Performance Report: Spectrum Strategic Income Fund

27 Nov 2018 - Australian Fund Monitors

The Spectrum Strategic Income Fund rose +0.19% in October, taking 12-month performance to +3.71% and annualised performance since inception in June 2009 to +8.19%.

27 Nov 2018 - Performance Report: Spectrum Strategic Income Fund

By: Australian Fund Monitors

Report Date	27 November 2018
Manager	Spectrum Asset Management Limited
Fund Name	Spectrum Strategic Income Fund
Strategy	Credit
Latest Return Date	October 2018
Latest Return	0.19%
Latest 6 Months	2.00%
Latest 12 Months	3.70%
Latest 24 Months	8.93%
Annualised Since Inception	8.19%
Inception Date	31 May 2009
FUM (millions)	AU$65.8
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 rose +0.19% in October, taking 12-month performance to +3.71% and bringing the Fund's total number of consecutive positive months to 35. Since inception in June 2009, the Fund has returned +8.19% p.a. versus the RBA Cash Rate's +2.80 per annum over the same period. The Fund has a Sharpe ratio of 1.68 and Sortino of 4.60, highlighting the Fund's capacity to achieve good risk-adjusted returns whilst ensuring investors' capital is protected against the market's downside. Spectrum noted that for many in the market there were few places to hide in October. Not only did equities retreat but so too bond prices at times. In the U.S., bond indices recorded the third steepest decline since 1970 (BoA), which mean that bonds did not provide a sufficient flight to safety from declining equity prices. They believe the decline in bond indices is partly due to increasing issuance of government bonds by central banks; as their weights have increased in the index, so too has duration. They noted that in a rising yield environment this will lead to falls in those bond indices. The Fund holds a diversified portfolio of debt and income securities with a view to minimising any loss of income and capital of the Fund. Issuers may be government bodies, banks, corporations and, to a limited extent, specialist financing vehicles. To maintain a diversified portfolio structure, certain limits are imposed on security type, credit risk, industry and issuers.
More Information	Fund Profile Manager's Report

Performance Report: Cyan C3G Fund

26 Nov 2018 - Australian Fund Monitors

The Cyan C3G Fund has returned +20.33% per annum since inception in August 2018 versus the ASX200 Accumulation Index's +5.43%. This return has been achieved with slightly lower volatility than the market.

26 Nov 2018 - Performance Report: Cyan C3G Fund

By: Australian Fund Monitors

Report Date	26 November 2018
Manager	Cyan Investment Management
Fund Name	Cyan C3G Fund
Strategy	Equity Long
Latest Return Date	October 2018
Latest Return	-6.20%
Latest 6 Months	-2.23%
Latest 12 Months	-1.90%
Latest 24 Months	18.62%
Annualised Since Inception	20.33%
Inception Date	24 July 2014
FUM (millions)	AU$38
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 +20.33% per annum since inception in August 2018 versus the ASX200 Accumulation Index's +5.43%. This return has been achieved with slightly lower volatility than the market. The Fund's Sharpe and Sortino ratios, 1.58 and 3.25 respectively, by contrast with the Index's Sharpe of 0.37 and Sortino of 0.45, 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, +85.26% and -18.45% respectively, indicate that, on average, the Fund has captured most of the market's upside in rising markets and significantly outperformed in falling markets. In October the Fund returned -6.2%, falling roughly in line with the market. Broadly, the impact of the market correction was felt across the Fund. Key detractors included Afterpay (-30%) and Readcloud (-30%). There were approximately 20 other positions which all fell by various amounts and, in total, contributed around 5% of the Fund's underperformance. The major positive was Freelancer (+37%). In addition, Cyan added Murray River Organics (MRG) to the portfolio in October. Cyan noted the Fund has remained diversified with 24 positions and no individual holding representing more than 5% of the total portfolio. The Fund has also retained more than 35% in cash but they have begun to deploy further capital into new and existing positions as prices become more attractive. Cyan continue to have compelling expectations for the companies in which they have invested and believe these businesses will grow materially over the next year.
More Information	Fund Profile Manager's Report

Performance Report: Bennelong Twenty20 Australian Equities Fund

26 Nov 2018 - Australian Fund Monitors

The Bennelong Twenty20 Australian Equities Fund has returned +9.62% p.a. since inception in November 2009 versus the ASX200 Accumulation Index's +7.18%.

