NEWS
Performance Report: Ark Global Fund - Class B AUD Hedged
26 Feb 2021 - Australian Fund Monitors
Since inception in July 2017, the Ark Global Fund - Class B AUD Hedged has risen +5.49% p.a. with an annualised volatility of 8.99%. The Fund has achieved a down-capture ratio (since inception) of -51.26%.
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26 Feb 2021 - 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 -1.57% in January. The best performing assets for the month were: Euro STOXX 50 Index (+4.27% of NAV), Nikkei 225 (+1.50% of NAV) and Gold (+1.13% of NAV). The worst performing assets for the month were: E-mini S&P500 (-1.77% of NAV), Hang Seng Index (-1.92% of NAV) and DAX Index (-4.43% of NAV). |
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Performance Report: Bennelong Twenty20 Australian Equities Fund
26 Feb 2021 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund rose +2.80% in January, outperforming the ASX200 Accumulation Index by +2.49% and taking 12-month performance to +10.03% vs the Index's -3.11%. Since inception in November 2009, the Fund has...
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26 Feb 2021 - 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 | At month end, the portfolio's weightings had been increased in the Discretionary, Communication, IT and Industrials sectors, and increased in Health Care, Materials, REITs and Financials. Together with positions in the top 20 ASX listed stocks, the Fund is selectively invested in a group of high quality growth stocks. Bennelong's aim is for this to allow the Fund to outperform over time. The most significant difference in sector weightings between the portfolio and the ASX300 Accumulation Index is in the Discretionary sector; portfolio weighting: 33.1%, benchmark weighting: 8.0%. Bennelong believe the Fund is well set up to provide enhanced index returns over the long-term. |
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Performance Report: NWQ Fiduciary Fund
26 Feb 2021 - Australian Fund Monitors
The NWQ Fiduciary Fund rose +1.41% in January, outperforming the ASX200 Accumulation Index by +1.1% and taking 12-month performance to +5.91% vs the Index's -3.11%. Since inception in May 2013, the Fund has returned +5.94% p.a. with an...
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26 Feb 2021 - 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 RBA Cash Rate + 4.0-5.0% 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 Fund's capacity to significantly outperform in falling and volatile markets is highlighted by the following statistics (since inception): Sortino ratio of 1.13 vs the Index's 0.55, maximum drawdown of -8.77% vs the Index's -26.75%, and down-capture ratio of 13.25%. NWQ highlighted that, at the time of writing their latest report, the RBA had completed $120bn (approx. 10% of GDP) of bond purchases since March, and noted with the labour market improving policymakers have to strike a balance between the risk that continuing policy support will lead to overinflated asset prices and the risk that tapering policy support will reduce export competitiveness via a stronger AUD. NWQ believe the way in which this trade-off is navigated has the potential to be a source of equity market volatility in 2021. The Fund continues to maintain a low net exposure to both equity and bond markets. |
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Performance Report: The Airlie Australian Share Fund
25 Feb 2021 - Australian Fund Monitors
The Airlie Australian Share Fund was flat in January. The Fund has returned +4.75% over the past 12 months vs the ASX200 Accumulation Index's -3.11%. Since inception in June 2018, the Fund has risen +9.13% p.a. vs the Index's +7.33%.
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25 Feb 2021 - Performance Report: The Airlie Australian Share Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is long-only with a bottom-up focus. It has a concentrated portfolio of 15-35 stocks (target 25). Maximum cash holding of 10% with an aim to be fully invested. Airlie employs a prudent investment approach that identifies companies based on their financial strength, attractive durable business characteristics and the quality of their management teams. Airlie invests in these companies when their view of their fair value exceeds the prevailing market price. It is jointly managed by Matt Williams and Emma Fisher. Matt has over 25 years' investment experience and formerly held the role of Head of Equities and Portfolio Manager at Perpetual Investments. Emma has over 8 years' investment experience and has previously worked as an investment analyst within the Australian equities team at Fidelity International and, prior to that, at Nomura Securities. |
| Manager Comments | At month-end, the portfolio's top positions included Aurizon Holdings, BHP Group, Coles Group, CBA, CSL, Healius, NAB, Origin Energy, Tabcorp Holdings and Wesfarmers. By sector, the portfolio was most heavily weighted towards the Financials and Consumer Discretionary sectors. |
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Performance Report: Prime Value Emerging Opportunities Fund
25 Feb 2021 - Australian Fund Monitors
The Prime Value Emerging Opportunities Fund rose +0.72% in January, taking 12-month performance to +21.92% vs the ASX200 Accumulation Index's -3.11%. Since inception in October 2015, the Fund has returned +14.98% p.a. vs the Index's +9.50%.
