NEWS
Fund Review: Insync Global Capital Aware Fund October 2018
23 Nov 2018 - Australian Fund Monitors
Latest Fund Review on Insync Global Capital Aware Fund is now available. The Global Capital Aware Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend...
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23 Nov 2018 - Fund Review: Insync Global Capital Aware Fund October 2018
By: Australian Fund Monitors
AFM Fund Review - October 2018 (pdf format)
INSYNC GLOBAL CAPITAL AWARE FUND
Attached is our most recently updated Fund Review on the Insync Global Capital Aware Fund.
We would like to highlight the following:
- The Global Capital Aware Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - October 2018 (pdf format)
Bennelong Twenty20 Australian Equities Fund October 2018
22 Nov 2018 - Australian Fund Monitors
The latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available. The Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of ex-20 stocks.
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22 Nov 2018 - Bennelong Twenty20 Australian Equities Fund October 2018
By: Australian Fund Monitors
AFM Fund Review - October 2018 (pdf format)
BENNELONG TWENTY20 AUSTRALIAN EQUITIES FUND
Attached is our most recently updated Fund Review on the Bennelong Twenty20 Australian Equities Fund.
- The Bennelong Twenty20 Australian Equities Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of stocks outside the Top 20. Construction of the ex-top 20 portfolio is fundamental, bottom-up, core investment style, biased to quality stocks, with a structured risk management approach.
- Mark East, the Fund's Chief Investment Officer, and Keith Kwang, Director of Quantitative Research have over 50 years combined market experience. Bennelong Funds Management (BFM) provides the investment manager, Bennelong Australian Equity Partners (BAEP) with infrastructure, operational, compliance and distribution services.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - October 2018 (pdf format)
Fund Review: Bennelong Kardinia Absolute Return Fund October 2018
21 Nov 2018 - 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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21 Nov 2018 - Fund Review: Bennelong Kardinia Absolute Return Fund October 2018
By: Australian Fund Monitors
AFM Fund Review - October 2018 (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 9.57% p.a. with a volatility of 7.11%, compared to the ASX200 Accumulation's return of 5.37% p.a. with a volatility of 13.38%.
- 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 - October 2018 (pdf format)
Fund Review: Bennelong Long Short Equity Fund October 2018
19 Nov 2018 - 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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19 Nov 2018 - Fund Review: Bennelong Long Short Equity Fund October 2018
By: Australian Fund Monitors
AFM Fund Review - October 2018 (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 15-years' track record and an annualised returns of over 15.8%.
- The consistent returns across the investment history indicate 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 0.94 and 1.54 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - October 2018 (pdf format)
Performance Report: Bennelong Long Short Equity Fund
15 Nov 2018 - Australian Fund Monitors
The Bennelong Long Short Equity Fund has risen +5.38% over the past 12 months versus the ASX200 Accumulation Index's +2.94%. Since inception in February 2002, the Fund has returned +15.81% per annum versus the Index's +7.75%.
