NEWS
Bennelong Long Short Equity Fund
10 Apr 2017 - Australian Fund Monitors
Bennelong Long Short Equity Fund was up slightly for March, returning +0.29%, taking the latest 24 months return to 20.38%.
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10 Apr 2017 - 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. |
| Manager Comments | The standout pair for the month was ILuka / Downer with both positions contributing positively. The TPG Telecom / Telstra and Challenger / AMP pairs also contributed positively for the month. Elsewhere pair performance was balanced with little change. The Fund's performance for the most recent quarter was up +7.43%, dominated by company fundamental performance in 2017. The portfolio benefited from both numerous upgrades to the long portfolio and downgrades to the short portfolio, and had few losers. |
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King Tide NZ/Australian Long/Short Equity Fund
5 Apr 2017 - Australian Fund Monitors
King Tide NZ/Australian Long/Short Equity Fund returned -1.72% for the month of February, taking the annualised return since inception to 8.75% p.a.
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5 Apr 2017 - King Tide NZ/Australian Long/Short Equity Fund
By: Australian Fund Monitors
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| Fund Overview | The fund seeks to outperform the market with less volatility than the market by allocating capital to a select group of eight to sixteen funds whose investment mandates allow them to use short selling of equities and equity indices, to use derivatives to manage risk, to use leverage and to hold large amounts of cash. In-depth proprietary research is used to select and monitor fund managers with particular emphasis on their ability to manage equity market risk through stock selection, short selling and the use of derivatives and cash. |
| Manager Comments | It was the managers with large cap exposure and more diversified portfolios such as Wavestone and L1 that performed well for the month, with returns of 2.35% and 2.23% respectively. However, some of the Fund's small cap specialists such as PIE Funds found the month tough, with their Growth Fund and Emerging Companies Fund falling -5.98% and -4.30%. Managers investing in resource sector, such as Paragon and Regal Atlantic also fell -4.99% and -5.12% respectively. At the end of February, King Tide added a new fund, the Sandon Capital Activist Fund, bringing a different style of investing - an activist strategy, to the Fund's portfolio. |
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Fund Review: Insync Global Titans Fund February 2017
4 Apr 2017 - Australian Fund Monitors
Latest Fund Review on Insync Global Titans Fund is now available.
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4 Apr 2017 - Fund Review: Insync Global Titans Fund February 2017
By: Australian Fund Monitors
AFM Fund Review - February 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 Fund's unit price returned +2.1% for the month of February. The performance was driven by positive contributions from the holdings in Unilever, Heineken, Visa, Medtronic and eBay. The main negative contributors were Zimmer Holdings, Microsoft Corp and Comcast.
- 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 - February 2017 (pdf format)
4D Global Infrastructure Fund
31 Mar 2017 - Australian Fund Monitors
4D Global Infrastructure Fund recorded a net gain of 3.97% for the month of February, outperforming its benchmark (OECD G7 Inflation Index + 5.5%) of 0.34%, by 3.63%.
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31 Mar 2017 - 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 biggest contributor to performance came from a UK based satellite operator Inmarsat, which was up 17% for the month. The Fund also saw strong performance from its Brazilian names that leveraged to the rapidly declining Brazilian Selic rate, such as the Brazilian toll road operators CCR and Ecorodovias, rail operator Rumo and utility operators who can capitalise on lower interest rates to expand their portfolios. The weakest performer for February was Mexican tower operator Telesites, down 5.5% on the back of slightly weaker than expected FY numbers reported in the last week of February. |
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Insync Global Titans Fund
30 Mar 2017 - Australian Fund Monitors
Insync Global Titans Fund increased 2.1% in February, outperforming the MSCI All Country World ex-Australia Net Total Return Index ($A), which returned 1.5%, by +0.6%.
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30 Mar 2017 - 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 | The performance was driven by positive contributions from the holdings in Unilever, Heineken, Visa, Medtronic and eBay. The main negative contributors were Zimmer Holdings, Microsoft Corp and Comcast. The Fund continues to have no foreign currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside. Over 50% of the Fund is currently protected using a put protection strategy. |
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KIS Asia Long Short Fund
28 Mar 2017 - Australian Fund Monitors
KIS Asia Long Short Fund rose 0.24% in February, taking the return for the most recent 12 months to 15.06%.
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28 Mar 2017 - 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 month's performance was driven largely by long positions in Cardinal Resources Ltd (CDV.AX) 0.48%, eCobalt Solutions Inc (ECS.TO) 0.46% and Plymouth Minerals Ltd (PLH.AX) 0.21%. However, detractors for the month, included the long positions in Altium Ltd (ALU.AX) -0.29%, Primary Health Care Ltd (PRY.AX) -0.22% and CapitaLand Limited (CATL.SI) -0.20%. |
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Fund Review Pengana Absolute Return Asia Pacific Fund February 2017
27 Mar 2017 - Australian Fund Monitors
Latest Fund Review is now available on Pengana Absolute Return Asia Pacific Fund, which has an annualised return of 8.49% p.a.
