Performance Report: ARCO Absolute Trust

30 Jul 2018 - Australian Fund Monitors

The ARCO Absolute Return Trust returned +6.54% over the financial year with a volatility of 4.06%. ARCO noted they are pleased to record the Trust's 10th consecutive positive yearly return for its investors.

30 Jul 2018 - Performance Report: ARCO Absolute Trust

By: Australian Fund Monitors

Report Date	30 July 2018
Manager	ARCO Investment Management
Fund Name	ARCO Absolute Trust
Strategy	Equity Long/Short
Latest Return Date	June 2018
Latest Return	-0.67%
Latest 6 Months	-0.74%
Latest 12 Months	6.54%
Latest 24 Months	7.50%
Annualised Since Inception	8.00%
Inception Date	15 September 2008
FUM (millions)	AU$147
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. *Formerly the Optimal Australia Absolute Trust
Manager Comments	The ARCO Absolute Return Trust returned +6.54% over the financial year with a volatility of 4.06%. Since inception in September 2008, the Fund has returned +8.00% p.a. with an annualised volatility of 3.77%, versus the ASX200 Accumulation Index which has returned +6.58% p.a. over the same period with an annualised volatility of 13.40%. The Fund's Sharpe and Sortino ratios, 1.34 and 2.79 respectively, indicate that the Fund is in line with its objective of steadily compounding investor returns over time through stock alpha generation with an overarching focus on capital preservation. For the 2018 fiscal year, the Trust's long portfolio comfortably outperformed the ASX200 Accumulation Index. ARCO noted the short portfolio was, perhaps predictably, a drag on returns in a market up 13% for the year - although doing its job to hedge market exposure and the volatility of investor returns. The Fund's return for June was -0.67%. During the month, long positions in Caltex, Link, Computershare, Fairfax and BHP contributed positively. The short portfolio broadly detracted from performance, primarily via ARCO's bank and healthcare exposure. The Trust's Index Futures ('insurance') position was also a drag on performance.
More Information	Fund Profile Manager's Report AFM Research Reports

Performance Report: Bennelong Twenty20 Australian Equities Fund

27 Jul 2018 - Australian Fund Monitors

The Bennelong Twenty20 Australian Equities Fund rose +3.12% in June, taking annualised performance since inception in December 2015 to +11.07%.

27 Jul 2018 - Performance Report: Bennelong Twenty20 Australian Equities Fund

By: Australian Fund Monitors

Report Date	27 July 2018
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Twenty20 Australian Equities Fund
Strategy	Equity Long
Latest Return Date	June 2018
Latest Return	3.12%
Latest 6 Months	7.04%
Latest 12 Months	18.49%
Latest 24 Months	35.01%
Annualised Since Inception	11.07%
Inception Date	02 December 2015
FUM (millions)	AU$3.34
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	The Bennelong Twenty20 Australian Equities Fund rose +3.12% in June, taking annualised performance since inception in December 2015 to +11.07% versus the ASX200 Accumulation Index's +8.05%. The Fund's up-capture and down-capture ratios since inception indicate that, on a cumulative basis, the Fund has outperformed in both rising and falling markets since inception. Over the quarter the Fund returned +10.30%, outperforming the Index by +1.83% thanks to a number of the Fund's ex-20 holdings, including Reliance Worldwide and Aristocrat Leisure. In their quarterly report, Bennelong noted the following: they see relatively attractive valuations in equities, improving investor sentiment and markets, and the potential for a market correction. Bennelong believe that, with big-picture macro risks abound, including rate rises, trade wars, Chinese financial instabilities and excessive Australian consumer leverage, the stock market will ultimately manage its way through these issues. Bennelong point out that corrections are inevitable, however, the risk is being underinvested over the long term rather than the occasional correction.
More Information	Fund Profile Manager's Report AFM Research Reports

Performance Report: Quay Global Real Estate Fund

26 Jul 2018 - Australian Fund Monitors

The Quay Global Real Estate Fund delivered a robust +4.90% in June, outperforming the ASX200 Accumulation Index by +1.63%. Since inception in July 2014, the Fund has returned +14.88% per annum.