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15 Nov 2018 - Performance Report: Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| Fund Overview | In a typical environment the Fund will hold around 70 stocks comprising 35 pairs. Each pair contains one long and one short position each of which will have been thoroughly researched and are selected from the same market sector. Whilst in an ideal environment each stock's position will make a positive return, it is the relative performance of the pair that is important. As a result the Fund can make positive returns when each stock moves in the same direction provided the long position outperforms the short one in relative terms. However, if neither side of the trade is profitable, strict controls are required to ensure losses are limited. The Fund uses no derivatives and has no currency exposure. The Fund has no hard stop loss limits, instead relying on the small average position size per stock (1.5%) and per pair (3%) to limit exposure. Where practical pairs are always held within the same sector to limit cross sector risk, and positions can be held for months or years. The Bennelong Market Neutral Fund, with same strategy and liquidity is available for retail investors as a Listed Investment Company (LIC) on the ASX. |
| Manager Comments | Bennelong noted the Fund fared poorly in October, returning -7.05% in a month which featured elevated market volatility, general weakness, corporate activity and an abundance of updates to earnings guidance at AGMs. With respect to company earnings and guidance updates, both the long and short portfolio experienced favourable bias of upgrades/downgrades. However, company fundamentals were overwhelmed by the market favouring defensive traits in preference to operating/fundamental performance, which Bennelong noted is unusual in this type of environment. In addition, Bennelong believe there was element of mean reversion in the Fund's September and October performance following their strong August return of +10.59%. Key contributing long/short pairs included long Orica (ORI)/ short Downer EDI (DOW), long Ramsay Health Care (RHC)/ short Primary (PRY)/Healthscope (HSO) and long Woolworths (WOW)/ short Metcash(MTS). Detractors included long Xero (XRO)/ short MYOB (MYO), long TPG Telecom (TPM)/ short Telstra (TLS) and long Iluka Resources (ILU)/ short Rio Tinto (RIO). Bennelong noted the indicative bid by private equity firm KKR for MYOB negatively impacted the Fund's long Xero / short MYOB pair, which accounted for one third of the Fund's negative return for the month. |
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Performance Report: Harvest Lane Asset Management Absolute Return Fund
14 Nov 2018 - Australian Fund Monitors
The Harvest Lane Absolute Return Fund returned -0.11% in October, outperforming the ASX200 Accumulation Index by +5.94%. The Fund has returned +12.04% over the past 12 months versus the Index's +2.94%.
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14 Nov 2018 - 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 | A key tenet of the Absolute Return Fund strategy is the focus on downside protection through careful selection of positions that are not only uncorrelated to broader equity markets, but also uncorrelated with each other. As a result, periods of strong outperformance against the market are usually observed when the market is going through periods of excessive weakness. This is backed up by the Fund's Sharpe and Sortino ratios since inception, 1.00 and 1.71 respectively, which, by contrast with the Index's Sharpe of 0.62 and Sortino of 0.85, emphasise the Fund's capacity to achieve superior risk-adjusted returns whilst ensuring investors' capital is protected. This is also supported by the Fund's down-capture ratio since inception of -34.93%, indicating that, on average, the Fund has significantly outperformed in the market's negative months. Harvest Lane noted a plethora of factors were identified as potential causes of the declines seen in October, including US interest rate concerns, fears of a US/China trade war, the start of a deflation in equity asset 'bubbles', emerging market currency crises, Brexit, and instability in the EU. They believe investors' heavy biases to risky long-only equity strategies is a major risk factor that is all too easily forgotten in a decade long bull market. They noted that volatility has only just moved back to more normal levels and equity markets are capable of much worse performance than has been seen in the low volatility environment of recent years. |
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Performance Report: Bennelong Twenty20 Australian Equities Fund
12 Nov 2018 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund has risen +15.07% over the past 12 months versus the ASX200 Accumulation Index's +13.97%. Since inception in November 2009, the Fund has returned +10.59% p.a. versus the Index's +8.00%.
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12 Nov 2018 - 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 | The Fund returned -1.20% over the September quarter versus the Index's +1.53%. The Fund's return was impacted by underperformance of the Fund's ex-20 holdings. Bennelong noted that over time, in light of the latest quarterly return, the Fund's quarter-to-quarter performances have averaged out to provide clients with very above-market returns. Key detractors over the quarter included Flight Centre, Costa Group, Reliance Worldwide and BWX Limited. Read the Fund's latest report for Bennelong's analysis of these companies' activities. Bennelong have neither a bearish or bullish outlook on the market. They see Australian equities to be relatively attractive, however, they still believe there is the need to remain selective. They remain constructive on the market for the following reasons - stock fundamentals look solid, valuations are relatively attractive and investor sentiment is supportive. They also believe there is always a need to be diligent and manage risk and thus have ensured the portfolio is well positioned on a risk/return basis. |
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Performance Report: 4D Global Infrastructure Fund
12 Nov 2018 - Australian Fund Monitors
The 4D Global Infrastructure Fund rose +0.2% in September, taking 12-month performance to +5.27% and annualised performance since inception in March 2016 to +10.72%.
