Bennelong Kardinia Absolute Return Fund

20 Jul 2017 - Australian Fund Monitors

Bennelong Kardinia Absolute Return Fund rose 0.48% in June, taking the annualised return since inception to 10.89% p.a.

20 Jul 2017 - Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	20 July 2017
Manager	Kardinia Capital, A Bennelong boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	June 2017
Latest Return	0.48%
Latest 6 Months	2.03%
Latest 12 Months	2.91%
Latest 24 Months	6.01%
Annualised Since Inception	10.89%
Inception Date	01 May 2006
FUM (millions)	AU$306.7
Fund Overview	The Fund consists of a concentrated long/short portfolio typically comprising 20 to 50 ASX300 listed stocks, generally with a long bias aligned to the overall market direction. On average since inception the Fund's exposure has averaged 40% net long. There is a slight bias to large cap stocks on the long side of the portfolio, although in a rising market the portfolio will tend to hold smaller caps, including resource stocks, more frequently. On the short side, the portfolio is particularly concentrated, with stock selection limited by both liquidity and the difficulty of borrowing stock in smaller cap companies. Short positions are only taken when there is a high conviction view on the specific stock. The Fund uses derivatives in a limited way, mainly selling short dated covered call options to generate additional income. These typically have less than 30 days to expiry, and are usually 5% to 10% out of the money. ASX SPI futures and index put options can be used to hedge the portfolio's overall net position. 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	The Bennelong Kardinia Absolute Return Fund increased 0.48% in June. The Manager noted that the Australian market was volatile in June but ended largely flat. The best sectors for the month were Health Care (+6.1%), Financials ex REITs (+1.6%) and Materials (+0.5%), whilst Energy (-6.9%), REITs (-4.8%) and Utilities (-2.7%) lagged. Bluescope Steel (+27bp) was the largest contributor to performance. Other key contributors included Amcor (+17bp) and Costa Group (+14bp). Short positions in retail REITs and rate sensitive stocks were also effective. The key negative contributors included AGL (-13bp), NAB (-11bp) and Macquarie Group (-8bp) and BHP (-8bp) which fell despite the bounce in the iron ore price. Net equity market exposure including derivatives increased from 21.5% to 55.4% (60.4% long and 4.9% short) with increased holdings in three of the four major banks and the resources sector (principally BHP, RIO and S32) while closing out a short position in SPI Futures.
More Information	Fund Profile Manager's Report

Performance Report: Optimal Australia Absolute Trust

11 Jul 2017 - Australian Fund Monitors

Optimal Australia returns 1.88% in June, to complete their 8th consecutive positive financial year.

11 Jul 2017 - Performance Report: Optimal Australia Absolute Trust

By: Australian Fund Monitors

Report Date	11 July 2017
Manager	Optimal Fund Management Australia
Fund Name	Optimal Australia Absolute Trust
Strategy	Equity Long/Short
Latest Return Date	June 2017
Latest Return	1.88%
Latest 6 Months	1.05%
Latest 12 Months	0.91%
Latest 24 Months	12.28%
Annualised Since Inception	8.17%
Inception Date	15 September 2008
FUM (millions)	AU$116
Fund Overview	The investment objective of the Fund is to seek to achieve above average returns in absolute terms, through investing in listed securities in Australia and New Zealand, subject to the overarching requirement of capital preservation. Investments will predominantly be in equity securities but may include fixed interest instruments, money market instruments, derivatives and foreign exchange contracts. The Fund's bias is likely to be net long under normal market conditions, with the core strategy being to construct a portfolio of listed equity securities priced at levels that do not adequately reflect their underlying value. The Fund will seek to boost returns and limit potential market downside by selective short selling of individual stocks which are priced at levels that are viewed as materially above their underlying value. The Fund will also use certain trading strategies both within its core portfolio (through rebalancing stock weights and overall market exposure in response to price movements) and in certain other situations (typically of a shorter-duration and/or opportunistic nature) with the objective of further increasing returns.
Manager Comments	The Optimal Australia Absolute Trust completed another positive financial year with the fund returning 1.88% in June, with both long and short positions making positive contributions to performance for the month, and in so doing completing their eighth consecutive positive year. The Manager noted the ASX200 Accumulation Index posted its first negative quarter in over a year, as underlying volatility edged up, albeit from very low levels, as bond yields rose, with both the A$ and US$ 10-year yields up 35 bps in just two weeks, and with greater gains in the Euro zone. Given that these moves are against only the possibility of central banks withdrawing monetary stimulus, Optimal are concerned that the reality of such action could be very ugly indeed. On the portfolio front Optimal see earnings risks in companies facing the Australian consumer, and considerable risk in the banks and sectors exposed to housing given recent reactive government policy such as bank taxes, and concerns over energy security and rising gas and electricity prices. Optimal expect volatility to continue to rise over the very short term in spite of the market shrugging off increasingly poor geo-political risks, and the upcoming company reporting season in August. At month end the Fund's gross exposure stood at 122% of NAV, 64% long and 38% short (including derivatives) for a net exposure of 6%.
More Information	Fund Profile Manager's Report

Performance Report: Bennelong Long Short Equity Fund

10 Jul 2017 - Australian Fund Monitors

Bennelong's Long Short Equity Fund returns 1.2% in June, ending the financial year on a strong note against the ASX200.

