NEWS
Performance Report: 4D Global Infrastructure Fund
30 May 2018 - Australian Fund Monitors
The 4D Global Infrastructure Fund rose +3.03% in April, outperforming its benchmark (OECD G7 Inflation Index +5.5%) by +2.32%. The Fund has returned +12.54% per annum since inception in March 2016.
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30 May 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 was Brazilian toll road operator Ecorodovias (+13.7%), while the weakest performer was American tower operator Crown Castle (-8%). Given the ongoing global growth environment, the Fund remains overweight user pay assets which have a direct correlation to macro strength. The Manager also noted that, while they are underweight utilities ('bond proxies'), ongoing geo-political concerns as well as a number of near-term elections sees the Fund maintain core exposure to quality defensive utility assets. The Manager's outlook for global listed infrastructure over the medium term remains positive. They noted there has been a significant underinvestment in infrastructure around the world over the past 30 years and that public sector fiscal and debt constraints will limit governments' ability to respond, resulting in an increasing need for private sector capital as part of the funding solution. |
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Performance Report: KIS Asia Long Short Fund
29 May 2018 - Australian Fund Monitors
The KIS Asia Long Short Fund returned -0.55% in April. Since inception in October 2009, the Fund has returned +13.46% p.a. with an annualised volatility of 5.21%.
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29 May 2018 - Performance Report: KIS Asia Long Short Fund
By: Australian Fund Monitors
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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 | In April, the Fund's short position in Blue Sky Alternatives (BLA.AX) was the largest contributor (+26bp). No other position contributed or detracted more than 20bp. KIS noted that, when evaluating the return of the Fund to identify the source of the loss over the month, there was clearly no one significant line. In their latest commentary, KIS discuss their short position in Blue Sky Alternatives (BLA.AX) and their reservations about BLA.AX prior to Glaucus' report. KIS believe what Glaucus published was fair; their logic was stated and was made available to all. KIS was flat BLA.AX at the time of the release of Glaucus' report, however, they shorted the stock soon after and shorted further stock both after listening to Blue Sky's initial rebuttal and after Glaucus' second comment which confirmed KIS' opinion of the BLA.AX rebuttal. As mentioned above, BLA.AX was the Fund's largest contributor in April (+26bp). |
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Performance Report: Glenmore Australian Equities Fund
28 May 2018 - Australian Fund Monitors
The Glenmore Australian Equities Fund rose +0.04% in April, taking cumulative performance since inception in June 2017 to +28.94%.
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28 May 2018 - Performance Report: Glenmore Australian Equities Fund
By: Australian Fund Monitors
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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 | Positive contributors in April included Macquarie Atlas Roads (+13.3%), Bravura Solutions (+8.1%), Appen (+8.4%), Jumbo Interactive (+6.6%) and Imdex (+5.1%). Detractors included Fiducian Group (-11.5%), Mastermyne (-7.8%) and Emeco (-3.4%). Glenmore noted Fiducian Group's return was largely impacted by the ongoing Royal Commission and that, while there is no evidence that FID's financial planners have given poor or conflicted advice to their clients, currently there is uncertainty as to how ASIC will respond once its investigation in the larger players has concluded. Glenmore remain in regular contact with the company and will continue to assess whether the recent decline in stock price represents a buying opportunity for longer term investors. |
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Performance Report: Bennelong Twenty20 Australian Equities Fund
25 May 2018 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund rose +2.88% in April, taking annualised performance since inception in December 2015 to +10.39% per annum.
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25 May 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 | By the end of April, the Fund's weightings were increased in the Consumer Staples, Health Care, IT, Energy and Materials sectors, and decreased in the Discretionary, Telco's, Industrials and Financials sectors. The Fund combines a passive investment in the S&P/ASX20 Index and an actively managed investment in Australian listed stocks outside this index. The passive position is achieved by investing individually in each of the S&P/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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Performance Report: Bennelong Kardinia Absolute Return Fund
24 May 2018 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +1.56% in April, taking annualised performance since inception in May 2006 to +10.58% per annum with an annualised volatility of 6.93%.
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24 May 2018 - 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 for the month included CSL (+40 basis points contribution), Bluescope (+38bp), Alumina (+37bp), Independence Group (+32bp), BHP (+20bp), Origin Energy (+28bp), WorleyParsons (+27bp), Santos (+26bp) and Macquarie Group (+29bp). A short position in Share Price Index Futures (-88bp contribution) was the biggest detractor given the rise in the market. Other detractors included Boral (-31bp) and Bellamy's (-18bp). Overall, the short book made a negative contribution for the month. Net equity market exposure (including derivatives) was kept steady at 60.7% (75.1% long and 14.4% short), with the addition of Rio Tinto and the buyback of part of the Fund's short position in SPI Futures contracts offsetting the sale of ANZ, BHP and Westpac and a reduction in the size of some key holdings including Boral, Star Entertainment, Janus Henderson, Aristocrat and CSL. |
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Performance Report: Cyan C3G Fund
23 May 2018 - Australian Fund Monitors
The Cyan C3G Fund returned -5.28% in April. This comes after a sustained period of outperformance, with the Fund having risen +19.5% after fees over the past 12 months.
