Hedge Clippings | Friday, 26 November 2021

Crypto: Fad, the Future, or Forever?

Last week's Hedge Clippings reflected on the different views on cryptocurrencies, with the RBA's outgoing Head of Payments Policy, Toby Richards considering them a fad, while the CBA's Matt Comyn putting his (or at least his shareholders') money where his mouth is or was, by both embracing and investing in the sector, even if not in a coin of its own.

We suspect that time will come however, and not in the too distant future.  Meanwhile, this week the Financial Services Minister, Jane Hume weighed into the argument in no uncertain terms, saying crypto is not a fad, albeit that people should proceed with some caution. Which of course is by nature where the RBA's views on most things come from.

Hedge Clipping's view is that markets being markets, and human nature being what it is, Crypto is here to stay. That doesn't mean it won't evolve further in the future - as it has done over its relatively brief past. In fact, as it is a cross between a currency and technology, it is bound to do so.

Which is what we think Minister Hume was getting at. Technology by definition evolves, and if you hadn't noticed, the pace of that technological evolution is accelerating. Sony's Walkman evolved - or were replaced by the iPod, which was replaced by the iPhone. Steam was replaced by the internal combustion engine, which will be replaced by battery driven electric vehicles, and no doubt, in due course by hydrogen - or whatever comes after that.

Technology needs evangelists, and crypto is not short of those, although understanding them and "crypto speak" is not for the faint hearted. However much we try, some of the lingo is akin to Swahili, even though we believe in the future. Maybe it would be easier if we were 30 or 40 years younger, or had accepted that wearing a baseball cap, back to front, while inside, was a cool thing to do, rather than something to make you look stupid.

Crypto will become mainstream when the mainstream is able to understand it, and/or when it is easy enough to access and use - hence why CBA is no doubt wanting to be at the front of the crypto ATM queue. Except nobody really uses ATM's anymore, having switched to Apply pay, or waving a magic watch at the checkout counter.

Critics of crypto can find plenty of reasons to condemn it - its use by criminals, lack of regulation, risk etc. But at the end of the day the reason most of them are critical is that either they don't understand it, or can't work out how to do so, or are (rightfully) scared of the volatility risk. Of course with no volatility, much of the trading potential evaporates.

In the meantime there are going to be the early adopters - arguably 20% of the population according to some of the evangelists - prepared to take the risk, or for those still interested, but less risk inclined, who will explore further or invest via the increasing number of managed funds, LIC's or ETF's either investing directly or in the technology or infrastructure behind it.

Some will be driven to invest by FOMO. But whether a Fad, the Future, or otherwise, our view is it will be Forever - until replaced - like the Walkman - via the forces of technological evolution.

Which reminds us of the old saying - "unless you can embrace change as it is happening, you will be left behind trying to play catch up". And it is worth remembering Thomas Watson, head and founder of IBM, who is reported to have once predicted that the world would only need five computers...

News & Insights

New Funds on Fundmonitors.com

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Surrey Australian Equities Fund

Bennelong Twenty20 Australian Equities Fund

Insync Global Quality Equity Fund

Bennelong Concentrated Australian Equities Fund

Quay Global Real Estate Fund

Bennelong Kardinia Absolute Return Fund

Hedge Clippings | Friday, 19 November 2021

Interest Rates and Crypto - Another case of having to agree to disagree.

In case you think from the above headline that Hedge Clippings believes there's any correlation between interest rates and crypto, that's not the case. However, given that rates have flatlined for so long, or at least been going downhill for the past 30 years, and a chart of Bitcoin (or any of the 10,000+ other crypto currencies) makes the Himalaya's look flat, maybe the lack of correlation has more relevance.

What we are referring to is that the views of the RBA on the direction of interest rates, and the future relevance of crypto currencies, both seem to be out of step with the views of those outside the protective walls of the Bank's offices in Martin Place.

Since their latest board meeting the RBA might have slightly adjusted their previous stance that rates won't rise until 2024, but they're pretty set in their view, and probably with good reason: Any significant rate rise will stop the economy dead in its recovery tracks. Their argument seems to be that the current inflationary pressures are short term, caused by pandemic induced supply chain issues and shortages. Once this inflationary "bulge" works its way through the economy, it will be back to the status quo. In any event, an early rate rise won't fix the shortage of labour, materials or container ships.

Out on the street, the bond market is not so sure, with 10 year bond yields almost doubling in the past 12 months. If the market is correct, the property market may be facing some interesting times.

