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Performance Report: Bennelong Twenty20 Australian Equities Fund
25 Jun 2020 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund rose +6.58% in May, outperforming the ASX200 Accumulation Index by +2.22%. Since inception in November 2009, the Fund has returned +9.27% p.a. versus the Index's +6.58%.
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25 Jun 2020 - Performance Report: 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 | As at the end of May, the portfolio's weightings had been increased in the Discretionary, Industrials, Communications and IT sectors, and decreased in the Materials, Consumer Staples, Health Care and Financials sectors. The portfolio's weightings in the Energy and REIT's sectors remained unchanged at 1.2% and 3.4% respectively. Bennelong believe it is more difficult to outperform when investing in the top 20 stocks on the ASX given that they are well known, heavily researched and have more broker and media coverage. They believe there is more opportunity to outperform when investing in ex-20 stocks, which they note tend to be priced less efficiently. At month-end, indexed positions in the top 20 stocks made up 56% of the portfolio while the other 44% comprised active positions in stocks outside of the top 20. |
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Performance Report: Australian Eagle Trust Long-Short Fund
25 Jun 2020 - Australian Fund Monitors
The Australian Eagle Trust Long-Short Fund rose +9.97% in May, outperforming the ASX200 Accumulation Index by +5.61% and taking annualised performance since inception in July 2016 to +16.73% p.a. versus the Index's +6.80%.
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25 Jun 2020 - Performance Report: Australian Eagle Trust Long-Short Fund
By: Australian Fund Monitors
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| Manager Comments | The largest positive contributions in May came from long positions in Pushpay Holdings, Fortescue Metals Group and Evolution Mining. The largest detractors were a long position in CSL and short positions in Flight Centre Travel Group and Virgin Money UK. The Fund had 32 long positions and 25 short positions at month-end, with the largest exposure being to medical devices & services and technology stocks. The Fund ended the month with relatively less exposure to banking and real estate stocks. |
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Performance Report: Ark Global Fund - Class B AUD Hedged
24 Jun 2020 - Australian Fund Monitors
The Ark Global Fund (hedged) has returned +7.63% on an annualised basis with an annualised volatility of 9.58% since inception in July 2017. Over this time it has achieved a down-capture ratio of -52.5%, highlighting the Fund's capacity to...
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24 Jun 2020 - Performance Report: Ark Global Fund - Class B AUD Hedged
By: Australian Fund Monitors
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| Fund Overview | The investment objective of the Fund is to achieve long-term capital appreciation with low correlation to global equity markets through investment in the Underlying Fund. Fund One is a global macro fund that utilises quantitative research including machine learning techniques and fully automated trading algorithms which will aim to generate positive uncorrelated returns relative to any significant equity benchmark. The traded instruments are either major FX pairs or the most liquid exchange traded stock index, bond, and commodity futures across North America, Europe and Asia Pacific. The algorithm backtests over 10 years of tick data and in order to do so effectively requires machine learning to filter noise and identify meaningful signals, which results in statistically significant prediction of price movements. In production this processing is done in real time and the portfolio reacts to asset movements by rebalancing automatically to the desired risk exposure through the market impact optimised execution logic. Risk management layers built into the algorithm have been developed using the experience the team has gained from their decades in highly liquid fast-moving markets in the proprietary High Frequency Trading world. This allows the system to trade autonomously but safely to all trading opportunities and potential system issues, and to alert the team to any behaviour outside of strictly controlled bounds. The Fund is a 'feeder fund' which indirectly gains exposure to the underlying assets by investing all or substantially all of its assets in the Underlying Fund. The Fund may retain a certain amount of cash from the investment in the Fund for the purpose of payment of costs, fees, hedging and expenses. |
| Manager Comments | The Fund returned -4.4% in May. The best performing assets for the month were: SMI Index (+1.34% of NAV), Gold (+0.23% of NAV) and Soybean Oil (+0.22% of NAV). The worst performing assets were: Hang Seng Index (-0.75% of NAV), USD/CAD (-0.79% of NAV) and Silver (-2.71% of NAV). |
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Performance Report: Bennelong Emerging Companies Fund
24 Jun 2020 - Australian Fund Monitors
The Bennelong Emerging Companies Fund rose +9.89% in May, outperforming the ASX200 Accumulation Index by +5.53%. The Fund has returned +22.81% p.a. since inception in November 2017 against the Index's +3.14%.
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24 Jun 2020 - Performance Report: Bennelong Emerging Companies Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund may invest in securities expected to be listed on the ASX within 12 months. The Fund may also invest in securities listed, or expected to be listed, on other exchanged where such securities relate to ASX-listed securities |
| Manager Comments | May saw a continuation of the recovery in the stock market. Bennelong noted this was particularly evident among micro and small cap stocks. Despite the high month-to-month stock price volatility, Bennelong believe the companies in which the Fund invests are incrementally building value as the months turn over. The Fund has taken the volatility as an opportunity to make a number of changes to the portfolio that Bennelong think will enhance the risk-return settings. At the same time, they believe the Fund remains reasonably diversified across sector and risk-return drivers. The top holdings include Viva Leisure (gyms), Mader Group (mining services) and BWX (personal care products). |
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Performance Report: Loftus Peak Global Disruption Fund
23 Jun 2020 - Australian Fund Monitors
The Loftus Peak Global Disruption Fund rose +3.05% in May, outperforming AFM's Global Equity Index by +0.95% and taking annualised performance since inception to +23.18% p.a. versus the Index's +12.60%.
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23 Jun 2020 - Performance Report: Loftus Peak Global Disruption Fund
By: Australian Fund Monitors
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| Fund Overview | The investment process involves a combination of top-down analysis with fundamental bottom-up qualitative and quantitative research to derive a risk-adjusted discounted cash flow (DCF) valuation of companies in the target universe. The investment team will generally buy stocks from the pool of securities that are trading below Loftus Peaks' valuation and sell them when they are trading above Loftus Peak's valuation. The approach allows for both fundamental accounting information as well as market-oriented inputs to be factored into the portfolio construction process. Loftus Peak's model typically does not rely on leverage to deliver investment returns and specifically takes into account risk in the valuation process. Capital preservation can be managed by holding up to 50% cash. Index and currency options and futures may also be used to manage risk. |
| Manager Comments | The best performing investments in the strategy were in companies with well-developed digital strategies allowing users to work and play while sheltering in place - companies such as Amazon, Microsoft, Nvidia and Nutanix. Loftus Peak remain confident these companies will continue to deliver in a post-COVID world, especially those with strong cashflows (Apple) and successful business models (Netflix). The main detractors were Roku and Amazon. Loftus Peak noted investors appeared wary of Amazon's current quarter strategy which will see the company deploy all of its quarterly cashflow (around US4$b) to hardening its business against biohazards such as COVID-19. Roku's share price continues to be weighed down by the market's expectation of additional competitive pressures which Loftus Peak believe are overstated. With many investee companies approaching valuation targets, Loftus Peak took the opportunity to take profits and raise the Fund's cash weighting during the month. |
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Performance Report: Insync Global Capital Aware Fund
22 Jun 2020 - Australian Fund Monitors
The Insync Global Capital Aware Fund rose +7.40% in May, outperforming AFM's Global Equity Index by +5.3% and taking 12-month performance to +29.64% versus the Index's +9.83%. Since inception in October 2009, the Fund has returned +12.11%...
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22 Jun 2020 - Performance Report: Insync Global Capital Aware 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 | Insync noted they continue to hold companies exposed to Megatrends that they believe will deliver sustainable profitable growth in a post-pandemic environment. Their view is that COVID-19 simply brought forward the demise of many businesses that were already in structural decline or on shaky financial ground. The top three Megatrends in the portfolio by weighting as at the end of May were the 'Age related health solutions' megatrend (15%), the 'Digitisation' megatrend (13%), and the 'Cashless society' megatrend (10%). The Fund's top 5 holdings at month-end were PayPal, Adobe, JD Sports Fashion, S&P Global and Dominos. The Fund continues to have a portion of the underlying US dollar exposure hedged back to the Australian dollar. |
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Performance Report: Bennelong Australian Equities Fund
19 Jun 2020 - Australian Fund Monitors
The Bennelong Australian Equities Fund rose +7.11% in May, outperforming the ASX200 Accumulation Index by +2.75% and taking annualised performance since inception in February 2009 to +12.91% versus the Index's +9.08%.
