NEWS
Performance Report: Insync Global Capital Aware Fund
27 Aug 2020 - Australian Fund Monitors
The Insync Global Capital Aware Fund rose +1.36% in July, taking the Fund's 12-month return to +16.23% versus AFM's Global Equity Index's +2.80%. Since inception in October 2009, the Fund has returned +11.80% p.a. against the Index's...
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27 Aug 2020 - Performance Report: Insync Global Capital Aware Fund
By: Australian Fund Monitors
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| Fund Overview | Insync employs four simple screens to narrow the universe of over 40,000 listed companies globally to a focus group of high quality companies that it believes have the potential to consistently grow their profits and dividends. These screens are size of the company, balance sheet performance, valuation and dividend quality. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio of typically 15-30 stocks. The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, derivatives (for example futures, options and swaps), currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled investment vehicles. At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio. |
| Manager Comments | At month-end, the portfolio's top holdings included PayPal, Microsoft, Visa, Adobe, JD Sports Fashion, Facebook, Walt Disney, Accenture, S&P Global and Zoetis. The top three megatrends in the portfolio by weight were the 'Age Related Health Solutions' and 'Digitisation' megatrends (both at 14% of the portfolio), followed by the 'Cashless Society' megatrend (13% of the portfolio). |
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Performance Report: Bennelong Kardinia Absolute Return Fund
26 Aug 2020 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +1.90% in July, outperforming the ASX200 Accumulation Index by +1.4% and taking annualised performance since inception in May 2006 to +8.45% versus the Index's annualised return over the...
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26 Aug 2020 - Performance Report: Bennelong Kardinia Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund's discretionary investment strategy commences with a macro view of the economy and direction to establish the portfolio's desired market exposure. Following this detailed sector and company research is gathered from knowledge of the individual stocks in the Fund's universe, with widespread use of broker research. Company visits, presentations and discussions with management at CEO and CFO level are used wherever possible to assess management quality across a range of criteria. Detailed analysis of company valuations using financial statements and forecasts, particularly focusing on free cash flow, is conducted. Technical analysis is used to validate the Manager's fundamental research and valuations and to manage market timing. A significant portion of the Fund's overall performance can be attributed to the attention and importance given to the macro economic outlook and the ability and willingness to adjust the Fund's market risk. |
| Manager Comments | Top contributors in July included Harvest Technology, Fortescue, Kogan, Breville Group and Exore Resources. Key detractors included Paradigm, Flight Centre, Polynovo and Worley. Given the rally in the market, the Short Book detracted -102 basis points from the Fund's return, largely driven by a short position in Share Price Index Futures contracts. Kardinia's net market exposure at month-end was 72.1% (77.1% long and 5.0% short), with the key changes being the removal of the short position in Share Price Index Futures. Other key changes to the portfolio included new long positions in Aroa Biosurgery, Exore Resources and Temple and Webster, as well as increased weightings in Commonwealth Bank, James Hardie, National Australia Bank and West African Resources. This was partially offset by reduced positions in Alumina, Boral and REA Group. Kardinia continue to watch the actions of governments and central banks global in response to the COVID-19 pandemic as they believe these are the key drivers of markets. In particular, they are monitoring negotiations around the second stimulus bill in the US as well as the lead up to the US election. The Fund's key holdings are in technology, gold and yield stocks. |
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Performance Report: Datt Capital Absolute Return Fund
26 Aug 2020 - Australian Fund Monitors
The Datt Capital Absolute Return Fund rose +10.84% in July, outperforming the ASX200 Accumulation Index by +10.34% and taking 12-month performance to +30.27% versus the Index's -9.87%. Since inception in August 2018, the Fund has returned...
