First Lonsec rating for Wheelhouse Partners

29 March 2019

Lonsec has given the Wheelhouse Global Equity Income Fund, which was launched in May 2017, a rating of 'Investment Grade'.

The rating indicates that Lonsec has conviction the Fund "can generate risk adjusted returns in line with relevant objectives". Lonsec also noted the Fund's "potential for capital growth with enhanced income and protection characteristics relative to other equity market products".

The Fund is managed by Wheelhouse Partners, which is headed up by Alastair MacLeod with support from a chief information officer and a trader and analyst, and backed by Bennelong Funds Management.

The report said it "considers all three to have suitable backgrounds and experience in prior roles involving design and implementation of derivative strategies".

The Wheelhouse investment process was purpose-built to deliver a well-rounded retirement income solution that considers the unique risks associated with retirement investing.

In the report, Lonsec said it "considers risk management, and in particular management of the sequence of returns (sequencing risk) and capital preservation to be explicitly considered in all aspects of the Fund's design".

The investment process also integrates an active tail risk management program.

Lonsec's report said: "The Fund's dynamic tail risk program seeks to improve the predictability of returns and actively preserve capital in times of high market stress or crisis."

Although the report noted that Wheelhouse has yet to live through a protracted equity bear market, it also said "results to date have been promising, with the tail-risk strategy adding value during the last quarter of 2018".


The Lonsec Rating (assigned February 2019) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to "General Advice" (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Wheelhouse Investment Partners' product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec's Ratings methodology, please refer to our website at: