NEWS
Fund Review: Bennelong Kardinia Absolute Return Fund September 2016
18 Oct 2016 - Australian Fund Monitors
Latest Fund Review is now available on Bennelong Kardinia Absolute Return Fund, which has over 10 years of positive track record.
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18 Oct 2016 - Fund Review: Bennelong Kardinia Absolute Return Fund September 2016
By: Australian Fund Monitors
AFM Fund Review - September 2016 (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 a nine-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 11.59% p.a. with a volatility of 7.23%, compared to the ASX200 Accumulation's return of 4.88% p.a. with a volatility of 14.14%.
- 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 - September 2016 (pdf format)
QATO Capital Market Neutral Long/Short Fund
18 Oct 2016 - Australian Fund Monitors
Qato Capital Market Neutral Long/Short Fund returned +1.23% for September, outperforming the ASX-100 by +1.21%, which returned +0.02%.
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18 Oct 2016 - QATO Capital Market Neutral Long/Short Fund
By: Australian Fund Monitors
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| Fund Overview | The fund targets a net market exposure of 0% to hedge broader market risks through long and short positions. The process is entirely systematic - stock selection and risk management are all employed in a rules based approach. The Market Neutral Long/Short Fund employs no financial leverage, no derivatives and no financial products to imitate leverage. The Investment Manager's three principal investment goals for the Fund are: 1. Market neutral long/short portfolio management with little correlation to equity markets; 2. Over a 3-5 year period, seeking to target annualised volatility of 15% per annum and annualised returns of 15-30% per annum above the Benchmark; Sharpe Ratio 1.0-2.0 and a negative beta to ASX listed equities; and 3. To provide investors with a co-investment opportunity alongside the founding members' investments in the Investment Manager's strategy. |
| Manager Comments | However, the Fund's long positions in REITS detracted performance, as the sector fell -4% in September. A short position in Ausnet fell -5.11%, with its share price reflecting a combination of deteriorating fundamentals and the short-term sell-off in higher yielding investments during September, producing alpha of +5.13% for the Fund. |
| More Information |
Fund Review: Optimal Australia Absolute Trust September 2016
17 Oct 2016 - Australian Fund Monitors
Read the latest Fund Review on Optimal Australian Absolute Trust.
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17 Oct 2016 - Fund Review: Optimal Australia Absolute Trust September 2016
By: Australian Fund Monitors
AFM Fund Review - September 2016 (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 supported by Stephen Nicholls and Justin Hay have over 100 years combined experience in equity markets.
- In September, the Fund rose 0.56%, to take annualised return since inception to 8.60% p.a. The Fund's approach to risk is shown by the Sharpe ratio of 1.37 (Index 0.21), Sortino ratio of 2.87 (Index 0.19), both of which are well above the ASX 200 Accumulation Index and has recorded 79% positive months.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - September 2016 (pdf format)
Bennelong Twenty20 Australian Equities Fund
17 Oct 2016 - Australian Fund Monitors
Bennelong Twenty20 Australian Equities Fund returned 0.07% in September to take latest 6-months return to 9.06%
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17 Oct 2016 - 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 | The Fund's performance over the quarter was due to a number of portfolio's largest ex-20 positions. This included Aristocrat Leisure, hospital operator Ramsay Health Care, wine producer Treasury Wine Estates, and travel retailer Flight Centre. All these companies delivered strong full year financial results and they were received positively by the market. The Fund's active investment also benefited from its aversion to REITs and Utilities. The biggest detractor for the month was an overweight position in TPG Telecom in the active investment portfolio of the Fund. Click below to read the latest Fund Report. |
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Cyan C3G Fund
14 Oct 2016 - Australian Fund Monitors
Cyan C3G Fund rose 1.70% in September, outperforming the market (ASX 200 Total Return Index) that returned 0.48%, by 1.22%.
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14 Oct 2016 - 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 | Many of the Fund's existing holdings performed well, including PSC Group (PSI), Afterpay (AFY), and Adacel. The only fall of any significance was Blue Sky (BLA) that retraced a modest 3%. The Fund also added a couple of new positions, OTOC (OTC) and SRG Group (SRG) during the month of September. The Fund continues to have a well-diversified portfolio, which has exposure to the Consumer Discretionary, Consumer Staples, Financials, Industrials and Health Care sectors. Click below to read the latest Fund Manager's Report. |
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Pengana Absolute Return Asia Pacific Fund
14 Oct 2016 - Australian Fund Monitors
The Pengana Absolute Return Asia Pacific Fund returned 1.67% in September, compared to MSCI ACWI Asia Pacific markets which were returned +1.13%.
