collegiate structure and facilitates research collaboration.
“The Fund’s investment process is considered differentiated and delivers an intuitively appealing blend of fundamental long/short investing and usage of quantitative approaches to aid risk management,” Lonsec said.
Liu said: “We are focused on generating exceptional returns for investors by managing a long, short equity strategy that profits from stocks going up and down in the Australian market.
“The Recommended rating is a testament to the whole investment team’s efforts in executing the investment process to outperform the benchmark and deliver alpha to our investors.”
Jason Todd, CIO and co-founder, added: “Tcap was launched to make an institutional grade product available to a new set of investors. ETFs are a great vehicle for retail investors, offering affordable portfolio access.
“This rating reflects the confidence in Jun Bei, the investment team and investment process, and is an excellent outcome so soon after its listing,” he said.
Tcap (ASX: TCAP) was listed on the Australian Securities Exchange on 24 November.
Tcap’s underlying strategy is based on the firm’s long-standing investment offering, Alpha Plus, which is one of the longest running and most consistently performing long short equity only funds in Australia. Becore the launch of Tcap the strategy was only available to institutional investors.
The underlying strategy, the Alpha Plus fund, has returned 12.45 per cent a year since inception, outperforming the ASX200 index by 2.87 per cent.
Since taking over as manager of the fund in 2019, Ms Liu has delivered a return of 12.9 per cent a year compared to the ASX200 of 9.9 per cent - an annualised (net) outperformance of 298bps.
