| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months (pa) | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 | Returns in July were spread across a variety of sectors and the contribution of negative pairs was limited. Leading into reporting season the Fund gained from a number of favourable company updates. ALQ upgraded the outlook with its AGM update which resulted in ALQ/AZJ being the Fund's equal top pair. Long NWL/short AMP and IFL featured NWL confirming earnings guidance with their quarterly update, while AMP preannounced a very weak result with significant FUM outflow and weak financial results across all divisions. IFL also issued a profit warning with poor FUM flow. The Fund's bottom pair was TPG/TLS, giving back a little of last month's return following consummation of the TPG/Vodafone merger. Bennelong noted that, while share markets have recovered and equity volatility has declined, safe haven asset classes remain well bid. In particular, the point out that gold is now at a record level (up +30% CYTD). Their view is that for gold to be reaching new highs despite a lessening in risk aversion says something about other factors influencing its appeal beyond just protection during times of crisis. |
| More Information |
