Affluence Investment Fund

25 Jul 2017 - Australian Fund Monitors

The Affluence Investment Fund had a strong June, increasing by 1.1%, taking performance since inception in December 2014 to 9.6% pa with volatility of only 3.1%.

25 Jul 2017 - Affluence Investment Fund

By: Australian Fund Monitors

Report Date	25 July 2017
Manager	Affluence Funds Management
Fund Name	Affluence Investment Fund
Strategy	Multi Strategy
Latest Return Date	June 2017
Latest Return	1.07%
Latest 6 Months	3.86%
Latest 12 Months	9.61%
Latest 24 Months	20.73%
Annualised Since Inception	9.59%
Inception Date	28 November 2014
FUM (millions)	AU$6.2
Fund Overview	The Affluence Investment Fund is designed to deliver above average results by utilising a different strategy to those used by traditional balanced investment funds. The Fund invests in a range of opportunities across many different types of assets, managers and investment strategies. This allows for diversification across all asset classes. The Fund does not invest directly into any asset class, rather, it invests in investment managers which satisfy Affluence Funds Management's investment criteria; its investment philosophy is based on a formula developed by CEO/Portfolio Manager Daryl Wilson since the start of his career in 1999. The Fund targets total returns of at least 5% above inflation over rolling 3 year periods with volatility of returns less than 50% of the ASX200 Index. The Fund also aims to provide investors with a distribution yield of at least 5% p.a. To ensure appropriate diversity of managers and limit the potential for conflicts of interest, no more than 20% of the Fund will be invested with any one external manager. Affluence seeks to achieve the Funds' investment objective by choosing attractively priced investments overseen by quality managers. The Fund uses a number of processes to identify potential investments including quantitative screens for investments which meet historical performance, volatility and other criteria. They also use a number of external researchers and information sources to assist in this process.
Manager Comments	The Affluence Investment Fund had a strong June, increasing by 1.1%. Since commencing in December 2014, the Fund, which invests in a wide cross section of underlying funds, has returned 9.6% p.a. outperforming both its benchmark of 6.8% p.a. (inflation plus 5%) and the ASX 200, but with low volatility of only 3.1%, compared to the ASX200 of 12.3%. In their monthly performance report Affluence stated that valuations for most assets remain relatively high looking forward, but that the portfolio is well positioned for both rises and falls in asset and equity markets, as they continued to focus efforts on making the portfolio as resilient as possible. Notably for a Fund of Funds, Affluence do not charge a management fee, relying on performance fees which the manager feels provides a better alignment of interests with their investors.
More Information	Fund Profile Manager's Report

Cyan C3G Fund

25 Jul 2017 - Australian Fund Monitors

The Cyan C3G Fund closed out the financial year on a strong note, rising 2.4% in June and taking the return for the year to 11.4% and 25% p.a. since inception.

25 Jul 2017 - Cyan C3G Fund

By: Australian Fund Monitors

Report Date	25 July 2017
Manager	Cyan Investment Management
Fund Name	Cyan C3G Fund
Strategy	Equity Long
Latest Return Date	June 2017
Latest Return	2.40%
Latest 6 Months	7.93%
Latest 12 Months	11.49%
Latest 24 Months	57.68%
Annualised Since Inception	25.25%
Inception Date	24 July 2014
FUM (millions)	AU$12
Fund Overview	The Cyan C3G Fund operates as a wholesale unregistered managed investment scheme under a unit trust structure. The Fund primarily invests in ASX listed companies outside the ASX 100 and typically holds between 15-35 stocks. 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	The Cyan C3G Fund closed out the financial year on a strong note, rising 2.4% in June and taking the return for the year to 11.49% and over 25% p.a. since inception in July 2014. Performance was driven by a number of positions including Medical imaging services provider, Capitol Health which rose 38% in June following the the new management team's capital raising to pay down debt, and the sale of its NSW assets. Adding to this a newer holding, MSL Solutions rose 34% in June, while the Fund's investment in Blue Sky Funds continued to provide solid gains as it hit new highs on the back of new institutional mandate wins. Finally the IPO of Kelly Group, a Sydney based consolidator of smaller accounting firms, made a sound market debut almost 30% above its $1.00 issue price. Despite this gain the Manager added to the initial position as the company continued its rise, ending the month at $1.42, providing a healthy gain for the Fund's investors.
More Information	Fund Profile Manager's Report

