Atchison Active Floating Rate SMA
31 May 2025
PORTFOLIO PERFORMANCE
The Atchison Active Floating Rate SMA delivered 0.3% for the month, and 1.0% over the quarter.
Over the last 12 months, the Atchison Active Floating Rate SMA delivered 5.9%, materially beating Inflation by 3.7%.
Relative to the Peer Group (FE AMI Peer Average), Atchison Active Floating Rate SMA has materially outperformed over the last 12 months.
All performance metrics listed above are net of appointed investment management fees but before tax. Where noted, the Since Inception date of this analysis is: 31 December 2022. All performance is based on daily asset returns using portfolio target weights. Where a portfolio target weight change has been input into the dataset, it is assumed to have been applied as at the end of day asset valuations.
Returns vs Benchmarks
Performance of $100,000 Investment
KEY CONTRIBUTORS, DETRACTORS & ATTRIBUTION
- On a weighted basis, the largest holding contributor to the portfolio outcome has been VanEck Australian Floating Rate ETF
- The holding that contributed the least to portfolio return was Janus Henderson Diversified Credit Fund
- The current holding with the highest absolute return has been Janus Henderson Diversified Credit Fund
- Whilst the current holding with the lowest absolute return has been iShares Enhanced Cash ETF
The Janus Henderson Diversified Credit Fund aims to provide investors with Australian and global higher yielding securities, including corporate debt, asset backed securities, secured loans, and emerging markets corporate debt securities. This Fund is included in the Fixed Income asset class to provide the potential for higher yields relative to traditional fixed income securities and cash.
The Janus Henderson Diversified Credit Fund aims to provide investors with Australian and global higher yielding securities, including corporate debt, asset backed securities, secured loans, and emerging markets corporate debt securities. This Fund is included in the Fixed Income asset class to provide the potential for higher yields relative to traditional fixed income securities and cash.
Daily Return Analysis
Portfolio Performance Heatmap - Latest Month
Portfolio Performance Heatmap - Latest Quarter
Portfolio Performance Heatmap - Latest 1 Year
Portfolio Performance Heatmap - Since Inception
Portfolio Performance Heatmap (Look Through) - Latest Quarter
Relative Portfolio Performance to SAA Benchmark Heatmap (Look Through) - Latest Quarter
Portfolio Performance Heatmap (Look Through) - Latest Month
Relative Portfolio Performance to SAA Benchmark Heatmap (Look Through) - Latest Month
Attribution Analysis of Asset Allocation vs Manager/Security Selection
Individual Returns of Underlying Manager/Security Holdings
PORTFOLIO CONSTRUCTION
Portfolio Construction - Look Through Exposures
Portfolio Construction - Manager Level
SENSITIVITY ANALYSIS
Inflation Sensitivity (Monthly Returns)
ASX Market Sensitivity (Monthly Returns)
US Market Sensitivity (Monthly Returns)
RISK ANALYSIS
Drawdown Periods & Recovery
Rolling 3yr Calmar Ratio - Return over Drawdown Risk
The below Calmar Ratio explains the return achieved relative to the drawdown risk taken. A higher Calmar Ratio indicates a more favorable risk-adjusted return for the investment
Rolling 3yr Tracking Error - Level of Relative Risk Being Taken
Rolling 3yr Batting Average - % of Months Outperforming Benchmark Return
90 Day Volatility
Risk Metrics
UNDERLYING SECTOR SLEEVE ANALYSIS
Please find below links to detail of underlying asset class sleeves:
MARKET OVERVIEW - April 2025
- Smaller companies outperformed their broader counterparts, with the Small Ordinaries rising 6%, whilst the ASX 200 advanced 4%
- All sectors within the ASX 200 recorded gains. Information Technology led with a 20% jump, followed by Energy at 9%, while traditionally defensive sectors - Utilities, Consumer Staples, and Health Care lagged.
- All Australian factor indices ended the month in positive territory. Momentum, Equal Weight, and Growth factors outpaced others, whereas High Dividend and Value underperformed, echoing sector-level trends.
- China's equity markets posted solid gains in May 2025, supported by tech earnings and fresh monetary easing, including rate and reserve ratio cuts. However, mixed economic data and external pressures, such as weaker U.S. exports, highlight ongoing structural and geopolitical challenges.
