Henderson outperforms and receives upgrade

Henderson's absolute return Australian equity fund has been upgraded to ‘recommended' by ratings agency, Lonsec, amid the fund outperforming the market over the last three years.

In its ratings report, the research house said: "The fund employ[s] a logical, fundamental absolute return investment process which effectively leverages off Henderson's in-house research platform of experienced Australian equity analysts".

Lonsec said the fund was well-placed with regards to capacity and also recently established a solid three year track record of achieving its performance objectives.

Henderson's head of alternative Australian equities, David Rosenbloom said: "The share market volatility over the last few years, combined with the key issue of generating reasonable returns in a low return world, highlights the need for investors to consider the role of absolute return strategies within a balanced portfolio".

The fund adopted a paired trading position methodology, which enabled the fund to generate equity market returns through all market cycles, while it offered capital preservation and lower volatility.

Based on Money Management Investment Centre, the fund generated an annualised return of 6.69 per cent over the last three years, and was above the benchmark's return of 4.43 per cent. 

The fund was available to retail and institutional investors through Macquarie Private Wealth's approved product list, on the Macquarie Wrap, Netwealth and IOOF Pursuit.

The fund had a minimum investment of $25,000 and a five year-time horizon.