10 Jul 2017 - Performance Report: Bennelong Long Short Equity Fund

By: Australian Fund Monitors

Report Date	10 July 2017
Manager	Bennelong Long Short Equity Management, a Bennelong boutique
Fund Name	Bennelong Long Short Equity Fund
Strategy	Equity Market Neutral
Latest Return Date	June 2017
Latest Return	1.20%
Latest 6 Months	18.36%
Latest 12 Months	3.91%
Latest 24 Months	28.90%
Annualised Since Inception	16.84%
Inception Date	01 January 2003
FUM (millions)	AU$436.9
Fund Overview	Bennelong Long Short Equity Management applies a qualitative stock selection process to construct a diversified portfolio of paired securities based on relative value. The Bennelong Long Short Equity Management strategy invests primarily in the S&P/ASX 100 and is dollar neutral at cost. 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	Bennelong achieved a return of 1.20% in June against a backdrop of a flat local equity market, and completing a strong second half of the financial year with a calendar year to date return of over 18%, to offset a weaker first half. The monthly report indicates the manager remains apprehensive about current asset values, with market valuations increasing further, and remaining at levels well above historical averages, particularly noting the growing impetus for further interest rate normalisation and the beginning of central banks' balance sheet unwinding.
More Information	Fund Profile Manager's Report

Fund Review: Insync Global Titans Fund May 2017

6 Jul 2017 - Australian Fund Monitors

Latest Fund Review on Insync Global Titans Fund is now available.

Bennelong Twenty20 Australian Equities Fund May 2017

5 Jul 2017 - Australian Fund Monitors

Latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available.

King Tide NZ/Australian Long/Short Equity Fund

30 Jun 2017 - Australian Fund Monitors

King Tide NZ/Australian Long/Short Equity Fund gained 2.34% for the month of May, outperforming the Fund's benchmark (90% All Ordinaries Accumulation/10% NZX50) by 4.21%.

30 Jun 2017 - King Tide NZ/Australian Long/Short Equity Fund

By: Australian Fund Monitors

Report Date	29 June 2017
Manager	King Tide Asset Management
Fund Name	King Tide NZ/Australian Long/Short Equity Fund
Strategy	Equity Long/Short
Latest Return Date	May 2017
Latest Return	2.34%
Latest 6 Months	-1.77%
Latest 12 Months	-4.18%
Latest 24 Months	8.46%
Annualised Since Inception	8.54%
Inception Date	31 December 2011
FUM (millions)	AU$20.8
Fund Overview	The fund aims to provide investors with a diversified, active exposure to New Zealand and Australian equity markets by allocating capital to a select group of managers domiciled in these markets whose investment mandates allow both long and short equity investment. 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	King Tide NZ/Australian Long/Short Equity Fund gained 2.34% for the month of May, outperforming the Fund's benchmark (90% All Ordinaries Accumulation/10% NZX50) by 4.21%. Since inception in December 2011, the Fund has an annualised return of 8.54% p.a. Every manager in the portfolio beat the market, and at the Fund level, currency aside, the managers outperformed the market by 2.6% in May. The best performing Funds for the month included L1 Capital Long Short Fund (+4.2%) and Tasman Market Neutral (+2.8%). Other managers to make money were 8EC (+2.0%), Smallco (+1.5%), Paragon (+1.3%), PIE Emerging (+1.1%), Level 18 (+0.8%), Watermark (+0.6%), and PIE Growth was marginally positive. The Fund's biggest loss came from Wavestone Capital (last month's biggest gainer) which fell -2.0%, LHC fell -1.9%, Auscap -1.5%, Sandon -1.3% and Monash was down -0.8%.
More Information	Fund Profile Manager's Report

Bennelong Concentrated Australian Equities Fund

30 Jun 2017 - Australian Fund Monitors

Bennelong Concentrated Australian Equities Fund returned -0.79% for the month of May 2017, outperforming the market (S&P/ASX 300 Accumulation Index) by +1.95%.