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23 May 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 | Cyan noted that the Fund struggled to find a position that rose in April, despite the positive underlying market. Two key detractors included BlueSky (BLA), which impacted performance at the start of the month, and Experience Co (EXP), which downgraded earnings on the 30th of April and thus impacted performance at the end of the month. Other detractors included AMA Group (-11%), Motorcycle Holdings (-20%) and Moelis (-10%). In light of recent price movements, Cyan's near-term outlook is positive. They feel there is some value creeping into their end of the market, and noted that they'll likely add to many of the Fund's existing holdings in the coming months in addition to searching for new core Fund positions. |
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Performance Report: Qato Capital Market Neutral Fund
22 May 2018 - Australian Fund Monitors
The Qato Capital Market Neutral Strategy rose +1.12% in April. Qato attribute this to machine learning model enhancements the Fund began using this year.
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22 May 2018 - Performance Report: Qato Capital Market Neutral Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund seeks to preserve capital and maximise absolute returns through active and constant risk management, targeting monthly a net market exposure of 0% to hedge broader market risks by generally holding up to 50 S&P/ASX-100 positions (up to 25 long positions & 25 short positions). Historically, the strategy has been uncorrelated to traditional asset classes with a negative beta to equity markets. Qato Capital's process is entirely systematic - stock selection and risk management are all employed in a rules based approach. Positions in Qato's long-portfolio and short-portfolio are rotated monthly dependent upon their Q-Score ranking. The strategy employs no financial leverage/gearing to purchase securities, no derivatives and no financial products to imitate leverage. |
| Manager Comments | Qato's long portfolio had a mining bias for April, most of which benefited from bounding commodity prices. Positive contributors from the sector included South32 (+15.88%), Bluescope Steel (+9.47%) and Rio Tinto (+10.27%). In Healthcare, CSL (+9.69%) contributed positively, whilst accounting software provider Xero also added value. Qato noted that, given the broad-based rally in the ASX100, the short book found generating positive performance difficult by comparison with the long portfolio. One laggard of the broader market highlighted by Qato was packaging company Amcor, retracing -2.79% in April and -11.67% over the past 6 months. |
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Bennelong Twenty20 Australian Equities Fund April 2018
18 May 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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18 May 2018 - Bennelong Twenty20 Australian Equities Fund April 2018
By: Australian Fund Monitors
AFM Fund Review - April 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 - April 2018 (pdf format)
Fund Review: Bennelong Kardinia Absolute Return Fund April 2018
17 May 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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17 May 2018 - Fund Review: Bennelong Kardinia Absolute Return Fund April 2018
By: Australian Fund Monitors
AFM Fund Review - April 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 10.58% p.a. with a volatility of 6.93%, compared to the ASX200 Accumulation's return of 5.63% p.a. with a volatility of 13.48%.
- 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 - April 2018 (pdf format)
Performance Report: ARCO Absolute Trust (formerly Optimal)
16 May 2018 - Australian Fund Monitors
The ARCO Absolute Trust returned -0.54% in April. Since inception in September 2008, the Fund has returned +8.29% per annum with a volatility of 3.75%.
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16 May 2018 - Performance Report: ARCO Absolute Trust (formerly Optimal)
By: Australian Fund Monitors
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| Fund Overview | The Fund's bias is likely to be net long under normal market conditions, with the core strategy being to construct a portfolio of listed equity securities priced at levels that do not adequately reflect their underlying value. The Fund will seek to boost returns and limit potential market downside by selective short selling of individual stocks which are priced at levels that are viewed as materially above their underlying value. The Fund will also use certain trading strategies both within its core portfolio (through rebalancing stock weights and overall market exposure in response to price movements) and in certain other situations (typically of a shorter-duration and/or opportunistic nature) with the objective of further increasing returns. *Formerly the Optimal Australia Absolute Trust |
| Manager Comments | Over 70% of the long positions in the portfolio were positive contributors to performance during April, most notably BHP, Alumina Ltd, Nufarm, Westfield and Lynas. ARCO increased the Fund's exposure to BHP and Nufarm over the month as their analysis continues to highlight further upside potential from their respective capital and asset management strategies. Negative contributors in the long portfolio included Boral, Link and AHG. The short portfolio also broadly detracted from performance, with the exception of select short positions in the banking sector which ARCO continue to view as a short-side trade. |
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