Performance Report: Bennelong Kardinia Absolute Return Fund

17 Jul 2020 - Australian Fund Monitors

The Bennelong Kardinia Absolute Return Fund outperformed the ASX200 Accumulation Index by +4.55% over FY20, maintaining an annualised volatility over the past 12 months of 8.19% against the Index's 25.39%. Since inception in May 2006, the...

17 Jul 2020 - Performance Report: Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	17 July 2020
Manager	Kardinia Capital, a Bennelong boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	June 2020
Latest Return	-2.13%
Latest 6 Months	-0.81%
Latest 12 Months	-3.13%
Latest 24 Months (pa)	-3.88%
Annualised Since Inception	8.36%
Inception Date	01 May 2006
FUM (millions)	AU$56.92
Fund Overview	The Fund consists of a concentrated long/short portfolio typically comprising 20 to 50 ASX300 listed stocks, generally with a long bias aligned to the overall market direction. On average since inception the Fund's exposure has averaged 40% net long. There is a slight bias to large cap stocks on the long side of the portfolio, although in a rising market the portfolio will tend to hold smaller caps, including resource stocks, more frequently. On the short side, the portfolio is particularly concentrated, with stock selection limited by both liquidity and the difficulty of borrowing stock in smaller cap companies. Short positions are only taken when there is a high conviction view on the specific stock. The Fund uses derivatives in a limited way, mainly selling short dated covered call options to generate additional income. These typically have less than 30 days to expiry, and are usually 5% to 10% out of the money. ASX SPI futures and index put options can be used to hedge the portfolio's overall net position. 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 Bennelong Kardinia Absolute Return Fund outperformed the ASX200 Accumulation Index by +4.55% over FY20, maintaining an annualised volatility over the past 12 months of 8.19% against the Index's 25.39%. The Fund's down-capture ratio of 30.62% over the past 12 months indicates that, on average, the Fund captured only 30% of the Index's downside, highlighting its defensive nature. Since inception in May 2006, the Fund has returned +8.36% p.a. with an annualised volatility of 7.20%. By contrast, the Index has returned +5.29% p.a. with an annualised volatility of 14.44% over the same period. Key positive contributors included Commonwealth Bank, JB Hi-Fi, Alumina, Ramelius and REA Group. Key detractors included Virgin Money, Vicinity Centres, Worley and City Chic. Given the major rally in the market, the Short Book was the major detractor from performance this month (-218 basis points). Kardinia reduced the Fund's net equity exposure from 71.3% to a net short position of -4.0% (62.6% long and 66.6% short), with the key change being a significant increase in the Fund's short position in Share Price Index Futures (SPI). Kardinia noted they use SPI to reduce net exposure when they see shorter-term risk as it allows them to keep the long book largely intact whilst protecting the downside. Other key changes to the portfolio included new long positions in Boral, Kogan, Macquarie Group, West African Resources and Zip. Kardinia noted that, with central banks globally attempting to set the shape of the yield curve lower, they believe investors will continue to move capital into equities to chase yield in a world seemingly devoid of such opportunities.
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Fund Review: Bennelong Twenty20 Australian Equities Fund June 2020

17 Jul 2020 - 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.

Fund Review: Insync Global Capital Aware Fund June 2020

16 Jul 2020 - 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...

Fund Review: Bennelong Long Short Equity Fund June 2020

16 Jul 2020 - 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...

Performance Report: Gyrostat Absolute Return Income Equity Fund

15 Jul 2020 - Australian Fund Monitors

The Gyrostat Absolute Return Income Equity Fund rose +1.59% in June. Over FY20, the Fund delivered equity income of 6.0% from dividends and franking credits while outperforming the ASX200 Accumulation Index by +20.05%. Since inception in...

15 Jul 2020 - Performance Report: Gyrostat Absolute Return Income Equity Fund

By: Australian Fund Monitors

Report Date	15 July 2020
Manager	Gyrostat Capital Management
Fund Name	Gyrostat Absolute Return Income Equity Fund
Strategy	Equity Income
Latest Return Date	June 2020
Latest Return	1.59%
Latest 6 Months	9.83%
Latest 12 Months	12.37%
Latest 24 Months (pa)	9.70%
Annualised Since Inception	5.19%
Inception Date	10 December 2010
FUM (millions)	AU$12
Fund Overview	Gyrostat's absolute return income equity fund is designed to combine protection, returns and regular income through all stages of the investment cycle (including large market falls). 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	The Gyrostat Absolute Return Income Equity Fund rose +1.59% in June. Over FY20, the Fund delivered equity income of 6.0% from dividends and franking credits while outperforming the ASX200 Accumulation Index by +20.05%. Since inception in December 2010, the Fund has returned +5.19% p.a. with an annualised volatility of 4.22%. The Fund has operated for 39 consecutive quarters with a 'hard' pre-defined risk parameter in place (no more than 3% of capital at risk and a maximum drawdown of 2.2% regardless of market conditions). The Fund also includes a 'tail hedge' for gains on large market falls. This was particularly beneficial to the Fund during February (Fund: +3.27%, ASX200 TR: -7.69%) and March (Fund: +5.80%, ASX200 TR: -20.65%), and contributed significantly to the Fund's outperformance over the Financial Year. Gyrostat noted market conditions in June enabled them to enter additional positions with the aim of increasing returns on any uplift in market volatility. The Fund's strategy allows for up to 15% of assets to be invested in international assets, with positions in the S&P500, NASDAQ, Hang Seng, MSCI Developed and emerging markets (among others). Gyrostat anticipate increasing levels of 'late cycle' market volatility given elevated geopolitical tensions, historically high debt levels and elevated valuations.
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Fund Review: Bennelong Kardinia Absolute Return Fund June 2020