Allard Investment Fund

24 Jul 2017 - Australian Fund Monitors

Allard's Asian focused long only, absolute return fund dips 2.42% in June, but still returns 16.56% over the previous 12 months.

24 Jul 2017 - Allard Investment Fund

By: Australian Fund Monitors

Report Date	24 July 2017
Manager	Allard Partners Management Limited
Fund Name	Allard Investment Fund
Strategy	Equity Long
Latest Return Date	June 2017
Latest Return	-2.42%
Latest 6 Months	6.61%
Latest 12 Months	16.56%
Latest 24 Months	13.72%
Annualised Since Inception	9.18%
Inception Date	01 July 2003
FUM (millions)	AU$158
Fund Overview	Allard Partners is an absolute return, long only equity investor with a single mission to provide its clients with a net compound rate of return on their capital of 15% per annum over the long term. With offices in Hong Kong, India and Australia, Allard invests in quoted companies in the Asia Pacific region. Allard's investment approach has remained consistent throughout their history: That is to invest prudently but proactively in well-managed businesses that achieve superior returns on capital in industries with long-term growth potential. The Manager uses both broad top-down guidance and detailed bottom-up analysis to identify suitable markets, industries and companies. Although long only investors, a critical factor in their strategy and performance is the ability to hold cash when they cannot find companies that meet their criteria or are at a sufficient discount to their valuations.
Manager Comments	The Manager's monthly performance report indicated some caution as cash and fixed income allocation at the end of June stood at 21%, with industry breakdown reasonably distributed across sectors, with the heaviest allocations to Financial Services (14.8%) followed by Telco's and Media & Communications at 11.7% and 7% respectively. The portfolio remains concentrated, reflecting the manager's high conviction approach, with 38% of NAV across the top 5 stocks, 14% allocated to the next five, leaving 27% allocated to the remaining holdings. Geographically the breakdown was heavily weighted to HK and China at 47%, followed by Singapore and India each representing approximately 12% each, and just 1% each to Indonesia and Vietnam.
More Information	Fund Profile Manager's Report

MHOR Australian Small Cap Fund

24 Jul 2017 - Australian Fund Monitors

The MHOR Small Cap Fund returns +2.28% in June, to back up May's result of +3.24% as Small Caps outperformed Large Caps for the second consecutive month...

