NEWS
Performance Report: Wheelhouse Global Equity Income Fund
23 Sep 2019 - Australian Fund Monitors
The Wheelhouse Global Equity Income Fund returned +2.07% in August, outperforming AFM's Global Equity Index by +3.47% and taking annualised performance since inception in May 2017 to +9.63% with an annualised volatility of 7.54%.
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23 Sep 2019 - Performance Report: Wheelhouse Global Equity Income Fund
By: Australian Fund Monitors
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| Fund Overview | To pursue this objective, the Investment Manager is responsible for actively managing, monitoring and tailoring the integration of derivative contracts alongside the Morningstar Portfolio, while taking into account changing market and stock specific conditions. The Investment Manager is responsible for maximising the structural benefits of short option positions (lowered Volatility, improved capital preservation, higher income generation), whilst mitigating, minimising and monitoring the structural negatives (variable market exposure, option expiries, collateral management and asymmetric return profiles). In addition, long derivatives positions are also used to enhance the capital preservation characteristics of the Fund in more extreme market movements. As a consequence of the integration of Derivatives, returns of the strategy, intra-cycle, are expected to vary from the underlying Morningstar Portfolio due to these characteristics. For example in weak markets, or in extended sideways markets, the Fund is expected to outperform relative to the Morningstar Portfolio. Conversely in strong positive markets the Fund is expected to underperform. |
| Manager Comments | The Fund's return in August comprised -0.22% from the portfolio (in USD) and +2.29% from the weakening of the Australian dollar against the US dollar. Top contributors included Amgen, KLA Corp, EssilorLuxottica, Medtronic and Western Union. Detractors included Union Pacific, Cheniere Energy, Emerson Electric, Pfizer and Bank of America. The Fund is designed to deliver equity returns with higher income generation and active downside protection. The strategy's high income generation and active tail risk program are designed to lower risk and deliver equity returns with a smoother, more retiree-friendly return profile. As a result, Wheelhouse intend for returns to add relative value in weak and low-growth markets, as has happened in August, and to drag in more positive markets. |
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Performance Report: Insync Global Quality Equity Fund
23 Sep 2019 - Australian Fund Monitors
The Insync Global Quality Equity Fund rose +2.30% in August, outperforming AFM's Global Equity Index by +3.7%. Since inception in October 2009, the Fund has returned +13.99% p.a. versus the Index's +11.24%.
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23 Sep 2019 - Performance Report: Insync Global Quality Equity 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 typically of 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. |
| Manager Comments | The Fund's Sharpe and Sortino ratios for performance since inception, 1.09 and 2.15 respectively, versus the Index's Sharpe of 0.85 and Sortino of 1.42, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst avoiding the market's downside volatility. This is also supported by the Fund's down-capture ratio of 59.72%, indicating that, on average, the Fund has outperforming during months the market has fallen. Unlike Insync's Global Capital Aware Fund, the Global Quality Equity Fund has no downside protection. Insync noted stock selection was the key contributor to the Fund's strong outperformance. Positive contributors included Zoetis, Intuit, S&P Global and Booking Holdings Inc. Detractors included Facebook, Amadeus IT Group, Adidas and Tencent Holdings. The Fund continues to have no currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside. Insync's view is that current market conditions continue to reflect the trend in place since the GFC of low growth and low inflation. |
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Feature article: Equity income in retirement products
20 Sep 2019 - Gyrostat Capital Management
Falling interest rates are highlighting the limited range of investments that deliver a regular and stable income stream with capital security.
Article contents:
1. A framework for desired product features -...
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20 Sep 2019 - Feature article: Equity income in retirement products
By: Gyrostat Capital Management
Performance Report: Harvest Lane Asset Management Absolute Return Fund
20 Sep 2019 - Australian Fund Monitors
The Harvest Lane Absolute Return Fund weathered August's equity market volatility well, remaining remarkably flat over a month when the fell -2.36% to record a loss of just 0.17% by month end.
