Performance Report: 4D Global Infrastructure Fund

28 Nov 2018 - Australian Fund Monitors

The 4D Global Infrastructure Fund has returned +9.96% p.a. since inception in March 2016 versus its benchmark (OECD G7 Inflation Index +5.5%) which has returned +7.42% p.a. over the same period.

28 Nov 2018 - Performance Report: 4D Global Infrastructure Fund

By: Australian Fund Monitors

Report Date	28 November 2018
Manager	4D Infrastructure, a Bennelong boutique
Fund Name	4D Global Infrastructure Fund
Strategy	Infrastructure
Latest Return Date	October 2018
Latest Return	-0.97%
Latest 6 Months	-0.37%
Latest 12 Months	0.73%
Latest 24 Months	22.24%
Annualised Since Inception	9.92%
Inception Date	07 March 2016
FUM (millions)	AU$33.95
Fund Overview	The 4D Global Infrastructure Fund aims to outperform the OECD G7 Inflation Index +5.5% p.a. over the long term by identifying quality listed global infrastructure securities, trading at or below fair value with sustainable, growing earning combined with sustainable, growing dividends. 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 4D Global Infrastructure Fund has returned +9.96% p.a. since inception in March 2016 versus its benchmark (OECD G7 Inflation Index +5.5%) which has returned +7.42% p.a. over the same period. In October, the Fund returned -0.97%. The strongest performers throughout the month were Brazilian toll road operators CCR (+34.7%) and Ecorodovias (+32%) following a positive outcome in the Brazilian elections which saw investors find favour in Brazil again. 4D noted these stocks had been considerably oversold over the past few months and they expect further re-rating as the market gains comfort with Bolsonaro. The weakest performer in October was Mexican airport operator GAP (-17.9%), following AMLCO's cancellation of the Mexican City Airport after a farce referendum which raised concerns about his leadership and influence over the infrastructure sector. 4D noted that, given the generally positive global macro environment, they remain overweight user pay assets which have a direct correlation to macro strength. However, due to ongoing geopolitical concerns they're maintaining core exposure to quality defensive utilities.
More Information	Fund Profile Manager's Report

Performance Report: Bennelong Australian Equities Fund

27 Nov 2018 - Australian Fund Monitors

The Bennelong Australian Equities Fund has risen +5.39% over the past 12 months, outperforming the ASX200 Accumulation Index by +2.45% and taking annualised performance since inception in February 2009 to +13.01%.

27 Nov 2018 - Performance Report: Bennelong Australian Equities Fund

By: Australian Fund Monitors

Report Date	27 November 2018
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Australian Equities Fund
Strategy	Equity Long
Latest Return Date	October 2018
Latest Return	-8.63%
Latest 6 Months	-1.85%
Latest 12 Months	5.39%
Latest 24 Months	26.78%
Annualised Since Inception	13.01%
Inception Date	30 January 2009
FUM (millions)	AU$419.8
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 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 Bennelong Australian Equities Fund has risen +5.39% over the past 12 months, outperforming the ASX200 Accumulation Index by +2.45% and taking annualised performance since inception in February 2009 to +13.01% versus the Index's +10.06% per annum. The Fund's up-capture and down-capture ratios since inception indicate that, on average, the Fund has outperformed in both rising and falling markets. In addition, over the past 12, 24, 36, 48 and 60 months the Fund's up-capture and down-capture ratios show that the Fund has consistently captured more of the market's upside than downside. As at the end of October, the Fund's weightings had been increased in the Communication, Industrials, Materials, REIT's and Financials sectors, and decreased in the Discretionary and Consumer Staples sectors whilst the Fund's Health Care sector weighting remained unchanged at 20.7% of the portfolio. The Fund's cash weighting increased to 0.9% from 0.7% at the end of September. The Fund aims to invest in high quality companies with strong growth outlooks and underestimated earnings momentum. By comparison with the ASX300 Accumulation Index, the Fund's holdings, on average, have a higher Return on Equity and lower Debt/Equity (Premium Quality), higher sales growth and higher EPS growth (Superior Growth), and higher Price/Earnings and lower dividend yield (Reasonable Valuation). This indicates that the Fund's portfolio is in line with Bennelong's objective.
More Information	Fund Profile Manager's Report

Performance Report: Spectrum Strategic Income Fund

27 Nov 2018 - Australian Fund Monitors

The Spectrum Strategic Income Fund rose +0.19% in October, taking 12-month performance to +3.71% and annualised performance since inception in June 2009 to +8.19%.

27 Nov 2018 - Performance Report: Spectrum Strategic Income Fund

By: Australian Fund Monitors

Report Date	27 November 2018
Manager	Spectrum Asset Management Limited
Fund Name	Spectrum Strategic Income Fund
Strategy	Credit
Latest Return Date	October 2018
Latest Return	0.19%
Latest 6 Months	2.00%
Latest 12 Months	3.70%
Latest 24 Months	8.93%
Annualised Since Inception	8.19%
Inception Date	31 May 2009
FUM (millions)	AU$65.8
Fund Overview	The Spectrum Strategic Income Fund aims to deliver steady income which is higher than bank deposits but without the volatility of equity markets. The Fund provides daily liquidity and does not use leverage or derivatives. The Fund invests primarily in Australian dollar corporate bonds and limits exposure to long-term interest rate risk by investing mainly in floating rate notes.
Manager Comments	The Spectrum Strategic Income Fund rose +0.19% in October, taking 12-month performance to +3.71% and bringing the Fund's total number of consecutive positive months to 35. Since inception in June 2009, the Fund has returned +8.19% p.a. versus the RBA Cash Rate's +2.80 per annum over the same period. The Fund has a Sharpe ratio of 1.68 and Sortino of 4.60, highlighting the Fund's capacity to achieve good risk-adjusted returns whilst ensuring investors' capital is protected against the market's downside. Spectrum noted that for many in the market there were few places to hide in October. Not only did equities retreat but so too bond prices at times. In the U.S., bond indices recorded the third steepest decline since 1970 (BoA), which mean that bonds did not provide a sufficient flight to safety from declining equity prices. They believe the decline in bond indices is partly due to increasing issuance of government bonds by central banks; as their weights have increased in the index, so too has duration. They noted that in a rising yield environment this will lead to falls in those bond indices. The Fund holds a diversified portfolio of debt and income securities with a view to minimising any loss of income and capital of the Fund. Issuers may be government bodies, banks, corporations and, to a limited extent, specialist financing vehicles. To maintain a diversified portfolio structure, certain limits are imposed on security type, credit risk, industry and issuers.
More Information	Fund Profile Manager's Report

Performance Report: Cyan C3G Fund

26 Nov 2018 - Australian Fund Monitors

The Cyan C3G Fund has returned +20.33% per annum since inception in August 2018 versus the ASX200 Accumulation Index's +5.43%. This return has been achieved with slightly lower volatility than the market.

26 Nov 2018 - Performance Report: Cyan C3G Fund

By: Australian Fund Monitors

Report Date	26 November 2018
Manager	Cyan Investment Management
Fund Name	Cyan C3G Fund
Strategy	Equity Long
Latest Return Date	October 2018
Latest Return	-6.20%
Latest 6 Months	-2.23%
Latest 12 Months	-1.90%
Latest 24 Months	18.62%
Annualised Since Inception	20.33%
Inception Date	24 July 2014
FUM (millions)	AU$38
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 has returned +20.33% per annum since inception in August 2018 versus the ASX200 Accumulation Index's +5.43%. This return has been achieved with slightly lower volatility than the market. The Fund's Sharpe and Sortino ratios, 1.58 and 3.25 respectively, by contrast with the Index's Sharpe of 0.37 and Sortino of 0.45, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst ensuring investors' capital is protected. The Fund's up-capture and down-capture ratios since inception, +85.26% and -18.45% respectively, indicate that, on average, the Fund has captured most of the market's upside in rising markets and significantly outperformed in falling markets. In October the Fund returned -6.2%, falling roughly in line with the market. Broadly, the impact of the market correction was felt across the Fund. Key detractors included Afterpay (-30%) and Readcloud (-30%). There were approximately 20 other positions which all fell by various amounts and, in total, contributed around 5% of the Fund's underperformance. The major positive was Freelancer (+37%). In addition, Cyan added Murray River Organics (MRG) to the portfolio in October. Cyan noted the Fund has remained diversified with 24 positions and no individual holding representing more than 5% of the total portfolio. The Fund has also retained more than 35% in cash but they have begun to deploy further capital into new and existing positions as prices become more attractive. Cyan continue to have compelling expectations for the companies in which they have invested and believe these businesses will grow materially over the next year.
More Information	Fund Profile Manager's Report

Performance Report: Bennelong Twenty20 Australian Equities Fund

26 Nov 2018 - Australian Fund Monitors

The Bennelong Twenty20 Australian Equities Fund has returned +9.62% p.a. since inception in November 2009 versus the ASX200 Accumulation Index's +7.18%.

26 Nov 2018 - Performance Report: Bennelong Twenty20 Australian Equities Fund

By: Australian Fund Monitors

Report Date	26 November 2018
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Twenty20 Australian Equities Fund
Strategy	Equity Long
Latest Return Date	October 2018
Latest Return	-6.81%
Latest 6 Months	-1.29%
Latest 12 Months	2.55%
Latest 24 Months	20.22%
Annualised Since Inception	9.62%
Inception Date	02 December 2015
FUM (millions)	AU$4.42
Fund Overview	The Fund aims to outperform the return of the S&P/ASX 300 Accumulation Index by 2% per annum after fees on a rolling three-year basis by combining indexed positions in the S&P/ASX 20 stocks with an actively managed exposure in primarily Australian stocks that are outside the S&P/ASX 20. 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 Bennelong Twenty20 Australian Equities Fund has returned +9.62% p.a. since inception in November 2009 versus the ASX200 Accumulation Index's +7.18%. The Fund's Sharpe and Sortino ratios of 0.6 and 0.83 respectively are both superior to those of the Index for performance over the same period, highlighting the Fund's capacity to achieve superior risk-adjusted returns whilst ensuring investors' capital doesn't suffer losses to the same extent as the market. This is supported by the Fund's up-capture and down-capture ratios since inception of 110.44% and 94.61% respectively, indicating that, on average, the Fund has outperformed in both rising and falling markets. As at the end of October, the Fund's weightings had been increased in the Health Care, Industrials, REIT's, Financials and Materials sectors, and decreased in the Discretionary, Consumer Staples, Communication and Energy sectors. The Fund's cash weighting remained unchanged at 2.3%. The Fund fell in line with the market in October, returning -6.81% after fees. The Twenty20 Australian Equities Fund comprises a passive investment in the ASX20, which has a weighting of over 50% of the portfolio, and an active investment in ASX ex-20 companies. Therefore, the Fund's returns will largely be influenced by the activity of the ASX's top 20 stocks. However, the active investment in ASX ex-20 has the goal of allowing the Fund to outperform the broader market, which the statistics mentioned earlier show has been successful; superior Sharpe and Sortino, and up-capture and down-capture ratios highlighting outperformance in both rising and falling markets over the long-term.
More Information	Fund Profile Manager's Report AFM Research Reports

Hedge Clippings - 23 November, 2018

23 Nov 2018 - Australian Fund Monitors

Just because a problem is obvious it doesn't mean it's going to be solved. There is a chorus of negative possibilities currently doing the rounds. This week Hedge Clippings gives an overview of some of the problems facing the Australian...

23 Nov 2018 - Hedge Clippings - 23 November, 2018

By: Australian Fund Monitors

Just because a problem is obvious it doesn't mean it's going to be solved.

Hedge Clippings would love to claim the above adage as our own and would also be more than happy to credit the author if only we could recall in which of the thousands of emails we receive each week we found it. In any event it struck a chord based on the chorus of negative possibilities and opinions that are currently doing the rounds.

It is worth noting that based on what we are seeing, reading and hearing we are more in the glass "half empty" than "half full" camp, and in one conversation with a "half full" (metaphorically speaking) investor over the past week we pondered which, if any, of the following scenarios might be more positive in 6 or 12 months' time than they are now.

Australian Property/Equities:

Problem: Negative influences coming from oversupply (units) and reduced demand (particularly from Chinese buyers), potential reductions in immigration, tightening credit from banks following the Hayne Royal Commission, low wages growth, higher mortgage costs as fixed deals turn to variable, higher US interest rates impacting bank's cost of funds, and reduction in negative gearing if there's a (likely) change in government next year.

