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Channel Capital and Arnott Capital Announce Strategic Partnership

Media Release

Channel Capital, a leading Australian multi-partner asset management firm, and Arnott Capital, a local absolute return manager, have formed a strategic partnership aimed at supporting business growth and optimising operational efficiencies.

Founded by Kenny Arnott in 1999, Arnott Capital is a locally-based boutique absolute return manager specialising in thematic investment opportunities with an equity focus. Known for their ‘Asymmetric Investing’ philosophy, they excel in identifying early-stage thematic opportunities that are not yet priced by the market. This strategy aims to deliver above average returns with below average drawdowns by selectively investing in high quality assets across the global universe.

Channel Capital will provide the full suite of non-investment services to Arnott Capital, including trustee responsibilities, operations and client services, and distribution and marketing.

Arnott Capital’s Co-Chief Investment Officer, Kenny Arnott said, “Channel Capital’s comprehensive service offering will ensure that our investors continue to receive the highest level of service. Their expertise in fund operations, risk management and compliance, along with strong relationship management, will bring added value to our clients and business.

“The partnership will enable us to dedicate more resources to researching and analysing investment opportunities, thereby enhancing our ability to generate strong risk-adjusted returns for our investors.

Channel Capital’s co-head of Distribution, Luke Mandekic said: “We spend a great deal of time searching for high quality and differentiated investment teams, and we are pleased to have partnered with Arnott Capital. The Arnott Opportunities Trust offers our clients a genuine source of alpha with low correlation to traditional asset classes, a focus on downside protection, and the flexibility to capture opportunities across a variety of market environments.

Absolute return funds like the Arnott Opportunities Trust dynamically allocate capital across strategies based on market conditions to manage downside risk, complementing traditional portfolio exposures.

The Arnott Opportunities Trust is available to Australian wholesale investors and can be accessed through major platforms. The Trust has received a four-star rating from SQM Research and posted 12.74% after fees and expenses* for the year ending 31 May 2024. Since its inception in May 2013, the Trust has delivered an annualised return of 19.81% after fees and expenses.*

*Past performance is not a reliable indicator of future performance.