Performance Report: NWQ Fiduciary Fund

7 Feb 2019 - Australian Fund Monitors

The NWQ Fiduciary Fund has returned +5.34% per annum with an annualised volatility of 4.95% since inception in May 2013. By contrast the ASX200 Accumulation Index has returned +6.10% p.a. with a volatility of 10.99% over the same period.

7 Feb 2019 - Performance Report: NWQ Fiduciary Fund

By: Australian Fund Monitors

Report Date	07 February 2019
Manager	NWQ Capital Management Pty Ltd
Fund Name	NWQ Fiduciary Fund
Strategy	Multi Strategy
Latest Return Date	December 2018
Latest Return	-0.49%
Latest 6 Months	-6.28%
Latest 12 Months	-3.54%
Latest 24 Months	8.64%
Annualised Since Inception	5.34%
Inception Date	01 May 2013
FUM (millions)	AU$76
Fund Overview	The NWQ Fiduciary Fund (Fund), managed by NWQ Capital Management, is a diversified multi-manager portfolio, modeled on NWQ's Fiduciary Model Portfolio. The principal investment objective of the Fund is to produce attractive positive returns irrespective of market direction. This is achieved through active allocations to selective fund managers that employ a variety of traditional and absolute return strategies. The Fund places emphasis on managers who demonstrate a rigorous and repeatable investment process that has delivered a strong track record. 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 NWQ Fiduciary Fund has returned +5.34% per annum with an annualised volatility of 4.95% since inception in May 2013. By contrast the ASX200 Accumulation Index has returned +6.10% p.a. with a volatility of 10.99% over the same period. The Fund's Sortino ratio of 1.11 versus the Index's 0.54, average negative return of -0.96% versus the Index's -2.52% and down-capture ratio of 6.79% highlight the Fund's capacity to avoid the market's downside over the long term. The Fund returned -0.49% in December. NWQ say the final quarter of 2018 was reminiscent of the same period 10 years earlier during the Global Financial Crisis with sharp falls across the major indices. They noted few of the Fund's underlying managers were able to hedge out the full extent of the market's fall, thus contributing to the Fund's quarterly return of -6.05%. NWQ pointed out that the reason for this was that the types of stocks typically favoured by managers (i.e. momentum and low volatility) underperformed the types of stocks that are avoided or viewed as short candidates (i.e. value and higher-yield). This resulted in the Fund deviating from its historical profile where prior to the December quarter its average return in negative markets was +0.12%. However, given that years in which the Fund underperformed its historical average in the past (i.e. 2014 and 2016) were almost always followed by years of outperformance (i.e. 2015 and 2017), NWQ remain positive the Fund will once again revert to the mean and make up for the December quarter's losses.
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Performance Report: Loftus Peak Global Disruption Fund

6 Feb 2019 - Australian Fund Monitors

The Loftus Peak Global Disruption Fund has returned +2.31% over the past 12 months, outperforming the Global Equity benchmark by +1.67% and taking annualised performance since inception in November 2016 to +16.28% versus the benchmark's +11.11%.

6 Feb 2019 - Performance Report: Loftus Peak Global Disruption Fund

By: Australian Fund Monitors

Report Date	06 February 2019
Manager	Loftus Peak
Fund Name	Loftus Peak Global Disruption Fund
Strategy	Equity Long
Latest Return Date	December 2018
Latest Return	-5.49%
Latest 6 Months	-8.47%
Latest 12 Months	2.31%
Latest 24 Months	30.91%
Annualised Since Inception	16.28%
Inception Date	15 November 2016
FUM (millions)	AU$55.7
Fund Overview	The fund aims to deliver a return over the MSCI All Countries World Index (net dividends reinvested) in AUD over the medium to long term by bringing a disciplined investment process to listed global companies impacted by disruption. The investment process involves a combination of top-down analysis with fundamental bottom-up qualitative and quantitative research to derive a risk-adjusted discounted cash flow (DCF) valuation of companies in the target universe. The investment team will generally buy stocks from the pool of securities that are trading below Loftus Peaks' valuation and sell them when they are trading above Loftus Peak's valuation. The approach allows for both fundamental accounting information as well as market-oriented inputs to be factored into the portfolio construction process. Loftus Peak's model typically does not rely on leverage to deliver investment returns and specifically takes into account risk in the valuation process. Capital preservation can be managed by holding up to 50% cash. Index and currency options and futures may also be used to manage risk.
Manager Comments	The Loftus Peak Global Disruption Fund has returned +2.31% over the past 12 months, outperforming the Global Equity benchmark by +1.67% and taking annualised performance since inception in November 2016 to +16.28% versus the benchmark's +11.11%. The Fund's up-capture and down-capture ratios since inception indicate that, on average, the Fund has outperformed in both rising and falling markets. The Fund returned -5.49% in December, with the largest detractors being Nvidia, Alibaba and Baidu. Key contributors included Tencent, Broadcom and Qualcomm. The value of the Fund's USD positions rose after the AUD depreciated 3.75% against the USD during the month. As at 31 December 2018, the Fund carried a foreign currency exposure of 99%. The Fund is 94% invested in 22 holdings which the manager considers likely outperformers. The balance is cash. The Fund's top 5 holdings are Tencent (7.7% of the portfolio), Apple (7.4%), Nvidia (7.3%), Alibaba (7.1%) and Qualcomm (6.8%).
More Information	Fund Profile Manager's Report

