NEWS
Fund Review: Bennelong Kardinia Absolute Return Fund April 2017
25 May 2017 - Australian Fund Monitors
Latest Fund Review is now available on Bennelong Kardinia Absolute Return Fund, which has an annualised return since inception of 11.09% p.a.
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25 May 2017 - Fund Review: Bennelong Kardinia Absolute Return Fund April 2017
By: Australian Fund Monitors
AFM Fund Review - April 2017 (pdf format)
BENNELONG KARDINIA ABSOLUTE RETURN FUND
Attached is our most recently updated Fund Review. You are also able to view the Fund's Profile.
- The Fund is long biased, research driven, active equity long/short strategy investing in listed ASX companies with over ten-year track record.
- The Fund has significantly outperformed the ASX200 Accumulation Index since its inception in May 2006 and also has significantly lower risk KPIs. The Fund has an annualised return of 11.09% p.a. with a volatility of 7.11, compared to the ASX200 Accumulation's return of 5.65% p.a. with a volatility of 13.89%.
- The Fund also has a strong focus on capital protection in negative markets. Portfolio Managers Mark Burgess and Kristiaan Rehder have significant market experience, while Bennelong Funds Management provide infrastructure, operational, compliance and distribution capabilities.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - April 2017 (pdf format)
Fund Review: Optimal Australia Absolute Trust April 2017
24 May 2017 - Australian Fund Monitors
Read the latest Fund Review on Optimal Australian Absolute Trust.
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24 May 2017 - Fund Review: Optimal Australia Absolute Trust April 2017
By: Australian Fund Monitors
AFM Fund Review - April 2017 (pdf format)
OPTIMAL AUSTRALIA ABSOLUTE TRUST
AFM have released the most recently updated Fund Review on the Optimal Australia Absolute Trust.
We would like to highlight the following aspects of the Fund;
- Optimal Australia is a specialist Australian equity investment manager and the Fund has a long/short equity strategy typically with a low but variable net market exposure comprising 40 to 65 stocks broadly selected from within the ASX200.
- The investment team comprising George Colman, Peter Whiting, and Stephen Nicholls bring 100 years combined experience in equity markets.
- In April, the Fund returned +0.0.7%, to take annualised return since inception to 8.08% p.a. The Fund's approach to risk is shown by the Sharpe ratio of 1.29 (Index 0.28), Sortino ratio of 2.63 (Index 0.30, both of which are well above the ASX 200 Accumulation Index and has recorded over 78% positive months.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - April 2017 (pdf format)
Touchstone Index Unaware Fund
24 May 2017 - Australian Fund Monitors
Touchstone Index Unaware Fund returned +0.42% versus the S&P/ASX 300 Accumulation Index return of +0.98% for the month of April 2017.
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24 May 2017 - Touchstone Index Unaware Fund
By: Australian Fund Monitors
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| Fund Overview | 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 main detractor in the month was Telstra (-9.4%), which fell after TPG Telecom announced that it planned to become Australia's 4th mobile network operator after acquiring mobile spectrum assets in a recent Government auction. Wesfarmers (-4.6%) reversed some of its recent gains after it posted weaker than expected Food and Liquor comparable store sales for the March quarter. With the current political risks elevated globally, combined with market uncertainties, the investment team remains focused on downside protection. |
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4D Global Infrastructure Fund
23 May 2017 - Australian Fund Monitors
4D Global Infrastructure Fund recorded a net gain of 3.5% for the month of April, which was broadly in line with the FTSE 50/50 Infrastructure Index, which returned 3.62%.
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23 May 2017 - 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 Fund's overweight to the European and Emerging Markets was a major contributor to the April performance. The Chinese diversified infrastructure player, Shenzhen International, was the strongest performer for April, up 13% for the month. Other positive contributors included the rail operator Groupe Eurotunnel (up 11.1%), Spanish airport operator Aena (up 11.3%), and Vienna airport (up 12.9%). The weakest performer was OHL Mexico, down 12.4%. The Fund remains overweight Europe and Emerging Markets at the expense of the USA and utilities. The investment team continues to have a positive outlook for global listed infrastructure (GLI) over the medium term, due to a number of powerful macro forces that support the sector. |
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Pengana Absolute Return Asia Pacific Fund
22 May 2017 - Australian Fund Monitors
Pengana Absolute Return Asia Pacific Fund finished up 0.7% for the month of April 2017, compared to Asia Pacific markets which posted a gain of 1.3%.
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22 May 2017 - Pengana Absolute Return Asia Pacific Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will usually hold 40 to 80 positions and will be well diversified across the various event strategies. In keeping with the absolute return focus the Manager will eliminate market risk where appropriate by hedging market and foreign currency risks. Since inception the Fund has averaged a net equity market exposure of ~10%. Sizing of an investment position will depend on the expected risk adjusted returns while taking account the liquidity and volatility of the stock. In addition, the maximum potential loss on any one position should be greater than 0.5% of the NAV and the position should not exceed 30% participation of stressed volume assuming a $200m NAV. Other criteria considered are ability to hedge and the availability of pair candidates as well as the average bid-ask size. For M&A strategies average long position is 3 to 5.5% and average short position 2 to 5%. |
| Manager Comments | In the Stub universe, the position in Wharf/Wheelock, added favourably to overall performance. Also, the Fund's long/short position in Evolution Mining/Newcrest Mining contributed 38 basis points to overall performance. The M&A sub-strategy also posted a small contribution of 0.1% for the month, bring the total return for the current year to 2.9%. There were several M&A deals that successfully completed over the month including Cover More, Yingde Gases, and Innovalues. During the month, the Fund's net and gross exposures averaged 16.1% and 173.2% respectively. |
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Pengana Global Small Companies Fund
19 May 2017 - Australian Fund Monitors
Pengana Global Small Companies Fund returned +6.7% in April, outperforming the MSCI AC World SMID Cap Index, which returned 4.0%, by +2.7%.
