Performance Report: KIS Asia Long Short Fund

19 Feb 2018 - Australian Fund Monitors

The KIS Capital Long Short Fund returned +0.37% in January, taking annualised performance since inception in October 2009 to +13.65% with an annualised volatility of 5.25%.

19 Feb 2018 - Performance Report: KIS Asia Long Short Fund

By: Australian Fund Monitors

Report Date	19 February 2018
Manager	KIS Capital Partners
Fund Name	KIS Asia Long Short Fund
Strategy	Equity Long/Short
Latest Return Date	January 2018
Latest Return	0.37%
Latest 6 Months	6.41%
Latest 12 Months	6.46%
Latest 24 Months	23.01%
Annualised Since Inception	13.65%
Inception Date	01 October 2009
FUM (millions)	AU$77.6
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 Capital Long Short Fund returned +0.37% in January, taking annualised performance since inception in October 2009 to +13.65% with an annualised volatility of 5.25%. By contrast, the ASX200 Accumulation Index has returned +7.51% per annum with an annualised volatility of 11.68% over the same period. The Fund's Sortino ratio of 4.43 versus the Index's 0.55 emphasises the Fund's focus on capital preservation. As of the 9th of February, the Fund's return for this month was marginally positive. In January, the Fund's index hedges detracted 106bp. No other short positions lost more than 25bp. The Fund's largest positive contributors were all on the long side and included Sirtex Medical (+56bp), Cynata Therapeutics (+27bp) and Sempcorp Marine Ltd (+30bp). In their latest report, KIS Capital briefly discuss their view on ETFs. KIS feel there is a role for simple and well-structured ETFs to allow investors to decide whether they'd prefer active management or passive/indexed returns from a simply structured ETF such as the SPDR S&P/ASX200 Fund (STW.AU). However, they don't agree that investors should be able to 'point, click and buy' a risk profile and return stream that they don't understand. Two examples they point to are the VelocityShares Daily Inverse VIX Short-Term ETN (XIV.US), which was terminated after it experienced a daily drop of 84% on the 5th of February due to a spike in volatility and its own hedging actions, and VelocityShares Daily 2x VIX Short-Term ETN (TVIX.US).
More Information	Fund Profile Manager's Report

Fund Review: Bennelong Long Short Equity Fund January 2018

19 Feb 2018 - Australian Fund Monitors

Latest Fund Review for the Bennelong Long Short Equity Fund is now available.

Fund Review: Bennelong Kardinia Absolute Return Fund January 2018

16 Feb 2018 - Australian Fund Monitors

Latest Fund Review for the Bennelong Kardinia Absolute Return Fund is now available.

Fund Review: ARCO Absolute Trust January 2018

15 Feb 2018 - Australian Fund Monitors

Read the latest Fund Review on ARCO Absolute Trust.

Performance Report: Cyan C3G Fund

14 Feb 2018 - Australian Fund Monitors

The Cyan C3G Fund fell -0.28% in January. Since inception in July 2014, the Fund has returned +28.15% per annum with an annualised volatility of 10.26%.

14 Feb 2018 - Performance Report: Cyan C3G Fund

By: Australian Fund Monitors

Report Date	14 February 2018
Manager	Cyan Investment Management
Fund Name	Cyan C3G Fund
Strategy	Equity Long
Latest Return Date	January 2018
Latest Return	-0.28%
Latest 6 Months	20.77%
Latest 12 Months	30.85%
Latest 24 Months	54.35%
Annualised Since Inception	28.15%
Inception Date	24 July 2014
FUM (millions)	AU$35
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 fell -0.28% in January. Since inception in July 2014, the Fund has returned +28.15% per annum with an annualised volatility of 10.26%. The ASX200 Accumulation Index has returned +6.65% per annum with an annualised volatility of 11.46% over the same period. The Fund's Sharpe and Sortino ratios are 2.31 and 7.29 respectively, significantly superior to the Index's Sharpe ratio of 0.46 and Sortino ratio of 0.60 for performance over the same period. Key positive contributors included Spirit Telecom (+33%), Afterpay Touch (+23%), Axsess Today (+18%). Key negative contributors included Longtable (-15%), Experience Co (-12%), Motorcycle Holdings (-11%). In light of the recent market correction, Cyan noted they don't pretend to know what the market will do in the coming weeks, however, they do know that the companies in which the Fund is invested are in strong positions and will be inherently more valuable in the coming 12 months. Throughout the rest of February, Cyan plan to focus on company fundamentals as the Fund's holdings report their earnings results and provide outlook statements.
More Information	Fund Profile Manager's Report