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19 Jun 2020 - 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 | The Bennelong Australian Equities Fund rose +7.11% in May, outperforming the ASX200 Accumulation Index by +2.75% and taking annualised performance since inception in February 2009 to +12.91% versus the Index's +9.08%. The Fund's up-capture and down-capture ratios for performance since inception, 130.0% and 96.3% respectively, highlight the Fund's capacity to outperform during the market's positive months and in line with the market during negative months. As at the end of May, the Fund's weightings had been increased in the Discretionary, Materials, Industrials, Communication and IT sectors, and decreased in the Health Care, Consumer Staples, REIT's and Financials sectors. The Fund aims to invest in high quality companies with strong growth outlooks and underestimated earnings momentum. The portfolio's characteristics, as detailed in the latest report, indicate that the Fund is in line with its investment objective. |
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Performance Report: Harvest Lane Asset Management Absolute Return Fund
19 Jun 2020 - Australian Fund Monitors
The Harvest Lane Absolute Return Fund has returned +4.29% p.a. with an annualised volatility of 10.67% since inception in July 2013. This return has been achieved with a down-capture ratio of 16.19% which indicates that, on average, the...
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19 Jun 2020 - Performance Report: Harvest Lane Asset Management Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | Harvest Lane Asset Management employs a conservative, highly selective and opportunistic approach. Using their extensive knowledge in the area of corporate actions, the Fund's managers assess each opportunity based on a thoughtful, diligent and disciplined process and invest where they believe an opportunity exists to generate above average investment returns relative to the risk incurred. Investment decisions are made without speculating on market direction, with rigid risk controls enforced to minimise the risk of large losses of investor capital. The Fund invests in securities that are predominantly listed on the ASX and occasionally in those listed in other developed markets. Equity swaps and other derivatives may be used at times to reduce risk. The fund typically holds high levels of cash in the absence of sufficiently attractive opportunities to deploy investor capital in accordance with its objectives. |
| Manager Comments | The Harvest Lane Absolute Return Fund has returned +4.29% p.a. with an annualised volatility of 10.67% since inception in July 2013. This return has been achieved with a down-capture ratio of 16.19%, highlighting the Fund's capacity to outperform during the market's negative months. The portfolio retreated -2.02% in May, although the result is largely attributable to an unfavourable outcome specific to one holding. Harvest Lane noted almost everywhere else in the portfolio they saw broad based gains. Alto Metals was a standout performer as they received two counterbids during the month. The Fund's holding in Ora Banda Mining also paid off, having risen almost 200% off its March lows. In their latest report, Harvest Lane discuss their views on Scheme Implementation Agreements (SIAs). They feel the COVID-19 disruption has exposed fragilities in SIAs that give effect to merger and acquisitions via a Scheme of Arrangement. Transactions undertaken in this manner are generally thought of as 'friendly', however, Harvest Lane have recently observed bidder behaviour that is anything but. Read the latest report for the full discussion. |
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Performance Report: Cyan C3G Fund
18 Jun 2020 - Australian Fund Monitors
The Cyan C3G Fund rose +9.16% in May, outperforming the ASX200 Accumulation Index by +4.8% and taking annualised performance since inception in August 2014 to +13.04% versus the Index's +4.84%.
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18 Jun 2020 - 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 | Cyan noted corporate transactions in May were an almost daily occurrence, with ASX listed companies looking for survival capital or simply taking the opportunity to raise money. Every transaction Cyan were involved in was oversubscribed and allocations were scaled back aggressively. This further reinforced their view that there continues to be substantial excess capital looking to be allocated towards equities. Despite the strong overall gain, the Fund did have a handful of negative positions. The largest detractor was Readcloud (RCL) which fell 20%. Cyan continue to avoid what they believe to be high-risk sectors, such as: lending, tourism, real-estate and highly geared companies. Whilst aware of impending economic risks, they noted they believe the Fund's core holdings remain well away from the eye of any storm. |
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Performance Report: Bennelong Concentrated Australian Equities Fund
17 Jun 2020 - Australian Fund Monitors
The Bennelong Concentrated Australian Equities Fund rose +6.32% in May, outperforming the ASX200 Accumulation Index by +1.96% and taking annualised performance since inception in February 2009 to +15.54% versus the Index's +9.08%.
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17 Jun 2020 - Performance Report: Bennelong Concentrated Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | As at the end of May, the portfolio's weightings had been increased in the Discretionary, Materials and Industrials sectors, and decreased in the Health Care, Consumer Staples, REIT's and Financials sectors. The Fund aims to invest in a concentrated portfolio of high quality companies with strong growth outlooks, underestimated earnings momentum and underestimated prospects. By comparison with the Fund's benchmark (ASX300 Accumulation Index), the portfolio's holdings, on average, have a higher return on equity, lower debt/equity, higher sales growth, higher EPS growth, higher price/earnings and lower dividend yield which together indicate that the Fund is in line with its investment objectives. |
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