Performance Report: Harvest Lane Asset Management Absolute Return Fund

15 Mar 2019 - Australian Fund Monitors

The Harvest Lane Absolute Return Fund has returned +13.05% over the past 12 months versus the ASX200 Accumulation Index's +7.05%. This return has been achieved with a volatility of only 7.40% versus the Index's 11.59%.

15 Mar 2019 - Performance Report: Harvest Lane Asset Management Absolute Return Fund

By: Australian Fund Monitors

Report Date	14 March 2019
Manager	Harvest Lane Asset Management
Fund Name	Harvest Lane Asset Management Absolute Return Fund
Strategy	Equity Market Neutral
Latest Return Date	February 2019
Latest Return	0.81%
Latest 6 Months	6.32%
Latest 12 Months	13.05%
Latest 24 Months	19.04%
Annualised Since Inception	9.13%
Inception Date	01 July 2013
FUM (millions)	AU$12
Fund Overview	The Fund aims to deliver a return of greater than 10% p.a. after all fees and charges over a 3 year period with low or no correlation to the Australian equity market. By focusing on select takeover and corporate activity the fund aims to achieve this whilst also exhibiting lower than average volatility than the market. Harvest Lane Asset Management employs a conservative, highly selective and opportunistic approach. Using their extensive knowledge in the area of corporate actions, the Fund's managers assess each opportunity based on a thoughtful, diligent and disciplined process and invest where they believe an opportunity exists to generate above average investment returns relative to the risk incurred. Investment decisions are made without speculating on market direction, with rigid risk controls enforced to minimise the risk of large losses of investor capital. The Fund invests in securities that are predominantly listed on the ASX and occasionally in those listed in other developed markets. Equity swaps and other derivatives may be used at times to reduce risk. The fund typically holds high levels of cash in the absence of sufficiently attractive opportunities to deploy investor capital in accordance with its objectives.
Manager Comments	The Harvest Lane Absolute Return Fund has returned +13.05% over the past 12 months versus the ASX200 Accumulation Index's +7.05%. This return has been achieved with a volatility of only 7.40% versus the Index's 11.59%. Since inception in July 2013, the Fund has returned +9.13% per annum versus the Index's 9.24% with an annualised volatility of 7.02% versus the Index's 11.01%. In line with the Fund's absolute return objective, its performance statistic demonstrate superior performance in negative markets over the long term; annualised volatility of 7.02% vs the Index's 11.01% since inception, Sortino ratio of 1.74 vs the Index's 0.98, average negative return of -1.44% vs the Index's -2.45%, largest drawdown of -6.46% vs the Index's -13.73% and down-capture ratio of -35.6% (a negative down-capture ratio indicates that, on average, the Fund has risen during the months the market has fallen). In addition, the Fund's Sharpe ratio of 1.02 vs the Index's 0.69 highlights its capacity to achieve superior risk-adjusted returns over the long term. The Fund returned 0.81% in February. Harvest Lane noted that, even as many of their positions steadily increase in price as their respective transaction endpoints approach, there remains sufficient implied discount in the portfolio for them to be optimistic about the Fund's performance over the remainder of the year. Overall, February was a relatively quiet month for the Fund. Two larger sized transactions in PropertyLink Group and Greencross Limited were concluded intra-month, allowing Harvest Lane to rotate capital straight back into new opportunities. In total, five new deals passed Harvest Lane's due diligence process, while several more are currently being monitored for inclusion in the portfolio at a later time.
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Performance Report: Bennelong Long Short Equity Fund

12 Mar 2019 - Australian Fund Monitors

The Bennelong Long Short Equity Fund has returned +15.11% p.a. since inception in January 2003 versus the ASX200 Total Return's +8.05% p.a. over the same period.

