Watershed Managed Accounts
MDA, SMA & White Label

Managed Accounts

Watershed utilises managed account technology to run portfolios at both the individual portfolio level (SMA’s) and the multi-asset class level (Model-of-Models).

Watershed currently run four sector based SMA’s that are available on multiple platforms.   These include the Australian Share (Large Cap), Emerging Leaders (Australian Share Mid Cap), International Share (Direct International) and Income (Australian Fixed Interest) SMA’s.  Each has a strong track record over the longer-term and compares favourably to industry peers not just in terms performance but also cost, in addition to providing transparency, tax efficiency and timely transaction execution.

We also use these sector based SMA’s as the core building blocks for three diversified, risk-based Model-of-Models: Conservative, Balanced and Growth. These diversified models provide a whole of portfolio solution where holdings are dynamically managed at both the individual stock and asset class level.

We have also constructed and manage customised model portfolio’s for large groups incorporating their own existing investment philosophies.  These portfolios can be generically branded and we work with and engage with the client along every facet of the portfolio construction and management process.

Managed Accounts (SMAs)
OneVue
HUB24
Praemium
Fiducian
MDA
Watershed
White Labels
UMASelect
Pearl
Margin Lending
Leverage Equities

Income

Managed Accounts (SMAs)
MDA
White Lending

watershed-income-portfolio

The Watershed Income SMA is a concentrated portfolio of listed debt and hybrid securities aiming to generate an income return of 2% above the UBS Bank Bill Index net of fees.

The Watershed Income portfolio has a bias towards floating or variable rate fixed interest securities to minimise interest rate risk. Watershed believes it is often underappreciated how often pricing inefficiencies present themselves in the credit space and constantly seek to exploit pricing dislocation and invest in attractive new issuance.

Gross performance (%) April 2020

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
WFM Income Portfolio
6.26%
(5.75)%
(5.34)%
(2.10)%
1.20%
2.25%
4.18%
3.23%
4.88%
WFM Including Franking
-
-
-
(0.92)%
2.45%
3.63%
5.54%
4.57%
6.23%
UBS Bank Bill Index
0.05%
0.22%
0.46%
1.12%
1.56%
1.63%
1.69%
1.80%
-
Relative Performance
6.21%
(5.97)%
(5.80)%
(2.04)%
0.89%
2.00%
3.85%
2.77%
-

Australian Share

Managed Accounts (SMAs)
MDA
White Lending

watershed-aus-share

The Watershed Australian Share Portfolio is a separately managed account, or SMA, actively managed by Watershed Funds Management.

The objective of the Watershed Australian Share Portfolio is to provide market-leading, tax effective returns over the medium to long term from a concentrated portfolio of large capitalisation, high quality Australian shares and listed Exchange Traded Funds.

Gross performance (%) April 2020

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
WFM Core Share Portfolio
9.84%
(10.65)%
(8.96)%
(4.35)%
3.29%
3.51%
6.19%
6.14%
6.83%
S&P/ASX 200 Accum Index
8.78%
(20.32)%
(15.48)%
(9.06)%
1.92%
3.46%
5.38%
6.11%
-
Relative Performance
1.06%
9.67%
6.52%
4.71%
1.36%
0.05%
0.81%
0.03%
-

Emerging Leaders

Managed Accounts (SMAs)
MDA
White Lending

watershed-emerging-leaders

The Watershed Emerging Leaders Portfolio is a separately managed account, or SMA, actively managed by Watershed Funds Management.

The objective of the Watershed Emerging Leaders Portfolio is to provide investors with long-term capital growth and some tax effective income from a concentrated portfolio of stocks listed outside of the ASX 100. The Portfolio aims to outperform the ASX Small Ordinaries Accumulation Index over the medium to longer term (three to five years) by 2-3% per annum, by undertaking rigorous bottom up stock analysis and active portfolio management.

Gross performance (%) April 2020

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
WFM Emerging Leaders SMA
21.99%
(13.45)%
(13.07)%
(7.10)%
0.75%
8.09%
6.25%
7.32%
10.13%
S&P/ASX Small Ords Accum Index
14.27%
(19.00)%
(15.20)%
(13.31)%
(3.61)%
3.25%
4.90%
4.95%
Relative Performance
7.72%
5.55%
2.13%
6.21%
4.36%
4.84%
1.35%
2.37%

Micro-Cap

Managed Accounts (SMAs)
MDA
White Lending

Micro-Cap

The Watershed Microcap Portfolio is a separately managed account. Its objective is to provide investors with long-term capital growth from a concentrated portfolio of stocks with an initial Market Capitalisation of less than $300M.

