Fund Review: Bennelong Twenty20 Australian Equities Fund August 2019

16 Sep 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.

Performance Report: 4D Global Infrastructure Fund

13 Sep 2019 - Australian Fund Monitors

The 4D Global Listed Infrastructure Fund rose +1.26% in August, outperforming its benchmark (OECD G7 Inflation Index +5.5%) by +0.63%. Since inception in March 2016, the Fund has returned +14.34% per annum with an annualised volatility of 9.15%.

13 Sep 2019 - Performance Report: 4D Global Infrastructure Fund

By: Australian Fund Monitors

Report Date	13 September 2019
Manager	4D Infrastructure, a Bennelong boutique
Fund Name	4D Global Infrastructure Fund
Strategy	Infrastructure
Latest Return Date	August 2019
Latest Return	1.26%
Latest 6 Months	11.98%
Latest 12 Months	23.24%
Latest 24 Months (pa)	14.02%
Annualised Since Inception	14.34%
Inception Date	07 March 2016
FUM (millions)	AU$52
Fund Overview	The 4D Global Infrastructure Fund aims to outperform the OECD G7 Inflation Index +5.5% p.a. over the long term by identifying quality listed global infrastructure securities, trading at or below fair value with sustainable, growing earning combined with sustainable, growing dividends. 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 4D Global Listed Infrastructure Fund rose +1.26% in August, outperforming its benchmark (OECD G7 Inflation Index +5.5%) by +0.63%. Since inception in March 2016, the Fund has returned +14.34% per annum with an annualised volatility of 9.15%. The strongest portfolio performer for August was US water operator American Water Works (AWK), up +11.4% for the month. 4D noted AWK is a strong regulated utility benefiting from a pipeline of replacement spend and a market flight to safety. The weakest performer was global port operator DP World (DPW), down -9.1% on the back of global concerns of slowing growth, middle-east conflict and increased US/China trade tensions. 4D's view is that DPW's global footprint offers strong diversified exposure and they believe it is now offering some of the most attractive value within the universe after being completely oversold. 4D noted that, despite a slowing global macro environment, they believe it remains supportive of the Fund's overweight to user pay assets. However, they also believe ongoing geopolitical issues see the Fund avoiding certain markets until issues are resolved (e.g. Brexits).
More Information	Fund Profile Manager's Report

Performance Report: Cyan C3G Fund

13 Sep 2019 - Australian Fund Monitors

The Cyan C3G Fund outperformed the ASX200 Accumulation Index by +2.46% in August, returning +0.1%. Since inception in August 2014, the Fund has returned +19.65% p.a. versus the Index's +7.89%.

13 Sep 2019 - Performance Report: Cyan C3G Fund

By: Australian Fund Monitors

Report Date	13 September 2019
Manager	Cyan Investment Management
Fund Name	Cyan C3G Fund
Strategy	Equity Long
Latest Return Date	August 2019
Latest Return	0.10%
Latest 6 Months	15.27%
Latest 12 Months	4.03%
Latest 24 Months (pa)	10.37%
Annualised Since Inception	19.65%
Inception Date	24 July 2014
FUM (millions)	AU$37
Fund Overview	The Cyan C3G Fund operates as a wholesale unregistered managed investment scheme under a unit trust structure. The Fund primarily invests in ASX listed companies outside the ASX 100 and typically holds between 15-35 stocks. 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	The Cyan C3G Fund outperformed the ASX200 Accumulation Index by +2.46% in August, returning +0.1%. Since inception in August 2014, the Fund has returned +19.65% p.a. versus the Index's +7.89%. Despite having a similar level of volatility to the market, the Fund has a down-capture ratio since inception of -3.5% which indicates that, on average, the Fund has risen during months where the market has fallen. This, in conjunction with the Fund's Sortino ratio of 3.15 versus the Index's 0.80, highlights the Fund's capacity to avoid the market's downside. The Fund's Sharpe ratio of 1.57 versus the Index's 0.59 highlights its capacity to achieved superior risk-adjusted returns. Positive contributors in August included Quickstep Holdings, Motorcycle Holdings, Afterpay, Atomos and Victory Offices. Detractors included PSI Insurance, Freelancer and Murray River Organics. Cyan notes the companies in which they have invested continue to thrive in their respective niches and so, from a bottom-up perspective, they remain bullish on the Fund's prospects.
More Information	Fund Profile Manager's Report