Meanwhile the RBA's view on crypto currency seems to be out of kilter with the street as well. Toby Richards, the RBA's outgoing head of payments policy, says the bank views crypto is a fad, and it is set to fade away. He covered his options slightly by saying there are "plausible scenarios" where a "range of factors" could see speculative demand for crypto assets unwind. Which sounds like having a bet each way.

Even CBA's CEO Matt Comyn's views are different -  the bank having bought a stake in crypto exchange Gemini, while also supporting the idea of central bank digital currencies, and presumably in due course one issued by the CBA as well.  

Which also sounds like he's also having a bet each way.

Meanwhile the interest in crypto by investors and/or punters, young and old, sophisticated or otherwise, is on the rise, with some "experts" - possibly talking their own book - claiming 20% of the Aussie population are trading them. Volatile they may be, but to many we suspect that's half (or more) of the attraction.

Bitcoin, the daddy of all cryptos, is currently trading at US$56,016, down from $68,990 earlier this month, but up from its 52 week low of $16,235. In the meantime, it reached $61,195 in early March, before halving by June - whereupon it doubled again.

Speculative - undoubtedly, but therein lies the attraction to many, a Fear of Missing Out (FOMO) to others, and to the remainder, fear full stop.

FundMonitors.com is seeing a small but growing range of funds in the crypto space, ranging from ETF's investing in crypto related businesses, single funds and funds of funds, through to funds tracking single or multiple "coins". Strategies vary from simple (!) long only, long/short, through to technically complex but low risk arbitrage "market neutral" high frequency funds such as DAFM's Digital Opportunities Class, which in spite of the underlying asset's volatility, has yet to report a negative month and has returned 42% in the first 6 months of its existence*.

So the RBA's view is understandably one of caution, as it should be. But while the space is still evolving, and may be a fad to some, we very much doubt it is going away.

*Past performance is not guaranteed.

News & Insights

Crypto Revolution in Gaming |  by Frazis Capital Partners

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October 2021 Performance News

Prime Value Emerging Opportunities Fund

Bennelong Long Short Equity Fund

Delft Partners Global High Conviction Strategy

Longlead Pan-Asian Absolute Return Fund

Frazis Fund

Premium Asia Fund

Paragon Australian Long Short Fund

Insync Global Capital Aware Fund

Hedge Clippings | Friday, 12 November 2021

Inflation:

If you haven't noticed, there's a major debate underway about inflation. The debate is not about inflation per se, as it is pretty clear inflation is, after a long period of decline or dormancy, rebounding. Figures out of the US this week showed consumer prices jumping 6.2% in October, the biggest jump in 30 years, which will spill over to the world, and to Australia as well.

Australia of course has its own inflationary pressures, with supply chain issues thanks to COVID, particularly in the building industry, and higher petrol prices. In addition, in certain sectors labour costs are on the rise, as the shortage of foreign workers begins to hit home, in spite of an increase in unemployment in October to a six month high of 5.2%.

So inflation is here. The debate is firstly around how long it is going to last? The RBA believes (or hopes) it will be temporary, as the effects of COVID pass through the system, and then subsides such that they won't need to raise interest rates until 2023. Others, particularly the bond market, aren't quite so sure pointing to the US 5 Year Treasury yield which has been rising since September. As a result, borrowing costs for fixed rate mortgages are already on the rise.

Australia is not the only country in the world to have a runaway property market and a large number of overindebted homeowners who will be at serious risk if rates were to (or when they) rise, albeit from current record low levels. However, while even a 1% rise in official rates is going to cause some grief, anything much more than that - say 2% - is likely to have a serious downward effect on the property market, and flow on effect on an economy which is just getting off its COVID induced knees.

Moving on:

On the political side this week it was former PM Paul Keating's turn to weigh into the ex PM's ring - presumably upset that Malcolm Turnbull had been grabbing all the limelight in his desperate quest for revenge following his rejection by voters. Keating seemed to think that letting China invade and subjugate Taiwan was nothing to do with Australia, and we should keep our noses out of it.

As much as we might like to not get involved if such an event occurred, trying to ignore it won't stop it from happening. And what Keating is presumably going on about is the fact that we now have an alliance with the US and UK, which goes way beyond simply purchasing nuclear powered submarines. Keating's dislike, or disdain, for both the US and UK is well known, as is his attachment to French clocks. Maybe both he and Malcolm could cosy up to President Macron (who Turnbull seems to think is Bonaparte reincarnated) at the same time?

