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Performance Report: Insync Global Capital Aware Fund
24 Jan 2020 - Australian Fund Monitors
The Insync Global Capital Aware Fund ended CY2019 up +32.77% versus AFM's Global Equity Benchmark's +27.19%. Since inception in October 2009, the Fund has returned +11.21% p.a. with an annualised volatility of 9.45%.
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24 Jan 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 | The Fund fell in line with the market in December, returning -0.61% after the cost of downside protection. Positive contributors included London Stock Exchange, Bristol-Myers Squibb, Booking Holdings and Apple. Detractors included Walt Disney, Intuit, PayPal and Facebook. The Fund continues to have no currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside. |
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Performance Report: Bennelong Australian Equities Fund
23 Jan 2020 - Australian Fund Monitors
The Bennelong Australian Equities Fund has returned +27.44% over the past 12 months versus the ASX200 Accumulation Index's +23.40%. Since inception in February 2009, the Fund has outperformed the Index by +3.0% on an annualised basis.
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23 Jan 2020 - 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 | The Fund returned +4.12% over quarter, outperforming the Index by +3.44%. The main contributor to quarterly performance was the fund's outsized position in the healthcare sector, particularly its positions in Fisher & Paykel Healthcare and CSL. The other main contributor was the significant underweight stance to the underperforming banks. The largest detractor was Afterpay, which gave back some of the outperformance delivered in previous periods. Bennelong believe many of the social, political and economic uncertainties that overshadowed markets over 2019 remain. The Fund is selectively invested in a group of high quality growth stocks which include names like CSL and Fisher & Paykel Healthcare. Some general themes across the portfolio include: a growth bias, a significant weighting to global and offshore companies, underweight the top 20 stocks, underweight bond proxies such as utilities and teclo's, selective exposure to commodities and very little exposure to domestic cyclicals. |
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Performance Report: Bennelong Kardinia Absolute Return Fund
23 Jan 2020 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +4.68% with a volatility of 5.05% over CY2019. Since inception in May 2006, the Fund has returned +8.74% p.a. with an annualised volatility of 7.03%.
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23 Jan 2020 - 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 returned -2.84% in December, with health care and information technology stocks reversing the gains from last month. Positive contributors during the month included Lifestyle Communities, Rio Tinto, Magellan, Aerometrex and Charter Hall. Key detractors included SPI Futures, Paradigm, Goodman Group, EML Payments and Ecofibre. The Fund's net equity market exposure was held steady at 74.2% (83.6% long and 9.4% short), with the key changes being a new position in Aerometrex, increased weightings in BHP, Commonwealth Bank, CSL and Rio Tinto, partially offset by the sale of Paradigm, Ecofibre and Clover and four new short positions. |
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Performance Report: Bennelong Twenty20 Australian Equities Fund
22 Jan 2020 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund rose +25.70% over CY2019 versus the ASX200 Accumulation Index's +23.40%. Since inception in November 2009, the Fund has returned +10.59% p.a. versus the Index's +8.30%.
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22 Jan 2020 - Performance Report: Bennelong Twenty20 Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is managed as one portfolio but comprises and combines two separately managed exposures: 1. An investment in the top 20 stocks of the markets, which the Fund achieves by taking an indexed position in the S&P/ASX 20 Index; and 2. An investment in the stocks beyond the S&P/ASX 20 Index. This exposure is managed on an active basis using a fundamental core approach. The Fund may also invest in securities expected to be listed on the ASX, securities listed or expected to be listed on other exchanges where such securities relate to ASX-listed securities.Derivative instruments may be used to replicate underlying positions and hedge market and company specific risks. The companies within the portfolio are primarily selected from, but not limited to, the S&P/ASX 300 Accumulation Index. The Fund typically holds between 40-55 stocks and thus is considered to be highly concentrated. This means that investors should expect to see high short-term volatility. The Fund seeks to achieve growth over the long-term, therefore the minimum suggested investment timeframe is 5 years. |
| Manager Comments | The Fund fell in line with the market in December, returning -2.14% versus the Index's -2.17%. Over the quarter the Fund returned +1.89% versus the Index's +0.68%. Bennelong point out the relative performance of the Fund versus the benchmark depends on the ex-20 sleeve of the portfolio. The largest contributors to outperformance over the quarter were Fisher & Paykel Healthcare and Viva Leisure. The main detractor over the quarter was Afterpay, which Bennelong noted gave back some of the outperformance delivered in previous periods. Bennelong believe many of the social, political and economic uncertainties that overshadowed markets over 2019 remain. They expect the ASX to produce reasonable returns over the medium term, albeit with ups and downs along the way. |
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Performance Report: 4D Global Infrastructure Fund
22 Jan 2020 - Australian Fund Monitors
The 4D Global Infrastructure Fund rose +1.34% in December, taking 12-month performance to +29.38% and annualised performance since inception in March 2016 to +14.33%.
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22 Jan 2020 - 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 portfolio performer for the month was Brazilian renewable player AES Tiete up 28.1%. 4D noted the company is successfully executing its diversification strategy. The Fund's top performer over CY2019 was Cellnex, up +99% as it successfully executed its growth strategy. The weakest performer in December was Chilean water operator Aguas Andinas, down -3% as a result of ongoing political concerns. The Fund's weakest performer over CY2019 was global port operator DPWorld, down -21% as trade wars and political conflict weighed on the stock. 4D believe DPWorld is offering very attractive value at current levels. 4D Infrastructure noted 2019 was a strong year for the infrastructure sector as well as for the portfolio. Heading into 2020, with a macro backdrop of slower growth and lower interest rates (but no imminent recession), the portfolio remains overweight user pay assets and overweight emerging markets. 4D's biggest concern remains ongoing geopolitical issues compounded by the 2020 US election. |
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Performance Report: Cyan C3G Fund
20 Jan 2020 - Australian Fund Monitors
The Cyan C3G Fund rose +19.54% over CY19, taking annualised performance since inception in August 2014 to +18.14% versus the ASX200 Accumulation Index's +7.89%.
