News
Fund Review: Bennelong Kardinia Absolute Return Fund March 2018
20 Apr 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.
Read more...
20 Apr 2018 - Fund Review: Bennelong Kardinia Absolute Return Fund March 2018
By: Australian Fund Monitors
AFM Fund Review - March 2018 (pdf format)
BENNELONG KARDINIA ABSOLUTE RETURN FUND
Attached is our most recently updated Fund Review. You are also able to view the Fund's Profile.
- The Fund is long biased, research driven, active equity long/short strategy investing in listed ASX companies with over ten-year track record.
- The Fund has significantly outperformed the ASX200 Accumulation Index since its inception in May 2006 and also has significantly lower risk KPIs. The Fund has an annualised return of 10.51% p.a. with a volatility of 6.95%, compared to the ASX200 Accumulation's return of 5.33% p.a. with a volatility of 13.49%.
- The Fund also has a strong focus on capital protection in negative markets. Portfolio Managers Mark Burgess and Kristiaan Rehder have significant market experience, while Bennelong Funds Management provide infrastructure, operational, compliance and distribution capabilities.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - March 2018 (pdf format)
Performance Report: ARCO Absolute Trust (formerly Optimal)
19 Apr 2018 - Australian Fund Monitors
The ARCO Absolute Trust rose +1.39% in March, outperforming the ASX200 Accumulation Index by +5.16%. Since inception in September 2008, the Fund has returned +8.43% p.a. with a volatility of 3.75%.
Read more...
19 Apr 2018 - Performance Report: ARCO Absolute Trust (formerly Optimal)
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The Fund's bias is likely to be net long under normal market conditions, with the core strategy being to construct a portfolio of listed equity securities priced at levels that do not adequately reflect their underlying value. The Fund will seek to boost returns and limit potential market downside by selective short selling of individual stocks which are priced at levels that are viewed as materially above their underlying value. The Fund will also use certain trading strategies both within its core portfolio (through rebalancing stock weights and overall market exposure in response to price movements) and in certain other situations (typically of a shorter-duration and/or opportunistic nature) with the objective of further increasing returns. *Formerly the Optimal Australia Absolute Trust |
| Manager Comments | Short holdings drove the positive absolute performance result, especially across the banking and insurance sectors, with the Index Futures positions also making strong contributions. The long portfolio generated a negative overall return, however, it performed notably better than the underlying market with positive returns from almost half of the Fund's holdings. Despite the modestly net long position at month-end (a result of portfolio rebalancing into market weakness), ARCO continue to be wary of increasing risks coming more to the fore in equity markets globally. As such, minimising investor drawdown remains front of mind in ARCO's stock selection and portfolio rebalancing activity with what ARCO expects will remain a volatile market. |
| More Information |
Performance Report: Bennelong Long Short Equity Fund
18 Apr 2018 - Australian Fund Monitors
The Bennelong Long Short Australian Equities Fund rose +0.83% in March, outperforming the ASX200 Accumulation Index by +4.6%. Since inception in January 2003, the Fund has returned +16.29% p.a. with slightly lower volatility than the market.
Read more...
18 Apr 2018 - Performance Report: Bennelong Long Short Equity Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | 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 Fund's positive return came from the short portfolio's contribution. However, the long portfolio also outperformed the market with several positions closing higher. Bennelong noted performance broadly reflected trends set by reporting season. In terms of pairs, positive contributors included long Macquarie / short Bendigo and long ALS limited / short Aurizon. On the negative side, long Crown / short SkyCity was the Fund's weakest pair, however, Bennelong noted that the overall contribution from the Fund's negative pairs was minimal. |
| More Information |
Performance Report: NWQ Fiduciary Fund
17 Apr 2018 - Australian Fund Monitors
The NWQ Fiduciary Fund returned +0.38% in March, outperforming the ASX200 Accumulation Index by +4.15%. Since inception in May 2013, the Fund has returned +7.23% p.a. with a volatility of 4.76%.
Read more...
