The SIML Global ETF Fund (Fund) is an open-ended unit trust domiciled in Australia that invests in a broad range of global asset classes through Exchange Traded Funds (ETFs) listed on US exchanges.
The Fund is only available to wholesale clients as defined by the Corporations Act.
The Fund aims to provide investors with a USD denominated, superior risk adjusted return on an absolute basis and compared with the S&P 500 Index.
The Fund price is denominated in USD and uses a strictly systematic algorithmic process centred on momentum and asset volatility called Adaptive Asset Allocation™.
Back tests of the process from February 2003 (when significant numbers of ETFs became available), to July 2016 showed positive theoretical compound annual growth rates including in stressed markets such as 2008, with a peak to trough drawdown of less than 10% in any year.
The Fund’s investment universe comprises all ETFs listed on the US exchanges that have a market capitalisation in excess of US400m.
Investment selection for the Fund is made from a universe of over 50 ETFs which are divided initially into four baskets or categories providing portfolio diversification. The number and composition of baskets may be changed in the future at the discretion of the Manager.
The four initial ETF baskets, in combination, exhibit a less than 0.50 correlation with the S&P 500 Index in a back-test of the Adaptive Asset Allocation™ process between February 2003 and July 2016.
The four initial EFT baskets are:
Bond Income - Fixed income ETFs including US Government bonds of varying maturities, muni bonds, and international and emerging market bonds.
Global Macro - ETFs include assets such as total US stock market, gold, long term US Treasury bonds, total US bond market, commodities, convertible bonds, global equities ex-US, high yield and emerging markets.
US Industry sectors - These include 19 US industry groups (rather than major broad equity sectors).
Global Equity Regions - A total of 9 broad regions - US, Asia ex-Japan, Pacific ex-Japan, Japan, Europe, frontier markets, Latin America, India and China.
Back-testing is not past performance nor does it assure future performance. Back-testing uses assumptions and rounding which might not apply to the Fund in the future, so the differences should be expected to change over time. The Fund’s composition may change from the data used for back testing, giving different future results.