Performance Report: Bennelong Australian Equities Fund

5 Feb 2019 - Australian Fund Monitors

The Bennelong Australian Equities Fund has returned +1.25% over the past 12 months, outperforming the ASX200 Accumulation Index by +3.09%. Since inception in February 2009, the Fund has returned +12.53% per annum versus the Index's +9.62%.

5 Feb 2019 - Performance Report: Bennelong Australian Equities Fund

By: Australian Fund Monitors

Report Date	05 February 2019
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Australian Equities Fund
Strategy	Equity Long
Latest Return Date	December 2018
Latest Return	-0.68%
Latest 6 Months	-12.66%
Latest 12 Months	1.25%
Latest 24 Months	20.62%
Annualised Since Inception	12.53%
Inception Date	30 January 2009
FUM (millions)	AU$419.32
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 +1.25% over the past 12 months, outperforming the ASX200 Accumulation Index by +3.09%. Since inception in February 2009, the Fund has returned +12.53% per annum versus the Index's +9.62%. The Fund's up-capture and down-capture ratios for performance since inception indicate that, on average, the Fund has outperformed in both rising and falling markets. Detractors over the quarter included Aristocrat Leisure, Corporate Travel Management and Flight Centre. Key contributors included Costa Group, Goodman Group and BHP Billiton. Bennelong noted the sell-off throughout the December quarter came about with a shift in investor sentiment to one of 'risk-off', thus resulting in REITs, utilities, gold stocks and big-cap defensives such as Woolworths holding up well as investors sought safety. Importantly, they noted, company fundamentals mattered little. Bennelong believe safety (and returns) ultimately derive from company fundamentals, which include one's competitive position, balance sheet strength, cash-flow generation and growth prospects. They believe the risk-off sentiment will tire and fundamentals will ultimately win out.
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Performance Report: Insync Global Capital Aware Fund

4 Feb 2019 - Australian Fund Monitors

The Insync Global Capital Aware Fund returned -0.74% in December, outperforming the Global Equity benchmark by +2.92% and taking 12-month performance to +4.56% versus the Global Equity benchmark's +0.64%.

4 Feb 2019 - Performance Report: Insync Global Capital Aware Fund

By: Australian Fund Monitors

Report Date	04 February 2019
Manager	Insync Fund Managers
Fund Name	Insync Global Capital Aware Fund
Strategy	Equity Long
Latest Return Date	December 2018
Latest Return	-0.74%
Latest 6 Months	-6.74%
Latest 12 Months	4.56%
Latest 24 Months	22.11%
Annualised Since Inception	9.13%
Inception Date	07 October 2009
FUM (millions)	AU$31.2
Fund Overview	Insync's investment strategy is driven by fundamentals combined with active risk management with the aim of to 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. The Global Capital Aware Fund is a concentrated portfolio of large cap global companies with downside protection. 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 of typically 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. At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio.
Manager Comments	The Insync Global Capital Aware Fund returned -0.74% in December, outperforming the Global Equity benchmark by +2.92% and taking 12-month performance to +4.56% versus the Global Equity benchmark's +0.64%. The Fund's significant outperformance this month highlights the benefit of Insync's put-option protection strategy, especially considering that the Fund's return after fees but *before* protection was -2.83%. Insync believe the main drivers of the increased volatility seen in December included anxiety around the path of interest rate increases in the US and the pace of quantitative tapering, as well as trade tensions, oil plunging and uncertainty around future Trump policies. They see that both the equity and bond markets are rapidly discounting an impending recession. Positive contributors in December included Tencent, London Stock Exchange, Wirecard, Intercontinental Hotel Group and PayPal Holdings. Detractors included Booking Holdings, Nvidia Corp, Adobe Systems, Intuit and Accenture. The Fund continues to have no foreign currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside.
More Information	Fund Profile Manager's Report AFM Research Reports

Performance Report: Bennelong Kardinia Absolute Return Fund

1 Feb 2019 - Australian Fund Monitors

The Bennelong Kardinia Absolute Return Fund has returned +9.07% per annum with an annualised volatility of 7.16% since inception in May 2006. By contrast, the ASX200 Accumulation Index has returned +5.10% p.a. with an annualised volatility...