30 Jun 2017 - Bennelong Concentrated Australian Equities Fund

By: Australian Fund Monitors

Report Date	28 June 2017
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Concentrated Australian Equities Fund
Strategy	Equity Long
Latest Return Date	May 2017
Latest Return	-0.79%
Latest 6 Months	10.61%
Latest 12 Months	10.16%
Latest 24 Months	31.86%
Annualised Since Inception	17.65%
Inception Date	30 January 2009
FUM (millions)	AU$185.39
Fund Overview	Bennelong Australian Equity Partners (BAEP) is a boutique asset manager offering Australian equities solutions for institutional and retail clients. The business was founded in 2008 by Paul Cuddy and Mark East, in partnership with Bennelong Funds Management. Prior to establishing BAEP, Paul and Mark were Co-Heads of Australian Equities at ING Investment Management. The overriding objective of the Concentrated Australian Equities Fund is to seek investment opportunities which are under-appreciated and have the potential to deliver positive earnings, while satisfying our stringent quality criteria. Bennelong's investment process combines bottom-up fundamental analysis together with proprietary investment tools which are used to build and maintain high quality portfolios that are risk aware. The portfolio typically consists of 20-35 high-conviction stocks from the S&P/ASX 300 Index. The Fund may invest in securities listed on other exchanges where such securities relate to ASX-listed securities. Derivative instruments are mainly used to replicate underlying positions and hedge market and company specific risks.
Manager Comments	Bennelong Concentrated Australian Equities Fund returned -0.79% for the month of May 2017, outperforming the market (S&P/ASX 300 Accumulation Index) by +1.95%. Since inception in January 2009, the Fund has an annualised return of 17.65% p.a. The top contributors to the month's performance were Aristocrat, Treasury Wine Estates, Fisher & Paykel Healthcare and Reliance Worldwide. Also contributing was an underweight exposure to the Banking sector, which fell almost 10% over the month. The Fund holds two banking stocks, and they were among the largest detractors to relative performance. More than half of the portfolio (53.1%) was allocated in the Discretionary and Health Care sectors. The Fund's top holdings consisted of Westpac Banking, CSL, Aristocrat Leisure and Dominos Pizza. The investment team continues to remain focused on the company fundamentals, with an eye on value, but only in the context of what one receives in return in terms of quality and earnings delivery and growth.
More Information	Fund Profile Manager's Report

Bennelong Twenty20 Australian Equities Fund

29 Jun 2017 - Australian Fund Monitors

Bennelong Twenty20 Australian Equities Fund returned -2.22% for the month of May, slightly outperforming the S&P/ASX-300 Accumulation Index return of -2.74%, by +0.52%.

29 Jun 2017 - Bennelong Twenty20 Australian Equities Fund

By: Australian Fund Monitors

Report Date	23 June 2017
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Twenty20 Australian Equities Fund
Strategy	Equity Long
Latest Return Date	May 2017
Latest Return	-2.22%
Latest 6 Months	6.70%
Latest 12 Months	8.80%
Latest 24 Months	11.08%
Annualised Since Inception	10.10%
Inception Date	02 December 2015
FUM (millions)	AU$1.08
Fund Overview	The Fund aims to outperform the return of the S&P/ASX 300 Accumulation Index by 2% per annum after fees on a rolling three-year basis by combining indexed positions in the S&P/ASX 20 stocks with an actively managed exposure in primarily Australian stocks that are outside the S&P/ASX 20. 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	Bennelong Twenty20 Australian Equities Fund returned -2.22% for the month of May, slightly outperforming the S&P/ASX-300 Accumulation Index return of -2.74%, by +0.52%. For the most recent 12 months, the Fund has gained 8.8%. The Fund's performance is dictated largely, although not entirely, by the performance of the S&P/ASX 20 Index. Deviation from the benchmark, the S&P/ASX 300, arises to the extent of the Fund's relative performance in respect of its active management of ex-20 stocks. For May, the major contributor to the Fund's outperformance was Aristocrat, the slot machine manufacturer. Other contributors to the Fund's performance were Treasury Wine Estates, Reliance Worldwide, and Fisher & Paykel Healthcare. There were no detractors of note. On the active portion of the portfolio, the Fund continues to remain stock selective which is guided by the company fundamentals.
More Information	Fund Profile Manager's Report AFM Research Reports

Pengana PanAgora Absolute Return Global Equities Fund

28 Jun 2017 - Australian Fund Monitors

Pengana PanAgora Absolute Return Global Equities Fund returned -2.48% for the month of May. The Fund has a low systematic risk (beta) to the ASX 200 and the MSCI World Indices of 0.07 and 0.08 respectively.