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20 Jan 2020 - 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 | Despite pulling back -4.2% in December and -8.8% over Q4, the Fund ended CY19 up +19.5%. Cyan put the recent retracement down to a lack of momentum resulting in smaller stocks being sold off aggressively for no particular fundamental reason, and widespread forced selling of smaller cap ASX stocks due to a number of bigger institutional funds pulling large mandates from Cyan's competitors. During December the Fund generated some strong positive performance from three recent IPO's - Carbon Revolution (CBR), Aerometrix (AMX) and Amearo (3DA). Key detractors included Alcidion (ALC), Atomos (AMS), Quickstep (QHL), Oventus (OVN), Readcloud (RCL), Victory Offices (VOL) and Jaxsta (JXT). So far in January 2020 the Fund has already pared back more than half its December losses. Cyan's view is that, on the whole due to little negative underlying news, the new year is starting from an attractive base and they hold good hopes for another profitable year in 2020. |
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Performance Report: Paragon Australian Long Short Fund
17 Jan 2020 - Australian Fund Monitors
The Paragon Australian Long Short Fund outperformed the ASX200 Accumulation Index by +2.47% in December, taking 12-month performance to +24.69% and annualised performance since inception in March 2013 to +9.90%.
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17 Jan 2020 - 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 Paragon Australian Long Short Fund outperformed the ASX200 Accumulation Index by +2.47% in December, taking 12-month performance to +24.69% and annualised performance since inception in March 2013 to +9.90%. By contrast, the Index has returned +23.40% over the past 12 months and +8.65% p.a. since the Fund's inception. The Fund's down-capture ratio for performance over the past 12 months of -26.23% and for performance since inception of 41.02% highlight the Fund's capacity to significantly outperform in falling markets. Positive contributors for December included Adriatic and Atrum (resource upgrades), offset by declines in Audinate and Telix Pharma. In their latest report Paragon discuss the Fund's performance over the past 12 months, noting that the Fund outperformed almost all relevant indices. Their latest report also includes Paragon's 2020 outlook. In their view, many macro flags, such as central banks globally resuming quantitative easing and improvements in the US-China trade war, have turned green (from red a year ago). Around half of the Fund's exposure is in Resources (which includes the Fund's gold stocks) and the other half is in structural growth stocks across tech/medtech/fintech. Paragon anticipate near-term catalysts to drive ongoing re-ratings for many of the Fund's stocks and their performance for 2020 and beyond. |
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Performance Report: NWQ Fiduciary Fund
16 Jan 2020 - Australian Fund Monitors
The NWQ Fiduciary Fund Rose +1.68% in December, outperforming the ASX200 Accumulation Index by +3.85% and taking annualised performance since inception in May 2013 to +5.72% with an annualised volatility of 4.78%.
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16 Jan 2020 - 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 | NWQ noted market volatility was muted in December across the equity, currency and fixed income complexes. Positive reactions from investors on the US/China trade negotiations, the re-election of the Tory Government in the UK, and the additional liquidity provided by the Fed through its repo market interventions were generally supportive of global equities. The Fund's Alpha managers (+2.29% contribution) disproportionately contributed to overall performance, as is to be expected given their market neutral profile. |
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Performance Report: Bennelong Long Short Equity Fund
15 Jan 2020 - Australian Fund Monitors
The Bennelong Long Short Equity Fund rose +2.36% in December, outperforming the ASX200 Accumulation Index by +4.53% and taking annualised performance since inception in February 2002 to +15.55% versus the ASX200 Accumulation Index's +8.35%.
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15 Jan 2020 - Performance Report: Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | During the month, 20 out of 30 pairs were profitable, with no disproportionate individual pair contribution. Almost all positive pairs derived profit from the short side and vice versa loss-making pairs were driven by the long side. Portfolio activity included the introduction of a new pair in the materials sector. The top performing pair for the month was long ALS (ALQ) / short Aurizon (AZJ), while the worst performing pair was long Brambles (BXB) / short Amcor (AMC). |
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Performance Report: Insync Global Capital Aware Fund
20 Dec 2019 - Australian Fund Monitors
The Insync Global Capital Aware Fund rose +4.54% in November, outperforming AFM's Global Equity Index by +0.14% and taking CYTD performance to +33.59% vs the Index's +27.55%. The Fund has returned +11.38% p.a. with an annualised volatility...
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20 Dec 2019 - 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 | September and October saw a cyclical rotation towards value-based stocks which affected the short-term performance of the Fund. However, Insync noted the one area of consistency in this cycle has been the performance of quality growth companies. Their view is that current market conditions continue to reflect the trend in place since the GFC of low growth and low inflation. Positive contributors in November included Walt Disney, Adobe, Accenture and Amadeus. Detractors included Stryker, Zoetis, IDEXX Laboratories and Booking Holdings. Insync continues to have no currency hedging in place as they consider the main risks to the Australian dollar to be on the downside. |
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