And one final word on Glasgow: From where we were standing, watching or reading, there wasn't much focus on nuclear energy as a partial solution to the very real issue of global warming. It was therefore pleasing to read that Rolls Royce has raised almost $1 billion in government and private equity funding for their "small scale modular nuclear reactor" design. Long term readers of Hedge Clippings might recall we've banged this drum before, but if we're going to have nuclear powered submarines, why not nuclear powered electricity?

The anti-nuclear brigade will quote the safety red-herring - but the technology has moved on since the days of Three Mile Island in 1979, or Chernobyl in 1986, or even Fukushima in 2011. The chart below shows the deaths from energy related accidents over the past 40 years per unit of energy, and nuclear is less than even solar!

For those wanting some light week-end reading on nuclear safety, click here.

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October 2021 Performance News

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Bennelong Emerging Companies Fund

Collins St Value Fund

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Cyan C3G Fund

DS Capital Growth Fund

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Hedge Clippings | Friday, 05 November 2021

There was so much happening this week that Hedge Clippings hardly knows which way to look: Maybe Tuesday's Cup Day (or celebrations thereof) didn't help, and the RBA obviously didn't want to spoil their day either, leaving rates on hold, but with a not so subtle hint, both here and from the US Fed, that this might not last forever.

On the political front, Scomo's tiff with an indignant French President took over the headlines. It seems both are probably playing politics, but not to be outdone Malcolm (dead cat) Turnbull and Kevin Rudd both joined the fray, and had we actually been at war with France, rather than in a commercial negotiation, both would probably be worthy of a court martial for treason.

Phillip Coorey probably summed up both their involvements best in today's AFR:

"Turnbull and Rudd could co-author a book: If Being Prime Minister is So Easy, Why Were We So Bad At It?"

Enough of politics!

We were excited to announce a new website for FundMonitors.com earlier this week. Along with a new logo, including for Hedge Clippings, the entire site has received a makeover, including a new home page which includes a Peer Group Comparison and an updated News section on the home page.

We have also introduced three new fund "views" or narrative reports to add to each fund's existing Fund Profile,
 

1. A one page FACT Sheet, with key information, and cumulative performance and drawdown charts designed to allow every registered user access to key information on every fund on a "Forever Free" basis;
2. A Performance Summary, including a "Quintile" ranking showing each fund's relative performance vs. its peer group across 6 KPI's, and over various time frames;
3. A full Performance Analysis report that includes data, charts, and narrative against both the fund's underlying index and the average of its Peer Group.

Each of these reports will be updated monthly, including the performance narrative.

We're always keen to get feedback from our clients and users - in fact many of the new initiatives we have introduced came from their suggestions or requests. For instance, the new Narrative Reports resulted from users' feedback that a whole page of numbers and statistics could be overwhelming. The result? New reports with a combination of data and charts, and a narrative description of the fund's key performance indicators.

Please check out FundMonitors.com and let us know what you think.

Many users of the FundMonitors.com website are investors seeking information to help them compare, research, and invest in managed funds. However, many users also require the site's tools, such as Watch Lists, Portfolios, and Custom Statistics. To accommodate users' different requirements, we have added a range of subscriber levels, including "Forever Free" which provides access to the home page, news, videos, and a FACT Sheet for every fund.

We look forward to announcing further new initiatives we have in the pipeline. Meanwhile, if you have any questions about any of the above, please let me know.

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Inching Towards Normal But Not Without Risks | article by Delft Partners

Market volatility does not change key drivers of the share market | article by Prime Value Asset Management

October 2021 Performance News

AIM Global High Conviction Fund

Hedge Clippings | Friday, 29 October 2021

Risk Warnings - protecting the investor or the fund issuer?

Anyone who has ever invested in a managed fund should be well aware of the "Risks" section in the offer document, with probably the most well known one relating to past performance. With due respect to our legal friends, and if it comes to that, ASIC as the regulator, it strikes Hedge Clippings that the section on risk is more likely to be there to reduce the risk to the fund manager as much as, or possibly even more than, the investor.

There may be a number of reasons for this, but whether the investor actually reads the risk section (normally tucked well towards the back of the PDS or IM), or fully understands them doesn't make a lot of difference: On the application form - paper or via Olivia123's online application solution - the investor acknowledges they've both read and understood the risks.

Hedge Clippings is not suggesting that the fund managers or their legal advisers are doing anything wrong or underhand, and 99% of the time they're above board (the other 1% being outfits like Mayfair 101). ASIC's recently introduced TMD (Target Market Determination) regime has attempted to rectify this, but it remains prescriptive, and depending how it is implemented, it remains to be seen who it protects more - the product issuer, or the investor.