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26 Aug 2020 - Performance Report: Datt Capital Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | Our investment objectives are: 1) To minimise the risk of permanent capital loss 2) Generate a net return of 10% through the economic cycle An unconstrained, concentrated approach focused on superior risk-adjusted returns. The investment strategy: - targets long-term capital growth in a prudent manner, with an emphasis on capital preservation and low volatility in returns - aims to outperform in markets where equities are down - diversifies investments across asset classes and duration to reduce risk while maintaining relatively concentrated exposure to attractive investment opportunities - is an application of the Manager's investment process, that has no institutional constraints and is completely benchmark unaware |
| Manager Comments | In July, the Fund benefited from its exposure towards previous metals which appreciated strongly over the month. Gold rose over 8% while silver rose by approximately 30%. Datt Capital believe much of the rise in precious metals has been driven by a shift in investor preference towards real assets as a consequence of monetary stimulus & debasement being experienced around the globe. They also believe an increase in authoritarianism and subsequent rise in government distrust is driving sentiment towards portable, durable and private real assets. Datt Capital noted they remain oriented towards growth opportunities and special situations where they feel there remains considerable upside despite the forecast weaker macroeconomic environment. They continue to find interesting opportunities, however, they feel caution is warranted going forward. |
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Performance Report: Bennelong Twenty20 Australian Equities Fund
26 Aug 2020 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund rose +1.48% in July, outperforming the ASX200 Accumulation Index by +0.98% and taking annualised performance since inception in November 2009 to +9.49% versus the Index's annualised return...
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26 Aug 2020 - Performance Report: Bennelong Twenty20 Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is managed as one portfolio but comprises and combines two separately managed exposures: 1. An investment in the top 20 stocks of the markets, which the Fund achieves by taking an indexed position in the S&P/ASX 20 Index; and 2. An investment in the stocks beyond the S&P/ASX 20 Index. This exposure is managed on an active basis using a fundamental core approach. The Fund may also invest in securities expected to be listed on the ASX, securities listed or expected to be listed on other exchanges where such securities relate to ASX-listed securities.Derivative instruments may be used to replicate underlying positions and hedge market and company specific risks. The companies within the portfolio are primarily selected from, but not limited to, the S&P/ASX 300 Accumulation Index. The Fund typically holds between 40-55 stocks and thus is considered to be highly concentrated. This means that investors should expect to see high short-term volatility. The Fund seeks to achieve growth over the long-term, therefore the minimum suggested investment timeframe is 5 years. |
| Manager Comments | As at the end of July, the portfolio's weightings had been increased in the Industrials, Consumer Staples, Communication, Materials, Health Care, IT and REIT's sectors, and decreased in the Discretionary, Energy and Financials sectors. By comparison with the Fund's benchmark (ASX300 Accumulation Index), the portfolio is significantly more heavily weighted towards the Discretionary sector with an 'Active Weight' of 19.6%. |
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Performance Report: Frazis Fund
24 Aug 2020 - Australian Fund Monitors
The Frazis Fund rose +6.1% in July, taking 12-month performance to +45.96% versus AFM's Global Equity Index's +2.80%. Since inception in July 2018, the Fund has returned +11.41% p.a. against the Index's annualised return over the same...
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24 Aug 2020 - Performance Report: Frazis Fund
By: Australian Fund Monitors
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| Fund Overview | The manager follows a disciplined, process-driven, and thematic strategy focused on five core investment strategies: 1) Growth stocks that are really value stocks; 2) Traditional deep value; 3) The life sciences; 4) Miners and drillers expanding production into supply deficits; 5) Global special situations; The manager uses a macro overlay to manage exposure, hedging in three ways: 1) Direct shorts 2) Upside exposure to the VIX index 3) Index optionality |
| Manager Comments | In July, Frazis added to positions in Disney and digital health providers which they expect to benefit from a coronavirus vaccine, while also examining every other company in the portfolio. Frazis noted the five-year outlook for the portfolio holdings is stronger than ever, therefore they have left most of the portfolio unchanged. The top four contributors for the month included Afterpay, Carvana, Tesla and Livongo. |
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Performance Report: Touchstone Index Unaware Fund
24 Aug 2020 - Australian Fund Monitors
The Touchstone Index Unaware Fund rose +0.55% in July, taking performance over the past 3 months to +6.54% and the Fund's annualised return since inception in April 2016 to +6.23% with an annualised volatility of 15.87%.