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19 May 2017 - Pengana Global Small Companies Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is managed by Founder & CIO Leah Zell, and Portfolio Managers Jon Moog and David Li. The Lizard investment team have over 50 years combined investment experience in global small cap investing. Leah Zell has over 30 years of experience and is a recognized expert in international investing in the international small-cap category. The Fund's investment team uses a value-oriented investment approach to small and mid-cap global equities that seeks to identify and invest in quality businesses that create significant value but are mispriced, overlooked or out-of-favour. The investment manager believes that unique opportunities exist due to limited available research, corporate actions or unfavourable investor perception. The portfolio construction process aims to develop portfolios that incorporate the best investment ideas from the investment manager's research while allowing for liquidity constraints and perceived risk. The Fund's investment manager will not typically hedge currency exposures, however during periods of currency extremes, some currency hedging may be employed. Derivatives may be used to achieve long or short exposures, reduce risk and reduce transaction costs. Derivatives will not be used for the purposes of leverage and the Fund's net exposure will never be short. |
| Manager Comments | Currency had a positive impact on the performance of the Fund (adding 2.7%). The performance was also driven by the Fund's positions in boohoo.com Plc, Hostelworld Group Plc, a UK Auto Dealer, Oslo Bors VPS Holding ASA, and Wizz Air Holdings Plc. However, EPS Holdings, Inc., a Japanese Internet Company, Liberty Global Plc LiLAC Group Class C, Peyto Exploration & Development Corp., and PRA Group Inc detracted performance for the month. The investment team continues to ignore the market 'noise' and remains focused on the fundamental factors that drive long-term value: buying great companies at cheap prices. |
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Bennelong Twenty20 Australian Equities Fund
19 May 2017 - Australian Fund Monitors
Bennelong Twenty20 Australian Equities Fund returned +1.25% for the month of April, slightly outperforming the S&P/ASX-300 Accumulation Index return of 0.98%, by +0.26%.
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19 May 2017 - 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's performance is dictated largely, although not entirely, by the performance of the S&P/ASX 20 Index. Deviation from the benchmark, the S&P/ASX 300, arises to the extent of the Fund's relative performance in respect of its active management of ex-20 stocks. For April, the outperformance was due to the strong performances from the Fund's larger ex-20 positions. These include Aristocrat Leisure, Domino's Pizza Enterprises, Reliance Worldwide, and BWX. On the negative side, the Fund's small and selective exposure in the Retail sector detracted from performance. On an active portion of the portfolio, the Fund continues to remain stock selective which is guided by the company fundamentals. |
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Fund Review: Bennelong Long Short Equity Fund April 2017
18 May 2017 - Australian Fund Monitors
Latest Fund Review is now available on Bennelong Long Short Equity Fund which has an annualised return of 16.74% p.a.
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18 May 2017 - Fund Review: Bennelong Long Short Equity Fund April 2017
By: Australian Fund Monitors
AFM Fund Review - April 2017 (pdf format)
BENNELONG LONG SHORT EQUITY FUND
Attached is our most recently updated Fund Review on the Bennelong Long Short Equity Fund.
- The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large large-caps from the ASX/S&P100 Index, with over fourteen-year track record and annualised returns of 16.74% p.a.
- The consistent returns across the investment history indicate the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market. The Fund's Sharpe Ratio and Sortino Ratio are 1.01 and 1.69 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - April 2017 (pdf format)
Cyan C3G Fund
18 May 2017 - Australian Fund Monitors
Cyan C3G Fund gained 1.9% in April, to take the Fund's one year return to +14.49%.
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18 May 2017 - Cyan C3G Fund
By: Australian Fund Monitors
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| Fund Overview | 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 Fund benefitted from price strength in a few of its key long-term holdings. This included Afterpay (AFY) and Touchcorpo (TCH). The AFY share price was up 9% in April, with TCH up 14%. Other contributors included Skydive the Beach (SKB) up 8%, Capitol Health (CAJ) up 12%, and Getswift (GSW) up 48%. The key performance detractors were Money3 (MNY) and Freelancer (FLN), down 4% and 13% respectively for the month. However, the investment team believes that both companies have a positive medium-term growth outlook and therefore continue to hold their positions in these two stocks. The Fund is currently conservatively positioned, however, the investment team has started to see positive signs in the market that the rotation of interest has returned to the small cap sector and thereby creating new investment opportunities for the Fund. |
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Affluence Investment Fund
17 May 2017 - Australian Fund Monitors
Affluence Investment Fund increased 0.53% in April, resulting in a +11.18% return for the latest 12 months.
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17 May 2017 - Affluence Investment Fund
By: Australian Fund Monitors
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| Fund Overview | 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 top contributors included the Brookfield Prime Property Fund (up 14.8%), the Bronte Capital Amalthea Fund (up 7%) and India Avenue Equity Fund (up 5.1%). The Fund had no major detractors for the month, however, results were fairly choppy across the board. At month end, 61% of the Fund was invested in unlisted investments, 20% in the Affluence LIC Fund, 6% in other listed investments, and 13% in cash. The Fund currently provides exposure to over 25 unlisted funds, and over 20 LIC's and other listed entities. |
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