So Hedge Clippings thought we'd come up with our own series of risk warnings for investors - they might not be "advice" in the legal sense of the word, but these "Rules" might be helpful in avoiding some well known pitfalls.

Rule Number 1: Diversify!

Commonly known as "not putting all your eggs in one basket". Diversifying might reduce your returns in the good times, but diversifying across asset classes, strategies and managers reduces your risk when compared with investing in a single asset or managed fund.

Rule number 2: Correlation!

Diversification doesn't help if all the assets (or funds) you invest in are highly correlated - in a market shakeout or period of under-performance they're all likely to move in the same direction.

Rule Number 3: Ignore the hype! (also known as "fear of missing out" or FOMO)

Investing (as opposed to speculating, or punting) is for the long term. There may be a frenzy about this or that, but these come and go. Think tulips and "Tulip Mania", which occurred in Holland in the early 1600's. There have been bubbles since, and there will be in the future - and some will see Crypto as hype, although not all crypto funds are the same. Still suffering from FOMO? Invest, but refer to Rule Numbers 1 and 2, and then number 4.

Rule Number 4: Look before you leap!

Otherwise known as "doing your research" - we could bundle up a series of rules under this one. In the building industry there's an old saying "Measure twice. Cut once". At FundMonitors we refer to it as Compare, Research, and then Invest.

Rule Number 5: Words are words, but only performance is reality.

This also covers a range of warnings. How often have we heard the sad tales of poor investments - or total loss (Mayfair 101 again) based on the premise such as "I liked the manager" or "my friend recommended..."

Rule Number 6: Understand the Ratios!

There's a whole box full of ratios and formulas used in the research reports. Sharpe, Sortino, Up Capture, Down Capture, Drawdown, Alpha, Beta - and that's before we start on fees and high water marks. If you're going to do your own research, it's worth getting your mind around them.

Rule Number 7: Fees aren't always bad!

Now this becomes tricky. High fees and poor performance are bad. So by the way, are low fees and poor performance. Generally in life you tend to get what you pay for - a good glass of wine for instance, is normally better than a glass from a box of Chateaux Cardboard, even though they contain the same alcoholic content. So when evaluating fees, make sure you're getting what you pay for.

Rule Number 8: Understand your risk and reward tolerance - or "know thyself".

All investments involve risk. (That's straight out of the offer documents!). What's your tolerance for risk? To be fair that's part of what ASIC's new TMD regime mentioned above is all about.

Rule Number 9: Markets Fluctuate! So does manager and fund performance.

This could be Rule number 3 below Diversification and Correlation, but it's not quite so clear cut. As we've pointed out in the past, the Top 10 performing funds in the five years to 2015 is a different group to the Top 10 to 2020. While investing in managed funds is a long term exercise, it's not set and forget.

Rule Number 10: Take Professional Independent Advice!

We recently saw a statistic that only 15% of Australians use a financial advisor. There may be all sorts of reasons for that, including some of the evidence presented to the Hayne Royal Commission. If you understand the above rules, by all means do your own research. If not, you should probably seek expert advice. If you're going to use an advisor make sure they're independent and recommended. But that's probably opened up another set of rules for another edition of Hedge Clippings.

News & Insights

New Funds on Fundmonitors.com

Under The Microscope: Thermo Fisher Scientific | article by Aitken Investment Management

Investment Perspectives: Don't fear the taper | article by Quay Global Investors

10k Words - October Edition | article by Equitable Investors

September 2021 Performance News

Laureola Australia Feeder Fund

Glenmore Australian Equities Fund

Bennelong Twenty20 Australian Equities Fund

Premium Asia Fund

Frazis Fund

Insync Global Quality Equity Fund

Bennelong Long Short Equity Fund

Hedge Clippings | Friday, 22 October 2021

Every so often the "Active vs. Passive" argument rolls around, which depending on which side of the debate one is on, allows you to prove - or at least argue the point - that active management is better in spite of the higher fees being charged, or conversely, that passive or index investing is as good or better, and cheaper.

As such, it might be safely assumed that Hedge Clippings leans towards the active side of the debate, given we list around 650 active funds for comparison on fundmonitors.com. However, as above, it's never quite that simple.

Firstly there's the data - and it's worth remembering the old adage "lies, damned lies, and statistics" simply because it is easy to find plenty of examples to prove either side of the argument. Equally, it's difficult not to win the argument that fees on passive funds are lower than their active cousins.

