Performance Report: Frazis Fund

7 Feb 2020 - Australian Fund Monitors

The Frazis Fund rose +11.04% over the December 2019 quarter and ended CY2019 up +24.18%. The portfolio contracted by -4.0% in December, though more than half of this was due to currency.

7 Feb 2020 - Performance Report: Frazis Fund

By: Australian Fund Monitors

Report Date	07 February 2020
Manager	Frazis Capital Partners
Fund Name	Frazis Fund
Strategy	Equity Long/Short
Latest Return Date	December 2019
Latest Return	-4.00%
Latest 6 Months	10.82%
Latest 12 Months	24.18%
Latest 24 Months (pa)
Annualised Since Inception	-3.88%
Inception Date	01 July 2018
FUM (millions)	AU$5.3
Fund Overview	The Frazis Fund is a thematic long/short global equity fund, with a macro overlay. The portfolio pairs high conviction, concentrated, long-term equity investments, with asymmetric, proprietary hedging strategies, to create a unique and highly differentiated return profile. 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	The Frazis Fund rose +11.04% over the December 2019 quarter and ended CY2019 up +24.18%. The portfolio contracted by -4.0% in December, though more than half of this was due to currency. Frazis noted that, given the Fund's long-only portfolio finished the year up +70%, they were disappointed the Fund didn't do better. The Fund's core holdings in Afterpay, Carvana, Pinduoduo and Pointsbet performed well over the year. Frazis noted the Fund is already starting to reap the rewards of increasing their investments in those companies this year. The Fund is now concentrated into seven core investments: US software (Twilio, Alteryx, MongoDB, Shopify), Afterpay, Carvana, Diagnostics (Exact Sciences and Guardant Health), Pinduoduo, a small number of high growth Australian smallcaps such as Pointsbet, and life sciences (drug development, DNA synthesis, tissue regeneration and genetic science). The Fund's average portfolio organic growth rate is tracking at over 80%. Frazis expect this to slow, however they believe it's reasonable to expect the Fund's companies to be over 50% larger on a revenue basis 12 months from now. Frazis expect the next move in interest rates in Australia to be up, with corresponding increase in the AUD.
More Information	Fund Profile Manager's Report

Performance Report: Touchstone Index Unaware Fund

7 Feb 2020 - Australian Fund Monitors

The Touchstone Index Unaware Fund rose +22.84% over 2019 with a volatility of 8.45%. Since inception in April 2016, the Fund has returned +11.55% p.a. with an annualised volatility of 9.87%.

7 Feb 2020 - Performance Report: Touchstone Index Unaware Fund

By: Australian Fund Monitors

Report Date	07 February 2020
Manager	Touchstone Asset Management, a Bennelong boutique
Fund Name	Touchstone Index Unaware Fund
Strategy	Equity Long
Latest Return Date	December 2019
Latest Return	-3.54%
Latest 6 Months	5.96%
Latest 12 Months	22.84%
Latest 24 Months (pa)	8.00%
Annualised Since Inception	11.55%
Inception Date	04 April 2016
FUM (millions)	AU$4.75
Fund Overview	The Fund aims to deliver capital growth and a sustainable income stream to its investors by investing in a portfolio of primarily listed Australian shares and cash, aiming to provide a total return that exceeds the return of the S&P/ASX300 Accumulation Index by 2% p.a. (before fees and expenses) over a rolling 5 year period. 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 rose +22.84% over 2019 with a volatility of 8.45%. Since inception in April 2016, the Fund has returned +11.55% p.a. with an annualised volatility of 9.87%. The Fund's Sharpe and Sortino ratios for performance over the past 12 months are 2.37 and 4.75 respectively. As at the end of December, the Fund held 21 stocks with a median position size of 4.4%. The portfolio's holdings had an average forward year price/earnings of 17.0, forward year EPS growth of 6.4%, forward year tangible ROE of 23.3% and forward year dividend yield of 3.9%. The Fund's cash weighting was increased to 9.3% from 6.1% as at the end of November. The Fund primarily seeks to select stocks from the ASX300 Index, typically holding between 10-30 stocks. The Fund seeks to invest in reasonably priced, good quality companies with a significant share of expected returns coming from sustainable dividends.
More Information	Fund Profile Manager's Report

LIC/LIT Conflict of Interest Debate

7 Feb 2020 - Christopher Joye - Coolabah Capital Investments

Mis-selling plagues the asset class as issuers paying commissions to advisers and brokers continue to cause friction within the industry...