Performance Report: MHOR Australian Small Cap Fund

13 Feb 2018 - Australian Fund Monitors

The MHOR Australian Small Cap Fund returned -0.28% in January, ending the Fund's run of 8 consecutive positive months. Since inception in August 2016, the Fund has returned +16.57% per annum.

13 Feb 2018 - Performance Report: MHOR Australian Small Cap Fund

By: Australian Fund Monitors

Report Date	13 February 2018
Manager	MHOR Asset Management
Fund Name	MHOR Australian Small Cap Fund
Strategy	Equity Long
Latest Return Date	January 2018
Latest Return	-0.28%
Latest 6 Months	20.32%
Latest 12 Months	25.22%
Latest 24 Months
Annualised Since Inception	16.57%
Inception Date	01 August 2016
FUM (millions)	AU$18
Fund Overview	The MHOR Australian Small Cap Fund aims to outperform the S&P/ASX Small Ordinaries Accumulation Index over a rolling 5-year period after fees and expenses. The portfolio is made up of 25-75 stocks listed on the ASX or NZX. The fund may also invest in stocks to be listed within the next 12 months. The portfolio is constructed to achieve an aggregate exposure that delivers a growth profile that is materially above that of the broader market. The fund may hold between 0% - 50% of its assets in cash. 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	The MHOR Australian Small Cap Fund returned -0.28% in January, ending the Fund's run of 8 consecutive positive months. Since inception in August 2016, the Fund has returned +16.57% per annum. The ASX200 Accumulation Index has returned +10.28% per annum over the same period. The Fund's up-capture and down-capture ratios since inception indicate that, on average, the Fund has achieved positive performance in rising markets and significantly outperformed in falling markets. Expecting market volatility, MHOR have been slowly increasing the Fund's cash levels over the last few months. Going into the market sell off earlier in the month, the Fund was carrying 16% cash and MHOR have been holding off purchasing a number of their new ideas. Additionally, MHOR have positioned the Fund to be materially underweight (in some cases zero) exposure to interest rate sensitive stocks such as REITs. MHOR noted they were able to utilise the broad base sell off to enter a number of positions.
More Information	Fund Profile Manager's Report

Performance Report: Bennelong Long Short Equity Fund

12 Feb 2018 - Australian Fund Monitors

The Bennelong Long Short Fund returned +1.51% in January. Since inception in February 2002, the Fund has returned +16.51% per annum with a volatility of 12.09%.

12 Feb 2018 - Performance Report: Bennelong Long Short Equity Fund

By: Australian Fund Monitors

Report Date	12 February 2018
Manager	Bennelong Long Short Equity Management, a Bennelong boutique
Fund Name	Bennelong Long Short Equity Fund
Strategy	Equity Market Neutral
Latest Return Date	January 2018
Latest Return	1.51%
Latest 6 Months	5.37%
Latest 12 Months	18.02%
Latest 24 Months	7.99%
Annualised Since Inception	16.51%
Inception Date	01 January 2003
FUM (millions)	AU$424
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 Fund returned +1.51% in January. Since inception in February 2002, the Fund has returned +16.51% per annum with a volatility of 12.09%. By contrast, the ASX200 Accumulation Index has returned +8.13% per annum with a volatility of 12.58% over the same period. The Fund's up-capture and down-capture ratios indicate that, on average, the Fund has achieved positive performance in rising markets and significantly outperformed in falling markets. The majority of pairs were profitable in January despite the headwind of a very strong $A/$US. A strong quarterly profit update from Resmed contributed to the Fund's long Resmed / short Ansell pair being amongst the Fund's strongest pairs. Long JB Hi-Fi / short Super Retail was also amongst the strongest pairs on industry feedback that some retailers had experienced better Christmas sales than feared. Long BlueScope Steel / short Sims Metal was the Fund's weakest pair following recent months of strong positive contribution. Bennelong noted the Australian market was the exception in January, falling by -0.5% whilst the S&P 500 (+5.6%), Nasdaq Composite (+7.4%) and MSCI Asia ex Japan (+7.5%) experienced some of their strongest January gains seen in years. Bennelong believe this is in large part a reflection of the composition of our market.
More Information	Fund Profile Manager's Report AFM Research Reports