The Portfolio aims to outperform the S&P/ASX Emerging Companies Accumulation Index over the longer term (at least five years) by 2-3% per annum, by undertaking rigorous bottom up stock analysis and active portfolio management.  The focus of the SMA is stocks held outside the ASX300.

Gross performance (%) April 2020

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
WFM Microcap SMA
22.72%
(7.21)%
1.93%
12.05%
8.86%
9.92%
S&P/ASX Emerging Co's Index
25.79%
(25.16)%
(24.83)%
(13.37)%
(9.18)%
Relative Performance
(3.07)%
17.95%
26.76%
25.42%
18.04%

International Share

Managed Accounts (SMAs)
MDA
White Lending

watershed-international-share-portfolio

The Watershed International Share Portfolio is a separately managed account, or SMA, actively managed by Watershed Funds Management.

The objective of the Watershed International Share Portfolio is to provide attractive investment returns over the medium and long-term while reducing the risk of permanent capital loss. The Portfolio consists of investments in high-quality global businesses whose shares are listed on major global stock exchanges. The Portfolio aims to outperform the MSCI World Index (excluding Australia) over a rolling three-year period by 2 – 3% per annum.

Gross performance (%) April 2020

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
WFM International Share Portfolio US$
11.8%
(7.0)%
0.0%
3.4%
-
10.7%
-
10.3%
13.1%
MSCI World Index (ex Aus) US$
10.0%
(12.5)%
(7.7)%
(4.1)%
-
5.2%
-
5.1%
8.0%
Relative Performance US$
1.8%
5.5%
7.7%
7.5%
-
5.5%
-
5.2%
5.1%
WFM International Share Portfolio A$
5.4%
(4.1)%
5.6%
11.5%
-
15.5%
-
14.2%
16.5%
MSCI World Index (ex Aus) A$
3.6%
(9.6)%
(2.1)%
3.5%
-
10.0%
-
9.1%
11.4%
Relative Performance in A$
1.8%
5.5%
7.7%
7.5%
-
5.5%
-
5.2%
5.1%

Conservative Multi-Asset

Managed Accounts (SMAs)
MDA
White Lending

Diversified Conservative

The Watershed Conservative Model seeks to provide investors with a regular defensive income stream and some capital growth over the medium to longer term (at least 5 years) through exposure to a diversified portfolio of assets.

Gross performance (%) April 2020

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
Watershed Conservative Portfolio
8.29%
(5.16)%
(3.68)%
0.63%
3.74%
4.67%
6.42%
FE UT PG Multi Asset Moderate Index
2.10%
(5.40)%
(3.39)%
(0.27)%
2.13%
2.50%
2.95%
Relative Performance
6.19%
0.24%
(0.30)%
0.90%
1.61%
2.17%
3.47%

Balanced Multi-Asset

Managed Accounts (SMAs)
MDA
White Lending

Diversified Balanced

The Watershed Balanced Model seeks to provide investors with capital growth over the medium to longer term (at least 5 years) and tax effective income through exposure to a diversified portfolio of assets.

Gross performance (%) April 2020

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
Watershed Balanced Portfolio
9.04%
(5.81)%
(3.85)%
0.70%
4.02%
5.64%
6.55%
FE UT PG Multi Asset Balanced Index
3.61%
(8.99)%
(6.10)%
(2.41)%
1.65%
2.72%
3.83%
Relative Performance
5.43%
3.18%
2.26%
3.12%
2.37%
2.92%
2.72%

Growth Multi-Asset

Managed Accounts (SMAs)
MDA
White Lending

Diversified High Growth

The Watershed Growth Model seeks to provide investors with capital growth over the medium to longer term (at least 5 years) through exposure to a diversified portfolio of assets.

Gross performance (%) April 2020

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
Watershed Growth Portfolio
9.75%
(5.78)%
(3.43)%
1.54%
4.91%
6.64%
8.43%
FE UT PG Multi Asset Growth Index
4.54%
(11.70)%
(8.14)%
(3.99)%
1.15%
2.84%
4.78%
Relative Performance
5.21%
5.92%
4.71%
5.53%
3.75%
3.80%
3.65%