14 top performers among newly launched funds

Welcome to Livewire's Undiscovered Funds series for 2024, where we look at some of the most exciting managed funds launched locally in the 12 months to the end of March.

New funds typically fly under the radar - largely because investors favour those with longer performance histories and research ratings. But there’s also a view that funds can deliver some of their strongest returns during their earlier years.

That's partly because early-stage investment teams are hungry for investment success and are driven to prove their strategy – which they prioritise far above marketing and other secondary activities.

There is research that supports this perspective, as pointed out by my colleague Sara Allen in a recent wire. This suggests new funds could be worth considering, though investors should be aware such studies have a “success bias” because they preclude funds that fail early on.

Funds

153 new funds launched in the past year, are any on your radar?

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Zenith Investment Partners' David Wright made a similar point about the appeal of earlier-stage funds when he spoke with Livewire’s Chris Conway for the Undiscovered Funds series in 2023.

“Our clients and the end investors are really looking to us to unearth hidden gems. And so, often that is early and prior to the three years," Wright said.

New fund highlights of the past year

Last year, we looked at how the performance of funds launched within the three years to the end of 2022 compared with the same period to the end of 2018.

This year, we’re focusing on funds that have launched in the 12 months to the end of March 2024, considering what that tells us about the broader market environment.

From the following list, some of the standouts include: 

• The high number of new Alternative strategies. This coincides with growing investor interest in private markets, both offshore and domestically. For example, fewer than 15% of US companies with revenues of above US$100 million list on an exchange. In Australia, IPOs last year dropped by 54%.
• The strong showing of fixed income funds. 20 credit-focused funds – primarily in global bonds – launched in the 12 months to the end of March. This follows the uptrend in bond yields globally in 2022 and 2023, which has pushed the prospective yield to their highest levels in around 15 years.

Since last March, some 153 new actively managed funds were launched in Australia. Below are some of the top-line findings that emerged across the following categories:

• Equities funds – 66 new funds across both Australian and global markets, including 25 and 20 Australian and global funds, respectively.
• Alternatives – 27 funds
• Fixed income - 20 funds
• Property – 6 funds
• Multi-sector – 8 funds
• Miscellaneous – 20 funds.

For each of these, we provide a snapshot of the two top-performing funds since inception - based on the data currently available. 

The tables that follow list the funds that have launched since 31 March 2023. Performance figures, where available, are net of fees for the period between fund inception and 31 March 2024. (You can see the performance by scrolling right on each table).

Note: The following fund information is for general information purposes only and should not be considered a recommendation. Please do your own research and seek professional financial advice before making any investment decision.

Australian equities

First Sentier Geared Australian Share Fund

• Launched: 25 September 2023
• Performance: 34.27%

Part of First Sentier Investors’ Australian Equities Growth team, the fund invests in large Australian listed companies.

442 Capital Emerging Companies Fund

• Launched: 1 May 2023
• Performance: 22.90%

From independent, Melbourne-based asset manager 442 Capital, this is a long-only equity strategy. The team focuses on fundamental research and high-conviction long-term investing.

Australian equity funds 

Global equities

Vinva International Equity Alpha Extension C

• Launched: 10 January 2023
• Performance: 45.03%

Vinva is a privately owned asset manager that started operation in 2010 but with roots tracing back to the 1990s. This is one of its six funds, with a global and Australian fund for each of its Alpha Extension, Long Only, and Low-Risk investment strategies.

Munro Global Growth Small & Mid Cap A

• Launched: 31 October 2023
• Performance: 32.98%

The fund targets long-term capital appreciation by investing primarily across a concentrated long-only portfolio of global growth-oriented small and medium capitalisation companies. These typically range in size from US$250 million and US$30 billion.

Australian-based global equities funds 

Scroll right on the below table to see performance

Source: Morningstar Direct

Alternatives

HMC Capital High Conviction Alternatives Fund

• Launched: 31 March 2023
• Performance: 45.58%

An Australian-domiciled unlisted fund, this is a high-conviction strategy that targets public and private companies backed by real assets. It seeks to unlock “trapped” value through improving assets’ capital allocation and portfolio management.