24 Jul 2017 - MHOR Australian Small Cap Fund

By: Australian Fund Monitors

Report Date	24 July 2017
Manager	MHOR Asset Management
Fund Name	MHOR Australian Small Cap Fund
Strategy	Equity Long
Latest Return Date	June 2017
Latest Return	2.28%
Latest 6 Months	-2.84%
Latest 12 Months
Latest 24 Months
Annualised Since Inception	-0.36%
Inception Date	01 August 2016
FUM (millions)	AU$20
Fund Overview	The MHOR Australian Small Cap Fund aims to outperform the S&P/ASX Small Ordinaries Accumulation Index over a rolling 5-year period after fees and expenses. The portfolio is made up of 25-75 stocks listed on the ASX or NZX. The fund may also invest in stocks to be listed within the next 12 months. The portfolio is constructed to achieve an aggregate exposure that delivers a growth profile that is materially above that of the broader market. The fund may hold between 0% - 50% of its assets in cash. MHOR looks for investment that exhibit the following set of characteristics: -Opportunity - to take advantage of growth and positive alignment with industry themes and trends. -Quality business - competitively advantaged product or service offering. -Financial flexibility - appropriately resourced to capture its opportunity. -Management - with the vision and capability to bring it all together. -Fundamentally undervalued. MHOR also considers labour standards, environmental, social and ethical considerations when making investment decisions but only to the extent that these factors impact the assessment of risk or return. The minimum suggested investment timeframe is 3-5 years.
Manager Comments	MHOR's Small Cap Fund returned +2.28% in June, following on from May's strong performance of +3.24% as Small Caps outperformed Large Caps for the second consecutive month, perhaps signalling that investors are returning to smaller stocks in search of growth at reasonable prices. MHOR's investment team of James Spenceley and Garry Rollo remain committed to their view that the domestic small cap market offers good investment opportunities at compelling value, but with less reliance on global macro forces. In June three of the Fund's largest positive contributions came from disruptive gaming company TopBetta Holdings (TBH), Imdex (IMD) a leading provider of drilling fluids and downhole instrumentation to the global minerals industry, and child care provider, G8 Education (GEM). The major detractor for the month was medical device company AirXpanders (AXP). Looking forward the Manager is of the view that many of the macro tailwinds which have driven global equities higher over the past six months appear broadly intact, including the US economic recovery, now in its seventh year, which shows no signs of faltering, (notwithstanding uncertainties surrounding 'Trumponomics'), economic data out of Europe continues to improve, while recent Chinese economic data has also surprised to the upside.
More Information	Fund Profile Manager's Report

Bennelong Kardinia Absolute Return Fund

20 Jul 2017 - Australian Fund Monitors

Bennelong Kardinia Absolute Return Fund rose 0.48% in June, taking the annualised return since inception to 10.89% p.a.

20 Jul 2017 - Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	20 July 2017
Manager	Kardinia Capital, A Bennelong boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	June 2017
Latest Return	0.48%
Latest 6 Months	2.03%
Latest 12 Months	2.91%
Latest 24 Months	6.01%
Annualised Since Inception	10.89%
Inception Date	01 May 2006
FUM (millions)	AU$306.7
Fund Overview	The Fund consists of a concentrated long/short portfolio typically comprising 20 to 50 ASX300 listed stocks, generally with a long bias aligned to the overall market direction. On average since inception the Fund's exposure has averaged 40% net long. There is a slight bias to large cap stocks on the long side of the portfolio, although in a rising market the portfolio will tend to hold smaller caps, including resource stocks, more frequently. On the short side, the portfolio is particularly concentrated, with stock selection limited by both liquidity and the difficulty of borrowing stock in smaller cap companies. Short positions are only taken when there is a high conviction view on the specific stock. The Fund uses derivatives in a limited way, mainly selling short dated covered call options to generate additional income. These typically have less than 30 days to expiry, and are usually 5% to 10% out of the money. ASX SPI futures and index put options can be used to hedge the portfolio's overall net position. 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	The Bennelong Kardinia Absolute Return Fund increased 0.48% in June. The Manager noted that the Australian market was volatile in June but ended largely flat. The best sectors for the month were Health Care (+6.1%), Financials ex REITs (+1.6%) and Materials (+0.5%), whilst Energy (-6.9%), REITs (-4.8%) and Utilities (-2.7%) lagged. Bluescope Steel (+27bp) was the largest contributor to performance. Other key contributors included Amcor (+17bp) and Costa Group (+14bp). Short positions in retail REITs and rate sensitive stocks were also effective. The key negative contributors included AGL (-13bp), NAB (-11bp) and Macquarie Group (-8bp) and BHP (-8bp) which fell despite the bounce in the iron ore price. Net equity market exposure including derivatives increased from 21.5% to 55.4% (60.4% long and 4.9% short) with increased holdings in three of the four major banks and the resources sector (principally BHP, RIO and S32) while closing out a short position in SPI Futures.
More Information	Fund Profile Manager's Report

Performance Report: Optimal Australia Absolute Trust

11 Jul 2017 - Australian Fund Monitors

Optimal Australia returns 1.88% in June, to complete their 8th consecutive positive financial year.