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20 Sep 2019 - Performance Report: Harvest Lane Asset Management Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | Harvest Lane Asset Management employs a conservative, highly selective and opportunistic approach. Using their extensive knowledge in the area of corporate actions, the Fund's managers assess each opportunity based on a thoughtful, diligent and disciplined process and invest where they believe an opportunity exists to generate above average investment returns relative to the risk incurred. Investment decisions are made without speculating on market direction, with rigid risk controls enforced to minimise the risk of large losses of investor capital. The Fund invests in securities that are predominantly listed on the ASX and occasionally in those listed in other developed markets. Equity swaps and other derivatives may be used at times to reduce risk. The fund typically holds high levels of cash in the absence of sufficiently attractive opportunities to deploy investor capital in accordance with its objectives. |
| Manager Comments | Harvest Lane weathered August's volatile equity markets, hit as reporting season and macroeconomic factors combined to see the ASX300 down over 5% at one point. In spite of this the fund's performance managed to remain flat throughout the month, finally preserving capital with a return of just -0.17%. The Manager noted that this could well be a prelude to what happens when the broader equity market runs into difficulty . Harvest Lane reported they were seeing a large amount of deal flow, and were enjoying the benefits of being somewhat spoilt for choice. The fund composition changed markedly from the start of the month, with ten new positions added, and the manager expects the current deals on hand to support strong performance in the months ahead.
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Performance Report: Bennelong Emerging Companies Fund
20 Sep 2019 - Australian Fund Monitors
The Bennelong Emerging Companies Fund rose +6.80% in August, outperforming the ASX200 Accumulation Index by +9.16%. Since inception in November 2017, the Fund has returned +36.12% p.a. versus the Index's +10.96%.
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20 Sep 2019 - Performance Report: Bennelong Emerging Companies Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund may invest in securities expected to be listed on the ASX within 12 months. The Fund may also invest in securities listed, or expected to be listed, on other exchanged where such securities relate to ASX-listed securities |
| Manager Comments | The Fund's top five holdings as at the end of August included Eml Payments, Bwx, Viva Leisure, Prospa and Zip Co. Bennelong noted the portfolio holdings showed good business momentum, strong near-term earnings growth and bright long term outlooks throughout reporting season. They have taken the opportunity to trim or sell out some positions and purchase new stock ideas. The Fund has been sitting with a relatively high cash position recently. Currently, it sits at neatly 20%, but it has been over 10% since May. Bennelong noted this meant less risk and the ability to be opportunistic. They manage the portfolio with a view to appropriately balance out the risks and returns, both of which can be large in the case of micro and small caps. |
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Performance Report: NWQ Fiduciary Fund
19 Sep 2019 - Australian Fund Monitors
The NWQ Fiduciary Fund returned +0.85% in August, outperforming the ASX200 Accumulation Index by +3.21% and taking annualised performance since inception in May 2013 to +5.58% with an annualised volatility of 4.88%.
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19 Sep 2019 - 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 between 8% to 11% 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 | NWQ believe the ongoing deterioration of economic fundamentals across the globe is likely to continue to spur episodic volatility in global markets similar to that which was seen in August. They noted this deterioration in economic fundamentals came through in the August results season, with companies as a whole delivering weak aggregate earnings-per-share growth and flagging future headwinds in outlook statements. This presented the Fund's investee managers with opportunities on both the long and short sides of their portfolios, which is reflected in the fact that both Beta (+0.42%) and Alpha (+0.49%) managers made positive contributions to the Fund's overall return in August. |
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Performance Report: Insync Global Capital Aware Fund
18 Sep 2019 - Australian Fund Monitors
The Insync Global Capital Aware Fund rose +2.44% in August, outperforming AFM's Global Equity Index by +3.84%. Since inception in October 2009, the Fund has returned +11.53% p.a. with an annualised volatility of 9.45%.
