News
Performance Report: Ark Global Fund - Class B AUD Hedged
4 Sep 2020 - Australian Fund Monitors
The Ark Global Fund (hedged) has risen +2.09% over the past 12 months with a volatility of 10.70%. Since inception in July 2017, the strategy has returned +7.00% p.a. with an annualised volatility of 9.39%.
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4 Sep 2020 - Performance Report: Ark Global Fund - Class B AUD Hedged
By: Australian Fund Monitors
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| Fund Overview | The investment objective of the Fund is to achieve long-term capital appreciation with low correlation to global equity markets through investment in the Underlying Fund. Fund One is a global macro fund that utilises quantitative research including machine learning techniques and fully automated trading algorithms which will aim to generate positive uncorrelated returns relative to any significant equity benchmark. The traded instruments are either major FX pairs or the most liquid exchange traded stock index, bond, and commodity futures across North America, Europe and Asia Pacific. The algorithm backtests over 10 years of tick data and in order to do so effectively requires machine learning to filter noise and identify meaningful signals, which results in statistically significant prediction of price movements. In production this processing is done in real time and the portfolio reacts to asset movements by rebalancing automatically to the desired risk exposure through the market impact optimised execution logic. Risk management layers built into the algorithm have been developed using the experience the team has gained from their decades in highly liquid fast-moving markets in the proprietary High Frequency Trading world. This allows the system to trade autonomously but safely to all trading opportunities and potential system issues, and to alert the team to any behaviour outside of strictly controlled bounds. The Fund is a 'feeder fund' which indirectly gains exposure to the underlying assets by investing all or substantially all of its assets in the Underlying Fund. The Fund may retain a certain amount of cash from the investment in the Fund for the purpose of payment of costs, fees, hedging and expenses. |
| Manager Comments | The Fund returned -1.4% in July. The best performers during the month were: Gold (+2.37% of NAV), Euro Stoxx 50 (+2.24% of NAV) and HSCEI (+1.05% of NAV). The worst-performing assets for the month were: Euro Bund (-1.33% of NAV), DAX Index (-1.52% of NAV) and Silver (-1.98% of NAV). |
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Performance Report: Delft Partners Global High Conviction
4 Sep 2020 - Australian Fund Monitors
The Delft Partners Global High Conviction Strategy has returned +14.14% p.a. with an annualised volatility of +11.79%. By contrast, AFM's Global Equity Index has returned +13.41% p.a. with an annualised volatility of 10.49% over the same period.
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4 Sep 2020 - 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 has achieved an average positive monthly return of +3.26% vs the Index's +2.94%. The Strategy's Sharpe and Sortino ratios for performance since inception are 1.01 and 1.79 respectively. With respect to the Index's 10 best and worst months since the Strategy's inception, the Strategy has outperformed in 6 out of 10 of the Index's worst months and 9 out of 10 of the Index's best months. This highlights the Strategy's capacity to perform well in both rising and falling markets. |
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Performance Report: Insync Global Quality Equity Fund
3 Sep 2020 - Australian Fund Monitors
The Insync Global Quality Equity Fund rose +1.98% in July, taking 12-month performance to +12.06% versus AFM's Global Equity Index's +2.80%. Since inception of the strategy in October 2009, it has returned +13.69% p.a. against the Index's...
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3 Sep 2020 - Performance Report: Insync Global Quality Equity Fund
By: Australian Fund Monitors
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| Fund Overview | Insync employs four simple screens to narrow the universe of over 40,000 listed companies globally to a focus group of high-quality companies that it believes have the potential to consistently grow their profits and dividends. These screens are: size of the company, balance sheet performance, valuation and dividend quality. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio typically of 15-30 stocks. The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, derivatives (for example futures, options and swaps), currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled investment vehicles. |
| Manager Comments | At month-end, the portfolio's top holdings included PayPal, Microsoft, Visa, Adobe, JD Sports Fashion, Facebook, Walt Disney, Accenture, S&P Global and Zoetis. The top three megatrends in the portfolio by weight were the 'Age Related Health Solutions' and 'Digitisation' megatrends (both at 14% of the portfolio), followed by the 'Cashless Society' megatrend (13% of the portfolio). |
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Performance Report: Laureola Investment Fund
2 Sep 2020 - Australian Fund Monitors
The Laureola Investment Fund rose +2.2% in July, taking performance over the past 12 months to +11.20% with a volatility of 2.17%. Since inception in May 2013, the Fund has returned +16.88% p.a. with an annualised volatility of 5.72%.