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25 Feb 2021 - Performance Report: Prime Value Emerging Opportunities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is comprised of a concentrated portfolio of securities outside the ASX100. The fund may invest up to 10% in global equities but for this portion typically only invests in New Zealand. Investments are primarily made in ASX listed and other exchange listed Australian securities, however, it may also invest up to 10% in unlisted Australian securities. The Fund is designed for investors seeking medium to long term capital growth who are prepared to accept fluctuations in short term returns. The suggested minimum investment time frame is 3 years. |
| Manager Comments | Key positive contributors in January included Redflux, Redbubble and Oceania Healthcare. Key detractors included Centuria Capital, Omni Bridgeway and City Chic. Prime Value noted the highlight of the month was the takeover offer to Redflex at a 130% premium to the share price - they are a long-term holder and were pleased to see the underlying value reflected in the offer. Looking at the year ahead, Prime Value believe the key theme is likely to be vaccine rollout. As everyone's lives return to normal, the earnings profile of many companies will change dramatically while others will be less affected. To frame this dynamic, they group companies into four types: Unaffected (28% of the portfolio), Negative COVID impact, rebound underway (39%), Negative COVID impact, rebound medium-term (17%), and COVID beneficiaries (8%). This is discussed in more detail in their latest report. |
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Performance Report: Premium Asia Fund
25 Feb 2021 - Australian Fund Monitors
The Premium Asia Fund rose +4.05% in January, taking 12-month performance to +29.92% vs AFM's Asia Pacific ex-Japan Index's +18.26%. Since inception in December 2009 the Fund has risen +12.79% p.a. vs the Index's +6.81%.
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25 Feb 2021 - Performance Report: Premium Asia Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is managed by Value Partners using a disciplined value-oriented approach supported by intensive, on-the-ground bottom-up fundamental research resulting in a portfolio of individual holdings, which are, in the view of Value Partners, undervalued and of high quality, on either an absolute or relative basis, and which have the potential for capital appreciation. The Fund will primarily have exposure to the equity securities of entities listed on securities exchanges across the Asia (ex-Japan) region, however, the Fund may also gain exposure to entities listed on securities outside the Asia (ex-Japan) region which have significant assets, investments, production activities, trading or other business interests in the Asia (ex-Japan) region as well as unlisted instruments with equity-like characteristics, such as participatory notes and convertible bonds. The Fund may also invest in cash and money market instruments, depositary receipts, listed unit trusts, shares in mutual fund corporations and other collective investment schemes (including real estate investment trusts), derivatives including both exchange-traded and OTC, convertible securities, participatory notes, bonds, and foreign exchange contracts. |
| Manager Comments | Premium China noted Asian equities had a good start in 2021, riding on China's resilient growth trajectory. In the Fund, the Chinese internet giants were among the top contributors. The robust recovery progress in China helped the performance of the Fund's consumer staples and financials holdings. The Fund's Taiwanese hardware manufacturer holdings enjoyed strong global demand for advanced chips and price hikes, also contributing to the Fund's monthly return. Key detractors included the Fund's South Korean technology hardware holdings and some recent winners within the Chinese discretionary sector due to profit-taking across the region. Premium China maintain their exposure to these holdings as they believe the outlook for both the technology cycle and China's recovery remain positive. Premium China noted vaccination plays an important role in unlocking the economic recovery in Asia. They expect the recovery path to diverge among countries in the region and the earning profile in South Asia to remain lacklustre in relative terms. They therefore remain overweight in North Asian equities, which are ahead in economic recovery and offer a superior earnings profile. |
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Performance Report: Glenmore Australian Equities Fund
25 Feb 2021 - Australian Fund Monitors
The Glenmore Australian Equities Fund rose +0.53% in January, taking 12-month performance to +10.66% vs the ASX200 Accumulation Index's -3.11%. Since inception in June 2017, the Fund has returned +22.05% p.a. vs the Index's +7.95%.
