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 five 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, US-Centric), International Share ETF (Rest of World Exposure) and Income (Australian Fixed Interest) SMA’s.  Each has an impeccable track record over the longer-term with returns that compare favourably to industry peers at a significantly lower cost, in addition to providing transparency, transaction immediacy and tax efficiency

We also use these sector based SMA’s as the core building blocks for four diversified, risk-based Model-of-Models: Conservative, Balanced, Growth and High 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 Labels
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. The portfolio should be viewed as defensive with minimal capital volatility and is not expected to generate any long term capital growth.

Gross performance (%) September 2019

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
WFM Income Portfolio
0.20%
1.08%
3.69%
5.38%
5.13%
5.96%
6.37%
5.20%
5.85%
WFM Including Franking
-
-
-
6.56%
6.38%
7.34%
7.73%
6.54%
7.20%
UBS Bank Bill Index
0.08%
0.29%
0.74%
1.74%
1.81%
1.79%
1.89%
2.01%
-
Relative Performance
0.12%
0.79%
2.95%
4.82%
4.57%
5.55%
5.84%
4.53%
-

Australian Share

Managed Accounts (SMAs)
MDA
White Labels
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 (%) September 2019

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
WFM Core Share Portfolio
1.52%
2.49%;
6.87%
4.74%
10.19%
10.32%
11.50%
8.54%
10.40%
S&P/ASX 200 Accum Index
1.84%
2.36%
10.52%
12.46%
13.22%
11.88%
12.20%
9.50%
10.97%
Relative Performance
-0.32%
0.13%
-3.65%
-7.71%
-3.02%
-1.56%
-0.70%
-0.96%
-0.57%

Emerging Leaders

Managed Accounts (SMAs)
MDA
White Labels
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 (%) September 2019

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
WFM Emerging Leaders SMA
2.55%
5.43%
10.78%
0.68%
14.33%
9.38%
11.67%
13.69%
13.74%
S&P/ASX Small Ords Accum Index
2.61%
3.11%
6.98%
3.95%
11.83%
8.80%
13.57%
9.61%
-
Relative Performance
-0.06%
2.32%
3.80%
-3.27%
2.50%
0.58%
-1.90%
4.08%
-

Micro-Cap

Managed Accounts (SMAs)
MDA
White Labels
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 (%) September 2019

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
WFM Microcap SMA
4.47%
10.35%
16.92%
17.58%
12.25%
S&P/ASX Emerging Co's Index
5.72%
13.69%
20.59%
13.24%
Relative Performance
-1.25%
-3.34%
-3.67%
4.34%

International Share

Managed Accounts (SMAs)
MDA
White Labels
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 (%) September 2019

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
WFM International Share Portfolio US$
2.4%
1.6%
4.8%
2.2%
-
14.1%
-
10.1%
14.3%
MSCI World Index (ex Aus) US$
2.5%
0.7%
4.7%
1.7%
-
10.6%
-
7.4%
9.0%
Relative Performance US$
-0.1%
0.8%
0.0%
0.5%
-
3.5%
-
2.7%
5.3%
WFM International Share Portfolio A$
1.9%
5.4%
10.1%
9.6%
-
18.5%
-
15.7%
17.3%
MSCI World Index (ex Aus) A$
2.0%
4.6%
10.1%
9.1%
-
15.0%
-
13.0%
12.0%
Relative Performance in A$
-0.1%
0.8%
0.0%
0.5%
-
3.5%
-
2.7%
5.3%

International ETF

Managed Accounts (SMAs)
MDA
White Labels
White Lending

watershed-international-ETF-portfolio

The Watershed International ETF SMA is a concentrated portfolio of domestically listed International Share Exchange Traded Funds. The portfolio provides exposure to global share markets. Watershed provides a regional overlay based on its in house global macro view and also manages overall equity market and currency exposure with a relative valuation methodology.

The portfolio aims to outperform the MSCI World Index over the medium to longer term net of fees.