12 Mar 2019 - Performance Report: Bennelong Long Short Equity Fund

By: Australian Fund Monitors

Report Date	12 March 2019
Manager	Bennelong Long Short Equity Management, a Bennelong boutique
Fund Name	Bennelong Long Short Equity Fund
Strategy	Equity Market Neutral
Latest Return Date	February 2019
Latest Return	-0.82%
Latest 6 Months	-15.35%
Latest 12 Months	-2.78%
Latest 24 Months	10.94%
Annualised Since Inception	15.11%
Inception Date	01 January 2003
FUM (millions)	AU$382.8
Fund Overview	Bennelong Long Short Equity Management applies a qualitative stock selection process to construct a diversified portfolio of paired securities based on relative value. The Bennelong Long Short Equity Management strategy invests primarily in the S&P/ASX 100 and is dollar neutral at cost. In a typical environment the Fund will hold around 70 stocks comprising 35 pairs. Each pair contains one long and one short position each of which will have been thoroughly researched and are selected from the same market sector. Whilst in an ideal environment each stock's position will make a positive return, it is the relative performance of the pair that is important. As a result the Fund can make positive returns when each stock moves in the same direction provided the long position outperforms the short one in relative terms. However, if neither side of the trade is profitable, strict controls are required to ensure losses are limited. The Fund uses no derivatives and has no currency exposure. The Fund has no hard stop loss limits, instead relying on the small average position size per stock (1.5%) and per pair (3%) to limit exposure. Where practical pairs are always held within the same sector to limit cross sector risk, and positions can be held for months or years. The Bennelong Market Neutral Fund, with same strategy and liquidity is available for retail investors as a Listed Investment Company (LIC) on the ASX.
Manager Comments	The Bennelong Long Short Equity Fund has returned +15.11% p.a. since inception in January 2003 versus the ASX200 Total Return's +8.05% p.a. over the same period. The Fund's Sortino ratio of 1.45 versus the Index's 0.43, average negative return of -2.45% versus the Index's -3.07%, largest drawdown of -15.35% versus the Index's -47.19% and down-capture ratio of -163.51% collectively highlight the Fund's capacity to significantly outperform in negative markets over the long-term. In addition, the Fund's Sharpe ratio of 0.90 versus the Index's 0.38 highlights the Fund's ability to achieve superior risk-adjusted returns. The Fund's performance was modestly negative in February (-0.82%). Bennelong experienced a mix of winners and losers across the 31 pairs in the portfolio. They noted reporting season led to a slight downgrade to market earnings forecasts with resources positive and industrials negative. They were comfortable with their overall hit rate based on earnings revisions. By sector, the Fund saw positive contributions from Financials and Healthcare, while Mining/Resources and Energy lagged. Top contributors included long Macquarie / short Bendigo Bank and long Ramsay Health Care / short Healius. The worst pairs in the portfolio were long Challenger / short IOOF/ANZ and long Caltex / short Viva Energy. Bennelong noted the long portfolio continues to deliver superior earnings growth and return on equity/capital relative to the short portfolio.
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Performance Report: Cyan C3G Fund

12 Mar 2019 - Australian Fund Monitors

The Cyan C3G Fund has returned +18.29% since inception in July 2014 versus the ASX200 Accumulation Index's +6.70% over the same period. This return has been achieved with a similar level of volatility to the market.

12 Mar 2019 - Performance Report: Cyan C3G Fund

By: Australian Fund Monitors

Report Date	12 March 2019
Manager	Cyan Investment Management
Fund Name	Cyan C3G Fund
Strategy	Equity Long
Latest Return Date	February 2019
Latest Return	0.60%
Latest 6 Months	-9.76%
Latest 12 Months	-10.76%
Latest 24 Months	18.49%
Annualised Since Inception	18.29%
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 has returned +18.29% since inception in July 2014 versus the ASX200 Accumulation Index's +6.70% over the same period. This return has been achieved with a similar level of volatility to the market; 11.20% p.a. versus the Index's 11.39%. The Fund's performance and risk analytics indicate that historically the Fund has been successful in achieving superior upside and downside performance than the market; Sharpe and Sortino ratios of 1.47 and 2.77 respectively versus the Index's Sharpe of 0.47 and Sortino of 0.62, average monthly return of +1.46% versus the Index's +0.60%, and up-capture and down-capture ratios of 78.6% and -3.4% respectively. The Fund posted a modest gain of 0.6% in February following on from a 4.0% rise in January. 8 out of the Fund's 25 positions moved in excess of 20% during the month. Top contributors included Splitit (+58%), Experience Co (+22%) and Afterpay (+15%). Detractors included Murray River Group (-20%) and Motorcycle Holdings (-28%). Despite regretting not having participated in more of the market's upside in recent months, Cyan maintain that the market was too volatile to have been fully invested at the end of 2018. They noted they've added a couple of new and exciting positions to the portfolio and they feel that positive and unexpected (or undiscovered) company performances will be well-rewarded.
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Fund Review: Bennelong Long Short Equity Fund February 2019

