News
Performance Report: Bennelong Kardinia Absolute Return Fund
19 Mar 2021 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +1.86% in February, outperforming the ASX200 Accumulation Index by +0.86% and taking 12-month performance to +6.72% with a standard deviation of 12.74%. Since inception in May 2006, the Fund...
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19 Mar 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 outperform in falling and volatile markets is highlighted by the following statistics (since inception): Sortino ratio of 1.25 vs the Index's 0.26, maximum drawdown of -11.71% vs the Index's -47.19%, and down-capture ratio of 48.66%. Top contributors included Proteomics, Paladin, Flight Centre, NAB and Galena Mining. Key detractors included Charter Hall, Harvest Tech, Pointsbet, MACA Limited and REA Group. The portfolio performed well during reporting season, with roughly 90% of companies either beating or meeting expectations. |
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Performance Report: 4D Global Infrastructure Fund
19 Mar 2021 - Australian Fund Monitors
The 4D Global Infrastructure Fund has risen +8.19% p.a. with an annualised volatility of 12.54% since inception in March 2016.
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19 Mar 2021 - 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 performer for February was Mexican airport operator Grupo ASUR +21.4% as vaccines continue to roll out across the globe and the expectation of the resumption of air travel gets closer. The weakest performer in February was Portuguese based renewable operator EDPR down 19.7%. 4D believe this to be profit taking after a very strong run in pure play renewables where they reduced their position on valuation. 4D continue to position for the prevailing economic outlook and infrastructure as a means of a recovery as they continue to capitalize on the raft of opportunities currently on offer. |
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Performance Report: Delft Partners Global High Conviction
18 Mar 2021 - Australian Fund Monitors
The Delft Global High Conviction Strategy rose +4.34% in February, outperforming AFM's Global Equity Index by +2.87% and taking annualised performance since inception in August 2011 to +15.30% vs the Index's +13.80%.
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18 Mar 2021 - Performance Report: Delft Partners Global High Conviction
By: Australian Fund Monitors
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| Fund Overview | The quantitative model is proprietary and designed in-house. The critical elements are Valuation, Momentum, and Quality (VMQ) and every stock in the global universe is scored and ranked. Verification of the quant model scores is then cross checked by fundamental analysis in which a company's Accounting policies, Governance, and Strategic positioning is evaluated. The manager believes strategy is suited to investors seeking returns from investing in global companies, diversification away from Australia and a risk aware approach to global investing. It should be noted that this is a strategy in an IMA format and is not offered as a fund. An IMA solution can be a more cost and tax effective solution, for clients who wish to own fewer stocks in a long only strategy. |
| Manager Comments | The Strategy's Sharpe and Sortino ratios (since inception) are 1.11 and 2.04 respectively, highlighting its capacity to achieve good risk-adjusted returns while avoiding the market's downside volatility. The Strategy has an average positive monthly return of +3.30% and an average negative monthly return of -2.05%. With respect to the Index's 10 best and worst months since the Strategy's inception, the Strategy has outperformed in 9 out of 10 of the Index's best months and 6 out of 10 of the Index's worst months, highlighting its capacity to outperform in both rising and falling markets. |
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Fund Review: Bennelong Kardinia Absolute Return Fund February 2021
17 Mar 2021 - Australian Fund Monitors
The latest Fund Review for the Bennelong Kardinia Absolute Return Fund is now available. The Fund, which has been in operation for more than 10 years, has a long-biased, research driven, active equity long/short strategy and invests in...
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17 Mar 2021 - Fund Review: Bennelong Kardinia Absolute Return Fund February 2021
By: Australian Fund Monitors
AFM Fund Review - February 2021 (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.
- 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 8.83% p.a. with a volatility of 7.63%, compared to the ASX200 Accumulation's return of 6.05% p.a. with a volatility of 14.40%.
- The Fund also has a strong focus on capital protection in negative markets. Portfolio Managers Kristiaan Rehder and Stuart Larke 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 - February 2021 (pdf format)
Performance Report: Surrey Australian Equities Fund
16 Mar 2021 - Australian Fund Monitors
The Surrey Australian Equities Fund rose +3.16% in February, outperforming the ASX200 Accumulation Index by +1.71% and taking 12-month performance to +33.06% vs the Index's +6.48%. Since inception in June 2018, the Fund has risen +11.10%...