28 Jun 2017 - Pengana PanAgora Absolute Return Global Equities Fund

By: Australian Fund Monitors

Report Date	27 June 2017
Manager	Pengana Capital
Fund Name	Pengana PanAgora Absolute Return Global Equities Fund
Strategy	Equity Long/Short
Latest Return Date	May 2017
Latest Return	-2.48%
Latest 6 Months	-4.98%
Latest 12 Months	-0.36%
Latest 24 Months	4.02%
Annualised Since Inception	9.25%
Inception Date	09 December 2015
FUM (millions)	AU$112
Fund Overview	The Pengana PanAgora Absolute Return Global Equities Fund is managed by PanAgora Asset Management (PanAgora), Inc. based in Boston. PanAgora is a well-known leader in quantitative investment strategies, managing over AU$52b across a range of strategies for institutional investors worldwide. The relationship between Pengana and PanAgora has enabled the US based manager to bring their innovative research and intellectual capital capabilities to the Australian retail market. 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	Pengana PanAgora Absolute Return Global Equities Fund returned -2.48% for the month of May. The Fund has a low systematic risk (beta) to the ASX 200 and the MSCI World Indices of 0.07 and 0.08 respectively. The underperformance was largely driven by the long-term portfolio -2.19%, stemming from both the U.S. and international holdings. Intermediate-term and short-term strategies also detracted, -0.04% and -0.25%, respectively. The U.S. sleeve of the long-term portfolio returned -1.27% from the performance. The majority of the underperformance was driven by value and quality factors, while sentiment factors. Sector-wise, the biggest detraction occurred in the Information Technology and Consumer Discretionary sectors, -0.66% and -0.35% respectively. The International exposure detracted -1.40% in May, with the biggest contribution from Japan -1.93% as value factors underperformed. The largest detracting names consisted of overweight positions in JGC Corp. and Nipro Corp., as well as an underweight position Nitori Holdings Co. Ltd. The intermediate strategies detracted -0.04% from the return in May due to the underperformance of U.S. merger arbitrage related trades. The short-term strategies also detracted -0.25%, attributable primarily to earnings related trades.
More Information	Fund Profile Manager's Report

Insync Global Titans Fund

27 Jun 2017 - Australian Fund Monitors

Insync Global Titans Fund increased 4.9% in May, outperforming the MSCI All Country World ex-Australia Net Total Return Index ($A), which returned +2.8%, by +2.1%.

27 Jun 2017 - Insync Global Titans Fund

By: Australian Fund Monitors

Report Date	23 June 2017
Manager	Insync Fund Managers
Fund Name	Insync Global Titans Fund
Strategy	Equity Long
Latest Return Date	May 2017
Latest Return	4.90%
Latest 6 Months	17.45%
Latest 12 Months	10.60%
Latest 24 Months	10.87%
Annualised Since Inception	10.16%
Inception Date	07 October 2009
FUM (millions)	AU$31
Fund Overview	Insync's investment strategy is driven by fundamentals combined with active risk management. Insync's aim is to invest in high quality, large cap global companies at attractive prices. Insync looks for companies that can consistently pay rising dividends and earn high returns on invested capital. Insync aims to provide investors with long term capital growth and some income. The Global Titans Fund is a concentrated portfolio of large cap global companies with downside protection. 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	Insync Global Titans Fund increased 4.9% in May, outperforming the MSCI All Country World ex-Australia Net Total Return Index ($A), which returned +2.8%, by +2.1%. Geographically, the Fund continues to remain heavily weighted in North America (65%), with the largest industry exposure in the IT sector (36.6%). Cash and Puts decreased from the prior month's 3.1% to 1.5%. The performance was driven by positive contributions from the holdings in Heineken, Reckitt Benckiser, Unilever, PayPal and Comcast. The main negative contributor was The Walt Disney Co. 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 its put protection strategy.
More Information	Fund Profile Manager's Report AFM Research Reports

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20 Jul 2017 - Bennelong Kardinia Absolute Return Fund

11 Jul 2017 - Performance Report: Optimal Australia Absolute Trust

10 Jul 2017 - Performance Report: Bennelong Long Short Equity Fund

6 Jul 2017 - Fund Review: Insync Global Titans Fund May 2017

5 Jul 2017 - Bennelong Twenty20 Australian Equities Fund May 2017

30 Jun 2017 - King Tide NZ/Australian Long/Short Equity Fund

30 Jun 2017 - Bennelong Concentrated Australian Equities Fund

29 Jun 2017 - Bennelong Twenty20 Australian Equities Fund

28 Jun 2017 - Pengana PanAgora Absolute Return Global Equities Fund

27 Jun 2017 - Insync Global Titans Fund

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