NEWS
Performance Report: KIS Asia Long Short Fund
7 Feb 2018 - Australian Fund Monitors
The KIS Capital Long Short Fund rose +1.60% in December, taking annualised performance since inception in October 2009 to +13.75% with a volatility of 5.27%.
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7 Feb 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 | The Fund is a catalyst focused fund whose objective is to generate absolute returns with low volatility and correlation to other asset classes. Trade selection and portfolio management are based on three distinct principals of: Liquidity, Transparency and Risk Management. KIS Capital looks to build a portfolio of 'winning' ideas with an identifiable and imminent catalyst and hedge unwanted market risk. |
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Performance Report: Pengana PanAgora Absolute Return Global Equities Fund
6 Feb 2018 - Australian Fund Monitors
The Pengana PanAgora Absolute Return Global Equities Fund returned -1.16% for December, with performance driven by the U.S. large cap strategy which underperformed.
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6 Feb 2018 - Performance Report: Pengana PanAgora Absolute Return Global Equities Fund
By: Australian Fund Monitors
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| Fund Overview | PanAgora believes the best way to find opportunities in the global markets is to combine fundamental analysis with robust quantitative techniques in order to filter the investment universe and select the investments. The Fund invests primarily in listed equity securities from a global universe of developed markets and a select group of emerging market countries. The Fund's objective is to seek absolute returns by identifying and exploiting multiple inefficiencies that may exist in global equity markets. These inefficiencies are primarily exploited through the use of a long/short equity strategy which aims to construct a portfolio that is generally neutral to market movements. As such the performance of the investment strategy is largely independent of the market's performance. The Fund seeks to achieve its objective by using a diversified set of strategies that have low correlation to one another. In addition, because many of these strategies are designed to generate profit under different market conditions, their combination is expected to result in more stable returns over time than any individual strategy in and of itself. |
| Manager Comments | In the long-term portfolio, positions in the U.S. detracted -1.29% for the month. The U.S. alpha model underperformed as growth and sentiment metrics disappointed. Consumer Discretionary (-0.47%) and Consumer Staples (-0.45%) were the largest sector detractors. International positions contributed +0.50% as value and momentum related factors performed well. On a country basis, Japan (+0.37%) and the UK (+0.34%) were the top contributors. The Fund's intermediate-term strategies were flat and short-term strategies detracted -0.21% due to the underperformance of the Analyst Days strategy and Index Reconstitution trades. |
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Performance Report: Collins St Value Fund
5 Feb 2018 - Australian Fund Monitors
The Collins St Value Fund returned +2.20% in December, outperforming the ASX200 Accumulation Index by +0.39% and taking annualised performance since inception in February 2016 to +15.43%.
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5 Feb 2018 - Performance Report: Collins St Value Fund
By: Australian Fund Monitors
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| Fund Overview | The managers of the fund intend to maintain a concentrated portfolio of investments in ASX listed companies that they have investigated and consider to be undervalued. They will assess the attractiveness of potential investments using a number of common industry based measured, a proprietary in-house model and by speaking with management, industry experts and competitors. Once the managers form a view that an investment offers sufficient upside potential relative to the downside risk, the fund will seek to make an investment. If no appropriate investment can be identified the managers are prepared to hold cash and wait for the right opportunities to present themselves. |
| Manager Comments | Collins St also noted that, despite the 'missed opportunity' from not investing in the mining cycle, they remain convinced that their investments in simple to understand companies will continue to generate great outcomes, and that the commodity space is simply too complex, volatile and expensive for Collins St to focus on. Collins St noted the Fund's returns so far are especially pleasing given the Fund's disconnect from what has been the key driver of the Australian stock market over the past two years - mining companies. |
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Fund Review: Insync Global Titans Fund December 2017
5 Feb 2018 - Australian Fund Monitors
Latest Fund Review on Insync Global Titans Fund is now available.
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5 Feb 2018 - Fund Review: Insync Global Titans Fund December 2017
By: Australian Fund Monitors
AFM Fund Review - December 2017 (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 - December 2017 (pdf format)
Performance Report: Bennelong Kardinia Absolute Return Fund
2 Feb 2018 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +1.43% in December, taking performance since inception in May 2006 to +10.90% per annum with a volatility of 6.97%.
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2 Feb 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 | Positive contributors included Birimian (+39bp contribution), Netwealth (+37bp), Whitehaven Coal (+30bp), Independence Group (+29bp) and Alumina (+25bp). Detractors included New Century Zinc (-26bp), European Cobalt (-24bp), Clean TeQ (-18bp), AGL (-8bp) and a short position in Telstra (-8bp). Net equity market exposure (including derivatives) was lowered from 72.3% to 45.0% (66% long and 21.5% short) as the Fund sold positions in BHP, CBA, NAB and RIO and added short positions in Share Price Index Futures. |
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Performance Report: MHOR Australian Small Cap Fund
1 Feb 2018 - Australian Fund Monitors
The MHOR Australian Small Cap Fund returned +5.33% in December, marking 8 consecutive positive months. The Fund has returned +23.03% over the past 12 months versus the ASX200 Total Return Index's +11.80%.