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12 Nov 2018 - Performance Report: 4D Global Infrastructure Fund
By: Australian Fund Monitors
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| Fund Overview | The fund will be managed as a single portfolio of listed global infrastructure securities including regulated utilities in gas, electricity and water, transport infrastructure such as airports, ports, road and rail as well as communication assets such as the towers and satellite sectors. The portfolio is intended to have exposure to both developed and emerging market opportunities, with country risk assessed internally before any investment is considered. The maximum absolute position of an individual stock is 7% of the fund. |
| Manager Comments | The strongest performer in September was Brazilian Rail operator Rumo (+9.1%) on the back of the ANTT recommendation for the early renewal of one of its concessions. The weakest performer was global port operator DP World (-11.6%), impacted by increasing global trade tensions. 4D believe that, despite the ongoing posturing between China and the US, the trade talks will ultimately resolve. They also believe that, despite a softening in the global macro outlook, it does remain positive across the board and supportive of global port volumes. 4D remain fundamental buyers of DP World. Given the generally positive global macro environment, 4D remain overweight user pay assets which have a direct correlation to macro strength. However, ongoing geo-political concerns, plus near-term elections, sees them maintain core exposure to quality defensive utilities. |
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Performance Report: Touchstone Index Unaware Fund
9 Nov 2018 - Australian Fund Monitors
The Touchstone Index Unaware Fund has returned +16.43% over the past 12 months and +13.80% per annum since inception in April 2016.
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9 Nov 2018 - 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 the end of the month the Fund held 21 stocks with a median position size of 4.5%. The portfolio's holdings had an average price/earnings of 15.8, EPS growth of 12.8%, tangible ROE of 19.3% and dividend yield of 4.6%. The Fund's cash weighting decreased to 4.5% from 7.1% at the end of August. The Touchstone Index Unaware Fund primarily selects stocks from the ASX300 Index, typically holding between 10-30 stocks. The Fund seeks to invest in reasonably priced, good quality companies with a significant share of expected returns coming from sustainable dividends. |
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Performance Report: Newgate Real Estate and Infrastructure Fund
9 Nov 2018 - Australian Fund Monitors
The Newgate Real Estate and Infrastructure Fund has returned +11.93% per annum since inception in July 2013 versus the ASX200 Accumulation Index's +9.80%. This return has been achieved with slightly lower volatility.
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9 Nov 2018 - Performance Report: Newgate Real Estate and Infrastructure Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund's research use detailed analysis of the underlying assets integrated with financial analysis to determine a sustainable yield and fundamental DCF valuation for the security. Also the Fund believes in having a strong risk control framework. The Fund will also use trading strategies via rebalancing of core portfolio positions as well as taking advantage of shorter duration inefficiencies in markets caused by an imbalance in demand and supply for global REIT and Infrastructure securities. The Fund focuses on generating absolute returns after fees of 10 to 12% pa over the medium to long term. The long-short nature of the Fund combined with Newgate's rigorous investment process ensures returns generated by the Fund are largely independent of rising or falling markets. Newgate is focused on providing investment opportunities primarily within core, value-add, opportunistic and development sectors of direct property and across listed and unlisted real estate and infrastructure securities. The Fund's investment team consists of Tim Hannon, Andrew Lewandowski. |
| Manager Comments | Over the September quarter, the Fund returned -2.13%. Newgate noted that, over the quarter, the Fund has been impacted by the market's concerns over the escalation of trade conflict between the USA and China. Positive contributors included Japara Healthcare (JHC), Centuria Industrial REIT (CIP), Sydney Airport (SYD) and Updater (UPD). Detractors included Charter Hall Group (CHC), Mirvac Group (MGR) and Data Exchange (DXN). In their latest report, Newgate describe how the Fund benefited from share price declines in the aged care sector after the ABC's Four Corners report and the Prime Minister's subsequent announcement of a Royal Commission. They also discuss their views on Mirvac Group after the Fund's short position in the company failed to deliver. |
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