Solution/Outlook: Glass half full, and a reminder not to listen to property experts who as recently as April this year couldn't, or wouldn't, see the writing on the wall.

Australian Economy:

Problem: The Australian economy is the envy of the world - growth forecast around 3%, low interest rates, low unemployment, but also a hostage to global, and particularly China's, fortunes. See above - if the property market weakens further it will impact significantly on consumer sentiment, spending, and thus unemployment. Any slowdown and the RBA has nowhere to move.

Solution/Outlook: Glass half full. And then there's the federal election.

US Economy/Equities:

Problem: Rising interest rates, stretched valuations, The Donald, and after the recent mid-term elections no longer fully in control, potential expiry of tax and infrastructure short term "sugar pill", trade policy, Chinese tariff war.

Solution/Outlook: Glass half full. Anyone able to predict "double down" Donald please let us know.

US/China Tariff War:

Problem: As above - who's going to blink first, Donald or Xi? There's a good chance that if it gets worse before it's resolved, Donald might have scored an own goal.

Solution/Outlook: Could go either way. If solved expect a bounce, but could get worse before it gets better.

Chinese Economy:

Problem: As above - the tariff war is likely to hurt China more than the US, it's slowing, although still a significant force. There's more than just the tariff issue at play, including mountains of debt.

Solution/Outlook: The government is doing everything it can - and they can do more than most to solve problems as they don't have to face elections - but they can't control everything.

Brexit/Europe:

Problem: The UK's previously dominant position as a (the) global financial centre is irreversibly damaged, and with it a significant section of the economy is relocating to the EU.

Solution/Outlook: Whatever the outcome, no one's going to be happy! Definitely half full, and a reminder that David Cameron must have had a brain snap when he announced the Brexit referendum!

In Summary:

In case you're wondering if we're alone in these thoughts, last night we listened to Dr John Hewson give his economic outlook at EY's Annual Hedge Fund Symposium. Being a self-confessed economist, he was able to quote reams of facts and figures which yours truly couldn't memorise at the time, or if he could, couldn't a couple of glasses of chardonnay later. However, it's fair to say he was definitely in the glass half empty camp.

For what it's worth, while happy to identify the problems, the good Doctor wasn't forthcoming on how to solve any of them either. How times have changed since he left politics!

Fund Review: Insync Global Capital Aware Fund October 2018

23 Nov 2018 - Australian Fund Monitors

Latest Fund Review on Insync Global Capital Aware Fund is now available. The Global Capital Aware Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend...

Bennelong Twenty20 Australian Equities Fund October 2018

22 Nov 2018 - Australian Fund Monitors

The latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available. The Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of ex-20 stocks.

Spectrum Insights - Never a better time to boost bank capital

21 Nov 2018 - Damien Wood, Spectrum Asset Management

It is not often you will get this writer singing the praises of our bank regulator. But the recent discussion paper1 released by APRA on how to increase capital to meet global standards for our major Australian banks, in our view, is not...

Fund Review: Bennelong Kardinia Absolute Return Fund October 2018

21 Nov 2018 - Australian Fund Monitors

The latest Fund Review for the Bennelong Kardinia Absolute Return Fund is now available. The Fund is a long-biased, research driven, active equity long/short strategy which invests in listed ASX companies with track records greater than 10 years.

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28 Nov 2018 - Performance Report: 4D Global Infrastructure Fund

27 Nov 2018 - Performance Report: Bennelong Australian Equities Fund

27 Nov 2018 - Performance Report: Spectrum Strategic Income Fund

26 Nov 2018 - Performance Report: Cyan C3G Fund

26 Nov 2018 - Performance Report: Bennelong Twenty20 Australian Equities Fund

23 Nov 2018 - Hedge Clippings - 23 November, 2018

23 Nov 2018 - Fund Review: Insync Global Capital Aware Fund October 2018

22 Nov 2018 - Bennelong Twenty20 Australian Equities Fund October 2018

21 Nov 2018 - Spectrum Insights - Never a better time to boost bank capital

21 Nov 2018 - Fund Review: Bennelong Kardinia Absolute Return Fund October 2018

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