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16 Mar 2021 - Performance Report: Surrey Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The Investment Manager follows a defined investment process which is underpinned by detailed bottom up fundamental analysis, overlayed with sectoral and macroeconomic research. This is combined with an extensive company visitation program where we endeavour to meet with company management and with other stakeholders such as suppliers, customers and industry bodies to improve our information set. Surrey Asset Management defines its investment process as Qualitative, Quantitative and Value Latencies (QQV). In essence, the Investment Manager thoroughly researches an investment's qualitative and quantitative characteristics in an attempt to find value latencies not yet reflected in the share price and then clearly defines a roadmap to realisation of those latencies. Developing this roadmap is a key step in the investment process. By articulating a clear pathway as to how and when an investment can realise what the Investment Manager sees as latent value, defines the investment proposition and lessens the impact of cognitive dissonance. This is undertaken with a philosophical underpinning of fact-based investing, transparency, authenticity and accountability. |
| Manager Comments | Top contributors in February included Sealink (SLK), Betmakers (BET) and Uniti Wireless (UWL). On the negative side, Cleanspace (CSX) and Domain Holdings (DHG) detracted from performance. Despite the negative share price performance of these two companies, Surrey remain confident in their long-term prospects and continue to hold their shares. The Fund ended the month with 4% in cash and 31 individual stock positions. By sector, the Fund was most heavily weighted towards the Industrials and IT sectors. Top holdings included Auckland International Airports, Omni Bridgeway, Pointsbet, Sealink and Uniti Wireless. |
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Performance Report: Cyan C3G Fund
15 Mar 2021 - Australian Fund Monitors
The Cyan C3G Fund rose +2.59% in February, outperforming the ASX200 Accumulation Index by +1.14% and taking 12-month performance to +27.92% vs the Index's +6.48%. Since inception in August 2014, the Fund has returned +16.75% p.a. vs the...
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15 Mar 2021 - Performance Report: 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's Sharpe and Sortino ratios (since inception), 0.93 and 1.31 respectively, by contrast with the Index's Sharpe of 0.44 and Sortino of 0.49, highlight its capacity to produce superior risk-adjusted returns while avoiding the market's downside volatility over the long-term. The Fund's up-capture and down-capture ratios (since inception), 105.6% and 58.2% respectively, indicate that, on average, the Fund has outperformed in both the market's positive and negative months. Strong portfolio performers in February included Raiz (RZI), Alcidion (ALC) and Singular Health (SHG). Key detractors included Readcloud (RCL) and Quickstep (QHL). |
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Fund Review: Bennelong Long Short Equity Fund February 2021
15 Mar 2021 - Australian Fund Monitors
Latest Fund Review for the Bennelong Long Short Equity Fund is now available. The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large-caps from the ASX/S&P100 Index...
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15 Mar 2021 - Fund Review: Bennelong Long Short Equity Fund February 2021
By: Australian Fund Monitors
AFM Fund Review - February 2021 (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-caps from the ASX/S&P100 Index, with over 19-years' track record and an annualised returns of 14.54%.
- The consistent returns across the investment history highlight 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 0.87 and 1.38 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - February 2021 (pdf format)
Performance Report: Paragon Australian Long Short Fund
12 Mar 2021 - Australian Fund Monitors
The Paragon Australian Long Short Fund rose +16.34% in February, outperforming the ASX200 Accumulation Index by +14.89% and taking 12-month performance to +65.62% vs the Index's +6.48%. Since inception in March 2013, the Fund has returned...
