NEWS
Performance Report: Cyan C3G Fund
18 Jun 2018 - Australian Fund Monitors
The Cyan C3G Fund returned +3.4% in May, outperforming the ASX200 Accumulation Index by +2.31% and taking annualised performance since inception in August 2014 to +24.58%.
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18 Jun 2018 - 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 | In May, 20 of the Fund's 22 positions contributed positively. Key positive contributors included Axsess Today (+10%), Acrow Formwork (+16%), Experience Co (+11%), Readcloud, Roots (+27%). The Fund has taken a handful of new investment positions in the past month, deploying a portion of the Fund's defensive cash balance. Cyan envisage further investment in the coming months as more new opportunities have now been identified. Cyan noted they have also reduced a couple of exposures as they are approaching Cyan's valuation target. |
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Fund Review: Bennelong Kardinia Absolute Return Fund May 2018
15 Jun 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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15 Jun 2018 - Fund Review: Bennelong Kardinia Absolute Return Fund May 2018
By: Australian Fund Monitors
AFM Fund Review - May 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 10.67% p.a. with a volatility of 6.91%, compared to the ASX200 Accumulation's return of 5.69% p.a. with a volatility of 13.44%.
- 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 - May 2018 (pdf format)
Performance Report: Bennelong Long Short Equity Fund
14 Jun 2018 - Australian Fund Monitors
The Bennelong Long Short Equity Fund rose +4.75% in May, outperforming the ASX200 Accumulation Index by +3.66%. The Fund has returned +16.58% p.a. since inception in February 2002.
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14 Jun 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 | Both the long and short portfolios contributed positively in May, with the majority of pairs positive. Bennelong noted company profit results and earnings guidance during the month's news flow affected the Fund; the portfolio experienced a positive skew of fundamental news with an even spread of upgrades to the long portfolio and downgrades to the short portfolio. The strongest pairs for the month were long Woolworths / short Metcash and long Aristocrat / short Tabcorp. The weakest pair was long Link / short ASX with Link affected by the Federal Budget proposal to close inactive and low balance superannuation accounts. |
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Performance Report: Paragon Australian Long Short Fund
13 Jun 2018 - Australian Fund Monitors
The Paragon Australian Long Short Fund returned -1.2% in May. The Fund has returned +32.67% over the past 12 months, outperforming the ASX200 Accumulation Index by +23.04%.
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13 Jun 2018 - Performance Report: Paragon Australian Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Paragon's unique investment style, comprising thematic led idea generation followed with an in depth research effort, results in a concentrated portfolio of high conviction stocks. Conviction in bottom up analysis drives the investment case and ultimate position sizing: * Both quantitative analysis - probability weighted high/low/base case valuations - and qualitative analysis - company meetings, assessing management, the business model, balance sheet strength and likely direction of returns - collectively form Paragon's overall view for each investment case. * Paragon will then allocate weighting to each investment opportunity based on a risk/reward profile, capped to defined investment parameters by market cap, which are continually monitored as part of Paragon's overall risk management framework. The objective of the Paragon Fund is to produce absolute returns in excess of 10% p.a. over a 3-5 year time horizon with a low correlation to the Australian equities market. |
| Manager Comments | Positive contributions in May came from Global Geoscience (Phase 1 primary feasibility study upgrade), Seven Group (profit guidance upgrade), Aristocrat (profit guidance upgrade), Kidman (binding offtake with Tesla), Sino Gas (takeover offer) and Paragon's Telstra short (profit guidance downgrade). These were offset by declines in Jupiter Mines, Wattle Heath, Cann Group, Global Energy and the Fund's Nanosonics short. At the end of May the portfolio had 29 long positions, 10 short positions and 22.3% cash. Paragon noted the Fund continues to be impacted by short-term volatility, however the long-term outlook of the Fund's key stock positions remains strong. Read Paragon's latest report for their updates on some of the key stock catalysts that occurred in May, supporting the Fund's overall outlook. These include Aristocrat (long), Global Geoscience (long), Kidman (long) and Telstra (short). |
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Fund Review: Insync Global Titans Fund April 2018
8 Jun 2018 - Australian Fund Monitors
Latest Fund Review on Insync Global Titans Fund is now available. The Global Titans Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and...
