NEWS
Performance Report: 4D Global Infrastructure Fund
20 Mar 2018 - Australian Fund Monitors
The 4D Global Infrastructure Fund returned -2.46% in February, with most of the Fund's stocks impacted by the general market sell-off compounded by a negative bond proxy trade as yields ticked up.
Read more...
20 Mar 2018 - Performance Report: 4D Global Infrastructure Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The fund will be managed as a single portfolio of listed global infrastructure securities including regulated utilities in gas, electricity and water, transport infrastructure such as airports, ports, road and rail as well as communication assets such as the towers and satellite sectors. The portfolio is intended to have exposure to both developed and emerging market opportunities, with country risk assessed internally before any investment is considered. The maximum absolute position of an individual stock is 7% of the fund. |
| Manager Comments | The strongest portfolio performer was Sempra, a US-regulated utility, up +3.3%. The weakest performer was Brazilian toll road operator CCR, falling -20% after it was named in a Car Wash scandal as part of a plea bargain for disgraced financial operator Adir Assad. The Manager noted CCR was quick to prove its innocence, and that, while this has yet to be resolved, on balance the Manager believes in CCR's corporate governance and thinks the stock was oversold and is very cheap at current levels. The Manager's outlook for global listed infrastructure over the medium term remains positive. They noted there has been a significant underinvestment in infrastructure around the world over the past 30 years and that public sector fiscal and debt constraints will limit governments' ability to respond, resulting in an increasing need for private sector capital as part of the funding solution. In their latest report, the Manager briefly discussed US President Trump's announcement regarding his plan to rebuilt America's infrastructure and noted it explicitly targets the private sector for the majority of funds. |
| More Information |
Performance Report: Bennelong Twenty20 Australian Equities Fund
19 Mar 2018 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund returned +0.54% in February, outperforming the ASX200 Accumulation Index by +0.18% and taking annualised performance since inception in November 2009 to +10.66%.
Read more...
19 Mar 2018 - Performance Report: Bennelong Twenty20 Australian Equities Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 | At the end of February the Fund's weightings had increased in the Discretionary, IT, Industrials and Materials sectors and decreased in the Consumer Staples, Health Care, Telco's, Financials, Energy and REIT's sectors. The Fund combines a passive investment in the S&P/ASX20 Index and an actively managed investment in Australian listed stocks outside this index. The passive position is achieved by investing individually in each of the S&P/ASX20 Index's individual stocks with approximately the same weightings they represent in the S&P/ASX300. Currently this weight is approximately 60% of the Fund's portfolio. The active position in ex-20 stocks has the goal of allowing the Fund to outperform the broader market. |
| More Information |
Performance Report: NWQ Fiduciary Fund
16 Mar 2018 - Australian Fund Monitors
The NWQ Fiduciary Fund rose +0.45% in February, outperforming the ASX200 Accumulation Index by +0.09% and taking annualised performance since inception in May 2013 to +7.27%.
Read more...
16 Mar 2018 - Performance Report: NWQ Fiduciary Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | 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 | Both the Beta and Alpha managers made positive contributions to overall Fund performance in February, exhibiting the stock selection skills of the underlying managers who were on the whole positioned on the right side of the earnings announcements. |
| More Information |
Performance Report: Bennelong Kardinia Absolute Return Fund
16 Mar 2018 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +0.56% in February, outperforming the ASX200 Accumulation Index by +0.20% and taking annualised performance since inception in May 2006 to +10.77%.
Read more...
16 Mar 2018 - Performance Report: Bennelong Kardinia Absolute Return Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 | Most of the key positions in the portfolio reported solid results during reporting season. Positive contributors included Nine Entertainment (+61bp contribution), CSL (+54bp), Bellamy's (+47bp), Qantas (+43bp), Costa Group (+40bp), Seven Group (+37bp), Service Stream (+23bp) and Computershare (+18bp). Individual short positions in telco and consumer staples stocks also contributed positively. Detractors included BWX (-65bp), Star Entertainment (-57bp), Whitehaven Coal (-34bp), Westpac (-23bp), CYBG (-18bp) and South32 (-18bp). Net equity market exposure (including derivatives) was increased from 46.0% to 73.2% (100.3% long and 27.1% short) as the Manager added new positions in ANZ, BHP, Bluescope Steel, Nine Entertainment, Origin Energy and Westpac, increased weightings in Computershare and CSL, and bought back part of the Fund's short position in Share Price Index Futures. |
| More Information |
Performance Report: ARCO Absolute Trust (formerly Optimal)
14 Mar 2018 - Australian Fund Monitors
The ARCO Absolute Trust fell -1.16% in February. Since inception in September 2008, the Fund has returned +8.35% per annum with an annualised volatility of 3.75%.
Read more...
14 Mar 2018 - Performance Report: ARCO Absolute Trust (formerly Optimal)
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | 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 | In February, the Fund's long portfolio recorded its first negative month and the short portfolio gave back some of its January gains. ARCO noted they ended the month with a neutral market exposure, and that they believe the local equity market has a downward bias. ARCO further diversified the Funds long positions, extended their exposure to Index Futures as additional portfolio 'insurance' and remain busy with short-theses as prices track back to an unhealthy premium to their fair value. The Fund continues to focus on minimising investor drawdown exposure, the risks for which ARCO believe are steadily rising. ARCO maintain that the best days of passive beta are behind us in this cycle and that too much money is placed on the same equity 'bets' with global inflation and interest rates trending upward. They believe more volatility spikes are the likely outcome looking forward. ARCO continue to look at market data pointing to a local property market correction that is already underway, with specific reference to a slump in residential building approvals, declining consumer sentiment and still-falling credit supply as recent economic indicators of this. |
| More Information |
Performance Report: Cyan C3G Fund
13 Mar 2018 - Australian Fund Monitors
The Cyan C3G Fund rose +1.6% in February 2018, outperforming the ASX200 Accumulation Index by +1.24% and raking annualised performance since inception in August 2014 to +27.98%.