- U.S. equities staged a strong rebound in May, driven by renewed optimism over easing trade tensions. The S&P 500 rose 6%, marking its best May performance since 1990. Solid earnings from major technology firms also propelled the rally.
- Most sectors registered gains, led by Information Technology and Communication Services, which rose 11% and 10% respectively. Health Care was the notable underperformer.
- Risk appetite continued to improve, with Momentum, High Beta, and Growth factors leading for the second consecutive month, reflecting a continued rotation away from defensiveness.
- European equities maintained their positive trajectory, with the European Index gaining approximately 11% year-to-date, outperforming the U.S. market. This performance was supported by easing trade tensions and investor optimism.
- In May, the RBA cut rates for the second time this year, and delivered a dovish outlook, but Australian bond yields still rose, driven by global market forces including rising yields in the U.S. and Japan.
- U.S. Treasury yields rose sharply following a weak 20-year note auction and persistent fiscal concerns. As a result, the U.S. Treasury Bond Index declined by 1% in May, its first monthly loss of the year.
- Within commodities, Energy and Livestock were standout performers. Meanwhile, safe-haven demand for Gold was mixed, leading to slight underperformance in Precious Metals over the month.
HOW TO INVEST?
Our SMA strategies are currently available on the following platforms:
CONTACT US
Please reach out via phone or email below:
Email: enquiries@atchison.com.au
Phone: +61 3 9642 3835
Address (Melbourne): Level 4, 125 Flinders Lane Melbourne Victoria 3000 Australia
Address (Sydney): Level 3, 63 York Street, Sydney, NSW 2000 Australia
MODEL BENCHMARK ASSUMPTIONS
Performance Table
|
G1 |
Code |
Description |
| 0 |
Australian Shares |
BM_Rajomon_AE |
100% iShares Core S&P/ASX 200 ETF |
| 1 |
International Shares |
BM_Rajomon_IE |
85% Vanguard MSCI Index International Shares ETF + 15% iShares MSCI Emerging Markets ETF |
| 2 |
Real Assets |
BM_Rajomon_PS |
20% AMI Property - Australia Direct + 25% iShares Australian Listed Property ETF + 30% BlackRock iShares Global Listed Property Index (hedged) + 25% Vanguard Global Infrastructure Index ETF |
| 3 |
Alternatives |
BM_Rajomon_Alts |
100% iShares Core Cash ETF |
| 4 |
Long Duration |
BM_Rajomon_IS |
50% iShares Core Composite Bond ETF + 50% Vanguard International Fixed Income ETF |
| 5 |
Floating Rate |
BM_Rajomon_Credit |
100% VanEck Australian Floating Rate ETF |
| 6 |
Cash |
BM_Cash |
100% iShares Core Cash ETF |
FINE PRINT
Important Notice: This document is published by TAG Asset Consulting Group Pty Ltd, trading as Atchison Consultants, ABN 58 097 703 047, AFSL 230 846. Atchison Consultants distributes its investment solutions via platform and dealer groups (financial advisory groups).
Warning: Please be advised that past performance is not indicative of future performance. The returns discussed herein are based on model asset allocations and are for illustrative purposes only. Actual returns may differ due to variations in fees, timing of model change implementation, and the need to substitute individual holdings where reliable data was not available from our data providers. Any insights or recommendations provided in this document are intended for general advice purposes only and are based on our opinion of the investment merits of the financial products discussed, independent of the financial circumstances of any individual. Before proceeding with any investment based on the information provided, recipients must assess its suitability to their financial situation and consider seeking advice from an independent financial advisor.
Disclaimer: While care is taken to ensure the accuracy and completeness of the information presented herein, no warranties or representations are made as to its reliability. The content provided is derived from publicly available sources, or external data providers, which have not been independently verified by Atchison Consultants. Atchison Consultants, along with its directors, officers, employees, and agents, expressly disclaims any liability for errors, inaccuracies, or omissions in this document, as well as for any loss or damage that may arise from reliance on its contents. Readers are cautioned to verify all information independently before taking any actions based on this report.