11 Jul 2017 - Performance Report: Optimal Australia Absolute Trust

By: Australian Fund Monitors

Report Date	11 July 2017
Manager	Optimal Fund Management Australia
Fund Name	Optimal Australia Absolute Trust
Strategy	Equity Long/Short
Latest Return Date	June 2017
Latest Return	1.88%
Latest 6 Months	1.05%
Latest 12 Months	0.91%
Latest 24 Months	12.28%
Annualised Since Inception	8.17%
Inception Date	15 September 2008
FUM (millions)	AU$116
Fund Overview	The investment objective of the Fund is to seek to achieve above average returns in absolute terms, through investing in listed securities in Australia and New Zealand, subject to the overarching requirement of capital preservation. Investments will predominantly be in equity securities but may include fixed interest instruments, money market instruments, derivatives and foreign exchange contracts. The Fund's bias is likely to be net long under normal market conditions, with the core strategy being to construct a portfolio of listed equity securities priced at levels that do not adequately reflect their underlying value. The Fund will seek to boost returns and limit potential market downside by selective short selling of individual stocks which are priced at levels that are viewed as materially above their underlying value. The Fund will also use certain trading strategies both within its core portfolio (through rebalancing stock weights and overall market exposure in response to price movements) and in certain other situations (typically of a shorter-duration and/or opportunistic nature) with the objective of further increasing returns.
Manager Comments	The Optimal Australia Absolute Trust completed another positive financial year with the fund returning 1.88% in June, with both long and short positions making positive contributions to performance for the month, and in so doing completing their eighth consecutive positive year. The Manager noted the ASX200 Accumulation Index posted its first negative quarter in over a year, as underlying volatility edged up, albeit from very low levels, as bond yields rose, with both the A$ and US$ 10-year yields up 35 bps in just two weeks, and with greater gains in the Euro zone. Given that these moves are against only the possibility of central banks withdrawing monetary stimulus, Optimal are concerned that the reality of such action could be very ugly indeed. On the portfolio front Optimal see earnings risks in companies facing the Australian consumer, and considerable risk in the banks and sectors exposed to housing given recent reactive government policy such as bank taxes, and concerns over energy security and rising gas and electricity prices. Optimal expect volatility to continue to rise over the very short term in spite of the market shrugging off increasingly poor geo-political risks, and the upcoming company reporting season in August. At month end the Fund's gross exposure stood at 122% of NAV, 64% long and 38% short (including derivatives) for a net exposure of 6%.
More Information	Fund Profile Manager's Report

Performance Report: Bennelong Long Short Equity Fund

10 Jul 2017 - Australian Fund Monitors

Bennelong's Long Short Equity Fund returns 1.2% in June, ending the financial year on a strong note against the ASX200.

10 Jul 2017 - Performance Report: Bennelong Long Short Equity Fund

By: Australian Fund Monitors

Report Date	10 July 2017
Manager	Bennelong Long Short Equity Management, a Bennelong boutique
Fund Name	Bennelong Long Short Equity Fund
Strategy	Equity Market Neutral
Latest Return Date	June 2017
Latest Return	1.20%
Latest 6 Months	18.36%
Latest 12 Months	3.91%
Latest 24 Months	28.90%
Annualised Since Inception	16.84%
Inception Date	01 January 2003
FUM (millions)	AU$436.9
Fund Overview	Bennelong Long Short Equity Management applies a qualitative stock selection process to construct a diversified portfolio of paired securities based on relative value. The Bennelong Long Short Equity Management strategy invests primarily in the S&P/ASX 100 and is dollar neutral at cost. 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	Bennelong achieved a return of 1.20% in June against a backdrop of a flat local equity market, and completing a strong second half of the financial year with a calendar year to date return of over 18%, to offset a weaker first half. The monthly report indicates the manager remains apprehensive about current asset values, with market valuations increasing further, and remaining at levels well above historical averages, particularly noting the growing impetus for further interest rate normalisation and the beginning of central banks' balance sheet unwinding.
More Information	Fund Profile Manager's Report

Fund Review: Insync Global Titans Fund May 2017

6 Jul 2017 - Australian Fund Monitors

Latest Fund Review on Insync Global Titans Fund is now available.