26 Jul 2018 - Performance Report: Quay Global Real Estate Fund

By: Australian Fund Monitors

Report Date	26 July 2018
Manager	Quay Global Investors
Fund Name	Quay Global Real Estate Fund
Strategy	Real Estate
Latest Return Date	June 2018
Latest Return	4.90%
Latest 6 Months	8.82%
Latest 12 Months	14.83%
Latest 24 Months	12.95%
Annualised Since Inception	14.88%
Inception Date	31 July 2014
FUM (millions)	AU$28
Fund Overview	Quay is a boutique investment management business established in 2013 with a focus on preserving and creating wealth for investors through investments in real estate securities. Quay uses a dual manager approach to the investment and portfolio management decision making process. This involves both Principals collaborating to determine significant portfolio investments and positions. The Fund will invest in a number of global listed real estate companies, groups or funds. The investment strategy is to make investments in real estate securities at a price that will deliver a real, after inflation, total return of 5% per annum (before costs and fees), inclusive of distributions over a longer-term period. The Investment Strategy is indifferent to the constraints of any index benchmarks and is relatively concentrated in its number of investments. The Fund is expected to own between 20 and 40 securities, and from time to time up to 20% of the portfolio maybe invested in cash. The Fund is $A un-hedged.
Manager Comments	The Quay Global Real Estate Fund rose +4.90% in June, outperforming the ASX200 Accumulation Index by +1.63%. Quay noted the Fund's unhedged strategy enabled the Fund to benefit by +2.1% from a weaker Australian dollar. Since inception in July 2014, the Fund has returned +14.88% per annum versus the Index's +13.27%. The Fund's cumulative up-capture and down-capture ratios indicate that, since inception, the Fund has captured 85.5% of the market's upside and only 64.2% of its downside. June was a relatively active month for the Fund. The Fund's student accommodation investee, Education Realty Trust (EDR), received an all cash take-over offer from entities associated with Greystar Real Estate Partners which Quay noted they are in no rush to accept. Separately, Quay's decision to hold Hispania Activos despite an April bid from entities associated with Blackstone has reaped additional rewards; in June the initial cash offer of 17.45 euros/share was revised to 18.25 euros/share with approval from the Board. Throughout the month the management team toured the US, Canada and UK, meeting with existing and prospective investees and their competitors, and looking for new investment ideas. Quay mentioned that they added a new investee during the month in the UK student accommodation space. Overall, Quay noted the outlook was positive, albeit with growth at more modest levels consistent with later cycle positioning. The exception was the industrial sector, where Quay believe the consensus outlook has become almost euphoric. They noted that this makes them cautious and is reflected by the under representation of the sector in the current portfolio.
More Information	Fund Profile Manager's Report

Bennelong Twenty20 Australian Equities Fund June 2018

24 Jul 2018 - Australian Fund Monitors

The latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available. The Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of ex-20 stocks.

Performance Report: NWQ Fiduciary Fund

23 Jul 2018 - Australian Fund Monitors

The NWQ Fiduciary Fund ended the financial year up +12.73% p.a. with an annualised volatility of only 3.69%.