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14 Oct 2016 - Pengana Absolute Return Asia Pacific Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will usually hold 40 to 80 positions and will be well diversified across the various event strategies. In keeping with the absolute return focus the Manager will eliminate market risk where appropriate by hedging market and foreign currency risks. Since inception the Fund has averaged a net equity market exposure of ~10%. Sizing of an investment position will depend on the expected risk adjusted returns while taking account the liquidity and volatility of the stock. In addition, the maximum potential loss on any one position should be greater than 0.5% of the NAV and the position should not exceed 30% participation of stressed volume assuming a $200m NAV. Other criteria considered are ability to hedge and the availability of pair candidates as well as the average bid-ask size. For M&A strategies average long position is 3 to 5.5% and average short position 2 to 5%. |
| Manager Comments | The M&A sub-strategy contributed significantly to September's performance as a number of situations the Fund was involved with, had positive developments. While gross exposure in this sub-strategy fell to 39.6%, as a number of deals closed, the Fund was able to initiate new trades. Gross exposure also fell slightly to 34% in the Stubs strategy as the Fund booked in profits from spreads that reverted to normalized levels. Within other strategies, the Credit sub-strategy posted a small positive 30 basis points contribution to overall performance. For the month, the Fund averaged a gross and net exposure of 190.3% and 12.9% respectively. Click below to read the latest Fund Manager's Report. |
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Fund Review: Bennelong Long Short Equity Fund September 2016
13 Oct 2016 - Australian Fund Monitors
September Fund Review is now available on Bennelong Long Short Equity Fund which has an annualised return of 17.02% p.a.
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13 Oct 2016 - Fund Review: Bennelong Long Short Equity Fund September 2016
By: Australian Fund Monitors
AFM Fund Review - September 2016 (pdf format)
BENNELONG LONG SHORT EQUITY FUND
Attached is our most recently updated Fund Review on the Bennelong Long Short Equity Fund.
- The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large large-caps from the ASX/S&P100 Index, with over fourteen-year track record and annualised returns of 17.02%.
- The consistent returns across the investment history indicate the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market. The Fund's Sharpe Ratio and Sortino Ratio are 1.02 and 1.70 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - September 2016 (pdf format)
The Paragon Fund
13 Oct 2016 - Australian Fund Monitors
The Paragon Fund rose 4.30% in September, outperforming the ASX 200 Accumulation Index which returned 0.48%, by 3.82%.
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13 Oct 2016 - The Paragon Fund
By: Australian Fund Monitors
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| Fund Overview | Paragon believes that markets are not always efficient, exhibiting a common tendency to price securities well outside of their intrinsic value over the medium term. This market characteristic provides the opportunity for Paragon, an active manager with a flexible mandate, to generate superior investment returns over the longer term. Paragon believes that it is critical to understand both the companies and the industries in which they operate, in order to fully comprehend each investment opportunity. Accordingly, a fundamental approach to company research is taken. Assessing the potential downside is also paramount in framing the risk/reward trade-off for potential investments. |
| Manager Comments | Main contributors in September were Kidman Resources, Mayne Pharma, gold holdings and a short position in Pilbara Minerals. At the end of the month, the Fund had 32 long positions and 11 short positions, with a net exposure of 89.2%. The Fund held 10.8% of the portfolio as cash. Click below to read the latest monthly report. |
| More Information |
Alexander Credit Opportunities Fund
12 Oct 2016 - Australian Fund Monitors
Alexander Credit Opportunities Fund rose 0.75% in September to take annualised return since inception to 16.64% p.a.
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12 Oct 2016 - Alexander Credit Opportunities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund may also invest in derivatives for hedging purposes. The portfolio of the Fund comprises primarily Investment Grade holding of 75% of the Fund's assets. Benchmark allocations are Australasia 50% to 100%, North America 0% to 50% and Europe 0% to 50%. Currency hedging may take place depending on benefits to the Fund. |
| Manager Comments | During the month, the Fund closed another private debt transaction and is now the senior secured lender to an Australian micro-finance company. This position will provide a solid return for the Fund but with a significant amount of security. The Fund will continue to look for similar opportunities to lend to small to medium sized domestic companies that offer an attractive return on a secured basis. For September, the majority of the portfolio was allocated in the Residential Mortgage-Backed Securities (RMBS) at 47%, followed by Corporate Bonds/Loans at 28%. Click below to read the latest monthly report. |
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Bennelong Kardinia Absolute Return Fund
12 Oct 2016 - Australian Fund Monitors
Bennelong Kardinia Absolute Return Fund returned -0.22% in September to take annualised return since inception to 11.59% p.a.
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12 Oct 2016 - 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 | Long positions in BHP, South32 and RIO were the largest positive contributors, whilst TPG Telecom, Skycity Entertainment and S2 Resources were the largest detractors from performance. Net equity market exposure (including derivatives) increased from 45.4% to 46.7% (64.7% long and 18.1% short). Click below to read the latest Fund Report. |
| More Information |