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2 Sep 2020 - 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 highlight the mounting signs of speculative fever, with US stocks up +5.5% in July. They see a significant divergence between asset prices and economic reality, pointing specifically to the following: the US economy declined by 32.9% on an annualised basis last quarter (economies in Europe and Asia plunged by similar or worse rates), 25 major US retailers have filed for bankruptcy in 2020 and the 4 largest US banks have $150bn of loans in 'deferral'. Laureola believe this divergence is based on two beliefs: 1) Governments will always be able to prop up markets with easy money, and 2) these actions will not have significant consequences. However, due to Laureola's lack of conviction in either of these beliefs, they see Life Settlements as a sensible alternative asset class. Performance in July was driven by the maturity of 3 life settlement policies. 80% of the returns YTD have been from maturities which Laureola point out is the true measure of the performance of a Life Settlements fund. The Fund also completed a successful restructuring during the month, putting it on a solid foundation for future growth including lower expenses. The Fund now has capital to deploy, both from new investors and maturities, and the Fund's advisors continue to select policies to ensure future returns and future cash flow. Laureola noted that, due to the nature of Life Settlements as an asset class, the Fund's performance will not be affected if and when economic reality hits asset prices. |
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Performance Report: Atlantic Pacific Australian Equity Fund
1 Sep 2020 - Australian Fund Monitors
The Atlantic Pacific Australian Equity Fund has risen +18.98% over the past 12 months, outperforming the ASX200 Accumulation Index by 28.85%. Since inception in June 2013, the Fund has returned +8.27% p.a. versus the Index's annualised...
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1 Sep 2020 - Performance Report: Atlantic Pacific Australian Equity Fund
By: Australian Fund Monitors
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| Fund Overview | The primary objective of the Atlantic Pacific Australian Equity Fund is to generate a mixture of capital and income returns for investors with a high risk profile, over a 5 to 7 year investment period. The Investment Manager believes that markets are fundamentally inefficient and that active investment management will result in higher than 'benchmark' returns. The Fund has adopted the S&P/ASX200 Accumulation Index as the benchmark for its performance. The Investment Manager also believes that, on review of many markets globally, no individual style or method of investing will always ensure outperformance in terms of return on investment. In light of this, the Investment Manager may adopt a 'value', 'growth' or 'momentum' style bias, for example, depending on where the market is in its investment cycle. Further, the Investment Manager believes that actual and forecasted events underpin absolute and relative price movements of securities. The Investment Manager will utilise a number of frameworks to assist in positioning the Fund's portfolio of investments. These include fundamental research, quantitative analysis, and macro and catalyst research. |
| Manager Comments | The Fund's capacity to protect investors' capital in falling markets is highlighted by the following statistics (since inception): Sortino ratio of 1.33 vs the Index's 0.49, average negative monthly return of -1.51% vs the Index's -3.10%, maximum drawdown of -8.07% vs the Index's -26.75%, and down-capture ratio of 25.96%. |
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Performance Report: DS Capital Growth Fund
31 Aug 2020 - Australian Fund Monitors
The DS Capital Growth Fund rose +2.19% in July, outperforming the ASX200 Accumulation Index by +1.69% and taking the 12-month return to +7.88% versus the Index's -9.87%. Since inception in December 2012, the Fund has returned +14.37% p.a....
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31 Aug 2020 - 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 Fund's capacity to achieve superior risk-adjusted returns whilst avoiding the market's downside is highlighted by the following statistics (since inception): Sharpe ratio of 1.09 vs the Index's 0.51, Sortino ratio of 1.57 vs the Index's 0.58, and down-capture ratio of 45.22%. The Fund's down-capture ratio indicates that, on average, the Fund has fallen less than half as much as the market during the market's negative months. |
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Performance Report: Surrey Australian Equities Fund
31 Aug 2020 - Australian Fund Monitors
The Surrey Australian Equities Fund rose +3.40% in July, outperforming the ASX200 Accumulation Index by +2.9% and taking 12-month performance to +1.58% versus the Index's -9.87%. Since inception in June 2018, the Fund has returned +4.60%...
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31 Aug 2020 - 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's July return was largely achieved across the board with most holdings performing well. Surrey noted much of this is a consequence of the portfolio being structured toward companies with low or even positive correlation to COVID-19. They were particularly pleased with the returns provided by Catapult Group (CAT) and Sezzle (SZL) which they discuss in detail in their latest report. The Fund ended the month with 3% in cash and a diversified portfolio of 27 individual stock positions. By sector, it was most heavily weighted towards the IT and Industrials sectors. Top holdings included Appen Limited, Austal Limited, Imricor Medical Systems, Omni Bridgeway and Xero Limited. |
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Performance Report: Gyrostat Absolute Return Income Equity Fund
28 Aug 2020 - Australian Fund Monitors
The Gyrostat Absolute Return Income Equity Fund has risen +11.49% over the past 12 months with a volatility of 7.83%. Since inception in December 2010, the Fund has returned +4.92% p.a. with an annualised volatility of 4.28%.
