Performance Report: Bennelong Kardinia Absolute Return Fund

21 Jun 2019 - Australian Fund Monitors

The Bennelong Kardinia Absolute Return Fund was flat in May, with short positions in banks the key detractors given the strong rally following the unexpected Coalition victory in the federal election. Since inception in May 2006 the Fund...

21 Jun 2019 - Performance Report: Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	21 June 2019
Manager	Kardinia Capital, a Bennelong boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	May 2019
Latest Return	-0.03%
Latest 6 Months	2.15%
Latest 12 Months	-7.96%
Latest 24 Months (pa)	-0.39%
Annualised Since Inception	9.12%
Inception Date	01 May 2006
FUM (millions)	AU$135.26
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 was flat in May, with short positions in banks the key detractors given the strong rally following the unexpected Coalition victory in the federal election. Since inception in May 2006 the Fund has returned +9.12% p.a. with an annualised volatility of 7.06%. By comparison, the ASX200 Accumulation Index has returned +6.09% p.a. with an annualised volatility of 13.23% over the same period. Top contributors included Evolution Mining (+33bp contribution), Northern Star (+29bp), Audinate Group (+32bp), Polynovo (+19bp) and Aristocrat Leisure (+19bp). The short book was the biggest detractor (-90bp), driven by short positions in two of the major four banks as well as a short position in Share Price Index Futures. Other detractors included Macquarie Group (-35bp), A2 Milk (-18bp) and Oz Minerals (-15bp). Net equity market exposure was decreased from 51.5% to 13.5% (47.6% long and 34.1% short), with the key changes being the sale of Bluescope, Fortescue and Worley Parsons and a large increase in their short position in Share Price Index Futures. This was partly offset by new positions in Evolution Mining and Flight Centre, as well as increased weightings in Commonwealth Bank, Polynovo and Northern Star.
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Performance Report: Bennelong Australian Equities Fund

19 Jun 2019 - Australian Fund Monitors

The Bennelong Australian Equities Fund has returned +13.34% p.a. since inception in February 2009 versus the ASX200 Accumulation Index's +10.75%.

19 Jun 2019 - Performance Report: Bennelong Australian Equities Fund

By: Australian Fund Monitors

Report Date	19 June 2019
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Australian Equities Fund
Strategy	Equity Long
Latest Return Date	May 2019
Latest Return	-1.45%
Latest 6 Months	12.32%
Latest 12 Months	2.01%
Latest 24 Months (pa)	12.56%
Annualised Since Inception	13.34%
Inception Date	30 January 2009
FUM (millions)	AU$498.62
Fund Overview	Bennelong Australian Equity Partners (BAEP) is a boutique asset manager offering Australian equities solutions for institutional and retail clients. The business was founded in 2008 by Paul Cuddy and Mark East, in partnership with Bennelong Funds Management. Prior to establishing BAEP, Paul and Mark were Co-Heads of Australian Equities at ING Investment Management. 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 Bennelong Australian Equities Fund has returned +13.34% p.a. since inception in February 2009 versus the ASX200 Accumulation Index's +10.75%. The Fund's up-capture and down-capture ratios for performance since inception, 118.1% and 96.6% respectively, indicate that, on average, the Fund has outperformed in both rising and falling markets. The Fund returned -1.45% in May, taking the YTD return to +13.08%. The largest detractor was Reliance Worldwide after the company downgraded its earnings guidance. Bennelong noted that, as Reliance had a large weighting in the portfolio, the share price decline had a material impact on performance. Other detractors included Corporate Travel Management and Costa Group. The main positive contributor to performance was Aristocrat Leisure. Bennelong's view is that while valuation metrics such as price-to-earnings ratios appear relatively attractive for the ASX, the main risk they see is that of earnings risk; i.e. the risk that companies disappoint investors by delivering earnings below expectations. They note that share prices have often fallen disproportionately in response to earnings downgrades, such as those seen with Reliance Worldwide and Costa Group. Their conclusion is that investors remain very risk-averse, short-term focused and skittish.
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Bennelong Twenty20 Australian Equities Fund May 2019

18 Jun 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: Cyan C3G Fund

17 Jun 2019 - Australian Fund Monitors

The Cyan C3G Fund rose +2.81% in May, outperforming the ASX200 Accumulation Index by +1.1% and taking annualised performance since inception in August 2014 to +19.21% versus the Index's +7.39%.

