NEWS
30 Aug 2018 - Performance Report: Bennelong Twenty20 Australian Equities Fund
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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 Funds weightings were increased in the Industrials, Telco's and REIT's sectors, and decreased in the Discretionary, Consumer Staples, Health Care, IT, Energy, Financials and Materials sectors. The Fund's top holdings include CBA, BHP, Westpac, CSL, Reliance Worldwide, ANZ, NAB and Aristocrat Leisure. The Fund combines a passive investment in the S&P/ASX20 Index and an actively managed investment in the S&P/ASX ex-20. The passive position is achieved by investing individually in each of the ASX20 Index's Individual stocks with approximately the same weightings they represent in the S&P/ASX300. Currently, this weight is approximately 60% of the Fund's portfolio. The active position in ex-20 stocks aims to allow the Fund to outperform the broader market. |
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29 Aug 2018 - Performance Report: 4D Global Infrastructure Fund
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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 4D Global Infrastructure Fund rose +1.38% in July, outperforming its benchmark by +0.67% and taking annualised performance since inception in March 2018 to +11.70%. The strongest performer for July was Indonesian toll road operator Jasa Marga, up +12.2% for the month. The weakest performer was Chinese infrastructure conglomerate Shenzhen International, down -11%. Read their latest report for their thoughts on the markets over the past month. |
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28 Aug 2018 - Performance Report: KIS Asia Long Short Fund
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Fund Overview | Whilst the Fund's primary strategy is focused on long/short equities, the ability to retain discretionary powers to allocate across a number of other investment strategies is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage, special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.). The Fund's geographic focus is Asia excluding Japan, but including Australia). The Fund may invest outside of this region to the extent that: 1. The investment decision is driven from the Asian region or; 2. The exposure is intended to mitigate risk or enhance return from factors external to the Asian region. |
Manager Comments | The KIS Asia Long Short Fund rose +0.42% in July, taking annualised performance since inception in October 2009 to +13.11% versus the ASX200 Accumulation Index's +7.81% per annum. This return has been achieved with an annualised volatility of 5.19% versus the Index's 11.53%. The Fund has demonstrated a strong focus on downside protection; Sortino ratio of 4.28 versus the Index's 0.60, and down-capture ratio since inception of -95.13%. A negative down-capture ratio indicates that, on average, the Fund has achieved positive performance in the market's negative months. |
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27 Aug 2018 - Bennelong Twenty20 Australian Equities Fund July 2018
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.
24 Aug 2018 - Performance Report: Frazis Fund
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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 | The Frazis Fund returned +2.04% in its first month, with top contributors including Afterpay (+1.9%), Cooper Energy (+0.9%) and HCA Healthcare (+0.7%), as well as the Fund's equity shorts (+1.9%). The Fund is 100% invested in the Manager's favourite themes, while hedging in three ways: direct shorts, VIX upside and index hedges. Read the monthly report for the Manager's reasoning behind this hedging strategy. |
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24 Aug 2018 - Performance Report: Bennelong Kardinia Absolute Return Fund
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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 | The Fund fell -0.68% in July, with resources stocks weighing on performance. A short position in a consumer staples stock was the largest individual contributor (+49bp contribution), driven by a significant profit downgrade caused by higher input costs and strong competition. Other positive contributors included ANZ (+37bp), Qantas (+23bp), CYBG (+20bp) and Aristocrat Leisure (+14bp). The individual stock short book made a positive contribution, with shorts in consumer stocks driving most of the performance. Detractors included Independence group (-40bp contribution), a short position in Share Price Index Futures (-31bp), Nine Entertainment (-27bp), Emeco (-19bp) and AGL (-14bp). Net equity market exposure (including derivatives) was increased from 40.3% to 67.3% (86.8% long and 19.5% short), with the addition of stock including NAB, Tabcorp, Viva Energy, Oz Minerals and Reliance Worldwide, and a reduction in the Fund's short position in Share Price Index Futures contracts. |
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23 Aug 2018 - Performance Report: Cyan C3G Fund
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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 | Positive contributors in July included AfterpayTouch (+52%), Calix (+66%), Readcloud (+21), PSC Insurance (+11%) and Acrow Formwork (+10%). Cyan continue to have compelling expectations for the companies in which they have invested. As a whole, Cyan believe these businesses will grow materially over the next year, with the first catalyst being the reporting of solid earnings results during reporting season. |
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22 Aug 2018 - Performance Report: Bennelong Australian Equities Fund
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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 July, the Fund's weightings had been increased in the Discretionary, Industrials, Materials and REIT's sectors, and decreased in the Financials, IT and Healthcare sectors. The Fund aims to invest in high quality companies with strong growth outlooks and underestimated earnings momentum. By comparison with the ASX300 Accumulation Index, the portfolio characteristics show that its holdings, on average, have a higher Return on Equity and lower Debt/Equity (Premium Quality), higher sales growth and higher EPS growth (Superior Growth), and higher Price/Earnings and lower dividend yield (Reasonable Valuation). |
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21 Aug 2018 - Performance Report: NWQ Fiduciary Fund
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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 | The Fund's Sharpe and Sortino ratios, 1.06 and 1.97 respectively, by contrast with the Index's Sharpe of 0.61 and Sortino of 0.85, highlight the Fund's capacity to achieve superior risk-adjusted returns than the market whilst ensuring investors' capital is protected. This is also supported by the Fund's down-capture ratio since inception of -6.90% which says that the Fund, on average, has risen during the months the market has fallen. The Fund returned -0.58% in July. NWQ noted there was a higher level of volatility in the returns of the Alpha and Beta managers during the month, and it was unfortunate that the end of the month coincided with a shift in sentiment that was unfavourable for a select few of these managers. Pleasingly, NWQ noted, the majority of these losses were recovered in the first three trading days in August ahead of earnings season. |
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20 Aug 2018 - Performance Report: Glenmore Australian Equities Fund
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Fund Overview | The main driver of identifying potential investments will be bottom up company analysis, however macro-economic conditions will be considered as part of the investment thesis for each stock. |
Manager Comments | The Fund's Sharpe and Sortino ratios, 3.44 and 10.64 respectively, by contrast with the Index's Sharpe of 1.59 and Sortino of 2.85, highlight the Fund's capacity to achieve significantly greater risk-adjusted performance whilst focusing strongly on protecting investor capital from the market's downside. The Fund's up-capture and down-capture ratios since inception indicate that, on average, the Fund has significantly outperformed in both rising and falling markets. Positive contributors in July included Pinnacle Investments (+15.3%), Pacific Current (+8.2%), Mastermyne (+9.3%), Navigator Global Investments (+8.4%), and WorleyParsons (+5.2%). Detractors included Appen (-18.8%) and Emeco Holdings (-6.7%). |
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