Statistics in this case generally revolve around either the average return of a certain type of fund, or the percentage which out, or underperform either the index, or their opposite numbers. And while quoting old adages, it's also worth remembering another one, namely "that when your feet are in the freezer, and your head is in the oven, overall your temperature is average."

Averages, although we frequently use or calculate them, can be useful (for instance when wanting to prove a point in an argument) or confusing. Maybe confusing is a little too strong, so let's just say they can be deceptive, or in the wrong hands can cloud the facts.

Taking the fundmonitors.com database of 134 actively managed equity funds investing in Australia with a five year track record to the end of September, again, depending on which side you're on, you can argue both sides as per the table below:

Assuming an index or passive ETF's returns are in line with the ASX 200 Total Return, you can get better performance with lower costs than many actively managed funds.

Or, wearing the active fund manager's hat, you can outperform the passive brigade by a factor of 2-3 times if you're in the best fund (which of course doesn't stay the same over each time period) but in round terms 50% of the active funds outperform. Sorry, other hat: 50% underperform. Take your pick!

Our point is this: Different strokes for different folks. Investing in passive funds is a suitable, low cost and simple way to gain exposure to the average return of the 200 companies which make up the ASX 200 index. Importantly, it requires limited knowledge or skill as such, and therefore may be suitable for small or early stage investors.

However, you're only going to get average performance.

Investing in active funds requires information and knowledge (your own, or that of a suitably qualified and knowledgeable advisor) among other attributes, which include time, and ongoing monitoring and attention. Above all, it requires the investor's understanding of their risk profile, and return objectives in selecting the correct funds.

Taking the time, and doing the research, can make a world of difference.

News & Insights

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Global Matters: Infrastructure, interest rates & inflation | article by 4D Infrastructure

September 2021 Performance News

Quay Global Real Estate Fund

Paragon Australian Long Short Fund

Insync Global Capital Aware Fund

Surrey Australian Equities Fund

Bennelong Emerging Companies Fund

4D Global Infrastructure Fund

Hedge Clippings | Friday, 15 October 2021

Headwinds, Tailwinds and Crosswinds.

In line with the wild weather that the Eastern half of Australia has endured over the past few days, this week Hedge Clippings thought we'd consider the factors presently governing markets - namely the macro headwinds, tailwinds and crosswinds facing the global economy.

For the past decade or so these have mainly been tailwinds: The growth of China, low interest rates, low inflation, QE, and massive liquidity providing easy credit, both to business and the consumer. Add the tailwinds of technology, and markets have benefitted from investors who have been happy to ignore record valuations, which by any historical standard have been stretched.

COVID created a storm - or at least a crosswind. However, looking forward there's likely to be a post COVID led recovery, partly as a result of stimulus, and partly through pent up consumer demand and accumulated bank balances, which will add to the above tailwinds, at least for a time. Luckily for treasurers globally that the massive increase in COVID induced government debt coincided with historically low borrowing costs.

And so to headwinds: Paradoxically some of these are the reversal of some of the tailwinds. China is slowing and facing a credit/property crisis. Inflation is emerging, partly as supply chains become stretched. Central banks are only months - or less - away from reducing their bond buying as inflationary concerns increase, and balancing that tapering, and keeping markets stable at the same time, will be a high wire act at best. Interest rates are as low as they're going to be, and can - or will - only increase in due course, which in turn will impact valuations.

Crosswinds are more difficult to predict, but as any student of aviation would know, can be more devastating, as COVID showed. China manages to feature as both a tailwind and a headwind, and depending on their actions (as opposed to intentions) regarding Taiwan, a major potential crosswind. As does climate change, although some would argue this should fall into the headwind category.

This week we spoke with Charlie Aitken about some of the challenges the markets are facing as a result of these winds. Charlie's an optimist, but a realistic one, and feels the markets are facing a few choppy months leading towards the end of the year. His solution is to buy good companies propelled by tailwinds, and less likely to be affected by crosswinds. Meanwhile, Damen Purcell spoke with Richard Ivers of Prime Value about the end of the market's positive 11 months run, and where he thinks it might head from here.

And while on the "climatic" theme, Scomo has his own wind issues to manage. Go to Glasgow (something most Englishmen have tried to avoid over the years) and come face to face with the global (and Royal) climate backlash, or stay at home, but still cop the criticism from afar? Or will he embrace, (or at least accept) climate change and seek to address it, and in so doing create massive headwinds from his coalition partners and the coal mining industry?