17 Jun 2019 - Performance Report: Cyan C3G Fund

By: Australian Fund Monitors

Report Date	17 June 2019
Manager	Cyan Investment Management
Fund Name	Cyan C3G Fund
Strategy	Equity Long
Latest Return Date	May 2019
Latest Return	2.81%
Latest 6 Months	8.58%
Latest 12 Months	0.68%
Latest 24 Months (pa)	11.43%
Annualised Since Inception	19.21%
Inception Date	24 July 2014
FUM (millions)	AU$35
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 rose +2.81% in May, outperforming the ASX200 Accumulation Index by +1.1% and taking annualised performance since inception in August 2014 to +19.21% versus the Index's return of +7.39% over the same period. The Fund's Sharpe and Sortino ratios, 1.51 and 2.99 respectively, by contrast with the Index's Sharpe of 0.54 and Sortino of 0.72 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 down-capture ratio of -3.37% since inception indicates that, on average, the Fund has risen during the months the market has fallen. Top contributors included Alcidion, Isentia, AMA Group and ReadCloud. Detractors included Kelly Partners, Experience Co and Afterpay, although smaller weightings in these companies curtailed any material negative Fund performance. The Fund has subscribed to a number of smaller placements but has also taken stock in a handful of new IPO's due to list in the next month or two. Some of these include Victory Offices who operate 19 flexible workspace locations, and Quickfee who offer premium funding and payment solutions to the accounting and legal industries in both Australia and the US. Cyan emphasise that, whilst month-to-month volatility can be expected, they have a firm view of long-term opportunity and remain confident in the outlook for the Fund.
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Performance Report: DS Capital Growth Fund

14 Jun 2019 - Australian Fund Monitors

The DS Capital Growth Fund rose +2.37% in May, outperforming the ASX200 Accumulation Index by +0.66% and taking annualised performance since inception in Jan 2013 to +15.33% with a volatility of 7.30% p.a. versus the Index's return of...

14 Jun 2019 - Performance Report: DS Capital Growth Fund

By: Australian Fund Monitors

Report Date	14 June 2019
Manager	DS Capital
Fund Name	DS Capital Growth Fund
Strategy	Equity Long
Latest Return Date	May 2019
Latest Return	2.37%
Latest 6 Months	13.44%
Latest 12 Months	11.49%
Latest 24 Months (pa)	11.53%
Annualised Since Inception	15.33%
Inception Date	01 January 2013
FUM (millions)	AU$221
Fund Overview	The Fund aims to deliver an average return of at least 10% p.a. through the economic cycle, with a focus on capital preservation. The Fund will comprise a concentrated portfolio of small and mid-cap investments selected through a process of quantitative and qualitative analysis. The investment team looks for industrial businesses that are simple to understand; they generally avoid large caps, pure mining, biotech and start-ups. They also look for: - Access to management; - Businesses with a competitive edge; - Profitable companies with good margins, organic growth prospects, strong market position and a track record of healthy dividend growth; - Sectors with structural advantage and barriers to entry; - 15% p.a. pre-tax compound return on each holding; and - A history of stable and predictable cash flows that DS Capital can understand and value.
Manager Comments	The DS Capital Growth Fund rose +2.37% in May, outperforming the ASX200 Accumulation Index by +0.66% and taking annualised performance since inception in Jan 2013 to +15.33% with a volatility of 7.30% p.a. versus the Index's return of +10.25% with an annualised volatility of 11.06% over the same period. The Fund's Sharpe and Sortino ratios, 1.74 and 3.58 respectively, by contrast with the Index's Sharpe of 0.76 and Sortino of 1.11, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst avoiding the market's downside volatility. The Fund's down-capture ratio of 21.41% since inception provides further evidence of its ability to perform well in falling markets. The Fund performed strongly in May with solid gains across the portfolio. Top performers included Lifestyle Communities, AMA Group and Interxion (US listed). There were no major changes to the portfolio. DS Capital noted the election result was embraced by the stock market with the policy agenda of the winners appearing favourable for economic growth. In the meantime, they expect low interest rates to have a favourable impact on stock market valuations. They add that although rates will ultimately normalise they don't believe this is likely in the near term. DS Capital feel the portfolio is well positioned as they work toward reporting season.
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Fund Review: Bennelong Kardinia Absolute Return Fund May 2019

14 Jun 2019 - Australian Fund Monitors

The latest Fund Review for the Bennelong Kardinia Absolute Return Fund is now available. The Fund is a long-biased, research driven, active equity long/short strategy which invests in listed ASX companies with track records greater than 10 years.

Performance Report: NWQ Global Markets Fund

12 Jun 2019 - Australian Fund Monitors

The NWQ Global Markets Fund returned -1.67% in May. Since inception in September 2018 the Fund has returned +2.18% on a cumulative basis.