Neuberger Berman Global Private Equity Access (unhedged)

• Launched: 28 April 2023
• Performance: 8.92%

Providing exposure to a diversified, institutional-quality portfolio, this fund invests alongside private equity managers in asses that are traditionally restricted to large institutional investors.

Alternatives funds

Scroll right on the below table to see performance

Source: Morningstar Direct

Fixed Income

Realm Global High Income Fund 

• Launched: 15 November 2023
• Performance: 7.77%

The Realm Global High Income fund is a diversified, actively managed fixed-income portfolio that invests in cash and globally-issued fixed interest securities. The fund targets an after-fees return of between 2.5%-3.5% above the RBA cash rate.

Keyview Credit Opportunities Fund

• Launched: 1 July 2023
• Performance: 7.77%

The Keyview Credit Opportunities Fund (formerly called the Realside Capital Opportunities Fund) invests in a diversified portfolio of private credit investments. A sector-agnostic fund, it sources investment opportunities from across companies in the mid-market of Australia and New Zealand. It aims to provide predictable and superior risk-adjusted returns and capital preservation.

Fixed income funds

Scroll right on the below table to see performance

Source: Morningstar Direct

Property

MA Marina Fund

• Launched: 16 June 2023
• Performance: 9.70%

An MA Financial Group fund, the MA Marina Fund invests in Australia’s marina industry via a diversified portfolio of assets located along the east coast in NSW, Queensland, and Victoria. It owns and operates the d’Albora marina portfolio, which has capacity for more than 3,400 vessels.

Property funds

Scroll right on the below table to see performance

Source: Morningstar Direct

Multi-sector

Rajomon Growth Fund

• Launched: 30 September 2023
• Performance: 15.12%

From Rajomon Asset Management, this is a diversified portfolio of listed and unlisted equities and indirect investments, with exposure across property securities, Australian equities, global equities, fixed income securities, alternative investments, and cash. It invests in real property assets via various managed investment schemes or vehicles selected by the asset management team.

Australian Ethical Moderate Wholesale

• Launched: 31 October 2023
• Performance: 11.25%

This fund aims to provide a diversified portfolio balanced between income and capital growth investments, with medium to high levels of risk. Offering exposure of around 50% growth and 50% defensive assets include Australian and international shares, unlisted property, alternative assets and fixed income securities.

Multi-sector funds

Scroll right on the below table to see performance

Source: Morningstar Direct

Miscellaneous

This Morningstar funds category captures those that sit outside the other asset classes mentioned. Underlying strategies represented here include those investing in cryptocurrency and blockchain technology, specialist property, geared alternatives and carbon credits.

The funds in this category are reassessed regularly and when there are enough similar funds to create a meaningful peer group, a new category is created.

Monochrome Bitcoin Trust

• Launched: 10 March 2023
• Performance: 154.60%

Monochrome Bitcoin Trust (IBTC) provides a way for retail investors to own Bitcoin in a single, regulated structure that provides “absolute entitlement” to the underlying Bitcoin. The fund's objective is to provide investors with an investment return that tracks the price of Bitcoin in Australian dollars (before fees and costs).

Bluebottle Digital Infrastructure

• Launched: 31 July 2023
• Performance: 112.58%

An Australian unit trust, BDIF offers wholesale investors access to Blockchain networks, while generating a compounding investment yield. The portfolio holdings include Ethereum, Cosmos Hub, Solana, Bitcoin, Polygon, Polkadot and Avalanche.

Miscellaneous funds

Scroll right on the below table to see performance

Source: Morningstar Direct

Should you invest in new and emerging funds?

In Livewire's Undiscovered Funds series, we tap investment insiders for insights on how to research newer funds and preview emerging talent within the Australian funds universe.

Do you own any of the above funds - or are there others on your radar? Let us know in the comments below.