Wingate Spectrum Fund

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The Wingate Spectrum Fund (Spectrum) targets the same high quality companies as the Wingate Global Equity Income Fund but has a more aggressive investment mandate.
Investors should consider an investment in Spectrum as more speculative given its focus on shorter-term investment opportunities and usage of leverage through the options market to generate returns. For the latest returns, please click here.

Investment guidelines for the Spectrum Fund are as follows:

Obtain exposure and realised income from the sale of put options on high quality, large capitalisation companies.
Use asset backing for option positions (as opposed to only cash backing in the Global Equity Income Fund). This creates implicit leverage and potentially higher returns.
Generally not a long term holder of shares. Seek to profit from shorter term opportunities.
No more than 25% aggregate exposure to companies with less than $1bn market cap for periods longer than one month.

In both funds Wingate Asset Management focuses on similar high quality companies. The Spectrum Fund however, does not intend to be exercised on its option positions, whereas the Global Equity Income Fund, when entering an option position, seeks to establish a position as a long term holder. The major contribution to the Spectrum Fund’s returns is expected to be realised income from derivative positions.

Key differences between the Global Equity Income Fund and the Spectrum Fund are summarised below:

Investment Characteristics	Global Equity Income Fund	Spectrum Fund
Leverage	None	Total exposure/Equity up to 2 times
Market cap limit	90% above A$1bn	75% above A$1bn
Holding period	Indefinite – usually long term	Usually short term
Maximum exposure to any one share	10%	30%
Composition of expected return	Income and capital gains	Majority income with some capital gains

Monthly performance of the Fund is shown below. Returns are reported in Australian dollars.

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