1 Feb 2019 - Performance Report: Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	01 February 2019
Manager	Kardinia Capital, a Bennelong boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	December 2018
Latest Return	-2.02%
Latest 6 Months	-11.02%
Latest 12 Months	-10.12%
Latest 24 Months	-3.35%
Annualised Since Inception	9.07%
Inception Date	01 May 2006
FUM (millions)	AU$166.59
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 has returned +9.07% per annum with an annualised volatility of 7.16% since inception in May 2006. By contrast, the ASX200 Accumulation Index has returned +5.10% p.a. with an annualised volatility of 13.31% over the same period. The Fund's Sortino ratio of 1.29 versus the Index's 0.15, average negative return of -1.44% versus the Index's -3.26% and down-capture ratio of 40.11% highlight the Fund's capacity to outperform in negative markets over the long term. The Fund returned -2.02% in December. Top contributors included Northern Star (+37bp contribution), Evolution Mining (+26bp), BHP (+34bp) and Rio Tinto (+21bp). The individual stock short book also performed well (+11bp), with shorts in the financial services and waste management sectors the key contributors. Detractors included ANZ (-87bp), NAB (-22bp), Nine Entertainment (-43bp), Macquarie Group (-25bp) and Netwealth (-17bp). Net equity market exposure was reduced from 47.3% to 30.4% (41.7% long and 11.3% short), with the key changes being new positions in Northern Star, Evolution Mining, Transurban and Woolworths, the closure of a short position in Share Price Index Futures contracts offset by seven new individual stock short positions as well as the sale of ANZ, NAB, Westpac and Nine Entertainment.
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Performance Report: Cyan C3G Fund

31 Jan 2019 - Australian Fund Monitors

The Cyan C3G Fund has returned +17.83% p.a. since inception in August 2014. By contrast, the ASX200 Accumulation Index has only returned +4.66% p.a. over the same period.

31 Jan 2019 - Performance Report: Cyan C3G Fund

By: Australian Fund Monitors

Report Date	31 January 2019
Manager	Cyan Investment Management
Fund Name	Cyan C3G Fund
Strategy	Equity Long
Latest Return Date	December 2018
Latest Return	-4.18%
Latest 6 Months	-11.20%
Latest 12 Months	-13.63%
Latest 24 Months	15.49%
Annualised Since Inception	17.83%
Inception Date	24 July 2014
FUM (millions)	AU$34
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 +17.83% p.a. since inception in August 2014. By contrast, the ASX200 Accumulation Index has only returned +4.66% p.a. over the same period. The Fund's Sharpe and Sortino ratios, 1.36 and 2.64 respectively, by contrast with the Index's Sharpe of 0.31 and 0.36, highlight the Fund's capacity to achieve superior risk-adjusted returns than the market whilst avoiding the brunt of the market's falls. The Fund's up-capture and down-capture ratios since inception, +85.26% and -3.37% respectively, indicate that, on average, the Fund has captured approximately 85% of the market's upside and risen during the market's negative months. Cyan noted the challenging market sentiment accelerated in December, impacting performance to the tune of -4.2%. This return was not attributed to any adverse stock specific news, a characteristic which Cyan believe is reassuring. In addition, in light of the bearish conditions, the Fund experienced 4 positions that rose, 3 that were flat and 17 that fell. Detractors included Murray River Organics (-16%), Experience Co (-13%) and AMA Group (-14%). Cyan say their views have not changed much from previous months, other than that company specific value appears to be increasingly attractive. Cyan emphasised that when assessing prospective investees they look at individual companies rather than overall markets and, given their strong growth profiles, they wholly believe that the companies in the Cyan C3G Fund will have more intrinsic value at the end of CY19 than they do presently.
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Fund Review: Bennelong Kardinia Absolute Return Fund December 2018

30 Jan 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: Glenmore Australian Equities Fund

30 Jan 2019 - Australian Fund Monitors

The Glenmore Australian Equities Fund ended CY18 up +1% versus the ASX200 Accumulation Index's -2.8%. Since inception in June 2017, the Fund has returned +17.9% per annum versus the Index's +3.42%.

