News
Performance Report: Paragon Australian Long Short Fund
25 Oct 2019 - Australian Fund Monitors
The Paragon Australian Long Short Fund has returned +10.48% p.a. since inception in March 2013. By contrast, the ASX200 Accumulation Index has returned +8.88% p.a. over the same period.
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25 Oct 2019 - 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 has returned +10.48% p.a. since inception in March 2013. By contrast, the ASX200 Accumulation Index has returned +8.88% p.a. over the same period. The Fund has a down-capture ratio of performance of 40%, indicating that, on average, the Fund has significantly outperformed in falling markets since inception. The Fund returned -3.1% in September. Positive contributors included Atrum, Jumbo and Nickel Mines. These were offset by declines in iSignthis, Agrimin and the Fund's gold holdings. Paragon noted in the previous bull cycle of 2009 - 2011, gold had ten corrections greater than 5% amid its 167% gain. Their view is that volatility in gold bull cycles is a given and historically being patiently invested has paid very well. During the month Paragon visited Atrum's Elan project in Canada and Adriatic released initial metallurgical resutls, both surprising to the upside and discussed in more depth in the Fund's September report. Paragon noted that whilst they're pleased with Atrum's stock price doubling since initiating their position in February, they believe there remains considerable upside ahead. |
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Fund Review: Bennelong Long Short Equity Fund September 2019
25 Oct 2019 - Australian Fund Monitors
Latest Fund Review for the Bennelong Long Short Equity Fund is now available. The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large-caps from the ASX/S&P100 Index...
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25 Oct 2019 - Fund Review: Bennelong Long Short Equity Fund September 2019
By: Australian Fund Monitors
AFM Fund Review - September 2019 (pdf format)
BENNELONG LONG SHORT EQUITY FUND
Attached is our most recently updated Fund Review on the Bennelong Long Short Equity Fund.
- The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large-caps from the ASX/S&P100 Index, with over 16-years' track record and an annualised returns of 14.90%.
- The consistent returns across the investment history highlight the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market. The Fund's Sharpe Ratio and Sortino Ratio are 0.89 and 1.45 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - September 2019 (pdf format)
Fund Review: Bennelong Twenty20 Australian Equities Fund September 2019
24 Oct 2019 - Australian Fund Monitors
The latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available. The Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of ex-20 stocks.
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24 Oct 2019 - Fund Review: Bennelong Twenty20 Australian Equities Fund September 2019
By: Australian Fund Monitors
AFM Fund Review - September 2019 (pdf format)
BENNELONG TWENTY20 AUSTRALIAN EQUITIES FUND
Attached is our most recently updated Fund Review on the Bennelong Twenty20 Australian Equities Fund.
- The Bennelong Twenty20 Australian Equities Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of stocks outside the Top 20. Construction of the ex-top 20 portfolio is fundamental, bottom-up, core investment style, biased to quality stocks, with a structured risk management approach.
- Mark East, the Fund's Chief Investment Officer, and Keith Kwang, Director of Quantitative Research have over 50 years combined market experience. Bennelong Funds Management (BFM) provides the investment manager, Bennelong Australian Equity Partners (BAEP) with infrastructure, operational, compliance and distribution services.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - September 2019 (pdf format)
Performance Report: Quay Global Real Estate Fund
23 Oct 2019 - Australian Fund Monitors
The Quay Global Real Estate Fund returned +0.9% in September, including a -0.1% return from currency. Since inception in January 2016, the Fund has returned +11.73% p.a. with an annualised volatility of 10.31%.
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23 Oct 2019 - Performance Report: Quay Global Real Estate Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will invest in a number of global listed real estate companies, groups or funds. The investment strategy is to make investments in real estate securities at a price that will deliver a real, after inflation, total return of 5% per annum (before costs and fees), inclusive of distributions over a longer-term period. The Investment Strategy is indifferent to the constraints of any index benchmarks and is relatively concentrated in its number of investments. The Fund is expected to own between 20 and 40 securities, and from time to time up to 20% of the portfolio maybe invested in cash. The Fund is $A un-hedged. |
| Manager Comments | The three best contributors for the month in order were Brixmor (US Retail), Unite Group (UK Student Housing) and Coresite (US Data Centres). The largest detractors were Leg Immobilon (German Apartments), Scentre (Aust Retail) and Shurgard (Euro Storage). The investment team noted that during the month they met with investees, their competitors and potential investment opporunities from the US, UK, Europe and Hong Kong. There were no new additions or deletions from the Fund during the month. |
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Performance Report: Bennelong Australian Equities Fund
23 Oct 2019 - Australian Fund Monitors
The Bennelong Australian Equities Fund rose +2.23% in September, outperforming the ASX200 Accumulation Index by +0.39% and taking annualised performance since inception in February 2009 to +13.74% versus the Index's +11.01%.