15 Jul 2020 - 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...

Performance Report: Datt Capital Absolute Return Fund

10 Jul 2020 - Australian Fund Monitors

The Datt Capital Absolute Return Fund rose +8.24% in June, outperforming the ASX200 Accumulation Index by +5.63% and taking 12-month performance to +23.23% against the Index's -7.68%. Since inception in August 2018, the Fund has returned...

10 Jul 2020 - Performance Report: Datt Capital Absolute Return Fund

By: Australian Fund Monitors

Report Date	10 July 2020
Manager	Datt Capital
Fund Name	Datt Capital Absolute Return Fund
Strategy	Equity Long
Latest Return Date	June 2020
Latest Return	8.24%
Latest 6 Months	9.81%
Latest 12 Months	23.23%
Latest 24 Months (pa)	30.28%
Annualised Since Inception	12.42%
Inception Date	01 August 2018
FUM (millions)	AU$5
Fund Overview	The Fund utilises a long term investment approach focused on capital preservation and absolute wealth accumulation. Our investment objectives are: 1) To minimise the risk of permanent capital loss 2) Generate a net return of 10% through the economic cycle An unconstrained, concentrated approach focused on superior risk-adjusted returns. The investment strategy: - targets long-term capital growth in a prudent manner, with an emphasis on capital preservation and low volatility in returns - aims to outperform in markets where equities are down - diversifies investments across asset classes and duration to reduce risk while maintaining relatively concentrated exposure to attractive investment opportunities - is an application of the Manager's investment process, that has no institutional constraints and is completely benchmark unaware
Manager Comments	The Datt Capital Absolute Return Fund rose +8.24% in June, outperforming the ASX200 Accumulation Index by +5.63% and taking 12-month performance to +23.23% against the Index's -7.68%. Since inception in August 2018, the Fund has returned +12.42% p.a. against the Index's annualised return over the same period of +0.82%. The Fund's up-capture and down-capture ratios for performance since inception, 91.22% and 52.89% respectively, highlight the Fund's capacity to perform in line with the market during the market's positive months while protecting investors' capital during the market's negative months. At month-end, the portfolio comprised 30% CRE debt, 59% equities and 11% cash. The portfolio remains directed towards growth opportunities and special situations where Datt Capital feel there remains considerable upside despite the forecast weaker macroeconomic environment. Datt noted they are finding many interesting opportunities in the current environment. Both the CRE debt and equity portfolios continue to perform to Datt's expectations.
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Performance Report: Surrey Australian Equities Fund

9 Jul 2020 - Australian Fund Monitors

The Surrey Australian Equities Fund returned +0.4% in June, taking 12-month performance to +4.04% against the ASX200 Accumulation Index's -7.68%. Since inception in June 2018, the Fund has returned +3.12% on an annualised basis.

9 Jul 2020 - Performance Report: Surrey Australian Equities Fund

By: Australian Fund Monitors

Report Date	09 July 2020
Manager	Surrey Asset Management Pty Ltd
Fund Name	Surrey Australian Equities Fund
Strategy	Equity Long
Latest Return Date	June 2020
Latest Return	0.40%
Latest 6 Months	0.28%
Latest 12 Months	4.04%
Latest 24 Months (pa)	2.80%
Annualised Since Inception	3.12%
Inception Date	01 June 2018
FUM (millions)
Fund Overview	The Investment Manager will be primarily focussed on investing in companies listed in the S&P/ASX Small Ordinaries Index while retaining capacity to invest up to 30% of the Fund in ASX listed companies outside this benchmark. The Investment Manager believes this approach offers attractive, under researched investment opportunities that can provide capital upside and growing dividend income over rolling 5-year periods. 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 Surrey Australian Equities Fund returned +0.4% in June, taking 12-month performance to +4.04% against the ASX200 Accumulation Index's -7.68%. Since inception in June 2018, the Fund has returned +3.12% on an annualised basis. Surrey noted the Fund has attempted to navigate the choppy waters of the second half of FY20 by focussing on facts rather than hypotheticals. The Fund ended the Financial Year with 9% of the portfolio in cash and a diversified portfolio of 28 individual stock positions. The Fund was most heavily weighted towards the IT and Industrials sectors. Top holdings at month-end included Appen (APX), Imrcor (IMR), Omni Bridgeway (OBL), Opticom (OPC), Xero Limited (XRO). Top contributors to performance over the Financial Year included Appen, Xero, Pointsbet and Imricor. Looking forward, Surrey expect the day-to-day share price movements to continue but remain confident in the long-term outlook for the globe as we recover from the impact of COVID-19. As can be seen by the Fund's top shareholdings mentioned above, the Fund is positioned in industries with strong structural growth tailwinds and where Surrey believe the economic exposure to COVID-19 is somewhat limited.
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Infrastructure Spending Emerging as the Focus

