News
Performance Report: DS Capital Growth Fund
22 May 2019 - Australian Fund Monitors
The DS Capital Growth Fund rose +5.76% in April, outperforming the ASX200 Accumulation Index by +3.39% and taking annualised performance since inception in December 2012 to +15.13% versus the Index's +10.10%.
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22 May 2019 - Performance Report: DS Capital Growth Fund
By: Australian Fund Monitors
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| Fund Overview | 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 +5.76% in April, outperforming the ASX200 Accumulation Index by +3.39% and taking annualised performance since inception in December 2012 to +15.13% versus the Index's +10.10%. This return has been achieved with an annualised volatility of 7.33% versus the Index's 11.13%. The Fund's Sharpe and Sortino ratios, 1.71 and 3.51 respectively, by contrast with the Index's Sharpe ratio of 0.75 and Sortino ratio of 1.09, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst avoiding the market's downside volatility. Regarding the activity of a few of the Fund's holdings over the month:
DS Capital's view is that with the uncertainty of the Australian Federal Election behind us investors will focus on global and domestic economic conditions and related interest rates. They believe softer economic growth will maintain pressure on interest rates that have fallen since October 2018, deferring a return to higher rates that seemed likely just six months ago. While lower interest rates are theoretically favourable for equity markets, they add, weaker economic conditions can make it more difficult for businesses to grow earnings. They noted this was evident in the recent reporting season which, together with a recent lift in share prices, gives DS Capital cause for caution. They expect continuing volatility from the US-China trade tensions. Post reporting season company meetings, DS Capital have compiled a shopping list of businesses that they would like to own or add to their current holdings. They are seeing new opportunities and have a current cash holding of 20%. They noted they will take these opportunities sparingly. |
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Performance Report: 4D Global Infrastructure Fund
22 May 2019 - Australian Fund Monitors
The 4D Infrastructure Fund rose +3.16% in April, outperforming its benchmark (OECD G7 Inflation Index +5.5%) by +2.83%. Since inception in March 2016, the Fund has returned +13.73% per annum.
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22 May 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 April was global port operator DP World (+25%). The weakest performer was Brazilian toll road operator Ecorodovias (-15.4%). 4D noted that, despite a slowing global macro environment, it remains in positive territory and supportive of the Fund's bias towards user pay assets which have a direct correlation to macro. They also believe with Fed rate hikes stalled, emerging markets should see a recovery. However, they remain cautious of ongoing geo-political issues and have positioned accordingly. |
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Performance Report: Bennelong Australian Equities Fund
21 May 2019 - Australian Fund Monitors
The Bennelong Australian Equities Fund rose +3.72% in April, outperforming the ASX200 Accumulation Index by +1.35% and taking annualised performance since inception to +13.61%.
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21 May 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 | As at the end of April, the Fund's weightings had been increased in the Discretionary, Consumer Staples, IT, Industrials and Financials sectors, and decreased in the Health Care, Materials and REIT's sectors. The Fund aims to invest in high quality companies with strong growth outlooks and underestimated earnings momentum. By comparison with the ASX300 Accumulation Index, the Fund's holdings, on average, have a higher Return on Equity and lower Debt/Equity (Premium Quality), higher sales growth and higher EPS growth (Superior Growth), and higher Price/Earnings and lower dividend yield (Reasonable Valuation). This indicates that the Fund's portfolio is in line with Bennelong's objective. |
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Fund Review: Insync Global Capital Aware Fund April 2019
21 May 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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21 May 2019 - Fund Review: Insync Global Capital Aware Fund April 2019
By: Australian Fund Monitors
AFM Fund Review - April 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 - April 2019 (pdf format)
Performance Report: Spectrum Strategic Income Fund
20 May 2019 - Australian Fund Monitors
The Spectrum Strategic Income Fund rose +0.31% in April, outperforming the average RBA Cash Rate by +0.18% and taking annualised performance since inception to +8.03%.
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20 May 2019 - Performance Report: Spectrum Strategic Income Fund
By: Australian Fund Monitors
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| Manager Comments | In line with the overall floating rate note market, most of the Fund's return in April came from interest income. The Fund mainly invests in floating rate notes, therefore, Spectrum noted, it has not benefitted much from the large fall in government bond yields that fixed rate funds have. They noted that the strategy for the fund is to continue to maintain a high average credit rating, currently 'A-', keep interest rate risk modest, liquidity high, continue to increase diversification and be ready for mispricing of credit risk. Their aim is to continue to beat deposits with less risk than equities and remain among the top performers of their peers. |
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Bennelong Twenty20 Australian Equities Fund April 2019
16 May 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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16 May 2019 - Bennelong Twenty20 Australian Equities Fund April 2019
By: Australian Fund Monitors
AFM Fund Review - April 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 - April 2019 (pdf format)
Fund Review: Bennelong Kardinia Absolute Return Fund April 2019
16 May 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.
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16 May 2019 - Fund Review: Bennelong Kardinia Absolute Return Fund April 2019
By: Australian Fund Monitors
AFM Fund Review - April 2019 (pdf format)
BENNELONG KARDINIA ABSOLUTE RETURN FUND
Attached is our most recently updated Fund Review. You are also able to view the Fund's Profile.