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8 Jun 2018 - Fund Review: Insync Global Titans Fund April 2018
By: Australian Fund Monitors
AFM Fund Review - April 2018 (pdf format)
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans Fund.
We would like to highlight the following:
- The Global Titans 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 - April 2018 (pdf format)
Performance Report: Touchstone Index Unaware Fund
6 Jun 2018 - Australian Fund Monitors
The Touchstone Index Unaware Fund rose +2.70% in April, taking annualised performance since inception in April 2016 to +13.23%.
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6 Jun 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 | The Touchstone Index Unaware Fund primarily selects stocks from the S&P/ASX 300 Index and typically holds 10-30 stocks. It seeks to invest in reasonably priced, good quality companies with a significant share of expected returns coming from sustainable dividends. At the end of the month the Fund held 22 stocks with an median position size of 4.1%. Overall, the portfolio's holdings had an average price/earnings of 14.6, EPS growth of 15.8%, tangible ROE of 23.7% and dividend yield of 5.1%. |
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Performance Report: Insync Global Titans Fund
5 Jun 2018 - Australian Fund Monitors
The Insync Global Titans Fund rose +2.06% in April after the cost of fees and protection. Since inception in October 2009, the Fund has returned +10.04% per annum with a volatility of 8.81%.
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5 Jun 2018 - Performance Report: Insync Global Titans 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 | Insync has added new stocks to the portfolio within the Demographic Megatrend cluster of the 'global travel explosion'. Within the same cluster, Insync exited the profitable 'consumer goods' trend as fundamental conditions impacting this had changed. Both of these moves added positively to the Fund's April returns. Key positive contributors in April included Visa, Booking Holdings and Stryker, whilst the main negative contributors were TE Connectivity, eBay and Charter Communications. The Fund continues to have no foreign currency hedging in place as Insync believe the main risks to the Australian dollar to be on the downside. Utilisation of index put options to buffer sharp falls in equity markets remains. |
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Performance Report: Bennelong Concentrated Australian Equities Fund
4 Jun 2018 - Australian Fund Monitors
The Bennelong Concentrated Australian Equities Fund rose +3.66% in April, taking annualised performance since inception in January 2009 to +18.14%.
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4 Jun 2018 - 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 April, the Fund's weightings had been increased in the Consumer Staples, Health Care, Materials and Financials sectors, and decreased in the Discretionary and Industrials sectors. The Fund aims to invest in a concentrated portfolio of high quality companies with strong growth outlooks and underestimated earnings momentum and prospects. By comparison with the Fund's benchmark (ASX300 Accumulation Index), the portfolio's 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), as well as higher price/earnings and lower dividend yield (Reasonable Valuation). |
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Performance Report: Quay Global Real Estate Fund
1 Jun 2018 - Australian Fund Monitors
The Quay Global Real Estate Fund rose +4.2% in April, taking annualised performance since inception in July 2014 to +13.64% per annum.
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1 Jun 2018 - 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 | During the month one of the Fund's investees, Hispania Activos, attracted an unsolicited bid from entities associated with Blackstone. The Manager noted the offer of 17.45 euros compares well with their entry price of 11.85 euros last year, however, they also noted that management are seeking a better outcome for investors. Quay will continue to hold their position, knowing their downside is limited with the option of additional returns. Notwithstanding share market optimism, the Manager continues to see weakness in the local macro economy as national house price growth turned negative in April (on an annual basis). They believe the combined effect of tighter lending standards and elevated supply is weighing on buyer sentiment. In addition, Quay still believe Australian interest rates, in time, could reach zero. |
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Performance Report: NWQ Fiduciary Fund
31 May 2018 - Australian Fund Monitors
The NWQ Fiduciary Fund returned +0.62% in April, taking performance since inception in May 2013 to +7.23% p.a. with an annualised volatility of 4.72%.
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31 May 2018 - 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 | During the month, NWQ's Investment Committee modestly increased the Fund's exposure to the equity market neutral strategy by adding a newly approved manager. NWQ noted the current market environment is delivering relatively high stock price dispersion which is favourable for skilled equity market neutral managers. The Fund's beta exposure remains historically low given NWQ's current market risk assessment. |
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