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27 Mar 2017 - Fund Review Pengana Absolute Return Asia Pacific Fund February 2017
By: Australian Fund Monitors
AFM Fund Review - February 2017 (pdf format)
PENGANA ABSOLUTE RETURN ASIA PACIFIC FUND
Attached is our most recently updated Fund Review on the Pengana Absolute Return Asia Pacific Fund.
- The Pengana Absolute Return Asia Pacific Fund ("PARAP") was established in 2008 by portfolio managers Antonio Meroni and Vikas Kumra. The Fund is a feeder fund into a Cayman Islands AUD share class fund.
- The Fund invests both long and short in Asia Pacific equities, including in Australian and New Zealand, after a stock specific "event" has either occurred or been announced and the portfolio aims to be uncorrelated to the underlying equity markets. A combination of the Manager's experience, thorough research and continuous back- testing identify the most attractive of these events.
- Risk controls include limits on individual positions as well as gross and net exposure. Limits are in place for option exposure and cash borrowing, with stop loss limits on individual positions. Overall the manager is looking to derive returns from the event strategies as opposed to any currency or market exposures.
- Since inception, the Fund has an annualised return of 8.49% p.a., compared to the MSCI ACWI Asia Pacific Price Index's return of 3.68% p.a.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - February 2017 (pdf format)
Fund Review: APN Asian REIT Fund February 2017
24 Mar 2017 - Australian Fund Monitors
February Fund Review is now available on APN Asian REIT Fund, a property securities fund, investing primarily in the Asian REITS.
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24 Mar 2017 - Fund Review: APN Asian REIT Fund February 2017
By: Australian Fund Monitors
APN AREIT Fund February 2017 (pdf format)
APN Asian REIT Fund
Attached is our most recently updated Fund Review on the APN Asian REIT Fund.
We would like to highlight the following aspects of the Fund;
- APN is an ASX-listed fund manager specialising in property investment, with an investment team of six. Established in 1996, APN now has FUM of $A2.4bn including four REIT (Real Estate Investment Trust) funds.
- The APN Asian REIT Fund (Fund) is a property securities fund that invests in a quality portfolio of Asian REITs, listed on the securities exchanges of the Asian Region, with the ability to hold some cash and fixed interest investments.
- The Fund aims to deliver a competitive yield with lower risk than the market. The underlying stocks are selected based on a highly disciplined investment approach that focuses on the fundamentals and number of valuation approaches. The universe can include new IPO's, other corporate actions take place and / or corporate governance improvements at country or REIT level bring new stocks into focus.
- The Fund provides access to a wide spread of property-based revenue streams that are specifically analysed, selected and weighted with the aim of delivering strong and sustainable income returns. The Fund is an unhedged product.
- APN's Asian REIT Fund invests in a portfolio of 25-40 listed Asian REITs with a core philosophy of investing in properties with sustainable rental income streams.
- The Fund has delivered an annualised return of 14% p.a., since inception in July 2011 with a standard deviation of 9.45% p.a. The Sharpe and Sortino ratios are 1.16 and 2.05 respectively.
APN AREIT Fund February 2017 (pdf format)
Bennelong Australian Equities Fund
24 Mar 2017 - Australian Fund Monitors
Bennelong Australian Equities Fund returned a positive 1.58%, taking the latest 12 months return to 11.87%.
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24 Mar 2017 - 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 | The Fund had a number of solid results, such as CSL and Breville Group that beat expectations in the reporting season and which were well received by the market. There were no majorly disappointing financial results reported, perhaps with the exception of Dominos. Aristocrat, one of the Fund's largest positions, was the largest contributor to the Fund's performance over the month. However, the Fund's positions in BHP and Rio Tinto detracted from its performance. The investment team continues to remain focused on the company fundamentals, particularly in an environment of macro and political uncertainty. |
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Fund Review: Optimal Australia Absolute Trust February 2017
23 Mar 2017 - Australian Fund Monitors
Read the latest Fund Review on Optimal Australian Absolute Trust.
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23 Mar 2017 - Fund Review: Optimal Australia Absolute Trust February 2017
By: Australian Fund Monitors
AFM Fund Review - February 2017 (pdf format)
OPTIMAL AUSTRALIA ABSOLUTE TRUST
AFM have released the most recently updated Fund Review on the Optimal Australia Absolute Trust.
We would like to highlight the following aspects of the Fund;
- Optimal Australia is a specialist Australian equity investment manager and the Fund has a long/short equity strategy typically with a low but variable net market exposure comprising 40 to 65 stocks broadly selected from within the ASX200.
- The investment team comprising George Colman, Peter Whiting, and Stephen Nicholls bring 100 years combined experience in equity markets.
- In February, the Fund returned -0.98%, to take annualised return since inception to 8.11% p.a. The Fund's approach to risk is shown by the Sharpe ratio of 1.28 (Index 0.25), Sortino ratio of 2.61 (Index 0.25), both of which are well above the ASX 200 Accumulation Index and has recorded 80% positive months.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - February 2017 (pdf format)
