News
Performance Report: Frazis Fund
29 Jan 2021 - Australian Fund Monitors
The Frazis Fund rose +8.50% in December, outperforming AFM's Global Equity Index by +8.66% and taking CY20 performance to +108.43% after fees vs the Index's +6.21%. Since inception in July 2018, the Fund has returned +31.00% p.a. vs the...
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29 Jan 2021 - Performance Report: Frazis Fund
By: Australian Fund Monitors
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| Fund Overview | The manager follows a disciplined, process-driven, and thematic strategy focused on five core investment strategies: 1) Growth stocks that are really value stocks; 2) Traditional deep value; 3) The life sciences; 4) Miners and drillers expanding production into supply deficits; 5) Global special situations; The manager uses a macro overlay to manage exposure, hedging in three ways: 1) Direct shorts 2) Upside exposure to the VIX index 3) Index optionality |
| Manager Comments | The Fund has achieved an up-capture ratio since inception of 262.4% which indicates that, on average, the Fund has risen more than twice as much as the market during the market's positive months. The Fund's 12-month up-capture ratio is 617.5%, highlighting its significant outperformance during the market's positive months over CY20. The Fund now holds over 45 stocks. Frazis noted many of these are growing in excess of 100%, and on a weighted average basis growing at over 80% organically. They highlight that, instead of focusing on historic financials, they focus first on consumers and the key decision points when one product or service is chosen over another. They look for explosive growth measurable in data and consider true 'customer love' and a rapidly growing and increasingly engaged userbase as the real sign of quality. Heading into 2021, Frazis remain confident the portfolio will continue to outperform. |
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Performance Report: Montgomery Small Companies Fund
29 Jan 2021 - Australian Fund Monitors
The Montgomery Small Companies Fund rose +3.65% in December, outperforming the ASX200 Accumulation Index by +2.59% and taking 12-month performance to +27.56% vs the Index's +1.40%.
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29 Jan 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 Montgomery Small Companies Fund rose +3.65% in December, outperforming the ASX200 Accumulation Index by +2.59% and taking 12-month performance to +27.56% vs the Index's +1.40%. Since inception in October 2019, the Fund has returned +20.16% p.a. vs the Index's +1.67%. The Fund's up-capture and down-capture ratios for performance over the past year, 165.6% and 88.3% respectively, indicate that, on average, the Fund outperformed in both the market's positive and negative months. Positive contributors in December included City Chic Collective, EML Payments and Mineral Resources. The largest detractors included Appen, Tyro Payments and Webjet. Montgomery noted they're entering 2021 playing five big themes; cloud technology, sustainable income, economic reopening, strength and stimulus, and de-carbonisation. These themes are discussed in detail in the latest report. |
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Performance Report: DS Capital Growth Fund
29 Jan 2021 - Australian Fund Monitors
The DS Capital Growth Fund rose +4.27% in December, taking CY20 performance to +19.91% vs the ASX200 Accumulation Index's +1.40%. Since inception in January 2013, the Fund has returned +16.05% p.a. with an annualised volatility of 11.45%.
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29 Jan 2021 - Performance Report: DS Capital Growth Fund
By: Australian Fund Monitors
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| Fund Overview | The investment team looks for industrial businesses that are simple to understand; they generally avoid large caps, pure mining, biotech and start-ups. They also look for: - Access to management; - Businesses with a competitive edge; - Profitable companies with good margins, organic growth prospects, strong market position and a track record of healthy dividend growth; - Sectors with structural advantage and barriers to entry; - 15% p.a. pre-tax compound return on each holding; and - A history of stable and predictable cash flows that DS Capital can understand and value. |
| Manager Comments | The following statistics (since inception) highlight the Fund's capacity to outperform in falling and volatile markets: Sortino ratio of 1.82 vs the Index's 0.67, average negative monthly return of -2.01% vs the Index's -3.14%, and down-capture ratio of 45%. The Fund delivered +11.50% over the December quarter. Key positive contributors included Resimac, Uniti Group, Money3, Kogan and SG Fleet. DS Capital expect COVID-19 to be the dominant influence on asset markets going into 2021. They added that, while it is expected that stimulus and low interest rates will continue in the near-term, any change to this expectation will create volatility. |
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Performance Report: Surrey Australian Equities Fund
29 Jan 2021 - Australian Fund Monitors
The Surrey Australian Equities Fund rose +2.50% in December, outperforming the ASX200 Accumulation Index by +1.44% and taking CY20 performance to +23.63% vs the Index's +1.40%. Since inception in June 2018, the Fund has returned +11.16%...
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29 Jan 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 | During the month, gains were consistently distributed across the portfolio. Key contributors included Mineral Resources and Cleanspace. Catapult and Tassal Group were the main detractors. The Fund's top holdings at month-end included Auckland International Airports, Mineral Resources, Omni Bridgeway, Pointsbet and Uniti Group. The portfolio was most heavily weighted towards the Industrials and IT sectors. Surrey hold an optimistic outlook for 2021, with both directors of Surrey Asset Management continuing to reinvest money into the Fund over the last quarter. They noted they were particularly active towards the end of the year as they took advantage of stocks they believed were mispriced. This lays the foundation for the 2021 portfolio and is also a further reflection of Surrey's favourable outlook for markets. The Fund finished the year with 1% in cash. |
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Performance Report: 4D Global Infrastructure Fund
29 Jan 2021 - Australian Fund Monitors
The 4D Global Infrastructure Fund returned -0.75% in December. Since inception in March 2016, the Fund has returned +9.46% p.a. with an annualised volatility of 12.61%.