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18 Sep 2019 - 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 | The Fund has a down-capture ratio of 55.9% for performance since inception, Sortino ratio of 1.7 and average negative return of -1.68% versus the Index's -2.04% since inception. Collectively, these highlight the Fund's focus on protecting investor capital in falling markets. Insync noted stock selection was the key contributor to the Fund's strong outperformance with a small contribution from the index put protection. Positive contributors included Zoetis, Intuit, S&P Global and Booking Holdings Inc. Detractors were Facebook, Amadeus IT Group, Adidas and Tencent Holdings. The Fund continues to have no currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside. Insync's view is that current market conditions continue to reflect the trend in place since the GFC of low growth and low inflation. They believe that if this continues over the medium to long-term, investing in a portfolio of high ROIC stocks benefiting from global megatrends should be beneficial as these companies are less dependent on the global economy to generate consistent profitable growth. |
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Fund Review: Bennelong Kardinia Absolute Return Fund August 2019
18 Sep 2019 - Australian Fund Monitors
The latest Fund Review for the Bennelong Kardinia Absolute Return Fund is now available. The Fund is a long-biased, research driven, active equity long/short strategy which invests in listed ASX companies with track records greater than 10 years.
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18 Sep 2019 - Fund Review: Bennelong Kardinia Absolute Return Fund August 2019
By: Australian Fund Monitors
AFM Fund Review - August 2019 (pdf format)
BENNELONG KARDINIA ABSOLUTE RETURN FUND
Attached is our most recently updated Fund Review. You are also able to view the Fund's Profile.
- The Fund is long biased, research driven, active equity long/short strategy investing in listed ASX companies with over ten-year track record.
- The Fund has significantly outperformed the ASX200 Accumulation Index since its inception in May 2006 and also has significantly lower risk KPIs. The Fund has an annualised return of 9.13% p.a. with a volatility of 7.03%, compared to the ASX200 Accumulation's return of 6.30% p.a. with a volatility of 13.17%.
- The Fund also has a strong focus on capital protection in negative markets. Portfolio Managers Mark Burgess and Kristiaan Rehder have significant market experience, while Bennelong Funds Management provide infrastructure, operational, compliance and distribution capabilities.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - August 2019 (pdf format)
Performance Report: Bennelong Australian Equities Fund
17 Sep 2019 - Australian Fund Monitors
The Bennelong Australian Equities Fund returned -0.90% in August, outperforming the ASX200 Accumulation Index by +1.46%. Since inception in February 2009, the Fund has returned +13.62% p.a. versus the Index's +10.91%.
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17 Sep 2019 - Performance Report: Bennelong Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The Bennelong Australian Equities Fund seeks quality investment opportunities which are under-appreciated and have the potential to deliver positive earnings. The investment process combines bottom-up fundamental analysis with proprietary investment tools that are used to build and maintain high quality portfolios that are risk aware. The investment team manages an extensive company/industry contact program which helps identify and verify various investment opportunities. The companies within the portfolio are primarily selected from, but not limited to, the S&P/ASX 300 Index. The Fund may invest in securities listed on other exchanges where such securities relate to the ASX-listed securities. The Fund typically holds between 25-60 stocks with a maximum net targeted position of an individual stock of 6%. |
| Manager Comments | As at the end of August, the Fund's weightings had been increased in the Health Care, REITs, IT, Communication, Consumer Staples, Industrials and Financials sectors, and decreased in the Discretionary and Materials sectors. The Fund's top three holdings included CSL, BHP and Treasury Wine Estates. The Fund aims to invest in high quality companies with strong growth and outlooks and underestimated earnings momentum. The Fund's portfolio characteristics, as detailed in the latest report, indicate that the Fund is in line with the manager's investment objective. |
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Fund Review: Bennelong Long Short Equity Fund August 2019
17 Sep 2019 - Australian Fund Monitors
Latest Fund Review for the Bennelong Long Short Equity Fund is now available. The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large-caps from the ASX/S&P100 Index...
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17 Sep 2019 - Fund Review: Bennelong Long Short Equity Fund August 2019
By: Australian Fund Monitors
AFM Fund Review - August 2019 (pdf format)
BENNELONG LONG SHORT EQUITY FUND
Attached is our most recently updated Fund Review on the Bennelong Long Short Equity Fund.
- The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large-caps from the ASX/S&P100 Index, with over 16-years' track record and an annualised returns of 14.93%.
- The consistent returns across the investment history highlight the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market. The Fund's Sharpe Ratio and Sortino Ratio are 0.89 and 1.45 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - August 2019 (pdf format)
