News
Performance Report: Cyan C3G Fund
22 Feb 2021 - Australian Fund Monitors
The Cyan C3G Fund rose +1.5% in January, outperforming the ASX200 Accumulation Index by +1.19% and taking 12-month performance to +9.84% vs the Index's -3.11%. Since inception in August 2014, the Fund has returned +16.53% p.a. vs the Index's +6.81%.
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22 Feb 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 inceptino), 0.92 and 1.28 respectively, by comparison with Index's Sharpe of 0.43 and Sortino of 0.47, highlight its capacity to produce superior risk-adjusted returns while avoiding the market's down-side volatility. The Fund's up-capture and down-capture ratios (since inception), 104.1% and 58.2% respectively, indicate that, on average ,the Fund has outperformed in both the market's positive and negative months. Two stocks succumbed to double digit percentage falls during the month: Readcloud (-15%) and Playside Studios (-17%). However, this was offset by strong results from Raiz and Alcidion. Cyan's view is that, while it can feel challenging to invest through periods of acute volatility, this volatility provides a number of opportunities which likely wouldn't be available in quieter market periods. They noted that, not only has the corporate window opened wide in January but Cyan's key holdings continue to post promising numbers and outlooks. There are more than three IPOs in Cyan's sights along with the pleasing results from their existing exposures. Cyan are confident about 2021 and noted that, at the time of writing their latest monthly report, February has seen a further positive momentum in the Fund's unit price. |
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Performance Report: Bennelong Australian Equities Fund
19 Feb 2021 - Australian Fund Monitors
The Bennelong Australian Equities Fund rose +2.69% in January, outperforming the ASX200 Accumulation Index by +2.38% and taking 12-month performance to +19.54% vs the Index's -3.11%. Since inception in February 2009, the Fund has returned...
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19 Feb 2021 - 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 | As at the end of January, the portfolio's weightings had been increased in the Discretionary, IT, Communication and Industrials sectors, and decreased in the Health Care, REIT's and Financials sectors. Relative to the ASX300 Index, the portfolio was significantly overweight the Discretionary sector (Fund weight: 44.0%, benchmark weight: 8.0%) and underweight the Financials sector (Fund weight: 8.2%, benchmark weight: 27.6%). |
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Performance Report: 4D Global Infrastructure Fund
19 Feb 2021 - Australian Fund Monitors
The 4D Global Infrastructure Fund has returned +8.62% p.a. with an annualised volatility of 12.62% since inception in March 2016.
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19 Feb 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 in January was Chinese port operator, China Merchants Port Holdings, up +14% as throughput numbers beat expectations and improving signs of demand recovery with the company talking up the outlook for yields. The weakest performer was Spanish conglomerate, Ferrovial, down -12.4% as restrictions imposed as a result of the second wave of COVID shut down economies and reduced movement across their infrastructure assets. 4D believe the stock has been oversold and is positioned well to capitalise on the recovery phase. 4D continue to position the portfolio for the prevailing economic outlook and infrastructure as a means of a recovery as they continue to capitalise on the opportunities currently on offer. |
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Performance Report: Collins St Value Fund
19 Feb 2021 - Australian Fund Monitors
The Collins St Value Fund rose +3.33% in January, outperforming the ASX200 Accumulation Index by +3.02% and taking 12-month performance to +29.21% vs the Index's -3.11%. Since inception in February 2016, the Fund has returned +17.75% p.a....
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19 Feb 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's capacity to outperform during falling and volatile markets is highlighted by its Sortino ratio (since inception) of 1.25 vs the Index's 0.77 and down-capture ratio (since inception) of 38.29%. 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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Fund Review: Bennelong Kardinia Absolute Return Fund January 2021
18 Feb 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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18 Feb 2021 - Fund Review: Bennelong Kardinia Absolute Return Fund January 2021
By: Australian Fund Monitors
AFM Fund Review - January 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 8.74% p.a. with a volatility of 7.64%, compared to the ASX200 Accumulation's return of 5.98% p.a. with a volatility of 14.44%.
- 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 - January 2021 (pdf format)
Performance Report: Montgomery Small Companies Fund
17 Feb 2021 - Australian Fund Monitors
The Montgomery Small Companies Fund has risen +20.99% over the past 12 months vs the ASX200 Accumulation Index's -3.11%. Since inception in October 2019, the Fund has returned +17.83% p.a. vs the Index's +1.80%.