Bennelong Twenty20 Australian Equities Fund May 2017

5 Jul 2017 - Australian Fund Monitors

Latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available.

King Tide NZ/Australian Long/Short Equity Fund

30 Jun 2017 - Australian Fund Monitors

King Tide NZ/Australian Long/Short Equity Fund gained 2.34% for the month of May, outperforming the Fund's benchmark (90% All Ordinaries Accumulation/10% NZX50) by 4.21%.

30 Jun 2017 - King Tide NZ/Australian Long/Short Equity Fund

By: Australian Fund Monitors

Report Date	29 June 2017
Manager	King Tide Asset Management
Fund Name	King Tide NZ/Australian Long/Short Equity Fund
Strategy	Equity Long/Short
Latest Return Date	May 2017
Latest Return	2.34%
Latest 6 Months	-1.77%
Latest 12 Months	-4.18%
Latest 24 Months	8.46%
Annualised Since Inception	8.54%
Inception Date	31 December 2011
FUM (millions)	AU$20.8
Fund Overview	The fund aims to provide investors with a diversified, active exposure to New Zealand and Australian equity markets by allocating capital to a select group of managers domiciled in these markets whose investment mandates allow both long and short equity investment. The fund seeks to outperform the market with less volatility than the market by allocating capital to a select group of eight to sixteen funds whose investment mandates allow them to use short selling of equities and equity indices, to use derivatives to manage risk, to use leverage and to hold large amounts of cash. In-depth proprietary research is used to select and monitor fund managers with particular emphasis on their ability to manage equity market risk through stock selection, short selling and the use of derivatives and cash.
Manager Comments	King Tide NZ/Australian Long/Short Equity Fund gained 2.34% for the month of May, outperforming the Fund's benchmark (90% All Ordinaries Accumulation/10% NZX50) by 4.21%. Since inception in December 2011, the Fund has an annualised return of 8.54% p.a. Every manager in the portfolio beat the market, and at the Fund level, currency aside, the managers outperformed the market by 2.6% in May. The best performing Funds for the month included L1 Capital Long Short Fund (+4.2%) and Tasman Market Neutral (+2.8%). Other managers to make money were 8EC (+2.0%), Smallco (+1.5%), Paragon (+1.3%), PIE Emerging (+1.1%), Level 18 (+0.8%), Watermark (+0.6%), and PIE Growth was marginally positive. The Fund's biggest loss came from Wavestone Capital (last month's biggest gainer) which fell -2.0%, LHC fell -1.9%, Auscap -1.5%, Sandon -1.3% and Monash was down -0.8%.
More Information	Fund Profile Manager's Report

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25 Jul 2017 - Affluence Investment Fund

25 Jul 2017 - Cyan C3G Fund

24 Jul 2017 - Allard Investment Fund

24 Jul 2017 - MHOR Australian Small Cap Fund

20 Jul 2017 - Bennelong Kardinia Absolute Return Fund

11 Jul 2017 - Performance Report: Optimal Australia Absolute Trust

10 Jul 2017 - Performance Report: Bennelong Long Short Equity Fund

6 Jul 2017 - Fund Review: Insync Global Titans Fund May 2017

5 Jul 2017 - Bennelong Twenty20 Australian Equities Fund May 2017

30 Jun 2017 - King Tide NZ/Australian Long/Short Equity Fund

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