11 Mar 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...

Fund Review: Bennelong Kardinia Absolute Return Fund February 2019

8 Mar 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.

Bennelong Twenty20 Australian Equities Fund February 2019

7 Mar 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: Frazis Fund

5 Mar 2019 - Australian Fund Monitors

The Frazis Fund returned +8.74% over January, outperforming AFM's Global Equity index by +4.1%.

5 Mar 2019 - Performance Report: Frazis Fund

By: Australian Fund Monitors

Report Date	05 March 2019
Manager	Frazis Capital Partners
Fund Name	Frazis Fund
Strategy	Equity Long/Short
Latest Return Date	January 2019
Latest Return	8.74%
Latest 6 Months	-19.12%
Latest 12 Months	18.53%
Latest 24 Months (pa)
Annualised Since Inception	-28.06%
Inception Date	01 July 2018
FUM (millions)	AU$4.1
Fund Overview	The Frazis Fund is a thematic long/short global equity fund, with a macro overlay. The portfolio pairs high conviction, concentrated, long-term equity investments, with asymmetric, proprietary hedging strategies, to create a unique and highly differentiated return profile. The manager follows a disciplined, process-driven, and thematic strategy focused on five core investment strategies: 1) Growth stocks that are really value stocks; 2) Traditional deep value; 3) The life sciences; 4) Miners and drillers expanding production into supply deficits; 5) Global special situations; The manager uses a macro overlay to manage exposure, hedging in three ways: 1) Direct shorts 2) Upside exposure to the VIX index 3) Index optionality
Manager Comments	The Frazis Fund returned +8.74% over January, outperforming AFM's Global Equity index by +4.1%. The manager noted they reduced the Fund's short positions significantly early in the month, however, they were the Fund's largest detractors. Stanmore Coal fell after an approx. $240m takeover bid failed, which was Frazis' preferred outcome. Frazis exited Samsung above their purchase price which, they noted, was a way of correcting the Fund's underperformance over the past few months caused by their exposure to the global smartphone sector. The Fund has maintained a 4% holding in Apple and approximately a 3% holding in Sunny Optical. In addition, their top energy pick, Lundin Petroleum, has recovered its losses despite the dramatic fall in crude oil. Frazis believe any further upside in crude, while risky for the global economy, should significantly benefit the Fund. As at the end of Jan 2019, Frazis' Australian stocks had significantly outperformed their global investments and are now some of the Fund's largest positions; Afterpay at 7%, Stanmore Coal at 6% and Cooper Energy at 6%. The Fund has also maintained exposure to Chinese tech stocks which Frazis expect to benefit from the stimulus as it makes its way through the economy. They pointed out the stimulus in 2016 reversed falls in PMIs (which have given plenty of false signals over the past decade) and led to a bull market in global stocks. While off their lows, the Fund's US-listed Chinese stocks remain significantly below their 2018 highs, unlike US stocks which have largely recovered.
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Performance Report: KIS Asia Long Short Fund

1 Mar 2019 - Australian Fund Monitors

The KIS Asia Long Short Fund rose +0.91% in January, taking 12-month performance to +1.99% versus the ASX200 Accumulation Index's +1.37% and annualised performance since inception in Oct 2009 to +12.34% versus the Index's +6.84%.