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17 Feb 2021 - Performance Report: Montgomery Small Companies Fund
By: Australian Fund Monitors
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| Fund Overview | Montgomery Lucent, a joint venture between Lucent Capital Partners and Montgomery Investment Management, is the investment manager of the Fund. Lucent Capital Partners is owned by its founders Gary Rollo and Dominic Rose. Gary and Dominic have worked together for three years as at February 2020 and have a combined three decades of portfolio management and equities research experience. The manager is able to invest up to 10% of the portfolio in pre-IPO opportunities. They search for companies likely to benefit from secular trends, industry change and with substantial competitive advantages. Cash typically ranges around 10%. |
| Manager Comments | The Fund returned -1.08% in January. The largest positive contributors included Bingo Industries, Sezzle and Uniti Group. Key detractors included Aeris Resources, Centuria Capital Group and Western Areas. The portfolio's top completed holdings (i.e. those that the Fund holds but which Montgomery aren't actively buying or selling at the time of writing their Jan 2021 report) included Alliance Aviation Services, City Chic Collective, Ingenia Communities Group, Macquarie Telecom Group and Uniti Group. Relative to the Fund's benchmark (ASX Small Ordinaries Accumulation Index), the portfolio ended the month overweight Industrials, Communication Services, IT, Consumer Discretionary and Real Estate, and underweight Energy, Materials, Consumer Staples, Financials and Health Care. By market capitalisation, the portfolio had greatest exposure to companies with a market cap greater than $1bn. |
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Fund Review: Bennelong Long Short Equity Fund January 2021
16 Feb 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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16 Feb 2021 - Fund Review: Bennelong Long Short Equity Fund January 2021
By: Australian Fund Monitors
AFM Fund Review - January 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 15.25%.
- 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 0.93 and 1.54 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - January 2021 (pdf format)
Performance Report: Paragon Australian Long Short Fund
12 Feb 2021 - Australian Fund Monitors
The Paragon Australian Long Short Fund has returned +21.25% over the past 12 months vs the ASX200 Accumulation Index's -3.11%. Since inception in March 2013, the Fund has returned +11.45% p.a. vs the Index's +7.66%.
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12 Feb 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 | The Fund returned -2.5% in January. Paragon noted markets corrected in the last week of the month on excessive optimism, leaving global and local indices mixed. Positive contributors included Pilbara, PointsBet and DeGrey (short), offset by declines in gold and technology holdings impacted by the market sell-off. Paragon's view is that monetary and fiscal stimulus tailwinds remain, with Biden proposing new spending plans at approx. US$2t. They believe the strength in markets is analogous to the recovery and expansion from March 2009 lows. They reiterated their view that this equities bull market is early-stage (and not late). |
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Performance Report: Surrey Australian Equities Fund
11 Feb 2021 - Australian Fund Monitors
The Surrey Australian Equities Fund has risen +16.21% over the past 12 months, outperforming the ASX200 Accumulation Index by +19.32% and taking annualised performance since inception in June 2018 to +10.17% vs the Index's +7.33%.
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11 Feb 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 | The Fund returned -1.49% in January. Top performers included Pointsbet Holdings, Sezzle, Uniti Wireless and Lifestyle Communities. Heading into reporting season, Surrey are comfortable with their portfolio and look forward to the large number of company meetings they have planned. Surrey made various changes to the portfolio over January and ended the month with 5% in cash and 30 individual holdings. Top holdings included Auckland International Airports, Mineral Resources, Omni Bridgeway, Pointsbet and Unitit Group. By sector, the portfolio was most heavily weighted towards the Industrials and IT sectors. |
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Performance Report: AIM Global High Conviction Fund
11 Feb 2021 - Australian Fund Monitors
The AIM Global High Conviction Fund has risen +5.30% over the past 12 months vs AFM's Global Equity Index's +2.59%. Since inception in July 2015, the Fund has returned +4.02% p.a. with an annualised volatility of 11.29%.
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11 Feb 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 | The Fund returned -2.7% in January. AIM noted near-term uncertainty regarding the pace of global vaccine rollouts was the main headwind to the Fund's monthly performance. Businesses owned in the Fund that will benefit from a normalisation of their operations as vaccines are increasingly widely distributed over the course of 2021 continued to face operating constraints due to COVID-related lockdowns. The top five contributors to performance were Prosus, Microsoft, Alphabet, ICON and PayPal. The five largest detractors were Coca-Cola Co., Mastercard, Estee Lauder, Accenture and Heineken. AIM emphasised that their focus will remain on owning high quality businesses with resilient cash streams, strong balance sheets, competitive advantages underpinning high returns on capital and run by capable management that understand capital allocation. They added that they will avoid the speculative end of the market. |
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