News
Performance Report: Pengana Global Small Companies Fund
30 Jan 2018 - Australian Fund Monitors
The Pengana Global Small Companies Fund returned +0.90% in December, taking 12-month performance to +23.96%.
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30 Jan 2018 - Performance Report: Pengana Global Small Companies Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is managed by Founder & CIO Leah Zell, and Portfolio Managers Jon Moog and David Li. The Lizard investment team have over 50 years combined investment experience in global small cap investing. Leah Zell has over 30 years of experience and is a recognized expert in international investing in the international small-cap category. The Fund's investment team uses a value-oriented investment approach to small and mid-cap global equities that seeks to identify and invest in quality businesses that create significant value but are mispriced, overlooked or out-of-favour. The investment manager believes that unique opportunities exist due to limited available research, corporate actions or unfavourable investor perception. The portfolio construction process aims to develop portfolios that incorporate the best investment ideas from the investment manager's research while allowing for liquidity constraints and perceived risk. The Fund's investment manager will not typically hedge currency exposures, however during periods of currency extremes, some currency hedging may be employed. Derivatives may be used to achieve long or short exposures, reduce risk and reduce transaction costs. Derivatives will not be used for the purposes of leverage and the Fund's net exposure will never be short. |
| Manager Comments | Top performers in December were all positions added in 2017. Pengana believe that these businesses continue to have significant growth potential and should compound value for years to come. Pengana noted non-AUD currency exposure had a negative impact on performance (detracted -1.8%). The Fund currently has 42 holdings, the top 10 positions represent 35% of the portfolio. This allocation is typical for the Fund and consistent with the Fund's investment mandate and strategy. |
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Performance Report: Glenmore Australian Equities Fund
29 Jan 2018 - Australian Fund Monitors
The Glenmore Australian Equities Fund rose +3.81% in November, outperforming the ASX200 Accumulation Index by +2.17% and taking performance since inception in June 2017 to +24%.
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29 Jan 2018 - Performance Report: Glenmore Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | Positive contributors included NRW Holdings (+19.3%), Praemium (+17.5%) and Alliance Aviation Services (+15.2%). Detractors included Mastermyne (-9.0%), Arena REIT (-8.3%) and Emeco (-3.8%). Glenmore noted there were no specific news releases during December for all three detractors and they remain comfortable holders going into reporting season in February. Glenmore believe valuations of equities are elevated, but not extremely so, with numerous stock specific opportunities still present on the ASX. Glenmore have also observed an increase in risk appetite, and noted the Fund has been selectively trimming positions in companies where the stock price has approached Glenmore's valuation. They note the next 12-18 months is highly likely to see an increase in equity market volatility. Currently, the Fund holds around 20% cash and hence is well positioned for any stock specific opportunities that might be created from a market correction. |
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Fund Review: Bennelong Kardinia Absolute Return Fund December 2017
26 Jan 2018 - Australian Fund Monitors
Latest Fund Review for the Bennelong Kardinia Absolute Return Fund is now available.
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26 Jan 2018 - Fund Review: Bennelong Kardinia Absolute Return Fund December 2017
By: Australian Fund Monitors
AFM Fund Review - December 2017 (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 10.90% p.a. with a volatility of 7.00%, compared to the ASX200 Accumulation's return of 5.81% p.a. with a volatility of 13.62%.
- 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 - December 2017 (pdf format)
Performance Report: Pengana Absolute Return Asia Pacific Fund
25 Jan 2018 - Australian Fund Monitors
The Pengana Absolute Return Asia Pacific Fund returned +1.61% in December, taking annualised performance since inception in October 2008 to +8.53% with a volatility of 6.05%.
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25 Jan 2018 - Performance Report: Pengana Absolute Return Asia Pacific Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will usually hold 40 to 80 positions and will be well diversified across the various event strategies. In keeping with the absolute return focus the Manager will eliminate market risk where appropriate by hedging market and foreign currency risks. Since inception the Fund has averaged a net equity market exposure of ~10%. Sizing of an investment position will depend on the expected risk adjusted returns while taking account the liquidity and volatility of the stock. In addition, the maximum potential loss on any one position should be greater than 0.5% of the NAV and the position should not exceed 30% participation of stressed volume assuming a $200m NAV. Other criteria considered are ability to hedge and the availability of pair candidates as well as the average bid-ask size. For M&A strategies average long position is 3 to 5.5% and average short position 2 to 5%. |
| Manager Comments | M&A, Directional and Relative Value strategies all contributed positively for the month. The M&A sub-strategy contributed +0.8%, with a 2017 total contribution of +6.4%. The largest contributor for December was Hutchison Telecom (+10.2%). The Relative Value book contributed +0.5%, the largest contributor was the Fund's long/short position in long SG Holdings / short Yamato Holdings. The Directional Alpha book contributed +0.9% for the month. Key contributors included China Foods (+18.4%), China Travel (+15%) and Wagners Holdings (+28%), whilst the key detractor was Softbank (-6.0%). |
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Performance Report: NWQ Fiduciary Fund
24 Jan 2018 - Australian Fund Monitors
The NWQ Fiduciary Fund returned +2.80% in December and finished the 2017 calendar year up +12.62% versus the ASX200 Accumulation Index's +11.80%.