26 Nov 2018 - Performance Report: Bennelong Twenty20 Australian Equities Fund

By: Australian Fund Monitors

Report Date	26 November 2018
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Twenty20 Australian Equities Fund
Strategy	Equity Long
Latest Return Date	October 2018
Latest Return	-6.81%
Latest 6 Months	-1.29%
Latest 12 Months	2.55%
Latest 24 Months	20.22%
Annualised Since Inception	9.62%
Inception Date	02 December 2015
FUM (millions)	AU$4.42
Fund Overview	The Fund aims to outperform the return of the S&P/ASX 300 Accumulation Index by 2% per annum after fees on a rolling three-year basis by combining indexed positions in the S&P/ASX 20 stocks with an actively managed exposure in primarily Australian stocks that are outside the S&P/ASX 20. The Fund is managed as one portfolio but comprises and combines two separately managed exposures: 1. An investment in the top 20 stocks of the markets, which the Fund achieves by taking an indexed position in the S&P/ASX 20 Index; and 2. An investment in the stocks beyond the S&P/ASX 20 Index. This exposure is managed on an active basis using a fundamental core approach. The Fund may also invest in securities expected to be listed on the ASX, securities listed or expected to be listed on other exchanges where such securities relate to ASX-listed securities.Derivative instruments may be used to replicate underlying positions and hedge market and company specific risks. The companies within the portfolio are primarily selected from, but not limited to, the S&P/ASX 300 Accumulation Index. The Fund typically holds between 40-55 stocks and thus is considered to be highly concentrated. This means that investors should expect to see high short-term volatility. The Fund seeks to achieve growth over the long-term, therefore the minimum suggested investment timeframe is 5 years.
Manager Comments	The Bennelong Twenty20 Australian Equities Fund has returned +9.62% p.a. since inception in November 2009 versus the ASX200 Accumulation Index's +7.18%. The Fund's Sharpe and Sortino ratios of 0.6 and 0.83 respectively are both superior to those of the Index for performance over the same period, highlighting the Fund's capacity to achieve superior risk-adjusted returns whilst ensuring investors' capital doesn't suffer losses to the same extent as the market. This is supported by the Fund's up-capture and down-capture ratios since inception of 110.44% and 94.61% respectively, indicating that, on average, the Fund has outperformed in both rising and falling markets. As at the end of October, the Fund's weightings had been increased in the Health Care, Industrials, REIT's, Financials and Materials sectors, and decreased in the Discretionary, Consumer Staples, Communication and Energy sectors. The Fund's cash weighting remained unchanged at 2.3%. The Fund fell in line with the market in October, returning -6.81% after fees. The Twenty20 Australian Equities Fund comprises a passive investment in the ASX20, which has a weighting of over 50% of the portfolio, and an active investment in ASX ex-20 companies. Therefore, the Fund's returns will largely be influenced by the activity of the ASX's top 20 stocks. However, the active investment in ASX ex-20 has the goal of allowing the Fund to outperform the broader market, which the statistics mentioned earlier show has been successful; superior Sharpe and Sortino, and up-capture and down-capture ratios highlighting outperformance in both rising and falling markets over the long-term.
More Information	Fund Profile Manager's Report AFM Research Reports

Fund Review: Insync Global Capital Aware Fund October 2018

23 Nov 2018 - 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...

Bennelong Twenty20 Australian Equities Fund October 2018

22 Nov 2018 - 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.

Fund Review: Bennelong Kardinia Absolute Return Fund October 2018

21 Nov 2018 - 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.

Fund Review: Bennelong Long Short Equity Fund October 2018

19 Nov 2018 - 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: Bennelong Long Short Equity Fund

15 Nov 2018 - Australian Fund Monitors

The Bennelong Long Short Equity Fund has risen +5.38% over the past 12 months versus the ASX200 Accumulation Index's +2.94%. Since inception in February 2002, the Fund has returned +15.81% per annum versus the Index's +7.75%.