- The Fund is long biased, research driven, active equity long/short strategy investing in listed ASX companies with over ten-year track record.
- The Fund has significantly outperformed the ASX200 Accumulation Index since its inception in May 2006 and also has significantly lower risk KPIs. The Fund has an annualised return of 9.18% p.a. with a volatility of 7.07%, compared to the ASX200 Accumulation's return of 5.99% p.a. with a volatility of 13.27%.
- The Fund also has a strong focus on capital protection in negative markets. Portfolio Managers Mark Burgess and Kristiaan Rehder have significant market experience, while Bennelong Funds Management provide infrastructure, operational, compliance and distribution capabilities.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - April 2019 (pdf format)
Performance Report: NWQ Fiduciary Fund
14 May 2019 - Australian Fund Monitors
The NWQ Fiduciary Fund rose +0.16% in April, taking annualised performance since inception in May 2013 to +5.33% with an annualised volatility of 4.86%.
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14 May 2019 - Performance Report: NWQ Fiduciary Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund aims to produce returns, after management fees and expenses of between 8% to 11% p.a. over rolling five-year periods. Furthermore, the Fund aims to achieve these returns with volatility that is a fraction of the Australian equity market, in order to smooth returns for investors. |
| Manager Comments | The 'melt up' as the S&P500 entered new territory was a tailwind for the Fund's Beta managers, however, it was a more challenging environment for the Alpha managers with fundamentally supported relative value opportunities scarce as stocks rose indiscriminately. NWQ noted the trend of desynchronization in growth outlooks and policy settings across the major global economies continued in April. They pointed out the latest manufacturing PMI data (a barometer of economic activity) indicates that the US economy is relatively strong compared with those in Europe and Asia. However, they added, due to stubbornly low inflation in the US, traders are betting the next move from the Fed will be a rate cut. |
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Performance Report: Cyan C3G Fund
14 May 2019 - Australian Fund Monitors
The Cyan C3G Fund rose +2.07% in April, taking annualised performance since inception in August 2014 to +18.89% versus the ASX200's +7.15%.
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14 May 2019 - Performance Report: Cyan C3G Fund
By: Australian Fund Monitors
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| Fund Overview | Cyan C3G Fund is based on the investment philosophy which can be defined as a comprehensive, clear and considered process focused on delivering growth. These are identified through stringent filter criteria and a rigorous research process. The Manager uses a proprietary stock filter in order to eliminate a large proportion of investments due to both internal characteristics (such as gearing levels or cash flow) and external characteristics (such as exposure to commodity prices or customer concentration). Typically, the Fund looks for businesses that are one or more of: a) under researched, b) fundamentally undervalued, c) have a catalyst for re-rating. The Manager seeks to achieve this investment outcome by actively managing a portfolio of Australian listed securities. When the opportunity to invest in suitable securities cannot be found, the manager may reduce the level of equities exposure and accumulate a defensive cash position. Whilst it is the company's intention, there is no guarantee that any distributions or returns will be declared, or that if declared, the amount of any returns will remain constant or increase over time. The Fund does not invest in derivatives and does not use debt to leverage the Fund's performance. However, companies in which the Fund invests may be leveraged. |
| Manager Comments | Top contributors in April included Alcidion, Freelancer, and Readcloud. Key detractors included Atomos and Jaxsta. Cyan have met with all of their core holdings in the past couple of months and remain excited about their medium-term outlooks. They reiterate 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 into the future. |
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Performance Report: Bennelong Kardinia Absolute Return Fund
13 May 2019 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +0.55% in April, taking annualised performance since inception in May 2006 to +9.18% versus the ASX200's +5.99%.
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13 May 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 | Top contributors included A2 Milk (+35 basis point contribution), Polynovo (+23bp), Afterpay (+17bp) and Macquarie Group (+16bp). Detractors included Northern Star (-15bp), Independence Group (-14bp), Charter Hall (-14bp), Fortescue Metals (-12bp), Rio Tinto (-10bp) and Oz Minerals (-10bp). The short book made a negative contribution of -46bp, with shorts in financials and Share Price Index Futures the key detractors. Net equity market exposure was increased from 38.9% to 51.5% (57.0% long and 5.6% short), with the key changes being new positions in Commonwealth Bank, Fortescue and Rhipe, increased weightings in Macquarie Group, A2 Milk and Polynovo, and a reduction in several short positions, including Share Price Index futures contracts. |
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