The False Contradiction of Value Versus Growth

7 Feb 2020 - Charlie Aitken, Aitken Investment Management

Given the substantial outperformance of 'growth' stocks over the past decade - and 2019 in particular - there is currently a robust debate around whether it's time to switch to a more 'value' oriented portfolio.

Trends in Renewable Energy and some thoughts on climate change

6 Feb 2020 - Delft Partners

The range of investment opportunities in renewables is increasing and perhaps counter intuitively is most apparent in the USA, and obviously, Canada. This is capitalism in action since the cost benefits of renewables are now comparable to...

Coronavirus - Worse than you think, but not necessarily bad for stocks

6 Feb 2020 - Michael Frazis, Frazis Capital Partners

The 2020 Coronavirus has become a cultural meme, like Kony 2012 or bitcoin in 2018. I'd guess most people on the planet have talked about it in the last 24 hours. The doctor line seems to be that it's not that bad... more people die from...

Retirement Income Review Submission

5 Feb 2020 - Gyrostat Capital Management

The importance of new risk management techniques. While minimising the risks associated with lifetime investment earnings for Australians is a proposition with wide support, the Australian financial services sector is founded on...

New Funds on Fundmonitors.com

5 Feb 2020 - Australian Fund Monitors

Here are some of the latest additions to our database. Follow the links to view each fund's profile, where you'll have access to their offer documents, monthly reports, historical returns, performance analytics, rankings, research,...

5 Feb 2020 - New Funds on Fundmonitors.com

By: Australian Fund Monitors

New Funds on Fundmonitors.com

Below are some of the funds we've recently added to our database. Follow the links to view each fund's profile, where you'll have access to their offer documents, monthly reports, historical returns, performance analytics, rankings, research, platform availability, and news & insights.

1851 Emerging Companies Fund

Inception date: February 2020
Strategy: Equity Long
Geographic mandate: Australia/NZ
Investor type: Wholesale

Minimum initial investment: AU$100,000
Distributions: Annually
Management fee: 1.25%
Performance fee: 20%

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Delft Partners Global Infrastructure Strategy

Inception date: December 2016
Strategy: Infrastructure
Geographic mandate: Global
Investor type: Wholesale

Minimum initial investment: AU$50,000
Distributions: N/A
Management fee: 0.75%
Performance fee: 0%

View Profile

Chester High Conviction Fund

Inception date: April 2017
Strategy: Equity Long
Geographic mandate: Australia/Global
Investor type: Retail

Minimum initial investment: AU$20,000
Distributions: 6 Monthly
Management fee: 0.95%
Performance fee: 15%

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Smarter Money (Active Cash) Fund (SMAC)

Inception date: February 2012
Strategy: Fixed Income
Geographic mandate: Australia
Investor type: Retail

Minimum initial investment: AU$1,000
Distributions: Quarterly
Management fee: 0.15%
Performance fee: 20.5%

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Smarter Money Higher Income Fund (SMHI)

Inception date: August 2014
Strategy: Fixed Income
Geographic mandate: Australia
Investor type: Wholesale & Retail

Minimum initial investment: AU$1,000
Distributions: Quarterly
Management fee: 0.3%
Performance fee: 22.5%

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Smarter Money Long Short Credit Fund (LSCF)

Inception date: August 2017
Strategy: Fixed Income
Geographic mandate: Australia
Investor type: Wholesale & Retail

Minimum initial investment: AU$1,000
Distributions: Quarterly
Management fee: 0.5%
Performance fee: 20.5%

View Profile

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Performance Report: Ark Global Fund - Class B AUD Hedged

5 Feb 2020 - Australian Fund Monitors

The Ark Global Fund (Hedged) has returned +10.99% over the past 12 months and +9.53% p.a. since inception in July 2017. The Fund's down-capture ratio for performance since inception of -81.34% highlights the Fund's capacity to...