Performance Report: Bennelong Kardinia Absolute Return Fund

12 Sep 2019 - Australian Fund Monitors

The Bennelong Kardinia Absolute Return Fund outperformed the ASX200 Accumulation Index by +1.53% in August, falling -0.83% against the Index's -2.36%. Since inception in May 2006 the Fund has returned +9.13% p.a. versus the Index's 6.30%.

12 Sep 2019 - Performance Report: Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	12 September 2019
Manager	Kardinia Capital, a Bennelong boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	August 2019
Latest Return	-0.83%
Latest 6 Months	3.40%
Latest 12 Months	-5.40%
Latest 24 Months (pa)	0.71%
Annualised Since Inception	9.13%
Inception Date	01 May 2006
FUM (millions)	AU$103.98
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 +1.53% in August, falling -0.83% against the Index's -2.36%. Since inception in May 2006 the Fund has returned +9.13% p.a. with an annualised volatility of 7.03%. By contrast, the Index has returned +6.30% p.a. with an annualised volatility of 13.17%. The Fund's low net market exposure, stop loss discipline and a high success rate during reporting season led to the Fund's outperformance of the Index. Kardinia noted at its worst point during the month the ASX300 was down -6.03% whilst the Fund had only fallen -1.27%, demonstrating Kardinia's overarching philosophy of capital protection. A short position in Share Price Index Futures was the biggest positive contributor. The individual short book also made a positive contribution with shorts in financial services stocks the key driver. Other positive contributors included Charter Hall, City Chic, West African Resources, Ramelius Resources and Evolution, the last three of which benefited from strong gold prices. Detractors included A2 Milk, Cleanaway, Rio Tinto and Rhipe. Net equity market exposure was decreased from 40.5% to 20.3% (33.1% long and 12.8% short), with the key changes being the sale of Commonwealth Bank, Chorus and A2 Milk, lower weightings in Westpac, Macquarie Group, Rio Tinto and CSL, partially offset by a reduction in the Fund's short position in Share Price Index Futures contracts.
More Information	Fund Profile Manager's Report AFM Research Reports

Performance Report: Gyrostat Absolute Return Income Equity Fund

9 Sep 2019 - Australian Fund Monitors

The Gyrostat Absolute Return Income Equity Fund rose +3.97% in August, outperforming the ASX200 Accumulation Index by +6.33%. Since inception in December 2010, the Fund has returned +4.61% per annum with an annualised volatility of 3.78%.

9 Sep 2019 - Performance Report: Gyrostat Absolute Return Income Equity Fund

By: Australian Fund Monitors

Report Date	09 September 2019
Manager	Gyrostat Capital Management
Fund Name	Gyrostat Absolute Return Income Equity Fund
Strategy	Equity Income
Latest Return Date	August 2019
Latest Return	3.97%
Latest 6 Months	5.26%
Latest 12 Months	8.02%
Latest 24 Months (pa)	5.34%
Annualised Since Inception	4.61%
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 - an 'alternative - defensive' asset class. Fund features: - holds a diversified portfolio of higher yielding ASX20 stocks. - has the lowest cost protection, always in place, at the stock specific level, with upside. - delivers regular equity income by passing through dividends. 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, short term bond returns in stable markets - Income: Minimum cash rate + 3% paid semi-annually (currently 4.8% 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 +3.97% in August, outperforming the ASX200 Accumulation Index by +6.33%. Since inception in December 2010, the Fund has returned +4.61% per annum with an annualised volatility of 3.78%. The Fund is a solution for falling interest rates. It has a 'conservative' asset allocation and has for 34 consecutive quarters since inception operated within a 'hard' defined risk parameter (no quarterly NAV draw-downs exceeding 3%), delivered regular equity income (by passing through ASX20 dividends), and returns increasing with volatility levels (including a tail hedge for large gains on large market falls). Gyrostat noted they anticipate increasing levels of 'late cycle' market volatility with geopolitical tensions elevated, historically high debt levels and elevated valuations.
More Information	Fund Profile Manager's Report

