NEWS
Performance Report: Qato Capital Market Neutral Fund
6 Mar 2018 - Australian Fund Monitors
The Qato Capital Market Neutral Fund returned -0.95% in January. Qato noted that the Fund was outperforming the fall in the broader ASX-100 in February at the time of writing their latest report.
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6 Mar 2018 - Performance Report: Qato Capital Market Neutral Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | South32 was the strongest performer for the month, contributing +0.83% due to the Fund holding an overweight position of +4.6%. Flight Centre also contributed positively (+0.40%) after rallying +15.35%. The Fund's underweight position in the Financials sector, which pulled back -0.79%, also had a positive impact on relative performance, with the Fund holding short positions in ANZ (-0.56%) and Westpac (-1.26%). A strong rally in the healthcare sector (+3.16) negatively impacted performance of the short book which held positions in Sonic Healthcare (+4.3%), CSL (+3.6%) and Cochlear (+1.4%), although the impact was lessened by short positions in Ramsay Healthcare (-2.5) and Healthscope (-8.1%) which contributed positively. |
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Performance Report: Pengana PanAgora Absolute Return Global Equities Fund
6 Mar 2018 - Australian Fund Monitors
The Pengana PanAgora Absolute Return Global Equities Fund returned +1.04% in January. Since inception in September 2010 the Fund has returned +8.62% per annum with a volatility of 5.30%.
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6 Mar 2018 - Performance Report: Pengana PanAgora Absolute Return Global Equities Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | Performance in January was driven by the long-term portfolio which contributed +1.10%, with strong performance coming from the U.S. large capitalisation and Emerging Markets stocks. Intermediate-term strategies detracted -0.04% due to U.S. merger arbitrage and share class arbitrage related trades, and short-term strategies detracted -0.02% as earnings related trades disappointed. |
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Performance Report: Bennelong Concentrated Australian Equities Fund
5 Mar 2018 - Australian Fund Monitors
The Bennelong Concentrated Australian Equities Fund fell -0.18% in January. Since inception in January 2009, the Fund has returned +18.29% per annum.
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5 Mar 2018 - 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 | At the end of January, the Fund's weighting in the Materials sector increased to 14.7% from 7.1% as at the end of December. Weightings were decreased in the Discretionary, Health Care, Consumer Staples, Industrials and Financials sectors. |
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Performance Report: Pengana Global Small Companies Fund
5 Mar 2018 - Australian Fund Monitors
The Pengana Global Small Companies Fund rose +0.5% in January, taking annualised performance since inception in April 2015 to +11.88% with an annualised volatility of 8.49%.
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5 Mar 2018 - Performance Report: Pengana Global Small Companies Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is managed by Founder & CIO Leah Zell, and Portfolio Managers Jon Moog and David Li. The Lizard investment team have over 50 years combined investment experience in global small cap investing. Leah Zell has over 30 years of experience and is a recognized expert in international investing in the international small-cap category. The Fund's investment team uses a value-oriented investment approach to small and mid-cap global equities that seeks to identify and invest in quality businesses that create significant value but are mispriced, overlooked or out-of-favour. The investment manager believes that unique opportunities exist due to limited available research, corporate actions or unfavourable investor perception. The portfolio construction process aims to develop portfolios that incorporate the best investment ideas from the investment manager's research while allowing for liquidity constraints and perceived risk. The Fund's investment manager will not typically hedge currency exposures, however during periods of currency extremes, some currency hedging may be employed. Derivatives may be used to achieve long or short exposures, reduce risk and reduce transaction costs. Derivatives will not be used for the purposes of leverage and the Fund's net exposure will never be short. |
| Manager Comments | Pengana mentioned in their latest report that the Fund benefits significantly during periods of uncertainty, as seen throughout January. The Fund started February with 20% cash, near the top of the Fund's allowable threshold, which puts the Fund in a position to buy as opportunities present themselves. Pengana noted that, while holding cash on the way up can be painful, it becomes an important tool when markets disintegrate quickly. There were no meaningful fundamental changes to the portfolio in January. Pengana remain focused on sourcing and finding exceptional businesses. |
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Performance Report: Touchstone Index Unaware Fund
2 Mar 2018 - Australian Fund Monitors
The Touchstone Index Unaware Fund returned +0.21% in January, outperforming the ASX200 Accumulation Index by +0.66% and taking annualised performance since inception to +15.11% per annum.