Who'd be a politician?

News & Insights

New Funds on Fundmonitors.com

Manager Insights Interview | video by Aitken Investment Management

Manager Insights Interview | video by Prime Value Asset Management

Sic Parvis Magna: Great Things from Small Beginnings | article by Aitken Investment Management

SMSFs: seek new investments or accept a possible humble retirement | article by Laureola Advisors

September 2021 Performance News

Cyan C3G Fund 

Prime Value Emerging Opportunities Fund

Premium Asia Fund

Equitable Investors Dragonfly Fund

Airlie Australian Share Fund

Bennelong Kardinia Absolute Return Fund

Longlead Pan-Asian Absolute Return Fund

Hedge Clippings | Friday, 08 October 2021

Last week Hedge Clippings dared to feel sympathy towards our current crop of politicians - something we're not normally accustomed to doing. We deliberately avoided mentioning the demise of NSW's Premier, Gladys, even though the news was hot off the press at the time. Suffice to say, we were saddened by her news as we genuinely believe, political preferences aside, that not only did she manage a difficult job well under extremely difficult conditions, but that she was undone by a bad choice of partner. Most of us can admit to having made the same mistake over the years. Some of us more than once, present company excepted.

To be fair, thanks to the federal/state system, devised as it was over 120 years ago at a time when communications and technology were vastly different, for a population of probably well under 5 million people, we have far too many politicians.

However, if we think we have too many current politicians, that pales into insignificance when one considers how many ex Prime Ministers are still doing the rounds. To save you Googling the answer, nine of the last ten PM's are still with us, and if you include also "almost" PM's, ten out of ten, as John Hewson would have been a Pwime Minister as well had he known the difference between a cake and a cabbage!

Unfortunately, with the exception of Julia Gillard, all of the ex's seem to think they are entitled to pontificate to their less than adoring public on whatever subject matter takes their fancy. Of course the media love it, and in particular in the case of Kevin Rudd and Malcolm Turnbull the French media at the current time.

It must be something in the personality of ex Prime Ministers, particularly those that had a relatively short term and/or unspectacular success in the top job such that either the electorate or their own party dumped them (in Kevin Rudd's case both). As a result, it seems that in retirement, complete with pension, they suffer from "relevantitus" a condition we've just coined to describe those that can't handle the fact that they are no longer relevant - except of course, to themselves.

OK, enough soap box for today. Back to managed funds and their performance.

As most fund managers would know, last Tuesday saw the introduction of new legislation involving a TMD, or Target Market Determination. Essentially this requires the issuer of retail funds to be very specific about the type of investor who should be investing in their product. At face value this is a great idea, because sooner or later an investor in the wrong product is going to result in tears. Or worse.

One issue with the TMD concept is that most equity based managed funds are considered to be suitable for a long term investment. However all too frequently the reality is that for a variety of reasons the performance of individual managed funds varies over time, including as a result of manager skill, or the interaction between the underlying strategy and prevailing market conditions.

As a result although nearly every offer document, and now nearly every fund's TMD suggests investing for the long-term, namely seven or eight years, the reality is that every portfolio requires constant evaluation, and adjustment along the way.

Diversification across a number of funds is a logical and sensible solution to overcome this. However, simply selecting a portfolio of the top 10 performing funds over the previous five years is no guarantee of their future performance. If you re-run the numbers five years later (as we do at fundmonitors.com) you may, or will, come up with a significantly different list of top 10 funds.

For instance, investing in a portfolio of the top 10 funds over 5 years to August 2016 would, over the following 5 years to August 2021, have returned 10.78% per annum - just below the ASX200's return of 10.94% over the same period.

Meanwhile investing in new portfolio the top 10 funds over the five years to August 2021 would have returned 16.11% per annum, so your capital would have grown by 68% more by switching or re-weighting.

Of course investing based on past numbers and with the benefit of hindsight is simple. Ask any economist. In the real world, it is not so easy.

News & Insights

New Funds on Fundmonitors.com

Space exploration is going private | article by Magellan Asset Management

Traditional Markets Stable in August; Trouble in September | article by Laureola Advisors

Touch gives investors a slice of Afterpay talent | article by Cyan Investment Management

August 2021 Performance News

Insync Global Capital Aware Fund

September 2021 Performance News

Bennelong Concentrated Australian Equities Fund

Collins St Value Fund

AIM Global High Conviction Fund

DS Capital Growth Fund

Delft Partners Global High Conviction Strategy

Bennelong Australian Equities Fund