Performance Report: NWQ Global Markets Fund

6 Sep 2019 - Australian Fund Monitors

The NWQ Global Markets Fund rose +2.11% in August, outperforming the ASX200 Accumulation Index by +4.47% and marking 12 months since inception in September 2019. The Fund has returned +7.50% versus the Index's +5.91% over that period.

Performance Report: Paragon Australian Long Short Fund

6 Sep 2019 - Australian Fund Monitors

The Paragon Australian Long Short Fund rose +2.6% in August, outperforming the ASX200 Accumulation Index by +4.96% and taking annualised performance since inception in March 2013 to +11.16% versus the Index's +8.69%.

6 Sep 2019 - Performance Report: Paragon Australian Long Short Fund

By: Australian Fund Monitors

Report Date	06 September 2019
Manager	Paragon Funds Management
Fund Name	Paragon Australian Long Short Fund
Strategy	Equity Long/Short
Latest Return Date	August 2019
Latest Return	2.60%
Latest 6 Months	27.81%
Latest 12 Months	9.71%
Latest 24 Months (pa)	7.24%
Annualised Since Inception	11.16%
Inception Date	28 February 2013
FUM (millions)	AU$40
Fund Overview	The Paragon Fund is a concentrated long/short Australian listed equities product that is fundamentally driven with a focus on the industrial and resource sectors. 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 rose +2.6% in August, outperforming the ASX200 Accumulation Index by +4.96% and taking annualised performance since inception in March 2013 to +11.16% versus the Index's +8.69%. Positive contributors included the Fund's gold holdings, iSignthis (upgrade), Pilbara (downgrade; short), Jumbo (upgrade) and Mincor, partially offset by a decline in Champion Iron. Overall, the Fund had a solid August reporting season. Paragon noted that whilst they remain confident in the Fund's positioning and performance through this cycle, they will continue to watch macro-economic developments closely, and remain active, making any necessary adjustments to the portfolio accordingly.
More Information	Fund Profile Manager's Report

Performance Report: Spectrum Strategic Income Fund

6 Sep 2019 - Australian Fund Monitors

The Spectrum Strategic Income Fund rose +0.71% in July, taking annualised performance since inception to +8.02%.

Performance Report: Gyrostat Absolute Return Income Equity Fund

30 Aug 2019 - Australian Fund Monitors

The Gyrostat Absolute Return Income Equity Fund has returned +5.50% over the past 12 months and +4.19% per annum since inception in December 2010. Gyrostat anticipate increasing levels of 'late cycle' market volatility.