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29 Jan 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 December was pure play renewable operator EDP Renewables, up +28.4% on the back of increased global stimulus focusing on the green energy transition. The weakest performer was Canadian midstream operator Pembina Pipeline, down -8.5% as the midstream sector remains out of favour as the global focus turns green. 4D continue to position the portfolio for the prevailing economic outlook and infrastructure as a means of a recovery. Despite the challenges faced throughout 2020, the manager remains optimistic about the global economic outlook and the infrastructure asset class for 2021 and beyond. |
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Fund Review: Bennelong Long Short Equity Fund December 2020
29 Jan 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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29 Jan 2021 - Fund Review: Bennelong Long Short Equity Fund December 2020
By: Australian Fund Monitors
AFM Fund Review - December 2020 (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 15.34%.
- 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 1.55 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - December 2020 (pdf format)
Performance Report: Laureola Investment Fund
28 Jan 2021 - Australian Fund Monitors
The Laureola Investment Fund rose +0.93% in December, taking CY20 performance to +9.57% with a volatility of 1.98% vs the S&P500 Total Return Index's return of +18.40% with a volatility of 24.84%. Since inception in May 2013, the Fund has...
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28 Jan 2021 - Performance Report: Laureola Investment Fund
By: Australian Fund Monitors
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| Fund Overview | The investment strategy of The Laureola Investment Fund is dynamic and flexible, designed to take advantage of the frequent but temporary pricing anomalies of an asset class that is not yet fully understood by the majority of participants. Laureola Advisors applies 'best practices' common in the management of traditional assets, particularly the use of independent, in-house, proprietary research. |
| Manager Comments | In their latest report, Laureola emphasise that the quality of returns is critical in Life Settlement Funds - the more generated from realised gains (cash profits) the better. In 2020, all of the Fund's returns (100%) were generated by realised gains. The Fund experienced 23 maturities during the year for a total payout of 19.8 ml, ahead of expectations. Laureola noted performance, especially performance due to mortality, continues to improve as it has since 2018. Laureola highlight that the Fund has been designed from inception to maximise safety; the investment focus is on mortality rather than accounting gains. |
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Performance Report: NWQ Fiduciary Fund
28 Jan 2021 - Australian Fund Monitors
The NWQ Fiduciary Fund rose +1.93% in December, taking 12-month performance to +6.42% with a volatility of 10.01% vs the ASX200 Accumulation Index's return of +1.40% with a volatility of 27.24%. Since inception in May 2013, the Fund has...
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28 Jan 2021 - Performance Report: NWQ Fiduciary Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund aims to produce returns after management fees and expenses of RBA Cash Rate + 4.0-5.0% p.a. over rolling five-year periods. Furthermore, the Fund aims to achieve these returns with volatility that is a fraction of the Australian equity market, in order to smooth returns for investors. |
| Manager Comments | The Fund's capacity to protect investors' capital in falling and volatile markets is highlighted by the following statistics (since inception): Sortino ratio of 1.09 vs the Index's 0.55, maximum drawdown of -8.77% vs the Index's -26.75%, and down-capture ratio of 13.25%. NWQ noted current equity valuations are high and approaching the unprecedented and short-lived levels at the zenith of the Dot-Com era, supported by record low interest rates, ample central bank liquidity and buoyant customer sentiment. They believe that it's in this environment that it pays to be hedged given the market's susceptibility to sharp reversals. NWQ expect 2021 will present a favourable environment for hedged equity investors with return dispersion between stocks to remain elevated. They added that the pandemic has created both long and short opportunities for the Fund's underlying managers. |
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Fund Review: Insync Global Capital Aware Fund December 2020
28 Jan 2021 - 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...
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28 Jan 2021 - Fund Review: Insync Global Capital Aware Fund December 2020
By: Australian Fund Monitors
AFM Fund Review - December 2020 (pdf format)
INSYNC GLOBAL CAPITAL AWARE FUND
Attached is our most recently updated Fund Review on the Insync Global Capital Aware Fund.
We would like to highlight the following:
- 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 growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - December 2020 (pdf format)
Fund Review: Bennelong Twenty20 Australian Equities Fund December 2020
28 Jan 2021 - 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.
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28 Jan 2021 - Fund Review: Bennelong Twenty20 Australian Equities Fund December 2020
By: Australian Fund Monitors
AFM Fund Review - December 2020 (pdf format)
BENNELONG TWENTY20 AUSTRALIAN EQUITIES FUND
Attached is our most recently updated Fund Review on the Bennelong Twenty20 Australian Equities Fund.
- The Bennelong Twenty20 Australian Equities Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of stocks outside the Top 20. Construction of the ex-top 20 portfolio is fundamental, bottom-up, core investment style, biased to quality stocks, with a structured risk management approach.
- Mark East, the Fund's Chief Investment Officer, and Keith Kwang, Director of Quantitative Research have over 50 years combined market experience. Bennelong Funds Management (BFM) provides the investment manager, Bennelong Australian Equity Partners (BAEP) with infrastructure, operational, compliance and distribution services.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - December 2020 (pdf format)