5 Feb 2020 - Performance Report: Ark Global Fund - Class B AUD Hedged

By: Australian Fund Monitors

Report Date	05 February 2020
Manager	AI Funds Management Pty Ltd
Fund Name	Ark Global Fund - Class B AUD Hedged
Strategy	Managed Futures
Latest Return Date	December 2019
Latest Return	-0.69%
Latest 6 Months	2.03%
Latest 12 Months	10.99%
Latest 24 Months (pa)	8.84%
Annualised Since Inception	9.53%
Inception Date	01 September 2019
FUM (millions)
Fund Overview	The Ark Global Fund (AGF) invests in Fund One which is an open-ended exempted company incorporated with limited liability in the Cayman Islands with registration number 287801, with a Singapore Investment Manager called Swiss Asia Financial Services (SAFS). 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 Ark Global Fund (Hedged) has returned +10.99% over the past 12 months and +9.53% p.a. since inception in July 2017. The Fund's down-capture ratio for performance since inception of -81.34% highlights the Fund's capacity to significantly outperform in falling markets. The Fund has achieved down-capture ratios of -46.02% and -72.76% over the past 12 and 24 months respectively. The Fund's top performing assets for the month were: S&P/TSX 60 Index (+2.57% of NAV), 10-Year T-Bond (+1.72% of NAV), and AUD/USD (+1.60% of NAV). The worst performing assets were: Platinum (-1.84% of NAV), E-mini S&P 500 (-1.12% of NAV), and 10-Year Government of Canada Bond (-0.96% of NAV). Ark noted the following popular predictions for what 2020 holds in store for investors: no global recession, no rate rises, some rate cuts, steady stock markets (thanks to the rate cuts) and another good year for tech stocks.
More Information	Fund Profile Manager's Report

Performance Report: Bennelong Concentrated Australian Equities Fund

4 Feb 2020 - Australian Fund Monitors

The Bennelong Concentrated Australian Equity Fund rose +28.37% over 2019, outperforming the ASX200 Accumulation Index by +4.97% and taking annualised performance since inception in February 2009 to +16.68% versus the Index's +10.82%.

4 Feb 2020 - Performance Report: Bennelong Concentrated Australian Equities Fund

By: Australian Fund Monitors

Report Date	04 February 2020
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Concentrated Australian Equities Fund
Strategy	Equity Long
Latest Return Date	December 2019
Latest Return	-2.30%
Latest 6 Months	13.08%
Latest 12 Months	28.37%
Latest 24 Months (pa)	8.88%
Annualised Since Inception	16.68%
Inception Date	30 January 2009
FUM (millions)	AU$886.32
Fund Overview	Bennelong Australian Equity Partners (BAEP) is a boutique asset manager offering Australian equities solutions for institutional and retail clients. The business was founded in 2008 by Paul Cuddy and Mark East, in partnership with Bennelong Funds Management. Prior to establishing BAEP, Paul and Mark were Co-Heads of Australian Equities at ING Investment Management. 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	The Bennelong Concentrated Australian Equity Fund rose +28.37% over 2019, outperforming the ASX200 Accumulation Index by +4.97% and taking annualised performance since inception in February 2009 to +16.68% versus the Index's +10.82%. The Fund's up-capture and down-capture ratios for performance since inception, 137.85% and 89.34% respectively, indicate that, on average, the Fund has significantly outperformed in both rising and falling markets. The Fund returned +5.51% over the December quarter versus the Index's +0.68%. The main contributor to the quarterly return was the Fund's outsized position in the healthcare sector, and in particular its positions in Fisher & Paykel Healthcare and CSL. The other main contributor to the Fund's relative outperformance was avoiding the banks' underperformance - the Fund owns no banks. There were detractors, however they didn't detract significantly from performance. The largest detractor was Afterpay, which gave back some of the outperformance delivered in previous periods. Bennelong believe the many social, political and economic uncertainties that overshadowed markets in 2019 remain. They expect the ASX to produce reasonable returns over the medium term, albeit with ups and downs along the way. The Fund is selectively invested in a group of high quality growth stocks including names such as CSL and Fisher & Paykel Healthcare.
More Information	Fund Profile Manager's Report

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7 Feb 2020 - Performance Report: Frazis Fund

7 Feb 2020 - Performance Report: Touchstone Index Unaware Fund

7 Feb 2020 - LIC/LIT Conflict of Interest Debate

7 Feb 2020 - The False Contradiction of Value Versus Growth

6 Feb 2020 - Trends in Renewable Energy and some thoughts on climate change

6 Feb 2020 - Coronavirus - Worse than you think, but not necessarily bad for stocks

5 Feb 2020 - Retirement Income Review Submission

5 Feb 2020 - New Funds on Fundmonitors.com

5 Feb 2020 - Performance Report: Ark Global Fund - Class B AUD Hedged

4 Feb 2020 - Performance Report: Bennelong Concentrated Australian Equities Fund

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