9 Jul 2020 - Karl Hunt, Delft Partners

After the heavy contractions in GDP throughout the world following the COVID pandemic, governments are under a lot of pressure to directly boost GDP. With borrowing costs low, one area that is increasingly in focus is infrastructure where...

Performance Report: Bennelong Long Short Equity Fund

8 Jul 2020 - Australian Fund Monitors

The Bennelong Long Short Equity Fund rose +4.19% in June, outperforming the ASX200 Accumulation Index by +1.58% and taking 12-month performance to +30.56% against the Index's -7.68%. Since inception in February 2002, the Fund has returned...

8 Jul 2020 - Performance Report: Bennelong Long Short Equity Fund

By: Australian Fund Monitors

Report Date	08 July 2020
Manager	Bennelong Long Short Equity Management, a Bennelong boutique
Fund Name	Bennelong Long Short Equity Fund
Strategy	Equity Market Neutral
Latest Return Date	June 2020
Latest Return	4.19%
Latest 6 Months	8.61%
Latest 12 Months	30.56%
Latest 24 Months (pa)	8.58%
Annualised Since Inception	15.61%
Inception Date	01 January 2003
FUM (millions)	AU$374.3
Fund Overview	Bennelong Long Short Equity Management applies a qualitative stock selection process to construct a diversified portfolio of paired securities based on relative value. The Bennelong Long Short Equity Management strategy invests primarily in the S&P/ASX 100 and is dollar neutral at cost. In a typical environment the Fund will hold around 70 stocks comprising 35 pairs. Each pair contains one long and one short position each of which will have been thoroughly researched and are selected from the same market sector. Whilst in an ideal environment each stock's position will make a positive return, it is the relative performance of the pair that is important. As a result the Fund can make positive returns when each stock moves in the same direction provided the long position outperforms the short one in relative terms. However, if neither side of the trade is profitable, strict controls are required to ensure losses are limited. The Fund uses no derivatives and has no currency exposure. The Fund has no hard stop loss limits, instead relying on the small average position size per stock (1.5%) and per pair (3%) to limit exposure. Where practical pairs are always held within the same sector to limit cross sector risk, and positions can be held for months or years. The Bennelong Market Neutral Fund, with same strategy and liquidity is available for retail investors as a Listed Investment Company (LIC) on the ASX.
Manager Comments	The Bennelong Long Short Equity Fund rose +4.19% in June, outperforming the ASX200 Accumulation Index by +1.58% and taking 12-month performance to +30.56% against the Index's -7.68%. Since inception in February 2002, the Fund has returned +15.61% p.a. vs the Index's annualised return of +7.47%. The Fund's capacity to significantly outperform in falling markets is highlighted by its Sortino ratio of 1.57 vs the Index's 0.35 and down-capture ratio of -171.44%. The Fund's down-capture ratio indicates that, on average, the Fund has risen during the months the market has fallen. Bennelong noted elevated volatility and regular sharp mood swings continue to create an environment that is very difficult to navigate. They emphasise that they operate on the basis that fundamentals rule the long-term, while liquidity swings the short-term. Equal top pairs for the month were long TPG / short Telstra and the three-legged pair long JBH / short SUL and MYR. Performance was driven by a very strong share price performance by TPG on consummation of the merger with Vodafone. Bennelong retain a very positive outlook for the new TPG. Long JHX / short CSR was the portfolio's third best pair as JHX upgraded earnings during the month. The Fund had no material negative pairs.
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News

17 Jul 2020 - Performance Report: Bennelong Kardinia Absolute Return Fund

17 Jul 2020 - Fund Review: Bennelong Twenty20 Australian Equities Fund June 2020

16 Jul 2020 - Fund Review: Insync Global Capital Aware Fund June 2020

16 Jul 2020 - Fund Review: Bennelong Long Short Equity Fund June 2020

15 Jul 2020 - Performance Report: Gyrostat Absolute Return Income Equity Fund

15 Jul 2020 - Fund Review: Bennelong Kardinia Absolute Return Fund June 2020

10 Jul 2020 - Performance Report: Datt Capital Absolute Return Fund

9 Jul 2020 - Performance Report: Surrey Australian Equities Fund

9 Jul 2020 - Infrastructure Spending Emerging as the Focus

8 Jul 2020 - Performance Report: Bennelong Long Short Equity Fund

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