Gross performance (%) August 2019

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
WFM International ETF
-1.92%
0.13%
-2.48%
-5.73%
0.38%
5.24%
4.89%
-
6.12%
MSCI World Index AUD
-0.63%
7.59%
7.95%
4.96%
13.45%
11.54%
8.24%
-
Relative Performance
-1.29%
-7.46%
-10.43%
-10.69%
-13.07%
-6.30%
-3.35%
-
-

GEAR SMA

Managed Accounts (SMAs)
MDA
White Labels
White Lending

watershed-GEAR-portfolio

The Watershed GEAR SMA is a concentrated portfolio of domestic listed exchange traded share funds. The portfolio provides exposure to domestic and global share markets. Watershed manage the Regional Market allocations, currency positioning and level of gearing based on it’s Macro Economic and Market views.

The portfolio aims to outperform the MSCI Index in Australian dollars by 5% per annum over a 7 year term.

Gross performance (%) September 2019

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
WFM GEAR Portfolio
2.10%
3.26%
7.10%
6.08%
9.66%
12.33%
-
-
15.81%
MSCI World Index AUD
1.74%
4.11%
8.74%
6.75%
12.47%
12.75%
-
-
-
Relative Performance
0.36%
-0.85%
-1.64%
-0.67%
-2.81%
-0.42%
-
-
-

Conservative Multi-Asset

Managed Accounts (SMAs)
MDA
White Labels
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.

The Watershed Conservative Multi-asset portfolio returned 1.40% over the month of April, outperforming the Morningstar Australian Multi-sector Conservative Total Return Benchmark (in AUD) by 0.90%.

Gross performance (%) September 2019

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
Watershed Conservative Portfolio
1.38%
2.76%
5.72%
5.30%
7.99%
7.91%
7.79%
Morningstar Aus Msec Conservative TR AUD
-0.05%
1.74%
4.33%
7.90%
6.24%
4.82%
Relative Performance
1.43%
1.02%
1.39%
-2.60%
1.74%
3.09%

Balanced Multi-Asset

Managed Accounts (SMAs)
MDA
White Labels
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.

The Watershed Balanced Multi-asset portfolio returned 1.97% over the month of April, outperforming the Morningstar Australian Multi-sector Balanced Total Return Benchmark (in AUD) by 0.35%.

Gross performance (%) September 2019

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
Watershed Balanced Portfolio
1.73%
3.20%
6.37%
4.47%
9.46%
9.22%
8.75%
Morningstar Aus Msec Balanced TR AUD
0.69%
2.59%
6.94%
9.82%
9.84%
8.40%
Relative Performance
1.04%
0.61%
-0.57%
-5.36%
-0.37%
0.83%

Growth Multi-Asset

Managed Accounts (SMAs)
MDA
White Labels
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.

The Watershed Growth Multi-asset portfolio returned 2.45% over the month of April, outperforming the Morningstar Australian Multi-sector Growth Total Return Benchmark (in AUD) by 0.38%.

Gross performance (%) September 2019

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
Watershed Growth Portfolio
2.20%
3.90%
7.18%
4.91%
10.95%
10.47%
11.23%
Morningstar Aus Msec Growth TR AUD
1.01%
2.92%
7.99%
10.48%
11.39%
10.00%
Relative Performance
1.19%
0.97%
-0.81%
-5.57%
-0.44%
0.48%

High Growth Multi-Asset

Managed Accounts (SMAs)
MDA
White Labels
White Lending

Diversified High Growth

The Watershed High 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 growth assets.

The objective of the Watershed High Growth Model is to outperform the Morningstar Australia Multi Sector Aggressive TR AUD Benchmark after costs.

Gross performance (%) September 2019

1m
3m
6m
1yr
2yr
3yr
4yr
5yr
Inception
Watershed High Growth Portfolio
2.38%
4.11%
7.36%
3.64%
11.78%
11.31%
10.79%
Morningstar Aus Msec Aggressive TR AUD
1.56%
3.40%
9.31%
10.62%
12.96%
12.03%
Relative Performance
0.82%
0.71%
-1.95%
-6.98%
-1.18%
-0.72%