Australian investment manager Ten Cap is facing scrutiny as its Alpha Plus fund has trailed the broader market benchmark across multiple periods, despite managing a considerable $1.7 billion in assets. Ten Cap specialises in funds management, providing investment strategies primarily to institutional and wholesale clients. A significant portion of its total assets, $1.2 billion, is notably committed by UniSuper, highlighting the importance of the fund’s performance to a major superannuation entity.
Detailed performance figures indicate that the Alpha Plus fund has underperformed the ASX 200 year-to-date, returning 4.8 per cent. This trend extends across longer durations, with the fund trailing over one-year (10.2 per cent), two-year (6 per cent), three-year (2.8 per cent), and five-year (1.69 per cent) timeframes. Since its inception, including its tenure under Tribeca Funds Management, the fund has delivered returns less than one per cent above the index. Despite these figures, the Alpha Plus fund has posted a positive return for the current month.
Jason Todd, Ten Cap’s Chief Investment Officer, recently shared a market reflection on the prevailing economic climate. Todd advised that investors should consider it “too early to position for an end to rate hikes,” suggesting continued caution. He noted that the local equities market is currently experiencing “pressure” stemming from the broader macroeconomic setup and the central bank’s focused efforts to return inflation to its target levels. Todd also cautioned against anticipating a “catch-up trade,” positing that Australian market underperformance is likely to continue for the foreseeable future.