30 Jan 2019 - Performance Report: Glenmore Australian Equities Fund

By: Australian Fund Monitors

Report Date	30 January 2019
Manager	Glenmore Asset Management Pty Ltd
Fund Name	Glenmore Australian Equities Fund
Strategy	Equity Long
Latest Return Date	December 2018
Latest Return	-3.26%
Latest 6 Months	-7.55%
Latest 12 Months	0.97%
Latest 24 Months
Annualised Since Inception	17.90%
Inception Date	06 June 2017
FUM (millions)	AU$5.2
Fund Overview	The Fund is index unaware with an absolute return focus. The Fund seeks to invest in companies generating strong cashflows at attractive valuations. In absence of attractive investments being identified, the fund will hold cash. Glenmore will use a fundamental, research driven investment process to identify undervalued securities. 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 Glenmore Australian Equities Fund ended CY18 up +1% versus the ASX200 Accumulation Index's -2.8%. Since inception in June 2017, the Fund has returned +17.9% per annum versus the Index's +3.42%. The Fund's up-capture and down-capture ratios since inception, +200.74% and +71.1% respectively, indicate that, on average, the Fund has significantly outperformed in both rising and falling markets. The Fund returned -3.26% in December. Glenmore noted it was a relatively quiet month with respect to announcements from the Fund's holdings. The Fund managed to avoid any stocks that announced specific profit downgrades, however, Glenmore say negative sentiment towards stocks was again the key theme which thus resulted in many stocks declining despite no news. The main positive contributor for the month was Hotel Property Investments. Detractors included NRW Holdings (-11.5%), Jumbo Interactive (-12%), Atlas Arteria, Magellan Financial Group, Worley Parsons and Mastermyne.
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Fund Review: Bennelong Long Short Equity Fund December 2018

29 Jan 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: DS Capital Growth Fund

29 Jan 2019 - Australian Fund Monitors

The DS Capital Growth Fund has returned +13.59% p.a. since inception in December 2012. By contrast, the ASX200 Accumulation Index has returned +8.40% p.a. over the same period.

29 Jan 2019 - Performance Report: DS Capital Growth Fund

By: Australian Fund Monitors

Report Date	29 January 2019
Manager	DS Capital
Fund Name	DS Capital Growth Fund
Strategy	Equity Long
Latest Return Date	December 2018
Latest Return	-2.57%
Latest 6 Months	-6.23%
Latest 12 Months	-3.58%
Latest 24 Months	10.46%
Annualised Since Inception	13.59%
Inception Date	01 January 2013
FUM (millions)	AU$189.95
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 has returned +13.59% p.a. since inception in December 2012. By contrast, the ASX200 Accumulation Index has returned +8.40% p.a. over the same period. The Fund's Sharpe and Sortino ratios, 1.55 and 3.03 respectively, by contrast with the Index's Sharpe of 0.60 and Sortino of 0.84, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst ensuring investors' capital is protected. The Fund's up-capture and down-capture ratios since inception indicate that, on average, the Fund has captured more of the market's upside than its downside. DS Capital remind investors that their philosophy is that short term share prices can be influenced more by noise and emotional behaviour, whereas long term share price performance will more often be influenced by the underlying fundamentals. They say that, whilst unpleasant in the short term, the current environment is offering opportunities to those with a longer term investment horizon. DS Capital expect stock markets will remain volatile while a heightened level of uncertainty continues in relation to US tariff policy, Brexit and interest rates. Domestically, they note they'll also have to contend with the economic policy outcomes of the Federal election in the first half of 2019. They believe all of these issues will result in good businesses being available for investment at significantly lower prices and, to that end, the portfolio has 24% cash which they expect to deploy to some extent over the next six months.
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Fund Monitors Pty Ltd

News

7 Feb 2019 - Performance Report: NWQ Fiduciary Fund

6 Feb 2019 - Performance Report: Loftus Peak Global Disruption Fund

5 Feb 2019 - Performance Report: Bennelong Australian Equities Fund

4 Feb 2019 - Performance Report: Insync Global Capital Aware Fund

1 Feb 2019 - Performance Report: Bennelong Kardinia Absolute Return Fund

31 Jan 2019 - Performance Report: Cyan C3G Fund

30 Jan 2019 - Fund Review: Bennelong Kardinia Absolute Return Fund December 2018

30 Jan 2019 - Performance Report: Glenmore Australian Equities Fund

29 Jan 2019 - Fund Review: Bennelong Long Short Equity Fund December 2018

29 Jan 2019 - Performance Report: DS Capital Growth Fund

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