23 Jul 2018 - Performance Report: NWQ Fiduciary Fund

By: Australian Fund Monitors

Report Date	23 July 2018
Manager	NWQ Capital Management Pty Ltd
Fund Name	NWQ Fiduciary Fund
Strategy	Multi Strategy
Latest Return Date	June 2018
Latest Return	-0.16%
Latest 6 Months	2.92%
Latest 12 Months	12.73%
Latest 24 Months	11.08%
Annualised Since Inception	7.21%
Inception Date	01 May 2013
FUM (millions)	AU$86
Fund Overview	The NWQ Fiduciary Fund (Fund), managed by NWQ Capital Management, is a diversified multi-manager portfolio, modelled on NWQ's Fiduciary Model Portfolio. The principal investment objective of the Fund is to produce attractive positive returns irrespective of market direction. This is achieved through active allocations to selective fund managers that employ a variety of traditional and absolute return strategies. The Fund places emphasis on managers who demonstrate a rigorous and repeatable investment process that has delivered a strong track record. The Fund aims to produce returns, after management fees and expenses of between 8% to 11% p.a. over rolling five-year periods. Furthermore, the Fund aims to achieve these returns with volatility that is a fraction of the Australian equity market, in order to smooth returns for investors.
Manager Comments	The NWQ Fiduciary Fund returned -0.16% in June. Since inception in May 2013, the Fund has returned +7.21% p.a. with an annualised volatility of 4.67%. By contrast, the ASX200 Accumulation Index has returned +8.18% p.a. over the same period with an annualised volatility of 11.01%. The Fund's Sharpe and Sortino ratios, 1.10 and 2.06 respectively, highlight the Fund's ability to achieve better risk-adjusted returns than the market whilst ensuring investors' capital is protected. The Index's Sharpe and Sortino ratios for performance over the same period are 0.59 and 0.82 respectively. Over the financial year, the Fund returned +12.72% with an annualised volatility of 3.69% versus the Index's return of +13.01% with a volatility of 7.15%. NWQ noted there was a small reversal in a number of themes in June that the Fund's Alpha managers had profited from in recent months due to investor portfolio repositioning ahead of the financial year end. NWQ expect the effect of this to be transitory and their outlook for their Alpha managers remains positive given the heightened level of volatility and stock-level dispersion seen in recent months.
More Information	Fund Profile Manager's Report

Fund Review: Bennelong Kardinia Absolute Return Fund June 2018

20 Jul 2018 - Australian Fund Monitors

The latest Fund Review for the Bennelong Kardinia Absolute Return Fund is now available. The Fund is a long-biased, research driven, active equity long/short strategy which invests in listed ASX companies with track records greater than 10 years.

Fund Review: Bennelong Long Short Equity Fund June 2018

19 Jul 2018 - Australian Fund Monitors

Latest Fund Review for the Bennelong Long Short Equity Fund is now available. The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large-caps from the ASX/S&P100 Index...

Fund Review: ARCO Absolute Trust June 2018

18 Jul 2018 - Australian Fund Monitors

Read the latest Fund Review on ARCO Absolute Trust. ARCO Investment Management 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...

Performance Report: Qato Capital Market Neutral Fund

17 Jul 2018 - Australian Fund Monitors

The Qato Capital Market Neutral Fund returned -0.95% in June. Qato noted they remain cautious on the outlook of the equity markets, both domestically and abroad.

17 Jul 2018 - Performance Report: Qato Capital Market Neutral Fund

By: Australian Fund Monitors

Report Date	17 July 2018
Manager	Qato Capital
Fund Name	Qato Capital Market Neutral Fund
Strategy	Equity Market Neutral
Latest Return Date	June 2018
Latest Return	-0.95%
Latest 6 Months	-0.34%
Latest 12 Months	-9.55%
Latest 24 Months	-14.03%
Annualised Since Inception	-1.88%
Inception Date	01 August 2014
FUM (millions)	AU$125
Fund Overview	QATO's Market Neutral strategy is managed via an objective, consistent and replicable process utilising Qato Capital's proprietary 'Q-Score' methodology. The Q-Score process is fundamentally based, evaluating improving and deteriorating fundamentals within each business from a variety of financial metrics, such as valuation, growth, risk, quality, earnings & price. The strategy is designed to produce returns uncorrelated to major global equity markets. Moreover, the strategy is designed to produce strong positive returns in times of market distress/volatility, whilst also performing well in normal market conditions. The Fund seeks to preserve capital and maximise absolute returns through active and constant risk management, targeting monthly a net market exposure of 0% to hedge broader market risks by generally holding up to 50 S&P/ASX-100 positions (up to 25 long positions & 25 short positions). Historically, the strategy has been uncorrelated to traditional asset classes with a negative beta to equity markets. Qato Capital's process is entirely systematic - stock selection and risk management are all employed in a rules based approach. Positions in Qato's long-portfolio and short-portfolio are rotated monthly dependent upon their Q-Score ranking. The strategy employs no financial leverage/gearing to purchase securities, no derivatives and no financial products to imitate leverage.
Manager Comments	The Qato Capital Market Neutral Fund returned -0.95% in June. Qato noted that, given widening credit spreads, often a precursor to sizeable market selloffs, and the threat of a trade war between the US and China, they maintain a cautious outlook on the local and global equity markets. Long positions in Northern Star (+15.79%) and Evolution Mining (+7.81%) added considerable value to the Fund in June despite spot gold falling -3.49%, whilst the lagging Materials sector contributed to the underperformance of Qato's long book. Of the strong performing oil stocks, Qato's machine learning model held a long position in Santos, adding value to the long book as it rallied on news of an updated dividend policy. The two best contributing positions to Qato's short book were Telstra (-5.80%) and TPG Telecomm (-7.18%) as the telecommunications sector overall fell -5.77%. Qato believe this was due to the detrimental effects of increased production, the NBN rollout and reduced margins.
More Information	Fund Profile