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12 Mar 2021 - Performance Report: Paragon Australian Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Paragon's unique investment style, comprising thematic led idea generation followed with an in depth research effort, results in a concentrated portfolio of high conviction stocks. Conviction in bottom up analysis drives the investment case and ultimate position sizing: * Both quantitative analysis - probability weighted high/low/base case valuations - and qualitative analysis - company meetings, assessing management, the business model, balance sheet strength and likely direction of returns - collectively form Paragon's overall view for each investment case. * Paragon will then allocate weighting to each investment opportunity based on a risk/reward profile, capped to defined investment parameters by market cap, which are continually monitored as part of Paragon's overall risk management framework. The objective of the Paragon Fund is to produce absolute returns in excess of 10% p.a. over a 3-5 year time horizon with a low correlation to the Australian equities market. |
| Manager Comments | Positive contributors in February included Cettire (long), Betmakers (long), Chalice (long), Ionic and Appen (short), marginally offset by declines in OceanaGold and PointsBet. In their latest report, Paragon highlight double-digit-% price rises across food, base metals, timber and house prices, however, their view is that headline CPI numbers are misrepresentative of true inflation. They believe markets are embracing the breadth and strength across Resources and increasingly the prospect of a super-cycle ahead. |
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Performance Report: Collins St Value Fund
12 Mar 2021 - Australian Fund Monitors
The Collins St Value Fund rose +1.02% in February, taking 12-month performance to +51.42% vs the ASX200 Accumulation Index's +6.48%. Since inception in February 2016, the Fund has returned +17.67% p.a. vs the Index's +10.17%.
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12 Mar 2021 - Performance Report: Collins St Value Fund
By: Australian Fund Monitors
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| Fund Overview | The managers of the fund intend to maintain a concentrated portfolio of investments in ASX listed companies that they have investigated and consider to be undervalued. They will assess the attractiveness of potential investments using a number of common industry based measures, a proprietary in-house model and by speaking with management, industry experts and competitors. Once the managers form a view that an investment offers sufficient upside potential relative to the downside risk, the fund will seek to make an investment. If no appropriate investment can be identified the managers are prepared to hold cash and wait for the right opportunities to present themselves. |
| Manager Comments | The Fund has achieved up-capture and down-capture ratios over the past 12 months of 191.57% and 57.8%. This indicates that, on average, the Fund has risen almost twice as much as the market during the market's positive months while falling approximately half as much as the market during the market's negative months. The Fund has outperformed the market in 6 out of 10 of the market's worst months since the Fund's inception, notably outperforming by +4.9% during March 2020 when the Index fell -20.7%. |
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Performance Report: AIM Global High Conviction Fund
12 Mar 2021 - Australian Fund Monitors
The AIM Global High Conviction Fund rose +1.50% in February, in line with AFM's Global Equity Index. The Fund has risen +9.69% over the past 12 months and +4.23% p.a. since inception in July 2015.
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12 Mar 2021 - Performance Report: AIM Global High Conviction Fund
By: Australian Fund Monitors
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| Fund Overview | AIM look for the following characteristics in the businesses they want to own: - Strong competitive advantages that enable consistently high returns on capital throughout an economic cycle, combined with the ability to reinvest surplus capital at high marginal returns. - A proven ability to generate and grow cash flows, rather than accounting based earnings. - A strong balance sheet and sensible capital structure to reduce the risk of failure when the economic cycle ends or an unexpected crisis occurs. - Honest and shareholder-aligned management teams that understand the principles behind value creation and have a proven track record of capital allocation. They look to buy businesses that meet these criteria at attractive valuations, and then intend to hold them for long periods of time. AIM intend to own between 15 and 25 businesses at any given point. They do not seek to generate returns by constantly having to trade in and out of businesses. Instead, they believe the Fund's long-term return will approximate the underlying economics of the businesses they own. They are bottom-up, fundamental investors. They are cognizant of macro-economic conditions and geo-political risks, however, they do not construct the Fund to take advantage of such events. AIM intend for the portfolio to be between 90% and 100% invested in equities. AIM do not engage in shorting, nor do they use leverage to enhance returns. The Fund's investable universe is global, and AIM look for businesses that have a market capitalisation of at least $7.5bn to guarantee sufficient liquidity to investors. |
| Manager Comments | AIM believe the central driving force behind markets in February was the sharp increase in longer-dated government bond yields. In anticipation of a potential increase in discount rates, the Fund had already reduced its exposure to technology businesses with long duration cash flows from September 2020, selling out of Apple, Netflix and Salesforce.com. Top contributors in February included Estee Lauder, Alphabeet, Mastercard, Berkshite Hathaway and PayPal. Key detractors included ICON PLC, Heineken, Keyence, Amazon.com and UnitedHealth. |
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