1 Mar 2019 - Performance Report: KIS Asia Long Short Fund

By: Australian Fund Monitors

Report Date	01 March 2019
Manager	KIS Capital Partners
Fund Name	KIS Asia Long Short Fund
Strategy	Equity Long/Short
Latest Return Date	January 2019
Latest Return	0.91%
Latest 6 Months	-0.17%
Latest 12 Months	1.99%
Latest 24 Months	8.58%
Annualised Since Inception	12.34%
Inception Date	01 October 2009
FUM (millions)	AU$87
Fund Overview	The Fund's investment objective is to generate absolute returns, in Australian dollars, of around 15% p.a. after all fees without noticeable correlation to any particular asset class or market. Whilst the Fund's primary strategy is focused on long/short equities, the ability to retain discretionary powers to allocate across a number of other investment strategies is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage, special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.). The Fund's geographic focus is Asia excluding Japan, but including Australia). The Fund may invest outside of this region to the extent that: 1. The investment decision is driven from the Asian region or; 2. The exposure is intended to mitigate risk or enhance return from factors external to the Asian region.
Manager Comments	The KIS Asia Long Short Fund rose +0.91% in January, taking 12-month performance to +1.99% versus the ASX200 Accumulation Index's +1.37% and annualised performance since inception in Oct 2009 to +12.34% versus the Index's +6.84%. The Fund has achieved these returns with significantly lower volatility than the market; the Fund's volatility over 12 months is 2.69% versus the Index's 10.16%, and since inception the Fund's volatility (annualised) is 5.14% versus the Index's 11.54%. The Fund's strong focus on downside protection is illustrated by its Sortino ratio of 4.06 versus the Index's 0.49, average negative return of -0.81% versus the Index's -2.72% and down-capture ratio of -88.53% (a negative down-capture ratio indicates that, on average, the Fund has risen during the months the market has fallen). In addition, since inception the largest drawdown the Fund has experienced was -2.69% whereas over the same period that of the market was -15.13%. The main positive contributor for the month was Avita Medical Ltd (AVH.AX) which contributed +77bp. Across other positions no one name contributed or detracted more than 30bp.
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Performance Report: 4D Global Infrastructure Fund

1 Mar 2019 - Australian Fund Monitors

The 4D Infrastructure Fund rose +7.52% in January, outperforming its benchmark (OECD G7 Inflation Index +5.5%) by +6.90% and taking annualised performance since inception in March 2016 to +11.92%.

1 Mar 2019 - Performance Report: 4D Global Infrastructure Fund

By: Australian Fund Monitors

Report Date	January 2019
Manager	4D Infrastructure, a Bennelong boutique
Fund Name	4D Global Infrastructure Fund
Strategy	Infrastructure
Latest Return Date	January 2019
Latest Return	7.52%
Latest 6 Months	6.29%
Latest 12 Months	8.98%
Latest 24 Months	35.36%
Annualised Since Inception	11.92%
Inception Date	07 March 2016
FUM (millions)	AU$33.25
Fund Overview	The 4D Global Infrastructure Fund aims to outperform the OECD G7 Inflation Index +5.5% p.a. over the long term by identifying quality listed global infrastructure securities, trading at or below fair value with sustainable, growing earning combined with sustainable, growing dividends. The fund will be managed as a single portfolio of listed global infrastructure securities including regulated utilities in gas, electricity and water, transport infrastructure such as airports, ports, road and rail as well as communication assets such as the towers and satellite sectors. The portfolio is intended to have exposure to both developed and emerging market opportunities, with country risk assessed internally before any investment is considered. The maximum absolute position of an individual stock is 7% of the fund.
Manager Comments	The 4D Infrastructure Fund rose +7.52% in January, outperforming its benchmark (OECD G7 Inflation Index +5.5%) by +6.90% despite a sizeable A$ headwind which was up 3.18% versus the US$ in January. Since inception in March 2016, the Fund has returned +11.92% p.a. versus the benchmark's +7.41%. The portfolio benefited from overall market upside, with the outperformance relative to the market being driven by strong performance from Brazil as well as the US midstream sub-sector. The strongest performer for January was Brazilian toll road operator CCR (+32.9%), driven by general positive sentiment towards Brazil's new government as well as sector specific news regarding concession extensions. The weakest performer in January was China Resources Gas Group (-1.4%), driven by concerns of a slowing Chinese economy and potential negative implications for gas demand. 4D Infrastructure remain confident in the long-term domestic demand story. Despite a slowing global macro environment, 4D noted it remains in positive territory and supportive of the Fund's overweight positioning towards user pay assets which have a direct correlation to macro. However, they remain cautious of ongoing geo-political issues and have positioned accordingly.
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Performance Report: Bennelong Concentrated Australian Equities Fund