Performance Report: KIS Asia Long Short Fund

16 Jul 2018 - Australian Fund Monitors

The KIS Asia Long Short Fund returned -1.06% in June. Since inception in October 2009, the Fund has returned +13.19% per annum versus the ASX200 Accumulation Index's +7.71% per annum.

16 Jul 2018 - Performance Report: KIS Asia Long Short Fund

By: Australian Fund Monitors

Report Date	16 July 2018
Manager	KIS Capital Partners
Fund Name	KIS Asia Long Short Fund
Strategy	Equity Long/Short
Latest Return Date	June 2018
Latest Return	-1.06%
Latest 6 Months	2.11%
Latest 12 Months	9.28%
Latest 24 Months	15.70%
Annualised Since Inception	13.19%
Inception Date	01 October 2009
FUM (millions)	AU$89.97
Fund Overview	The Fund's investment objective is to generate absolute returns, in Australian dollars, of around 15% p.a. after all fees without noticeable correlation to any particular asset class or market. 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 KIS Asia Long Short Fund returned -1.06% in June. Since inception in October 2009, the Fund has returned +13.19% p.a. with an annualised volatility of 5.21%. By contrast, the ASX200 Accumulation Index has returned +7.71% p.a. over the same period with an annualised volatility of 11.58%. The Fund's Sharpe and Sortino ratios, 1.90 and 4.29 respectively, are significantly superior to the Index's Sharpe ratio of 0.46 and Sortino ratio of 0.59. The Fund's up-capture and down-capture ratios since inception indicate that, on a cumulative basis, the Fund has achieved positive performance in rising markets and significantly outperformed in falling markets. The Fund's biggest loss in June was on its short position in Woolworths (+7%) which cost 32bp. Click here to read KIS Capital's recent insight piece on their view of the threat to Woolworths' core business earnings from an increase in wage costs. The Fund did not have any other loss or contribution of more than 30bp on any single name. On most of the Fund's small cap holdings there was no significant news, KIS believe the declines were driven by investors looking to realise capital losses before the end of the tax year. KIS expect this anomaly to reverse over the coming weeks or months. KIS noted that so far this year the Fund's returns have been driven very heavily by the short side of the portfolio.
More Information	Fund Profile Manager's Report

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30 Jul 2018 - Performance Report: ARCO Absolute Trust

27 Jul 2018 - Performance Report: Bennelong Twenty20 Australian Equities Fund

26 Jul 2018 - Performance Report: Quay Global Real Estate Fund

24 Jul 2018 - Bennelong Twenty20 Australian Equities Fund June 2018

23 Jul 2018 - Performance Report: NWQ Fiduciary Fund

20 Jul 2018 - Fund Review: Bennelong Kardinia Absolute Return Fund June 2018

19 Jul 2018 - Fund Review: Bennelong Long Short Equity Fund June 2018

18 Jul 2018 - Fund Review: ARCO Absolute Trust June 2018

ARCO ABSOLUTE TRUST (formerly Optimal Australia Absolute Trust)

17 Jul 2018 - Performance Report: Qato Capital Market Neutral Fund

16 Jul 2018 - Performance Report: KIS Asia Long Short Fund

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