NEWS
Performance Report: Harvest Lane Asset Management Absolute Return Fund
24 Jan 2020 - Australian Fund Monitors
The Harvest Lane Absolute Return Fund has returned +8.01% p.a. with an annualised volatility of 6.74% since inception in July 2013. In December the Fund returned -0.94% versus the ASX200 Accumulation Index's -2.17%.
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24 Jan 2020 - Performance Report: Harvest Lane Asset Management Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | Harvest Lane Asset Management employs a conservative, highly selective and opportunistic approach. Using their extensive knowledge in the area of corporate actions, the Fund's managers assess each opportunity based on a thoughtful, diligent and disciplined process and invest where they believe an opportunity exists to generate above average investment returns relative to the risk incurred. Investment decisions are made without speculating on market direction, with rigid risk controls enforced to minimise the risk of large losses of investor capital. The Fund invests in securities that are predominantly listed on the ASX and occasionally in those listed in other developed markets. Equity swaps and other derivatives may be used at times to reduce risk. The fund typically holds high levels of cash in the absence of sufficiently attractive opportunities to deploy investor capital in accordance with its objectives. |
| Manager Comments | Harvest Lane noted that, aside from a partial deal break in Panoramic Resources after Independence Group withdrew its bid, the remaining softness in December was predominantly a result of widening spreads rather than fundamental catalysts. Consequently, should the Fund's current positions see their respective transactions complete then Harvest Lane expect a substantial portion of the underperformance to be recouped in time. Harvest Lane saw a steady stream of deals announced to market throughout the month, giving them the opportunity to add several new positions to the portfolio. Transactions in Konekt Limited and Bellamy's Australia closed towards the end of the month, carrying with them a healthy dose of franking credits which are in addition to the Fund's reported performance. Harvest Lane are encouraged by the current positions in the portfolio and believe 2020 offers a favourable outlook for merger and acquisition activity. |
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Performance Report: Glenmore Australian Equities Fund
24 Jan 2020 - Australian Fund Monitors
The Glenmore Australian Equities Fund returned +40.29% over CY2019 versus the ASX200 Accumulation Index's +23.40%. Since inception in June 2017, the Fund has returned +26.11% p.a. versus the Index's +10.74%.
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24 Jan 2020 - 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 returned -1.67% in December, outperforming the Index by +0.5%. Top contributors included Moelis Australia (+10.2%), Polynovo (+10.1%), Magellan Financial Group (+8.5%), NRW Holdings and Stanmore Coal. Key detractors included Jumbo Interactive (-27.3%), Phoslock Environmental Technologies (-10.1%), VGI Partners (-8.8%) and Opticomm (-7.0%). Glenmore noted there were no company announcements from VGI or OPC during the month, however both had been strong performers in 2019 and thus some retracement was not unexpected. Glenmore believe the main driver of strong performance in equities throughout 2019 was low interest rates, which continue to underpin demand for stocks. Despite the Fund's significant outperformance over the past 12 months, Glenmore continue to find undervalued stocks in their universe and feel optimistic about the prospects for the portfolio in the year ahead. |
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Performance Report: Insync Global Capital Aware Fund
24 Jan 2020 - Australian Fund Monitors
The Insync Global Capital Aware Fund ended CY2019 up +32.77% versus AFM's Global Equity Benchmark's +27.19%. Since inception in October 2009, the Fund has returned +11.21% p.a. with an annualised volatility of 9.45%.
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24 Jan 2020 - Performance Report: Insync Global Capital Aware 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 | The Fund fell in line with the market in December, returning -0.61% after the cost of downside protection. Positive contributors included London Stock Exchange, Bristol-Myers Squibb, Booking Holdings and Apple. Detractors included Walt Disney, Intuit, PayPal and Facebook. The Fund continues to have no currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside. |
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Performance Report: Bennelong Australian Equities Fund
23 Jan 2020 - Australian Fund Monitors
The Bennelong Australian Equities Fund has returned +27.44% over the past 12 months versus the ASX200 Accumulation Index's +23.40%. Since inception in February 2009, the Fund has outperformed the Index by +3.0% on an annualised basis.
