NEWS
Performance Report: MHOR Australian Small Cap Fund
24 Nov 2017 - Australian Fund Monitors
The MHOR Australian Small Cap Fund rose +6.11% in October, outperforming the ASX200 Accumulation Index by +2.1%.
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24 Nov 2017 - 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 | Positive contributors in October included Alliance Aviation Services (AQZ), IPH Ltd (IPH) and G8 Education (GEM). The key detractor were Xenith IP Group (XIP) which, as MHOR noted, provided a disappointing trading updated citing lower than anticipated earnings from the newly acquired Griffith Hack business. MHOR thinks these integration issues will likely be transitory rather than systematic while valuation remains supportive at these levels (sub 10x PE, 7% yield). The Fund entered October with 36 stocks and 6.7% cash, exiting the month with 33 stock and 13.5% cash. MHOR's view is that synchronised global economic growth continues to underpin a constructive outlook for equity markets. Monetary policy is expected to normalise, however, MHOR only anticipate a gradual tightening cycle considering stubbornly low wage inflation and relatively high household debt levels. Domestically, MHOR remain cautious on retail and property, preferring to play resources, mining services and technology whilst remaining disciplined on valuation. The Fund's relatively high cash levels provides them MHOR with ample flexibility to capitalise on investment opportunities over the coming months. |
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Performance Report: KIS Asia Long Short Fund
24 Nov 2017 - Australian Fund Monitors
The KIS Asia Long Short Fund returned +0.67% in October with an annualised return since inception in October 2009 of +13.73%.
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24 Nov 2017 - 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 gains on the portfolio were driven by long positions this month, on aggregate the Fund made 1.4x as much money on long positions as the losses it suffered on the short. Positive contributors included MedAdvisor (+0.31%), Fairfax Media (+0.24%) and Base Resources Ltd (+0.21%). Detractors included Range International Ltd (-0.39%), HSCEI Index (-0.23%) and a2 Milk Company Ltd (-0.22%). The Manager's report highlights the advantages of running a carefully risk managed portfolio in the face of a protracted bull market. KIS noted that the largest drawdown experienced by an investor in the Fund since inception was -2.6%, this is contrasted against drawdowns experience over the same period by several indices - S&P ASX200 -17.7%, Hang Seng -32.1%, HSCEI -45.1% and S&P500 -17%. |
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Performance Report: Glenmore Australian Equities Fund
22 Nov 2017 - Australian Fund Monitors
The Glenmore Australian Equities Fund returned +5.32% in October, outperforming the ASX200 Accumulation Index by +1.31%.
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22 Nov 2017 - 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 October included Praemium Limited (+37.2%), Pioneer Credit (+20.5), HFA Holdings (13.8%) and Macquarie Atlas Roads (+9.8%). Glenmore's outlook on each of these companies over the next 3-5 years is positive. The only detractor of note was Pacific Current (-8.7%) after it sold its 40% stake in Investors Mutual (IML), the company's largest earnings contributor, to Natixis Global Asset Management at a sale price which was below market expectations. However, Glenmore's view is that Pacific Current remains attractively priced despite near-term uncertainty. |
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Performance Report: Touchstone Index Unaware Fund
21 Nov 2017 - Australian Fund Monitors
The Touchstone Index Unaware Fund rose +4.33% in October. Since inception in April 2016, the Fund has returned +14.44% per annum with a volatility of 9.47%.
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21 Nov 2017 - 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 | Over the past 12 months, the Fund has outperformed the ASX200 Accumulation Index by +1.58%. The Fund's up-capture and down-capture ratios indicate that the Fund has, on average, outperformed in both rising and falling markets. The Fund's Sharpe and Sortino ratios for performance over the past 12 months are also superior to those of the Index; the Fund's Sharpe and Sortino ratios are 2.01 and 6.37 respectively, compared with the Index's Sharpe ratio of 1.94 and Sortino ratio of 4.48. |
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Performance Report: Bennelong Australian Equities Fund
20 Nov 2017 - Australian Fund Monitors
The Bennelong Australian Equities Fund returned +4.40% in October, taking annualised performance since inception to +13.92%.