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23 Oct 2019 - 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 | Over the September quarter than Fund returned +4.55% against the Index's +2.37%. Bennelong noted most portfolio holdings announced very strong financial results during reporting season in August which were largely in line with the investment team's expectations. Bennelong added that these results provided evidence of strong business momentum, better than expected near-term outlooks and bright longer-term prospects. Top contributors included Treasury Wine Estates, Reliance Worldwide and Afterpay. Bennelong believe it is becoming increasingly important to be selective when investing in equities, particularly given earnings risks appear to be on the way up. They have positioned the Fund appropriately and see it offering an attractive risk-reward proposition. |
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Performance Report: Bennelong Twenty20 Australian Equities Fund
22 Oct 2019 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund rose +3.13% in September, outperforming the ASX200 Accumulation Index by +1.29%. Since inception in November 2009, the Fund has returned +10.66% p.a. versus the Index's +8.44%.
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22 Oct 2019 - 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 | Over the September quarter the Fund rose 5.5%, outperforming the Index by +3.13%. This outperformance owes itself to the outperformance of the ex-20 stocks chosen for the portfolio. Bennelong noted most of these ex-20 stock holdings announced very strong financial results during reporting season in August which were largely in line with the investment team's expectations. Top contributors included BWX, Afterpay and Resmed. Major detractors included REITs (particularly Goodman and Dexus Property) and the Gold sector (in which the Fund is underweight but which performed strongly). |
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Performance Report: Glenmore Australian Equities Fund
21 Oct 2019 - Australian Fund Monitors
The Glenmore Australian Equities Fund rose +2.60% in September, outperforming the ASX200 Accumulation Index +0.76% and taking annualised performance since inception in June 2017 to +31.76% versus the Index's +11.63%.
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21 Oct 2019 - Performance Report: Glenmore Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The main driver of identifying potential investments will be bottom up company analysis, however macro-economic conditions will be considered as part of the investment thesis for each stock. |
| Manager Comments | The Fund's Sharpe and Sortino ratios for performance since inception, 2.08 and 3.97 respectively, by contrast with the Index's Sharpe of 1.15 and Sortino of 1.80 for performance over the same period, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst avoiding the market's downside volatility over the long-term. The Fund's up-capture and down-capture ratios, 212.5% and 66.1% respectively, indicate that, on average, the Fund has significantly outperformed in both rising and falling markets. Top contributors in September included VGI Partners, Dicker Data and AP Eagers. Detractors included Bravura Solutions, Hotel Property Investments and People Infrastructure. |
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Performance Report: 4D Global Infrastructure Fund
18 Oct 2019 - Australian Fund Monitors
The 4D Global Infrastructure Fund rose +2.22% in September, outperforming its benchmark (OECD G7 Inflation Index +5.5%) by +1.75% and taking annualised performance since inception in March 2016 to +14.68%.
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18 Oct 2019 - 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 in September was Brazilian toll road operator Ecorodovias, up +13.7% following finalisation of the Leniency Agreement in Parana state in August as well as a month-end auction win of the BR364/365 toll road which extends their growth pipeline. The weakest performer was Chinese gas distributor ENN Energy, down -9.4% due to a planned stakeholder change in the Group which raised concerns on governance. 4D noted that, despite a slowing global macro environment, it remains supportive of their overweight positioning to user pay assets. However, ongoing geo-political issues see them limiting exposure to certain regions (e.g. UK). |
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Fund Review: Insync Global Capital Aware Fund September 2019
16 Oct 2019 - Australian Fund Monitors
Latest Fund Review on Insync Global Capital Aware Fund is now available. The Global Capital Aware Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend...
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16 Oct 2019 - Fund Review: Insync Global Capital Aware Fund September 2019
By: Australian Fund Monitors
AFM Fund Review - September 2019 (pdf format)
INSYNC GLOBAL CAPITAL AWARE FUND
Attached is our most recently updated Fund Review on the Insync Global Capital Aware Fund.
We would like to highlight the following:
- The Global Capital Aware Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - September 2019 (pdf format)
Performance Report: Bennelong Kardinia Absolute Return Fund
14 Oct 2019 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund has returned +9.04% p.a. with an annualised volatility of 7.01%. By contrast, the ASX200 Accumulation Index has returned +6.41% p.a. with an annualised volatility of 13.14%.
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14 Oct 2019 - 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 -0.35% in September, with the short book dragging on performance. Top contributors included Paradigm Biopharmaceuticals (+25bp contribution), City Chic (+21bp), Westpac (+19bp), Nickel Mines (+17bp) and Independence Group (+17bp). Detractors included Appen (-16bp), Evolution (-15bp), Atlas Arteria (-14bp) and Charter Hall (-14bp). The largest detractor was the individual short book (-44bp), with Bellamy's the subject of a takeover bid and shorts in technology, oil and gold stocks impacting performance. Net equity market exposure was increased from 20.3% to 47.9% (51.5% long and 3.6% short), with the key changes being new positions in Boral, Corporate Travel, Cleanaway and Woodside Petroleum, increased weightings in Macquarie Group, James Hardie and Aristocrat, the closure of the Fund's short position in Share Price Index Futures, partially offset by the sale of Westpac and Telstra. |
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