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23 Jan 2020 - 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 | The Fund returned +4.12% over quarter, outperforming the Index by +3.44%. The main contributor to quarterly performance was the fund's outsized position in the healthcare sector, particularly its positions in Fisher & Paykel Healthcare and CSL. The other main contributor was the significant underweight stance to the underperforming banks. The largest detractor was Afterpay, which gave back some of the outperformance delivered in previous periods. Bennelong believe many of the social, political and economic uncertainties that overshadowed markets over 2019 remain. The Fund is selectively invested in a group of high quality growth stocks which include names like CSL and Fisher & Paykel Healthcare. Some general themes across the portfolio include: a growth bias, a significant weighting to global and offshore companies, underweight the top 20 stocks, underweight bond proxies such as utilities and teclo's, selective exposure to commodities and very little exposure to domestic cyclicals. |
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What drove Loftus Peak's +35% net-of-fees return for 2019
23 Jan 2020 - Alex Pollak (CIO)
Loftus Peak has been named among the top performing global fund managers for 2019. We believe our
investment philosophy and process underpin the successful year and longer-term track record.
investment philosophy and process underpin the successful year and longer-term track record.
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23 Jan 2020 - What drove Loftus Peak's +35% net-of-fees return for 2019
By: Alex Pollak (CIO)
Performance Report: Bennelong Kardinia Absolute Return Fund
23 Jan 2020 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +4.68% with a volatility of 5.05% over CY2019. Since inception in May 2006, the Fund has returned +8.74% p.a. with an annualised volatility of 7.03%.
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23 Jan 2020 - 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 returned -2.84% in December, with health care and information technology stocks reversing the gains from last month. Positive contributors during the month included Lifestyle Communities, Rio Tinto, Magellan, Aerometrex and Charter Hall. Key detractors included SPI Futures, Paradigm, Goodman Group, EML Payments and Ecofibre. The Fund's net equity market exposure was held steady at 74.2% (83.6% long and 9.4% short), with the key changes being a new position in Aerometrex, increased weightings in BHP, Commonwealth Bank, CSL and Rio Tinto, partially offset by the sale of Paradigm, Ecofibre and Clover and four new short positions. |
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On the Road Again Part I the UK
22 Jan 2020 - Delft Partners
The first of 3 reports on a visit to the UK Germany and Hong Kong to assess investment opportunities. Whatever the outcome of prolonged Brexit negotiations, the UK like other European countries, needs an increase in fixed domestic...
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22 Jan 2020 - On the Road Again Part I the UK
By: Delft Partners
Performance Report: Bennelong Twenty20 Australian Equities Fund
22 Jan 2020 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund rose +25.70% over CY2019 versus the ASX200 Accumulation Index's +23.40%. Since inception in November 2009, the Fund has returned +10.59% p.a. versus the Index's +8.30%.
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22 Jan 2020 - 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 | The Fund fell in line with the market in December, returning -2.14% versus the Index's -2.17%. Over the quarter the Fund returned +1.89% versus the Index's +0.68%. Bennelong point out the relative performance of the Fund versus the benchmark depends on the ex-20 sleeve of the portfolio. The largest contributors to outperformance over the quarter were Fisher & Paykel Healthcare and Viva Leisure. The main detractor over the quarter was Afterpay, which Bennelong noted gave back some of the outperformance delivered in previous periods. Bennelong believe many of the social, political and economic uncertainties that overshadowed markets over 2019 remain. They expect the ASX to produce reasonable returns over the medium term, albeit with ups and downs along the way. |
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Performance Report: 4D Global Infrastructure Fund
22 Jan 2020 - Australian Fund Monitors
The 4D Global Infrastructure Fund rose +1.34% in December, taking 12-month performance to +29.38% and annualised performance since inception in March 2016 to +14.33%.
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22 Jan 2020 - Performance Report: 4D Global Infrastructure Fund
By: Australian Fund Monitors
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| 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 for the month was Brazilian renewable player AES Tiete up 28.1%. 4D noted the company is successfully executing its diversification strategy. The Fund's top performer over CY2019 was Cellnex, up +99% as it successfully executed its growth strategy. The weakest performer in December was Chilean water operator Aguas Andinas, down -3% as a result of ongoing political concerns. The Fund's weakest performer over CY2019 was global port operator DPWorld, down -21% as trade wars and political conflict weighed on the stock. 4D believe DPWorld is offering very attractive value at current levels. 4D Infrastructure noted 2019 was a strong year for the infrastructure sector as well as for the portfolio. Heading into 2020, with a macro backdrop of slower growth and lower interest rates (but no imminent recession), the portfolio remains overweight user pay assets and overweight emerging markets. 4D's biggest concern remains ongoing geopolitical issues compounded by the 2020 US election. |
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Managing Income Expectations in a Low Yield Environment
22 Jan 2020 - Shan Kwee, CFA, Janus Henderson Investors
With negative yielding bonds peaking at more than US$17 trillion, Shan Kwee, Portfolio Manager - Credit at Janus Henderson Investors, discusses why fixed interest investors need to carefully weigh up the risks of preserving their levels of income.
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22 Jan 2020 - Managing Income Expectations in a Low Yield Environment
By: Shan Kwee, CFA, Janus Henderson Investors