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20 Nov 2017 - Performance Report: Bennelong Australian Equities Fund
By: Australian Fund Monitors
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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 | At the end of the October, the portfolio's weightings were decreased in the Industrials, Utilities and Financials sectors and were increased in the Discretionary, Consumer Staples and Materials sectors. The portfolio's weightings in Health Care, IT, Telco's, Energy and REIT's remained the same as they were at the end of September. The Fund's portfolio characteristics, as shown in the latest report, are in line with the Fund's objective of investing in high quality businesses with strong growth outlooks and underestimated earnings and momentum prospects. At the end of October the Fund held 28 stocks, the top 5 being CSL, Westpac, Aristocrat Leisure, NAB and Treasury Wine Estates. |
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Performance Report: Bennelong Long Short Equity Fund
17 Nov 2017 - Australian Fund Monitors
The Bennelong Long Short Equity Fund rose +5.29% in October, taking annualised performance since inception to +16.50%.
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17 Nov 2017 - 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 | Performance during the month reflected a broad spread of positive contributions across two thirds of the portfolio. Losing pairs made small contributions with long Ramsay/short Primary and Healthscope the only one of significance. Long BlueScope/short Sims Metal was the biggest contributor driven by a recovery in BlueScope from a depressed level. Elsewhere, AGM trading updates have been broadly positive for the Fund. The Manager's view is that share markets remain well bid at present with improved earnings and sentiment overcoming any valuation concerns from inevitable policy normalisation. They also noted the recent rally in the local market has taken it to the upper bound of its trading range of between 5,000 - 6,000 for the last 4 years. |
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Performance Report: Cyan C3G Fund
16 Nov 2017 - Australian Fund Monitors
The Cyan C3G Fund returned +6.1% in October. Since inception in July 2014, the Fund has returned +28.1% per annum and outperformed the ASX200 Accumulation Index by +21.9% per annum.
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16 Nov 2017 - 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 | Positive performers in October included Afterpay Touch (+25%), BlueSky Alternative Investments (+28%), AxsessToday (+11%) and Motorcycle Holdings (+15%). The only detractor was cyber safety business Family Zone (-8%), however, the Manager noted the Fund had been reducing its holding as the stock rose and hence the recent retracement was immaterial to the Fund's overall return. Cyan noted that, in recent months, the small cap market has been conducive to making money and they believe there's no sign of it slowing at this stage. That said, Cyan noted one of their ongoing focal points is the risk/reward metric and they therefore retain a relatively high proportion of cash. The Fund is well diversified, with 22 individual holdings and no position accounting for more than 9% of the total fund. |
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Performance Report: NWQ Fiduciary Fund
15 Nov 2017 - Australian Fund Monitors
The NWQ Fiduciary Fund rose +2.50% in October, taking annualised performance since inception in May 2013 to +6.58%.
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15 Nov 2017 - 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 | The Manager noted that following strong performance in September, in which the equity market fell along with the bond market, the 'all weather' strategy of the fund delivered another strong showing in October as the overall market reversed course and rallied strongly. Fund performance was broad based for the month, with strong contributions from both Beta (25% of the portfolio) and Alpha managers (70% of the portfolio). |
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Performance Report: Bennelong Kardinia Absolute Return Fund
14 Nov 2017 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +3.18% in October, taking annualised performance since inception to +10.89%.
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14 Nov 2017 - 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 performers during the month included BWX, NAB, Westpac, Clean TeQ, Aristocrat and Costa Group. The Manager noted the short book was a small drag on performance given the strong market, although shorts in Fortescue and Perpetual performed well. Detractors included Updater and a short position in Share Price Index Futures which was closed out early in the month. Net equity market exposure, including derivatives, was increased from 22.4% to 65.5% (74.3% long and 8.8% short) as the Manager bought back a short position in Share Price Index Futures and added 10 new positions to the portfolio, including NAB, Westpac and a number of resource stocks. |
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Bennelong Twenty20 Australian Equities Fund October 2017
13 Nov 2017 - Australian Fund Monitors
Latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available.
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13 Nov 2017 - Bennelong Twenty20 Australian Equities Fund October 2017
By: Australian Fund Monitors
AFM Fund Review - October 2017 (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 2017 (pdf format)