15 Nov 2018 - Performance Report: Bennelong Long Short Equity Fund

By: Australian Fund Monitors

Report Date	15 November 2018
Manager	Bennelong Long Short Equity Management, a Bennelong boutique
Fund Name	Bennelong Long Short Equity Fund
Strategy	Equity Market Neutral
Latest Return Date	October 2018
Latest Return	-7.05%
Latest 6 Months	-0.16%
Latest 12 Months	5.38%
Latest 24 Months	18.69%
Annualised Since Inception	15.81%
Inception Date	01 January 2003
FUM (millions)	AU$414.8
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 risen +5.38% over the past 12 months versus the ASX200 Accumulation Index's +2.94%. Since inception in February 2002, the Fund has returned +15.81% per annum versus the Index's +7.75%. The Fund's Sortino ratio for performance since inception of 1.54 versus the Index's 0.39, along with the Fund's down-capture ratio since inception of -166.76%, highlight the Fund's capacity to protect investors' capital in negative markets. Bennelong noted the Fund fared poorly in October, returning -7.05% in a month which featured elevated market volatility, general weakness, corporate activity and an abundance of updates to earnings guidance at AGMs. With respect to company earnings and guidance updates, both the long and short portfolio experienced favourable bias of upgrades/downgrades. However, company fundamentals were overwhelmed by the market favouring defensive traits in preference to operating/fundamental performance, which Bennelong noted is unusual in this type of environment. In addition, Bennelong believe there was element of mean reversion in the Fund's September and October performance following their strong August return of +10.59%. Key contributing long/short pairs included long Orica (ORI)/ short Downer EDI (DOW), long Ramsay Health Care (RHC)/ short Primary (PRY)/Healthscope (HSO) and long Woolworths (WOW)/ short Metcash(MTS). Detractors included long Xero (XRO)/ short MYOB (MYO), long TPG Telecom (TPM)/ short Telstra (TLS) and long Iluka Resources (ILU)/ short Rio Tinto (RIO). Bennelong noted the indicative bid by private equity firm KKR for MYOB negatively impacted the Fund's long Xero / short MYOB pair, which accounted for one third of the Fund's negative return for the month.
More Information	Fund Profile Manager's Report AFM Research Reports

Performance Report: Harvest Lane Asset Management Absolute Return Fund

14 Nov 2018 - Australian Fund Monitors

The Harvest Lane Absolute Return Fund returned -0.11% in October, outperforming the ASX200 Accumulation Index by +5.94%. The Fund has returned +12.04% over the past 12 months versus the Index's +2.94%.

14 Nov 2018 - Performance Report: Harvest Lane Asset Management Absolute Return Fund

By: Australian Fund Monitors

Report Date	14 November 2018
Manager	Harvest Lane Asset Management
Fund Name	Harvest Lane Asset Management Absolute Return Fund
Strategy	Equity Market Neutral
Latest Return Date	October 2018
Latest Return	-0.11%
Latest 6 Months	8.00%
Latest 12 Months	12.04%
Latest 24 Months	13.67%
Annualised Since Inception	9.27%
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 returned -0.11% in October, outperforming the ASX200 Accumulation Index by +5.94% and highlighting the Fund's downside protection and market neutral approach. The Fund has returned +12.04% over the past 12 months versus the Index's +2.94%. Since inception in July 2013, the Fund has returned +9.27% per annum with an annualised volatility of 7.21% versus the Index's return of +8.36% p.a. with a volatility of 10.96% over the same period. A key tenet of the Absolute Return Fund strategy is the focus on downside protection through careful selection of positions that are not only uncorrelated to broader equity markets, but also uncorrelated with each other. As a result, periods of strong outperformance against the market are usually observed when the market is going through periods of excessive weakness. This is backed up by the Fund's Sharpe and Sortino ratios since inception, 1.00 and 1.71 respectively, which, by contrast with the Index's Sharpe of 0.62 and Sortino of 0.85, emphasise the Fund's capacity to achieve superior risk-adjusted returns whilst ensuring investors' capital is protected. This is also supported by the Fund's down-capture ratio since inception of -34.93%, indicating that, on average, the Fund has significantly outperformed in the market's negative months. Harvest Lane noted a plethora of factors were identified as potential causes of the declines seen in October, including US interest rate concerns, fears of a US/China trade war, the start of a deflation in equity asset 'bubbles', emerging market currency crises, Brexit, and instability in the EU. They believe investors' heavy biases to risky long-only equity strategies is a major risk factor that is all too easily forgotten in a decade long bull market. They noted that volatility has only just moved back to more normal levels and equity markets are capable of much worse performance than has been seen in the low volatility environment of recent years.
More Information	Fund Profile Manager's Report

Performance Report: Bennelong Twenty20 Australian Equities Fund

12 Nov 2018 - Australian Fund Monitors

The Bennelong Twenty20 Australian Equities Fund has risen +15.07% over the past 12 months versus the ASX200 Accumulation Index's +13.97%. Since inception in November 2009, the Fund has returned +10.59% p.a. versus the Index's +8.00%.