Performance Report: Paragon Australian Long Short Fund

9 Feb 2018 - Australian Fund Monitors

The Paragon Australian Long Short Fund fell -1.3% in January. Since inception in March 2013, the Fund has returned +19.9% per annum.

9 Feb 2018 - Performance Report: Paragon Australian Long Short Fund

By: Australian Fund Monitors

Report Date	09 February 2018
Manager	Paragon Funds Management
Fund Name	Paragon Australian Long Short Fund
Strategy	Equity Long/Short
Latest Return Date	January 2018
Latest Return	-1.30%
Latest 6 Months	51.33%
Latest 12 Months	38.99%
Latest 24 Months	52.59%
Annualised Since Inception	19.88%
Inception Date	28 February 2013
FUM (millions)	AU$82.9
Fund Overview	The Paragon Fund is a concentrated long/short Australian listed equities product that is fundamentally driven with a focus on the industrial and resource sectors. 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	The Paragon Australian Long Short Fund fell -1.3% in January. Since inception in March 2013, the Fund has returned +19.9% per annum. By contrast, the ASX200 Accumulation Index has returned +8.06% per annum over the same period. The Fund's up-capture and down-capture ratios since inception are +92.5% and +10.4% respectively, highlighting the Fund's ability to capture most of the market's upside while limiting downside losses. Positive contributions from long holdings in Kidman, Echo, Cann Group, Wattle Health, Link Financial and Audinate, as well as the Fund's Lithium shorts, were offset by declines in the Fund's Cobalt holdings, Updater and Cimic. The latest report discusses Paragon's views on the Lithium and Cobalt markets. They note that, overall, the fundamental investment cases for both Lithium and Cobalt over the medium term have not changed. They believe that the Cobalt market will need to more than double by 2025, and the Lithium market will need to quadruple.
More Information	Fund Profile Manager's Report

Performance Report: Bennelong Concentrated Australian Equities Fund

9 Feb 2018 - Australian Fund Monitors

The Bennelong Concentrated Australian Equities Fund rose +4.27% in December, outperforming the ASX200 Accumulation Index by +2.46%.

