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.
More Information	Fund Profile Manager's Report

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.
More Information	Fund Profile Manager's Report

Bennelong Twenty20 Australian Equities Fund December 2018

25 Jan 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: KIS Asia Long Short Fund

25 Jan 2019 - Australian Fund Monitors

The KIS Asia Long Short Fund rose +1.45% over CY18, outperforming the ASX200 Accumulation Index by +4.29% and taking annualised performance since inception to +12.35%.

25 Jan 2019 - Performance Report: KIS Asia Long Short Fund

By: Australian Fund Monitors

Report Date	25 January 2019
Manager	KIS Capital Partners
Fund Name	KIS Asia Long Short Fund
Strategy	Equity Long/Short
Latest Return Date	December 2018
Latest Return	-0.94%
Latest 6 Months	-0.65%
Latest 12 Months	1.45%
Latest 24 Months	9.14%
Annualised Since Inception	12.35%
Inception Date	01 October 2009
FUM (millions)	AU$89
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 +1.45% over CY18, outperforming the ASX200 Accumulation Index by +4.29%. Since inception in October 2009, the Fund has returned +12.35% per annum with an annualised volatility of 5.16%. By contrast, the ASX200 Accumulation Index has returned +6.46% per annum with a volatility of 11.54% since the Fund's inception. The Fund's Sharpe and Sortino ratios, 1.79 and 4.04 respectively, by contrast with the Index's Sharpe of 0.36 and Sortino of 0.44, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst ensuring investors' capital is protected from the market's downside. In addition, the Fund's down-capture ratio for performance since inception of -88.5% indicates that, on average, the Fund has risen during the months the market has fallen. The top contributor for December was Resolute Mining (+38bp contribution). The main detractor was a 45bp loss in the Fund's long position in GTN Ltd/GTN.AX. There were no other loss contributors of more than 20bp. The use of short index futures also generated a profit, helping offset the loss on the Fund's net long equity positions. Futures hedges generated 32bp. KIS noted December saw some capitulation among retail investors who had been quite stubborn reducing risk. This, they believe, sets up for some near term market stability. While their base case is that they expect more bear market behaviour in 2019, KIS say they are reminded that positioning can bring about very sharp rallies which can shake out handy shorts. In their view, 2019 will certainly provide some continued volatility.
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Performance Report: Harvest Lane Asset Management Absolute Return Fund

25 Jan 2019 - Australian Fund Monitors

The Harvest Lane Absolute Return Fund rose +1.27% in December, outperforming the ASX200 Accumulation Index by +1.39% and taking 12-month performance to +13.30% versus the Index's -2.84%.

25 Jan 2019 - Performance Report: Harvest Lane Asset Management Absolute Return Fund

By: Australian Fund Monitors

Report Date	25 January 2019
Manager	Harvest Lane Asset Management
Fund Name	Harvest Lane Asset Management Absolute Return Fund
Strategy	Equity Market Neutral
Latest Return Date	December 2018
Latest Return	1.27%
Latest 6 Months	1.22%
Latest 12 Months	13.30%
Latest 24 Months	15.63%
Annualised Since Inception	9.10%
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 rose +1.27% in December, outperforming the ASX200 Accumulation Index by +1.39% and taking 12-month performance to +13.30% versus the Index's -2.84%. Over the past 3 and 6 months the Fund has returned +0.53% and +1.22% respectively, significantly outperforming the Index's 3-month return of -8.24% and 6-month return of -6.83%. Since inception in July 2013, the Fund has returned +9.10% p.a. with an annualised volatility of 7.13%, which is superior to the Index in terms of both performance and volatility; the Index has returned +7.64% p.a. with an annualised volatility of 10.87% over the same period. In addition, the Fund has maintained a modest up-capture ratio and excellent down-capture ratio over the past 12, 24, 36, 48 and 60 months, as well as since inception, highlighting the Fund's capacity to perform well in negative markets; the Fund's down-capture ratio since inception of -35.6% indicates that, on average, the Fund has risen during the months the market has fallen. Harvest Lane noted December was a comparatively quiet period by contrast with previous months, with numerous positions reaching their maturity in the early weeks of the month. A handful of new opportunities arose, although they say the month was largely characterised by adding to existing positions where low cash levels had previously prevented Harvest Lane from reaching their preferred exposure levels. Overall, Harvest Lane say the portfolio is highly prospective moving into 2019 and believe the future returns have the potential to equal or eclipse those of recent times.
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Performance Report: Spectrum Strategic Income Fund

25 Jan 2019 - Australian Fund Monitors

The Spectrum Strategic Income Fund returned +0.29% in December, taking 12 month performance to +3.41% and the annualised return since inception in June 2009 to +8.07%.

25 Jan 2019 - Performance Report: Spectrum Strategic Income Fund

By: Australian Fund Monitors

Report Date	25 January 2019
Manager	Spectrum Asset Management Limited
Fund Name	Spectrum Strategic Income Fund
Strategy	Credit
Latest Return Date	December 2018
Latest Return	0.29%
Latest 6 Months	1.60%
Latest 12 Months	3.41%
Latest 24 Months	8.62%
Annualised Since Inception	8.07%
Inception Date	31 May 2009
FUM (millions)	AU$67.8
Fund Overview	The Spectrum Strategic Income Fund aims to deliver steady income which is higher than bank deposits but without the volatility of equity markets. The Fund provides daily liquidity and does not use leverage or derivatives. The Fund invests primarily in Australian dollar corporate bonds and limits exposure to long-term interest rate risk by investing mainly in floating rate notes.
Manager Comments	The Spectrum Strategic Income Fund returned +0.29% in December, taking 12 month performance to +3.41% and the annualised return since inception in June 2009 to +8.07%. The Fund's Sharpe and Sortino ratios, 1.66 and 4.55 respectively, highlight the Fund's capacity to achieve good risk-adjusted returns whilst also successfully protecting investors' capital from market falls. The Fund has achieved an average monthly return since inception of +0.65% after fees versus the RBA Cash Rate's +0.23%, showing that the Fund has proven itself thus far to have been a better alternative to cash. The portfolio's top holdings as at the end of December were Cash (7.4%), NAB (6.1%), DBS Group Holdings (5.8%), Suncorp Metway (4.5%), Toyota Finance Australia (4.4%), Network Finance (4.4%), AAI Limited (4.3%), UBS AG Australia (3.7%), Multiplex Sites Trust (3.2%) and APN Regional Property Fund (3.2%). In their latest report, Spectrum discuss the fall in global risk asset prices and the rally in government bonds and their respective contributing factors. These included weaker global economic indicators and heightened geopolitical risk, the draining of liquidity by central banks and plummeting oil prices. Domestically, they noted, A$ credit spreads rose around 8bps over the month, reaching their highest level since early 2017. Spectrum remain concerned the price declines in the residential property markets in Sydney and Melbourne look set to continue, which they say could impact the health of the economy and bond issuers. In their view, A$ bonds from internationally headquartered issuers look appealing as they look outside of Australia for opportunities. Spectrum reiterate that capital preservation remains paramount in their decision making. The Fund maintains a strong floating rate note bias in A$ corporate bonds.
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Fund Monitors Pty Ltd

News

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

25 Jan 2019 - Bennelong Twenty20 Australian Equities Fund December 2018

25 Jan 2019 - Performance Report: KIS Asia Long Short Fund

25 Jan 2019 - Performance Report: Harvest Lane Asset Management Absolute Return Fund

25 Jan 2019 - Performance Report: Spectrum Strategic Income Fund

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