Read more...
13 Mar 2018 - Performance Report: Cyan C3G Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 | Positive contributors in February included Spirit Telecom (+27%), Axsess Today (+20%) and Readcload (+90%). Negative contributors included Motorcycle Holdings (-12%), Experience Co (-5%), Kelly Partners (-9%). To date, Cyan has taken a placement in BlueSky (BLA) and subscribed for some shares in a new IPO. During the market weakness there were a number of Fund holdings that Cyan added to, including AMA Group (AMA) and Moelis (MOE) which, Cyan noted, have been rewarded. The Fund currently has just over 20 positions and in excess of 45% of the Fund's total capital invested in cash. Even with this controlled portfolio, Cyan are confident they can provide solid returns to their clients. Cyan continue to adhere to their long-held investment philosophies, ride out the current volatility and make opportunistic investments they deem appropriate within the Fun's risk parameters. |
| More Information |
Fund Review: ARCO Absolute Trust February 2018
12 Mar 2018 - Australian Fund Monitors
Read the latest Fund Review on ARCO Absolute Trust.
Read more...
12 Mar 2018 - Fund Review: ARCO Absolute Trust February 2018
By: Australian Fund Monitors
AFM Fund Review - February 2018 (pdf format)
ARCO ABSOLUTE TRUST (formerly Optimal Australia Absolute Trust)
AFM have released the most recently updated Fund Review on the ARCO Absolute Trust.
We would like to highlight the following aspects of the Fund;
-
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 comprising 40 to 65 stocks broadly selected from within the ASX200.
-
The investment team comprising George Colman, Peter Whiting, and Stephen Nicholls bring 100 years combined experience in equity markets.
-
The Fund has an annualised return since inception of +8.35%. The Fund's approach to risk is shown by the Sharpe ratio of 1.38 (Index 0.30), Sortino ratio of 2.89 (Index 0.33), both of which are well above the ASX 200 Accumulation Index and has recorded over 78% positive months.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - February 2018 (pdf format)
Fund Review: Bennelong Long Short Equity Fund February 2018
9 Mar 2018 - Australian Fund Monitors
Latest Fund Review for the Bennelong Long Short Equity Fund is now available.
Read more...
9 Mar 2018 - Fund Review: Bennelong Long Short Equity Fund February 2018
By: Australian Fund Monitors
AFM Fund Review - February 2018 (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 16.38% p.a.
- 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 1.00 and 1.65 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - February 2018 (pdf format)
Performance Report: Bennelong Long Short Equity Fund
8 Mar 2018 - Australian Fund Monitors
The Bennelong Long/Short Equity Fund returned -0.58% in February. Since inception in February 2002, the Fund has returned +16.38% per annum.
Read more...
8 Mar 2018 - Performance Report: Bennelong Long Short Equity Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| 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 | The long portfolio performed slightly better than the market with a return close to zero, while the short portfolio was the drag on returns underperforming the market slightly. The portfolio experienced a favourable hit rate of company results in February reporting season across both the long and short portfolio, which was not reflected in the return. Return from the Fund's most profitable pair, long Aristocrate / short Tabcorp, was due to a weak result from Tabcorp. The Fund's weakest pair was long Carsales / short Computershare with both stocks down; Carsales due to profit taking after a strong run and Computershare due to a stronger result and associated earnings upgrades. |
| More Information |
Performance Report: Paragon Australian Long Short Fund
7 Mar 2018 - Australian Fund Monitors
The Paragon Australian Long Short Fund returned -3.0% in February. Since inception in March 2013, the Fund has returned +18.79% per annum.
Read more...
7 Mar 2018 - Performance Report: Paragon Australian Long Short Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | Paragon's unique investment style, comprising thematic led idea generation followed with an in depth research effort, results in a concentrated portfolio of high conviction stocks. Conviction in bottom up analysis drives the investment case and ultimate position sizing: * Both quantitative analysis - probability weighted high/low/base case valuations - and qualitative analysis - company meetings, assessing management, the business model, balance sheet strength and likely direction of returns - collectively form Paragon's overall view for each investment case. * Paragon will then allocate weighting to each investment opportunity based on a risk/reward profile, capped to defined investment parameters by market cap, which are continually monitored as part of Paragon's overall risk management framework. The objective of the Paragon Fund is to produce absolute returns in excess of 10% p.a. over a 3-5 year time horizon with a low correlation to the Australian equities market. |
| Manager Comments | Positive contributions in the month were from Global Geoscience and the Fund's shorts in Invocare, IPH, Ramsay Health (all downgrading), IOOF, Telstra and the Fund's bond proxies. These were offset by declines in Orocobre, CleanTeq, Challenger, Janus Henderson, Agrimin and Echo. The Fund ended the month with 32 long positions and 19 short positions. In their latest report, Paragon briefly discuss the rapid sell-off of bonds at the start of 2018 which triggered higher volatility and a roughly 12% correction in US stock markets - the first >10% correction in two years. Paragon believe the current correction is well and truly overdue, and that rising bond rates and their rate of change will continue to drive increased volatility over 2018. Paragon also noted that, in light of the fact that several of the Fund's key high-conviction long positions carry higher volatility in periods of market stress, Paragon has a flexible mandate and is active with exposure, having the ability to hedge and shift to a higher cash position (currently 35%) when appropriate. |
| More Information |
