The Ellerston Australian Market Neutral Fund received a ‘Recommended’ rating in its review by Zenith.
Zenith considers the Fund to provide an appealing exposure to an Australian equity market neutral strategy. They noted that investors should expect a significantly differentiated return profile from the Fund when compared to other equity based investments. The Fund is therefore expected to provide excellent diversification benefits when combined with other investments in a diversified portfolio.
They noted the Portfolio Manger. Paul Drzewicki’s long and short investing experience which is important in implementing a market neutral strategy and considered the approach to portfolio construction to be suitable, disciplined and systematic. In addition they noted that the Fund has in place adequate risk management constraints and appropriate systems to preserve capital.