17 Apr 2018 - Performance Report: NWQ Fiduciary Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The Fund aims to produce returns, after management fees and expenses of between 8% to 11% p.a. over rolling five-year periods. Furthermore, the Fund aims to achieve these returns with volatility that is a fraction of the Australian equity market, in order to smooth returns for investors. |
| Manager Comments | NWQ noted that, against the challenging market backdrop, it was pleasing to see the Beta managers hedge out a portion of the market risk. In addition, as is to be expected when volatility increases, the opportunity set for the Alpha managers widened and, as a result, these managers made a meaningful positive contribution to overall Fund performance in March. |
| More Information |
Performance Report: Cyan C3G Fund
16 Apr 2018 - Australian Fund Monitors
The Cyan C3G Fund returned -2.01% in March, outperforming the ASX200 Accumulation Index by +1.76%. Since inception in July 2014, the Fund has returned +26.55% per annum.
Read more...
16 Apr 2018 - Performance Report: Cyan C3G Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | Cyan C3G Fund is based on the investment philosophy which can be defined as a comprehensive, clear and considered process focused on delivering growth. These are identified through stringent filter criteria and a rigorous research process. The Manager uses a proprietary stock filter in order to eliminate a large proportion of investments due to both internal characteristics (such as gearing levels or cash flow) and external characteristics (such as exposure to commodity prices or customer concentration). Typically, the Fund looks for businesses that are one or more of: a) under researched, b) fundamentally undervalued, c) have a catalyst for re-rating. The Manager seeks to achieve this investment outcome by actively managing a portfolio of Australian listed securities. When the opportunity to invest in suitable securities cannot be found, the manager may reduce the level of equities exposure and accumulate a defensive cash position. Whilst it is the company's intention, there is no guarantee that any distributions or returns will be declared, or that if declared, the amount of any returns will remain constant or increase over time. The Fund does not invest in derivatives and does not use debt to leverage the Fund's performance. However, companies in which the Fund invests may be leveraged. |
| Manager Comments | Cyan noted the Fund's defensive cash position alleviated some of the market weakness. One clear positive was the Fund's biggest holding, equipment financier Axsess Today (+8%). Negative contributors included AMA Group, Afterpay Touch, Motorcycle Holdings, Experience Co and Moelis, however, Cyan noted the most material negative contributor was BlueSky Alternatives (BLA) which they discuss in depth in their latest report. Cyan first invested in BLA in October 2014 at $2.80 and built upon this position over time, however, after the release of Glaucus' negative report on the business at the end of March, Cyan decided sell their position completely. The Fund is currently defensively positioned, with a substantial cash holding complemented by 20 positions. Cyan look forward to deploying further cash as opportunities are identified but remain acutely aware of inconsistent sentiment and patches of extreme volatility that the market is currently experiencing, particularly at the smaller end. |
| More Information |
Fund Review: ARCO Absolute Trust March 2018
13 Apr 2018 - Australian Fund Monitors
Read the latest Fund Review on ARCO Absolute Trust. ARCO Investment Management is a specialist Australian equity investment manager and the Fund has a long/short equity strategy typically with a low but variable net market exposure...
Read more...
13 Apr 2018 - Fund Review: ARCO Absolute Trust March 2018
By: Australian Fund Monitors
AFM Fund Review - March 2018 (pdf format)
ARCO ABSOLUTE TRUST (formerly Optimal Australia Absolute Trust)
AFM have released the most recently updated Fund Review on the ARCO Absolute Trust.
We would like to highlight the following aspects of the Fund;
-
ARCO Investment Management is a specialist Australian equity investment manager and the Fund has a long/short equity strategy typically with a low but variable net market exposure comprising 40 to 65 stocks broadly selected from within the ASX200.
-
The investment team comprising George Colman, Peter Whiting, and Stephen Nicholls bring 100 years combined experience in equity markets.
-
The Fund has an annualised return since inception of +8.43%. The Fund's approach to risk is shown by the Sharpe ratio of 1.41 (Index 0.27), Sortino ratio of 2.95 (Index 0.28), both of which are well above the ASX 200 Accumulation Index and has recorded over 79% positive months.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - March 2018 (pdf format)
Fund Review: Bennelong Long Short Equity Fund March 2018
12 Apr 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, with over...
Read more...
12 Apr 2018 - Fund Review: Bennelong Long Short Equity Fund March 2018
By: Australian Fund Monitors
AFM Fund Review - March 2018 (pdf format)
BENNELONG LONG SHORT EQUITY FUND
Attached is our most recently updated Fund Review on the Bennelong Long Short Equity Fund.