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2 Mar 2018 - Performance Report: Touchstone Index Unaware Fund
By: Australian Fund Monitors
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| Fund Overview | The portfolio is constructed using Touchstone's Quality-At-a-Reasonable-Price ('QARP') investment process. QARP is a fundamental bottom-up process, however, it also incorporates a top-down risk management framework designed to successfully manage the portfolio during varying market conditions and economic cycles. The Touchstone Fund is concentrated, typically holding between 15-20 stocks. No individual stock will ever make up more than 10% of the portfolio at any one time. The Investment Manager may temporarily exceed the exposure limits of the Fund occasionally, particularly during periods of market volatility, to allow for holdings in excess of this 10% limit where the increase in value of the underlying security is due to market movement. The Fund may also hold between 0-50% of the portfolio in cash. The Fund has a high level of associated risk, therefore, the minimum suggested investment time-frame is 5 years. |
| Manager Comments | The Touchstone Index Unaware Fund primarily selects stocks from the S&P/ASX 300 Index and typically holds 10-30 stocks. It seeks to invest in reasonably priced, good quality companies with a significant share of expected returns coming from sustainable dividends. |
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Performance Report: Bennelong Australian Equities Fund
2 Mar 2018 - Australian Fund Monitors
The Bennelong Australian Equities Fund returned +0.79% in January, outperforming the ASX200 Accumulation Index by +1.24% and taking annualised performance since inception in Feb 2009 to +13.84%.
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2 Mar 2018 - 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 | At the end of the month, the Fund's weightings in the Discretionary, Consumer Staples and Materials sectors were increased whilst weightings in the Health Care, Industrials, REITs and Financials sectors were decreased. |
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Fund Review: Insync Global Titans Fund January 2018
1 Mar 2018 - Australian Fund Monitors
Latest Fund Review on Insync Global Titans Fund is now available.
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1 Mar 2018 - Fund Review: Insync Global Titans Fund January 2018
By: Australian Fund Monitors
AFM Fund Review - January 2018 (pdf format)
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans Fund.
We would like to highlight the following:
- The Global Titans Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - January 2018 (pdf format)
Performance Report: NWQ Fiduciary Fund
1 Mar 2018 - Australian Fund Monitors
The NWQ Fiduciary Fund returned +0.4% in January, outperforming the ASX200 Accumulation Index by +0.85% and taking annualised performance since inception to +7.30%.
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1 Mar 2018 - Performance Report: NWQ Fiduciary Fund
By: Australian Fund Monitors
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| 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 | In January, the returned of the underlying managers were varied. NWQ noted that the Beta managers, whose returns can depend on the direction of the equity market, produced marginally positive returns demonstrating sound stock selection. Alpha managers drove portfolio performance during the month, demonstrating the diversification benefits that these managers can provide in falling markets. The portfolio currently comprises five Alpha managers (62.5% of the portfolio), four Beta managers (25%) and 12.5% cash. |
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Performance Report: Quay Global Real Estate Fund
28 Feb 2018 - Australian Fund Monitors
The Quay Global Real Estate Fund fell -4.50% in January, with approximately -2.4% from the underlying stock exposure and the strong $A detracting a further -2.1%.
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28 Feb 2018 - Performance Report: Quay Global Real Estate Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | Headwinds which impacted returns during the month, as noted by the Manager, include - $US weakness, rising long-dated treasuries yields, and enthusiasm by the market for growth and risk. During the month, the biggest detractors were Brixmore (US, Retail), Ventas (US, Healthcare) and Store Capital (US, Triple Net). The best performers were Pure Industrial (Canada, Industrial), Hispania (Spain, Diversified) and Safestore (UK, Storage). In their latest report, the Manager contrasts the markets in 1999 to those now. They mention that over 1999, the US 10-year nominal bond yield rose from 4.6% to 6.4%, and global real estate underperformed global equities by 15%. However, over the next 12 months global real estate outperformed global equities by 32% and delivered an $A total return of 34% as the tech bubble burst. The Manager remains confident the underperformance of global real estate can't be sustained forever. |
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Performance Report: Insync Global Titans Fund
27 Feb 2018 - Australian Fund Monitors
The Insync Global Titans Fund returned +3.32% in January, outperforming the MSCI ex Aus by +1.22% after the cost of fees and protection.
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27 Feb 2018 - Performance Report: Insync Global Titans 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 | Performance was driven by positive contributions from the Fund's holdings on PayPal, Alphabet, Microsoft and Visa. The main negative contributors were RELX, Walt Disney and Diageo. 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 the Fund's put protection strategy. |
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