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1 Feb 2018 - Performance Report: MHOR Australian Small Cap Fund
By: Australian Fund Monitors
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| Fund Overview | MHOR looks for investment that exhibit the following set of characteristics: -Opportunity - to take advantage of growth and positive alignment with industry themes and trends. -Quality business - competitively advantaged product or service offering. -Financial flexibility - appropriately resourced to capture its opportunity. -Management - with the vision and capability to bring it all together. -Fundamentally undervalued. MHOR also considers labour standards, environmental, social and ethical considerations when making investment decisions but only to the extent that these factors impact the assessment of risk or return. The minimum suggested investment timeframe is 3-5 years. |
| Manager Comments | MHOR noted they are excited about the opportunity ahead of them in 2018. They expect the quarterly 4C results of a number of their smaller companies to be positive catalysts for a number of those stocks. The rest of the portfolio will report half year results in February, MHOR expect to uncover some new opportunities during the results period. |
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Performance Report: Quay Global Real Estate Fund
31 Jan 2018 - Australian Fund Monitors
The Quay Global Real Estate Fund fell -1.3% in December, with approximately +1.1% derived from underlying stock exposure and -2.4% deducted as a result of a buoyed Australian dollar.
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31 Jan 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 | Over the year, the Funds best performing investees were all located in the UK and Europe. Safestore (European Storage), Unite Group (UK Student Accommodation), LEG Immobilien (Herman Housing) and Hispania (Spanish Hotels) benefited from stronger local currencies, but also very solid underlying fundamentals. Detractors were all US stocks including Brixmor (Retail), EDR (Student Accommodation), ACC (Student Accommodation) and Ventas (Health). The Manager believes the underlying fundamentals of their US exposures are robust. The Manager sees the two biggest risks for real estate to be recession and supply, rather than rising interest rates. They note that, despite long cycles of rising rents and asset prices, development feasibilities are now falling short because construction costs are rising at an even quicker pace than rents. Their view is that falling development yields at a time of rising interest rates shuts-down funding for new projects and therefore supply pretty quickly. They also noted that, despite recent challenges, they remain confident the global real estate market offers enough opportunities that allow them to meet their medium-term total return objective of CPI +5%. |
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Performance Report: Pengana Global Small Companies Fund
30 Jan 2018 - Australian Fund Monitors
The Pengana Global Small Companies Fund returned +0.90% in December, taking 12-month performance to +23.96%.
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30 Jan 2018 - Performance Report: Pengana Global Small Companies Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is managed by Founder & CIO Leah Zell, and Portfolio Managers Jon Moog and David Li. The Lizard investment team have over 50 years combined investment experience in global small cap investing. Leah Zell has over 30 years of experience and is a recognized expert in international investing in the international small-cap category. The Fund's investment team uses a value-oriented investment approach to small and mid-cap global equities that seeks to identify and invest in quality businesses that create significant value but are mispriced, overlooked or out-of-favour. The investment manager believes that unique opportunities exist due to limited available research, corporate actions or unfavourable investor perception. The portfolio construction process aims to develop portfolios that incorporate the best investment ideas from the investment manager's research while allowing for liquidity constraints and perceived risk. The Fund's investment manager will not typically hedge currency exposures, however during periods of currency extremes, some currency hedging may be employed. Derivatives may be used to achieve long or short exposures, reduce risk and reduce transaction costs. Derivatives will not be used for the purposes of leverage and the Fund's net exposure will never be short. |
| Manager Comments | Top performers in December were all positions added in 2017. Pengana believe that these businesses continue to have significant growth potential and should compound value for years to come. Pengana noted non-AUD currency exposure had a negative impact on performance (detracted -1.8%). The Fund currently has 42 holdings, the top 10 positions represent 35% of the portfolio. This allocation is typical for the Fund and consistent with the Fund's investment mandate and strategy. |
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Performance Report: Glenmore Australian Equities Fund
29 Jan 2018 - Australian Fund Monitors
The Glenmore Australian Equities Fund rose +3.81% in November, outperforming the ASX200 Accumulation Index by +2.17% and taking performance since inception in June 2017 to +24%.
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29 Jan 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 included NRW Holdings (+19.3%), Praemium (+17.5%) and Alliance Aviation Services (+15.2%). Detractors included Mastermyne (-9.0%), Arena REIT (-8.3%) and Emeco (-3.8%). Glenmore noted there were no specific news releases during December for all three detractors and they remain comfortable holders going into reporting season in February. Glenmore believe valuations of equities are elevated, but not extremely so, with numerous stock specific opportunities still present on the ASX. Glenmore have also observed an increase in risk appetite, and noted the Fund has been selectively trimming positions in companies where the stock price has approached Glenmore's valuation. They note the next 12-18 months is highly likely to see an increase in equity market volatility. Currently, the Fund holds around 20% cash and hence is well positioned for any stock specific opportunities that might be created from a market correction. |
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Fund Review: Bennelong Kardinia Absolute Return Fund December 2017
26 Jan 2018 - Australian Fund Monitors
Latest Fund Review for the Bennelong Kardinia Absolute Return Fund is now available.
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26 Jan 2018 - Fund Review: Bennelong Kardinia Absolute Return Fund December 2017
By: Australian Fund Monitors
AFM Fund Review - December 2017 (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 10.90% p.a. with a volatility of 7.00%, compared to the ASX200 Accumulation's return of 5.81% p.a. with a volatility of 13.62%.
- 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 - December 2017 (pdf format)