- The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large-caps from the ASX/S&P100 Index, with over 15-years' track record and an annualised returns of over 16%.
- The consistent returns across the investment history indicate the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market. The Fund's Sharpe Ratio and Sortino Ratio are 1.00 and 1.64 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - March 2018 (pdf format)
Performance Report: Paragon Australian Long Short Fund
11 Apr 2018 - Australian Fund Monitors
The Paragon Australian Long Short Fund returned -4.7% in March. Since inception in March 2013, the Fund has returned +17.34% per annum versus the ASX200 Accumulation Index's +7.05% per annum.
Read more...
11 Apr 2018 - Performance Report: Paragon Australian Long Short Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | Paragon's unique investment style, comprising thematic led idea generation followed with an in depth research effort, results in a concentrated portfolio of high conviction stocks. Conviction in bottom up analysis drives the investment case and ultimate position sizing: * Both quantitative analysis - probability weighted high/low/base case valuations - and qualitative analysis - company meetings, assessing management, the business model, balance sheet strength and likely direction of returns - collectively form Paragon's overall view for each investment case. * Paragon will then allocate weighting to each investment opportunity based on a risk/reward profile, capped to defined investment parameters by market cap, which are continually monitored as part of Paragon's overall risk management framework. The objective of the Paragon Fund is to produce absolute returns in excess of 10% p.a. over a 3-5 year time horizon with a low correlation to the Australian equities market. |
| Manager Comments | Positive contributors in March included Dacian Gold, Global Geoscience and the Fund's shorts in Invocare, Mineral Resources, Aurizon and Telstra. These were offset by declines in several holdings, driven by the market sell-off, including Orocobre, Cimic, Wattle Heath, Metals X, Echo and Paragon's Cobalt holdings. Paragon ended the month with 30 long and 26 short positions. Paragon's view is that the mood across global markets remains in fear territory, with March exhibiting high levels of volatility once again. In order to best navigate this period of volatility, Paragon increased the Fund's hedges through March and further reduced their net exposure. They also noted that, while ongoing volatility presents certain challenges, they continue to embrace the opportunities that come with it, identifying new stocks for the Fund. |
| More Information |
Performance Report: MHOR Australian Small Cap Fund
10 Apr 2018 - Australian Fund Monitors
The MHOR Australian Small Cap Fund fell -1.36% in February. Since inception in August 2016, the Fund has returned +14.64% per annum.
Read more...
10 Apr 2018 - Performance Report: MHOR Australian Small Cap Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | MHOR looks for investment that exhibit the following set of characteristics: -Opportunity - to take advantage of growth and positive alignment with industry themes and trends. -Quality business - competitively advantaged product or service offering. -Financial flexibility - appropriately resourced to capture its opportunity. -Management - with the vision and capability to bring it all together. -Fundamentally undervalued. MHOR also considers labour standards, environmental, social and ethical considerations when making investment decisions but only to the extent that these factors impact the assessment of risk or return. The minimum suggested investment timeframe is 3-5 years. |
| Manager Comments | Positive contributors included SPZ, NWH & IMD. Notable detractors were TBH & DUB. The Fund exited the month with 32 stocks and 10% cash. MHOR noted the portfolio performed in line with the market during the downdraft. They went into results season with a target list of potential actionable ideas and, from this list and others, deployed 10% of the fund's cash throughout the season. This allowed MHOR to gain conviction on some stocks and top up holdings, as well as rotate into new ideas and away from stocks where MHOR's assessment had changed. Cyclical stocks caught MHOR's attention the most, they noted. The Mining Services Sector remains foremost in their thinking with much repaired balance sheets, improved operational visibility, reasonable valuation and consensus expectation framework as well as a more limited competitor set than the prior resources peak. This sector remains MHOR's largest overweight. With respect to valuation and expectation, MHOR found Media and Retail to be interesting ahead of results. |
| More Information |
Fund Review: Insync Global Titans Fund February 2018
9 Apr 2018 - Australian Fund Monitors
Latest Fund Review on Insync Global Titans Fund is now available. The Global Titans Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and...
Read more...
9 Apr 2018 - Fund Review: Insync Global Titans Fund February 2018
By: Australian Fund Monitors
AFM Fund Review - February 2018 (pdf format)
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans Fund.
We would like to highlight the following:
- The Global Titans Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - February 2018 (pdf format)