12 Nov 2018 - Performance Report: Bennelong Twenty20 Australian Equities Fund

By: Australian Fund Monitors

Report Date	12 November 2018
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Twenty20 Australian Equities Fund
Strategy	Equity Long
Latest Return Date	September 2018
Latest Return	-2.84%
Latest 6 Months	8.97%
Latest 12 Months	15.07%
Latest 24 Months	26.17%
Annualised Since Inception	10.59%
Inception Date	02 December 2015
FUM (millions)	AU$4.29
Fund Overview	The Fund aims to outperform the return of the S&P/ASX 300 Accumulation Index by 2% per annum after fees on a rolling three-year basis by combining indexed positions in the S&P/ASX 20 stocks with an actively managed exposure in primarily Australian stocks that are outside the S&P/ASX 20. The Fund is managed as one portfolio but comprises and combines two separately managed exposures: 1. An investment in the top 20 stocks of the markets, which the Fund achieves by taking an indexed position in the S&P/ASX 20 Index; and 2. An investment in the stocks beyond the S&P/ASX 20 Index. This exposure is managed on an active basis using a fundamental core approach. The Fund may also invest in securities expected to be listed on the ASX, securities listed or expected to be listed on other exchanges where such securities relate to ASX-listed securities.Derivative instruments may be used to replicate underlying positions and hedge market and company specific risks. The companies within the portfolio are primarily selected from, but not limited to, the S&P/ASX 300 Accumulation Index. The Fund typically holds between 40-55 stocks and thus is considered to be highly concentrated. This means that investors should expect to see high short-term volatility. The Fund seeks to achieve growth over the long-term, therefore the minimum suggested investment timeframe is 5 years.
Manager Comments	The Bennelong Twenty20 Australian Equities Fund has risen +15.07% over the past 12 months versus the ASX200 Accumulation Index's +13.97%. Since inception in November 2009, the Fund has returned +10.59% p.a. versus the Index's +8.00%. These returns have been achieved with approximately the same level of volatility. The Fund's up-capture and down-capture ratios since inception, +110.44% and +93.67% respectively, indicate that, on average, the Fund has outperformed in both rising and falling markets. The Fund returned -1.20% over the September quarter versus the Index's +1.53%. The Fund's return was impacted by underperformance of the Fund's ex-20 holdings. Bennelong noted that over time, in light of the latest quarterly return, the Fund's quarter-to-quarter performances have averaged out to provide clients with very above-market returns. Key detractors over the quarter included Flight Centre, Costa Group, Reliance Worldwide and BWX Limited. Read the Fund's latest report for Bennelong's analysis of these companies' activities. Bennelong have neither a bearish or bullish outlook on the market. They see Australian equities to be relatively attractive, however, they still believe there is the need to remain selective. They remain constructive on the market for the following reasons - stock fundamentals look solid, valuations are relatively attractive and investor sentiment is supportive. They also believe there is always a need to be diligent and manage risk and thus have ensured the portfolio is well positioned on a risk/return basis.
More Information	Fund Profile Manager's Report

Fund Monitors Pty Ltd

News

27 Nov 2018 - Performance Report: Spectrum Strategic Income Fund

26 Nov 2018 - Performance Report: Cyan C3G Fund

26 Nov 2018 - Performance Report: Bennelong Twenty20 Australian Equities Fund

23 Nov 2018 - Fund Review: Insync Global Capital Aware Fund October 2018

22 Nov 2018 - Bennelong Twenty20 Australian Equities Fund October 2018

21 Nov 2018 - Fund Review: Bennelong Kardinia Absolute Return Fund October 2018

19 Nov 2018 - Fund Review: Bennelong Long Short Equity Fund October 2018

15 Nov 2018 - Performance Report: Bennelong Long Short Equity Fund

14 Nov 2018 - Performance Report: Harvest Lane Asset Management Absolute Return Fund

12 Nov 2018 - Performance Report: Bennelong Twenty20 Australian Equities Fund

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