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28 Aug 2020 - Performance Report: Gyrostat Absolute Return Income Equity Fund
By: Australian Fund Monitors
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| Fund Overview | The investment objective is to deliver regular and stable income stream (from ASX20 dividends) in a low interest rate environment with capital security - a 'highly-defensive' asset class. Gyrostat has operated for 38 consecutive quarters within a 'hard' pre-defined risk parameter (no more than 3% capital at risk with the Fund's maximum draw-down 2.2% in any circumstances) always in place, delivering regular income by passing through ASX-20 dividends, and meeting returns guidance based upon market conditions (demonstrating increasing returns with market volatility). The Fund buys and holds ASX-20 and international assets with lowest cost protection always in place with upside. It is a conservative asset allocation. Note that Gyrostat have expanded their international assets within the Fund to include SP500, FANGS, Nikkei, Hang Seng, MSCI China, MSCI Developed and Developing markets. Advances in investment risk management enable cost-effective protection to always be in place for a 'hard' defined risk parameter (say no more than 3% capital at risk). Returns are designed to increase as volatility levels increase, as this provides more opportunities to lower protection costs. Investment Objectives: - Returns: 6% - 8% pa in trending markets, greater than 8% pa in volatile markets, BBSW90 + 3% in stable markets - Income: Minimum cash rate + 3% paid semi-annually (currently 4.0% p.a.) from dividends and franking credits - Protection: No quarterly NAV draw-downs exceeding 3% Also includes a 'tail hedge' for gains on large market falls. |
| Manager Comments | Market conditions in July enabled Gyrostat to enter additional positions for more elevated returns on any uplift in market volatility. The investment strategy allows up to 15% of the Fund's assets to be invested in international assets, with positions in SP500, Nasdaq, Hang Seng, MSCI Developed and Emerging Markets (among others). Gyrostat anticipate returns in all market environments of at least BBSW 90 +3% which they expect will enable investors to receive income and capital growth. The Fund also includes a 'tail hedge' for gains on large market falls. Gyrostat anticipate increasing levels of 'late cycle' market volatility with elevated geopolitical risk, historically high debt levels and elevated valuations. |
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Performance Report: Australian Eagle Trust Long-Short Fund
28 Aug 2020 - Australian Fund Monitors
The Australian Eagle Trust Long-Short Fund rose +3.60% in July, taking 12-month performance to +4.19% versus the ASX200 Accumulation Index's -9.87%. Since inception in July 2016, the Fund has returned +17.95% p.a. against the Index's...
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28 Aug 2020 - Performance Report: Australian Eagle Trust Long-Short Fund
By: Australian Fund Monitors
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| Manager Comments | The portfolio's largest positive contributors for the month came from long positions in Fortescue Metals Group, OZ Minerals and QBE Insurance Group, while the largest detractors were long positions in AMP, Pushpay Holdings and CSL. The Fund ended the month with 31 long positions and 23 short positions with the largest exposure to medical devices & services and technology stocks. The Fund ended the month with relatively less exposure to banking and real estate stocks. |
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Performance Report: Insync Global Capital Aware Fund
27 Aug 2020 - Australian Fund Monitors
The Insync Global Capital Aware Fund rose +1.36% in July, taking the Fund's 12-month return to +16.23% versus AFM's Global Equity Index's +2.80%. Since inception in October 2009, the Fund has returned +11.80% p.a. against the Index's...
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27 Aug 2020 - Performance Report: Insync Global Capital Aware Fund
By: Australian Fund Monitors
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| Fund Overview | Insync employs four simple screens to narrow the universe of over 40,000 listed companies globally to a focus group of high quality companies that it believes have the potential to consistently grow their profits and dividends. These screens are size of the company, balance sheet performance, valuation and dividend quality. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio of typically 15-30 stocks. The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, derivatives (for example futures, options and swaps), currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled investment vehicles. At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio. |
| Manager Comments | At month-end, the portfolio's top holdings included PayPal, Microsoft, Visa, Adobe, JD Sports Fashion, Facebook, Walt Disney, Accenture, S&P Global and Zoetis. The top three megatrends in the portfolio by weight were the 'Age Related Health Solutions' and 'Digitisation' megatrends (both at 14% of the portfolio), followed by the 'Cashless Society' megatrend (13% of the portfolio). |
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