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24 Aug 2020 - Performance Report: Touchstone Index Unaware Fund
By: Australian Fund Monitors
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| Fund Overview | The portfolio is constructed using Touchstone's Quality-At-a-Reasonable-Price ('QARP') investment process. QARP is a fundamental bottom-up process, however, it also incorporates a top-down risk management framework designed to successfully manage the portfolio during varying market conditions and economic cycles. The Touchstone Fund is concentrated, typically holding between 15-20 stocks. No individual stock will ever make up more than 10% of the portfolio at any one time. The Investment Manager may temporarily exceed the exposure limits of the Fund occasionally, particularly during periods of market volatility, to allow for holdings in excess of this 10% limit where the increase in value of the underlying security is due to market movement. The Fund may also hold between 0-50% of the portfolio in cash. The Fund has a high level of associated risk, therefore, the minimum suggested investment time-frame is 5 years. |
| Manager Comments | At month-end, the Fund held 19 stocks with a median position size of 4.8%. The portfolio's holdings had an average forward year price/earnings of 21.9, forward-year tangible ROE of 10.9% and forward-year dividend yield of 2.6%. The Fund ended the month with a cash weighting of 5.5%, up from 5.1% as at the end of June. |
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Performance Report: NWQ Fiduciary Fund
21 Aug 2020 - Australian Fund Monitors
The NWQ Fiduciary Fund rose +5.13% in July, outperforming the ASX200 Accumulation Index by +4.63% and taking 12-month performance to +7.35% versus the Index's -9.87%. Since inception in May 2013, the Fund has returned +5.77% p.a. with an...
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21 Aug 2020 - Performance Report: NWQ Fiduciary Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund aims to produce returns after management fees and expenses of RBA Cash Rate + 4.0-5.0% p.a. over rolling five-year periods. Furthermore, the Fund aims to achieve these returns with volatility that is a fraction of the Australian equity market, in order to smooth returns for investors. |
| Manager Comments | The Fund recorded its largest ever monthly gain in July. NWQ noted that this came against the backdrop of an elevated level of stock return dispersion and a strengthening of market thematics around the winners and losers of the transition to a COVID economy. Each of the Fund's underlying managers capitalised on this opportunity set and delivered a positive return in the range of +2% to +15%. NWQ believe this rich opportunity set will be sustained as the world continues to transition to the 'new normal' of the COVID economy. The Fund's overall exposure to the market remains low. |
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Performance Report: Bennelong Concentrated Australian Equities Fund
20 Aug 2020 - Australian Fund Monitors
The Bennelong Concentrated Australian Equities Fund rose +2.20% in July ,outperforming the ASX200 Accumulation Index by +1.70% and taking 12-month performance to +6.85% versus the Index's -9.87%. Since inception in February 2009, the Fund...
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20 Aug 2020 - Performance Report: Bennelong Concentrated Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The overriding objective of the Concentrated Australian Equities Fund is to seek investment opportunities which are under-appreciated and have the potential to deliver positive earnings, while satisfying our stringent quality criteria. Bennelong's investment process combines bottom-up fundamental analysis together with proprietary investment tools which are used to build and maintain high quality portfolios that are risk aware. The portfolio typically consists of 20-35 high-conviction stocks from the S&P/ASX 300 Index. The Fund may invest in securities listed on other exchanges where such securities relate to ASX-listed securities. Derivative instruments are mainly used to replicate underlying positions and hedge market and company specific risks. |
| Manager Comments | As at the end of July, the portfolio's weightings had been increased in the Health Care, Materials, Consumer Staples, IT, REIT's, Industrials and Financials sectors. The portfolio is significantly more heavily weighted towards the Discretionary sector than the Benchmark (ASX300 Accumulation Index), with an 'Active Weight' of 20.8%. It is also significantly underweight the Financials sector by comparison with the Benchmark, with an 'Active Weight' of -22.1%. The Fund aims to invest in a concentrated portfolio of high quality companies with strong growth outlooks, underestimated earnings momentum and underestimated prospects. By comparison with the Benchmark, the portfolio's holdings, on average, have a higher return on equity, lower debt/equity, higher sales growth, higher EPS growth, higher price/earnings and lower dividend yield which together indicate that the Fund is in line with its investment objectives. |
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Performance Report: Cyan C3G Fund
19 Aug 2020 - Australian Fund Monitors
The Cyan C3G Fund rose +9.9% in July, outperforming the ASX200 Accumulation Index by +9.4% and taking annualised performance since inception in August 2014 to +14.53% against the Index's annualised return over the same period of +5.24%.