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25 Feb 2021 - Performance Report: Glenmore Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The main driver of identifying potential investments will be bottom up company analysis, however macro-economic conditions will be considered as part of the investment thesis for each stock. |
| Manager Comments | The Fund's Sharpe and Sortino ratios (since inception), 0.94 and 1.12 respectively, by contrast with the Index's Sharpe of 0.50 and Sortino of 0.53, highlight its capacity to produce superior risk-adjusted returns while avoiding the market's downside volatility. The Fund's up-capture ratio (since inception) of 211.6% indicates that, on average, the Fund has risen more than twice as much as the market during the market's positive months. Top contributors in January included Coronado Global Resources, ARB Corporation, Dicker Data, Uniti Group and Integral Diagnostics. Key detractors included Polynovo, Magellan Financial Group and Mineral Resources. Glenmore noted that, while congnisant that pockets of elevated valuations across the ASX are emerging, they continue to be very confident in the medium and long-term earnings prospects for the portfolio's holdings. |
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Performance Report: Laureola Investment Fund
24 Feb 2021 - Australian Fund Monitors
The Laureola Investment Fund was flat in January vs the S&P500 Accumulation Index's -1.01%. Since inception in May 2013, the Fund has returned +16.17% p.a. with an annualised volatility of 5.59%.
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24 Feb 2021 - Performance Report: Laureola Investment Fund
By: Australian Fund Monitors
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| Fund Overview | The investment strategy of The Laureola Investment Fund is dynamic and flexible, designed to take advantage of the frequent but temporary pricing anomalies of an asset class that is not yet fully understood by the majority of participants. Laureola Advisors applies 'best practices' common in the management of traditional assets, particularly the use of independent, in-house, proprietary research. |
| Manager Comments | January's performance was due to the absence of any maturities or resales, as the selling program has been halted during the second wave of COVID. Laureola noted the Fund's performance over the past couple of months has been in line with their expectations. They believe one of the keys to successful investing in Life Settlements is having the appropriate timeframe; the Fund has rarely failed to meet the 8% - 12% p.a. target over a 3-year period. At month-end, the Fund had over 190 Life Settlements policies and over $132ml of face value, many with short life expectancies. Laureola's view is that, despite the prevalence of bubbles and the high risk of deflation, the portfolio is well positioned to ride out any storm and keep investors' capital safe. |
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Performance Report: Bennelong Kardinia Absolute Return Fund
24 Feb 2021 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund was flat in January. Since inception in May 2006, the Fund has risen +8.74% p.a. with an annualised volatility of 7.64%. By contrast, the ASX200 Accumulation Index has returned +5.98% p.a. with...
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24 Feb 2021 - Performance Report: Bennelong Kardinia Absolute Return Fund
By: Australian Fund Monitors
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| 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 | The Fund's capacity to protect investors' capital in falling and volatile markets is highlighted by the following statistics (since inception): Sortino ratio of 1.25 vs the Index's 0.25, worst month of -5.88% vs the Index's -20.65%, maximum drawdown of -11.71% vs the Index's -47.19% and down-capture ratio of 48.66%. Positive contributors in January included Pointsbet, Harvest Technology, Z1P Group, Aussie Broadband and BHP. Detractors included Polynovo, Xero, Charter Hall, Fortescue, Perseus. Kardinia reduced the Fund's net market exposure from 74.0% to 58.7% (85.7% long and 27.0% short) with a new short position in Share Price Index Futures offsetting increased weightings in NAB, Charter Hall, Fortescue Metals and Flight Centre. Kardinia maintain a bias towards stocks that benefit from a re-opening of economies scenario, with Technology, Resources and Banks the largest sector weights. |
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Performance Report: Frazis Fund
23 Feb 2021 - Australian Fund Monitors
The Frazis Fund rose +12.10% in January, outperforming AFM's Global Equity Index by +11.90% and taking 12-month performance to +109.74% (after fees) vs the Index's +2.59%. Since inception in July 2018, the Fund has returned +35.74% p.a. vs...
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23 Feb 2021 - Performance Report: Frazis Fund
By: Australian Fund Monitors
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| Fund Overview | The manager follows a disciplined, process-driven, and thematic strategy focused on five core investment strategies: 1) Growth stocks that are really value stocks; 2) Traditional deep value; 3) The life sciences; 4) Miners and drillers expanding production into supply deficits; 5) Global special situations; The manager uses a macro overlay to manage exposure, hedging in three ways: 1) Direct shorts 2) Upside exposure to the VIX index 3) Index optionality |
| Manager Comments | Frazis noted January's performance was broad-based. The Fund ended the month with 50 positions. Frazis continue to spot new opportunities, with many of the portfolio's best performers of late being positions made in recent weeks and months. Frazis discuss some of these companies in their latest report. Frazis believe there is a strong level of optimism in financial markets which they say is somewhat justified as $1.9 trillion of US Government spending is about to wash through markets while interest rates are unlikely to increase any time soon. |
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