Performance Report: Paragon Australian Long Short Fund

11 Jun 2019 - Australian Fund Monitors

The Paragon Australian Long Short Fund rose +10.40% in May, outperforming the ASX200 Accumulation Index by +8.69% and taking annualised performance since inception in March 2013 to +9.43%.

11 Jun 2019 - Performance Report: Paragon Australian Long Short Fund

By: Australian Fund Monitors

Report Date	11 June 2019
Manager	Paragon Funds Management
Fund Name	Paragon Australian Long Short Fund
Strategy	Equity Long/Short
Latest Return Date	May 2019
Latest Return	10.40%
Latest 6 Months	8.25%
Latest 12 Months	-17.70%
Latest 24 Months (pa)	4.49%
Annualised Since Inception	9.43%
Inception Date	28 February 2013
FUM (millions)	AU$38.4
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 +10.40% in May, outperforming the ASX200 Accumulation Index by +8.69% and taking annualised performance since inception in March 2013 to +9.43% versus the Index's return of +8.34% over the same period. Positive contributors included Kidman, iSignthis, Xero, Atrum and shorts in Bluescope and Sandfire. Kidman received a takeover offer from Wesfarmers on 2nd May which became binding later in the month. Paragon noted they anticipated this outcome for KDR, with its world class and undervalued offering. They added that Gina Reinhardt raised her bid yet again to secure Riverdale, illustrating considerable upside in neighbouring Atrum. In their latest report Paragon discuss Nearmap, a cloud-based software-as-a-service (Saas) company offering aerial imagery services in Australia, New Zealand and North America. Paragon see Nearmap to be a highly scalable SaaS-based business in a high growth phase, well placed to continue to deliver >30% organic sales growth over the medium to long-term. They also provide their view on Xero, a company which they believe boasts strong revenue momentum in its cloud-based accounting SaaS and a substantial growth runway.
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Fund Review: Bennelong Long Short Equity Fund May 2019

7 Jun 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...

Performance Report: Insync Global Quality Equity Fund

31 May 2019 - Australian Fund Monitors

The Insync Global Quality Equity Fund rose +7.35% in April, outperforming AFM's Global Equity Index by +3.26% and taking annualised performance since inception in October 2009 to +13.26%.

31 May 2019 - Performance Report: Insync Global Quality Equity Fund

By: Australian Fund Monitors

Report Date	31 May 2019
Manager	Insync Fund Managers
Fund Name	Insync Global Quality Equity Fund
Strategy	Equity Long
Latest Return Date	April 2019
Latest Return	7.35%
Latest 6 Months	13.86%
Latest 12 Months	18.43%
Latest 24 Months (pa)	17.59%
Annualised Since Inception	13.26%
Inception Date	01 July 2018
FUM (millions)
Fund Overview	Insync's investment strategy is driven by fundamentals combined with active risk management with the aim of investing in high quality, large cap global companies at attractive prices. Insync looks for companies that can consistently pay rising dividends and earn high returns on invested capital. Insync aims to provide investors with long-term capital growth and some income. 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 typically of 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.
Manager Comments	The Insync Global Quality Equity Fund rose +7.35% in April, outperforming AFM's Global Equity Index by +3.26% and taking annualised performance since inception in October 2009 to +13.26% versus the Index's +11.42%. The Fund's down-capture ratio of 62.12% indicates that, on average, the Fund has outperformed during the market's negative months despite lacking downside protection. Of the Fund's top 10 holdings, equating to about 60% of the portfolio, the strongest returns came from Walt Disney (+22.7%) and Facebook (+15), while the weakest performers were Intuit (-5%) and Amadeus IT (-1.1%). The Fund's top holdings as at the end of April included Visa, Intuit, Walt Disney, Accenture, Facebook, Tencent Holdings, Booking Holdings, Amadeus IT, Adobe and Zoetis.
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News

21 Jun 2019 - Performance Report: Bennelong Kardinia Absolute Return Fund

19 Jun 2019 - Performance Report: Bennelong Australian Equities Fund

18 Jun 2019 - Bennelong Twenty20 Australian Equities Fund May 2019

17 Jun 2019 - Performance Report: Cyan C3G Fund

14 Jun 2019 - Performance Report: DS Capital Growth Fund

14 Jun 2019 - Fund Review: Bennelong Kardinia Absolute Return Fund May 2019

12 Jun 2019 - Performance Report: NWQ Global Markets Fund

11 Jun 2019 - Performance Report: Paragon Australian Long Short Fund

7 Jun 2019 - Fund Review: Bennelong Long Short Equity Fund May 2019

31 May 2019 - Performance Report: Insync Global Quality Equity Fund

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