9 Feb 2018 - Performance Report: Bennelong Concentrated Australian Equities Fund

By: Australian Fund Monitors

Report Date	09 February 2018
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Concentrated Australian Equities Fund
Strategy	Equity Long
Latest Return Date	December 2017
Latest Return	4.27%
Latest 6 Months	14.34%
Latest 12 Months	28.60%
Latest 24 Months	37.26%
Annualised Since Inception	18.50%
Inception Date	30 January 2009
FUM (millions)	AU$312.91
Fund Overview	Bennelong Australian Equity Partners (BAEP) is a boutique asset manager offering Australian equities solutions for institutional and retail clients. The business was founded in 2008 by Paul Cuddy and Mark East, in partnership with Bennelong Funds Management. Prior to establishing BAEP, Paul and Mark were Co-Heads of Australian Equities at ING Investment Management. The overriding objective of the Concentrated Australian Equities Fund is to seek investment opportunities which are under-appreciated and have the potential to deliver positive earnings, while satisfying our stringent quality criteria. Bennelong's investment process combines bottom-up fundamental analysis together with proprietary investment tools which are used to build and maintain high quality portfolios that are risk aware. The portfolio typically consists of 20-35 high-conviction stocks from the S&P/ASX 300 Index. The Fund may invest in securities listed on other exchanges where such securities relate to ASX-listed securities. Derivative instruments are mainly used to replicate underlying positions and hedge market and company specific risks.
Manager Comments	The Bennelong Concentrated Australian Equities Fund rose +4.27% in December, outperforming the ASX200 Accumulation Index by +2.46% and taking 12-month performance to +28.61%. Since inception in January 2009, the Fund has returned +18.50% per annum versus the Index's return of +11.12% per annum over the same period. Top contributors over the quarter included BWX Limited, Experience Co., Costa Group, Aristocrat Leisure, Treasury Wine Estates and Motorcycle Holdings. Some of the largest detractors were Reliance Worldwide and Flight Centre. In addition, the Fund's underweight position in the Resources and Energy sectors detracted from the Fund's relative performance. Bennelong noted portfolio positioning has remained unchanged since the Fund's last quarterly report. The Fund has a heavy concentration to 'all weather' businesses selling relatively defensive products or services and a heavy concentration in global businesses. The Manager remains wary of domestic cyclicals such as retailers, media companies, builders and industrials. The Fund has very little exposure to the banks, commodities companies and selective exposure to bond proxies. The Manager also noted they're unexcited by most blue chips due to their lack of growth.
More Information	Fund Profile Manager's Report

Performance Report: Insync Global Titans Fund

9 Feb 2018 - Australian Fund Monitors

The Insync Global Titans Fund fell -1.55% in December. The Fund has returned +16.60% after the cost of protection over the past 12 months, outperforming the benchmark (MSCI ex Aus) by +1.74%.

9 Feb 2018 - Performance Report: Insync Global Titans Fund

By: Australian Fund Monitors

Report Date	09 February 2018
Manager	Insync Fund Managers
Fund Name	Insync Global Titans Fund
Strategy	Equity Long
Latest Return Date	December 2017
Latest Return	-1.55%
Latest 6 Months	4.58%
Latest 12 Months	16.78%
Latest 24 Months	14.16%
Annualised Since Inception	9.70%
Inception Date	07 October 2009
FUM (millions)	AU$31
Fund Overview	Insync's investment strategy is driven by fundamentals combined with active risk management. Insync's aim is to invest 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 Titans 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 Titans Fund fell -1.55% in December. The Fund has returned +16.60% after the cost of protection over the past 12 months, outperforming the benchmark (MSCI ex Aus) by +1.74%. Since inception in October 2009, the Fund has returned +9.70% per annum after the cost of protection. Performance in December was driven by positive contributions from holdings in eBay, Twenty-First Century Fox, Comcast Corp, Reckitt Benckiser and Diageo. The main negative contributors were Zoetis Inc, Stryker Corp, Cognizant Tech Solutions, Oracle Corp and PayPal. 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. Over 50% of the Fund is currently protected using Insync's put protection strategy.
More Information	Fund Profile Manager's Report AFM Research Reports

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News

19 Feb 2018 - Performance Report: KIS Asia Long Short Fund

19 Feb 2018 - Fund Review: Bennelong Long Short Equity Fund January 2018

16 Feb 2018 - Fund Review: Bennelong Kardinia Absolute Return Fund January 2018

15 Feb 2018 - Fund Review: ARCO Absolute Trust January 2018

ARCO ABSOLUTE TRUST (formerly Optimal Australia Absolute Trust)

14 Feb 2018 - Performance Report: Cyan C3G Fund

13 Feb 2018 - Performance Report: MHOR Australian Small Cap Fund

12 Feb 2018 - Performance Report: Bennelong Long Short Equity Fund

9 Feb 2018 - Performance Report: Paragon Australian Long Short Fund

9 Feb 2018 - Performance Report: Bennelong Concentrated Australian Equities Fund

9 Feb 2018 - Performance Report: Insync Global Titans Fund

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