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19 Aug 2020 - Performance Report: Cyan C3G Fund
By: Australian Fund Monitors
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| Fund Overview | Cyan C3G Fund is based on the investment philosophy which can be defined as a comprehensive, clear and considered process focused on delivering growth. These are identified through stringent filter criteria and a rigorous research process. The Manager uses a proprietary stock filter in order to eliminate a large proportion of investments due to both internal characteristics (such as gearing levels or cash flow) and external characteristics (such as exposure to commodity prices or customer concentration). Typically, the Fund looks for businesses that are one or more of: a) under researched, b) fundamentally undervalued, c) have a catalyst for re-rating. The Manager seeks to achieve this investment outcome by actively managing a portfolio of Australian listed securities. When the opportunity to invest in suitable securities cannot be found, the manager may reduce the level of equities exposure and accumulate a defensive cash position. Whilst it is the company's intention, there is no guarantee that any distributions or returns will be declared, or that if declared, the amount of any returns will remain constant or increase over time. The Fund does not invest in derivatives and does not use debt to leverage the Fund's performance. However, companies in which the Fund invests may be leveraged. |
| Manager Comments | Cyan believe the Fund's strong performance in July is attributable to the decisions the team made back in February and March. Top contributors in July included QuickFee, ReadCloud, City Chic, Pinnacle, Jumbo Interactive, New Zealand Coastal Seafoods and Schrole. In Cyan's view, the investment environment remains interesting, with the obvious economic impacts of COVID-19 and associated declines in business confidence being countered by government stimulus packages and largely buoyant consumer behaviour. |
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Performance Report: Quay Global Real Estate Fund
19 Aug 2020 - Australian Fund Monitors
The Quay Global Real Estate Fund returned -0.5% in July. This return comprised +2.3% from underlying stock performance and -2.8% from the impact of currency. Since inception in Jan 2016, the Fund has returned +5.30% p.a. with an annualised...
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19 Aug 2020 - Performance Report: Quay Global Real Estate Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will invest in a number of global listed real estate companies, groups or funds. The investment strategy is to make investments in real estate securities at a price that will deliver a real, after inflation, total return of 5% per annum (before costs and fees), inclusive of distributions over a longer-term period. The Investment Strategy is indifferent to the constraints of any index benchmarks and is relatively concentrated in its number of investments. The Fund is expected to own between 20 and 40 securities, and from time to time up to 20% of the portfolio maybe invested in cash. The Fund is $A un-hedged. |
| Manager Comments | For the month, the greatest positive contributions to returns were from Safestore (UK Storage), Leg Immobilien (German Residential) and Stag Industrial (US Industrial). Key detractors included Wharf REIC (HK Retail), Hysan (HK Diversified) and Brixmor (US Retail). Quay noted that, thematically, the market continues to support those stocks that are perceived to have the most defensive revenue profiles - Industrials, Data Centres and European Residential and Health as examples. At the other end of the spectrum, sectors like Retail, Hong Kong, Urban Residential and Seniors Housing have lagged. However, post month-end and part-way through 2Q20 reporting season they are seeing some strength return to some of these laggards as they deliver results slightly ahead of what were dismal expectations. |
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