30 Aug 2019 - Performance Report: Gyrostat Absolute Return Income Equity Fund

By: Australian Fund Monitors

Report Date	30 August 2019
Manager	Gyrostat Capital Management
Fund Name	Gyrostat Absolute Return Income Equity Fund
Strategy	Equity Income
Latest Return Date	July 2019
Latest Return	-1.30%
Latest 6 Months	1.89%
Latest 12 Months	5.50%
Latest 24 Months (pa)	3.69%
Annualised Since Inception	4.19%
Inception Date	10 December 2010
FUM (millions)	AU$12
Fund Overview	Our absolute return income equity fund combines protection, returns and regular income through all stages of the investment cycle (including large market falls). Our objective is to deliver regular and stable income stream (from ASX20 dividends) in a low interest rate environment with capital security - an 'alternative - defensive' asset class. Fund features: - holds a diversified portfolio of higher yielding ASX20 stocks. - has the lowest cost protection, always in place, at the stock specific level, with upside. - delivers regular equity income by passing through dividends. 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, short term bond returns in stable markets - Income: Minimum cash rate + 3% paid semi-annually (currently 4.8% 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 has returned +5.50% over the past 12 months and +4.19% per annum since inception in December 2010. Gyrostat noted they anticipate increasing levels of 'late cycle' market volatility with heightened geopolitical tensions, historically high debt levels and elevated valuations. The Fund returned -1.3% in July. Gyrostat noted the Fund is a solution for falling interest rates. It has a 'conservative' asset allocation and has for 34 consecutive quarters since inception operated within a 'hard' defined risk parameter (no quarterly NAV draw-downs exceeding 3%), delivered regular equity income (by passing through ASX20 dividends), and returns increasing with volatility levels (includes a tail hedge for large gains on large market falls.) As at the 15th of August, the Fund had increased +4.6%.
More Information	Fund Profile Manager's Report

Performance Report: 4D Global Infrastructure Fund

30 Aug 2019 - Australian Fund Monitors

The 4D Global Infrastructure Fund rose +0.87% in July, taking annualised performance since inception in March 2016 to +14.29% with an annualised volatility of 9.26%.

30 Aug 2019 - Performance Report: 4D Global Infrastructure Fund

By: Australian Fund Monitors

Report Date	30 August 2019
Manager	4D Infrastructure, a Bennelong boutique
Fund Name	4D Global Infrastructure Fund
Strategy	Infrastructure
Latest Return Date	July 2019
Latest Return	0.87%
Latest 6 Months	13.66%
Latest 12 Months	20.82%
Latest 24 Months (pa)	14.79%
Annualised Since Inception	14.29%
Inception Date	07 March 2016
FUM (millions)	AU$45
Fund Overview	The 4D Global Infrastructure Fund aims to outperform the OECD G7 Inflation Index +5.5% p.a. over the long term by identifying quality listed global infrastructure securities, trading at or below fair value with sustainable, growing earning combined with sustainable, growing dividends. 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 4D Global Infrastructure Fund rose +0.87% in July, taking annualised performance since inception in March 2016 to +14.29% with an annualised volatility of 9.26%. The strongest portfolio performer for July was Brazilian toll road operator Ecorodovias which was up +9.5%. 4D noted this was note driven by stock specific news but rather the entire Brazilian infrastructure space was up as Bolsonaro executes on reforms. The weakest performer was US midstream operator Williams, down -12.1% on the back of concerns that key counterparties are cutting production targets which will flow through to Williams' volumes and earnings. 4D believe the sell-off was overdone. Despite a slowing global macro environment, 4D's view is that it remains supportive of the Fund's overweight to user pay assets. However, ongoing geopolitical issues see them avoiding certain markets until issues are resolved (e.g. Brexit). They are also seeing certain markets move ahead of fundamentals and have taken a more defensive stance in these regions, increasing their exposure to defensive yield stories.
More Information	Fund Profile Manager's Report

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News

16 Sep 2019 - Fund Review: Bennelong Twenty20 Australian Equities Fund August 2019

13 Sep 2019 - Performance Report: 4D Global Infrastructure Fund

13 Sep 2019 - Performance Report: Cyan C3G Fund

12 Sep 2019 - Performance Report: Bennelong Kardinia Absolute Return Fund

9 Sep 2019 - Performance Report: Gyrostat Absolute Return Income Equity Fund

6 Sep 2019 - Performance Report: NWQ Global Markets Fund

6 Sep 2019 - Performance Report: Paragon Australian Long Short Fund

6 Sep 2019 - Performance Report: Spectrum Strategic Income Fund

30 Aug 2019 - Performance Report: Gyrostat Absolute Return Income Equity Fund

30 Aug 2019 - Performance Report: 4D Global Infrastructure Fund

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