1 Mar 2019 - Australian Fund Monitors

The Bennelong Concentrated Australian Equities Fund rose +2.93% in January, marking 10 years of operation for the Fund and taking annualised performance since inception to +15.74% versus the ASX200 Accumulation Index's +9.95%.

1 Mar 2019 - Performance Report: Bennelong Concentrated Australian Equities Fund

By: Australian Fund Monitors

Report Date	January 2019
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Concentrated Australian Equities Fund
Strategy	Equity Long
Latest Return Date	January 2019
Latest Return	2.93%
Latest 6 Months	-15.62%
Latest 12 Months	-4.78%
Latest 24 Months	19.70%
Annualised Since Inception	15.76%
Inception Date	30 January 2009
FUM (millions)	AU$742.06
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 overriding objective of the Concentrated Australian Equities Fund is to seek investment opportunities which are under-appreciated and have the potential to deliver positive earnings, while satisfying our stringent quality criteria. Bennelong's investment process combines bottom-up fundamental analysis together with proprietary investment tools which are used to build and maintain high quality portfolios that are risk aware. The portfolio typically consists of 20-35 high-conviction stocks from the S&P/ASX 300 Index. The Fund may invest in securities listed on other exchanges where such securities relate to ASX-listed securities. Derivative instruments are mainly used to replicate underlying positions and hedge market and company specific risks.
Manager Comments	The Bennelong Concentrated Australian Equities Fund rose +2.93% in January, marking 10 years of operation for the Fund and taking annualised performance since inception to +15.74% versus the ASX200 Accumulation Index's +9.95%. While this return has been achieved with slightly higher volatility than the market (13.81% per annum versus the Index's 12.11%), the Fund's Sortino ratio of 1.45 versus the Index's 0.87 and down-capture ratio of 91% highlight the Fund's capacity to avoid the market's downside volatility over the long-term. The Fund's Sharpe ratio of 0.94 versus the Index's 0.62, average positive return of +3.79% versus the Index's +3.1% and up-capture ratio of 139.6% demonstrate indicate emphasises the Fund's focus on achieving superior risk-adjusted returns over the long-term. Bennelong noted that, particularly in these tougher times, sticking to the same tried-and-tested process is paramount. To that end, they remain focused on what they believe ultimately drives investor returns over time: earnings, growth prospects and other business fundamentals. Some stocks held in the portfolio, such as Aristocrat Leisure, have been sold down in recent months, in some cases without any material deterioration in fundamentals. Bennelong noted this has affected the Fund's returns, but in general the lower share prices have set them up with more attractive risk-return dynamics. Moving into reporting season Bennelong say they are mindful of what they perceive to be significant earnings risk prevalent right across the market. Their view is that investors nowadays are brutal when it comes to even minor earnings misses or downgrades. Overall, Bennelong like how the portfolio is currently positioned and are optimistic on its investment prospects.
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News

15 Mar 2019 - Performance Report: Harvest Lane Asset Management Absolute Return Fund

12 Mar 2019 - Performance Report: Bennelong Long Short Equity Fund

12 Mar 2019 - Performance Report: Cyan C3G Fund

11 Mar 2019 - Fund Review: Bennelong Long Short Equity Fund February 2019

8 Mar 2019 - Fund Review: Bennelong Kardinia Absolute Return Fund February 2019

7 Mar 2019 - Bennelong Twenty20 Australian Equities Fund February 2019

5 Mar 2019 - Performance Report: Frazis Fund

1 Mar 2019 - Performance Report: KIS Asia Long Short Fund

1 Mar 2019 - Performance Report: 4D Global Infrastructure Fund

1 Mar 2019 - Performance Report: Bennelong Concentrated Australian Equities Fund

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