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24 Jan 2018 - Performance Report: NWQ Fiduciary Fund
By: Australian Fund Monitors
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| 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 | The recent strong performance of the Fund's underlying managers continued with positive contributions to overall performance made by each underlying manager. The Fund's Beta managers benefited from the tailwinds of rising equity markets in December and both the Alpha and Beta managers made gains on favourable stock-specific developments over the course of the month. NWQ believe with the prospect of global interest rate normalisation--led by the US--ahead in 2018, equity market volatility is likely to increase from its current historic lows. The market neutral or 'hedged' profile of the Fund means that it is appropriately positioned should this heightened volatility materialise. |
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Performance Report: Bennelong Australian Equities Fund
23 Jan 2018 - Australian Fund Monitors
The Bennelong Australian Equities Fund rose +1.67% in December The Fund has returned +19.13% over the past 12 months, outperforming the ASX200 Accumulation Index by +7.33%.
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23 Jan 2018 - Performance Report: Bennelong Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The Bennelong Australian Equities Fund seeks quality investment opportunities which are under-appreciated and have the potential to deliver positive earnings. The investment process combines bottom-up fundamental analysis with proprietary investment tools that are used to build and maintain high quality portfolios that are risk aware. The investment team manages an extensive company/industry contact program which helps identify and verify various investment opportunities. The companies within the portfolio are primarily selected from, but not limited to, the S&P/ASX 300 Index. The Fund may invest in securities listed on other exchanges where such securities relate to the ASX-listed securities. The Fund typically holds between 25-60 stocks with a maximum net targeted position of an individual stock of 6%. |
| Manager Comments | Over the quarter, top contributors included Treasury Wine Estates, Costa Group and Aristocrat Leisure. Detractors included Reliance Worldwide and Flight Centre. The Fund's underweight position in the Resource and Energy sectors also detracted from 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. |
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Performance Report: Bennelong Twenty20 Australian Equities Fund
22 Jan 2018 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund returned +2.95% in December, taking 12-month performance to +16.33%.
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22 Jan 2018 - Performance Report: Bennelong Twenty20 Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | Over the quarter the Fund outperformed the Index by +1.17%. Top contributors were BWX Limited, Experience Co, Costa Group and Aristocrat Leisure. Detractors included Reliance Worldwide and Flight Centre as well as the Fund's underweight position in the Resources and Energy sectors. Bennelong believe investors have become less cautious since the Fund's last quarterly report, pointing specifically to the recent demand for lithium stocks, disruptive technology names, pre-revenue concept stocks and bitcoin. They believe in these cases value seems to be largely in the eye of the beholder rather than any observable fundamentals. Bennelong see the greatest risk to equities at present to be a rise in interest rates and tightening of liquidity. Their view is that rates may lift, but not dramatically so. |
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Performance Report: Allard Investment Fund
19 Jan 2018 - Australian Fund Monitors
The Allard Investment Fund fell -1.42% in December. The Fund has returned +12.16% over the past 12 months versus the ASX200 Accumulation Index's +11.80%.
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19 Jan 2018 - Performance Report: Allard Investment Fund
By: Australian Fund Monitors
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| Fund Overview | Allard's investment approach has remained consistent throughout their history: That is to invest prudently but proactively in well-managed businesses that achieve superior returns on capital in industries with long-term growth potential. The Manager uses both broad top-down guidance and detailed bottom-up analysis to identify suitable markets, industries and companies. Although long only investors, a critical factor in their strategy and performance is the ability to hold cash when they cannot find companies that meet their criteria or are at a sufficient discount to their valuations. |
| Manager Comments | The Fund's latest report shows that holdings in Cash and Fixed Income have increased to 22.2% from 20.7% as at the end of November. The portfolios weightings were decreased in the Industrials, IT, Health Care, Utilities, Telco, Real Estate and Financial sectors while the Fund increased its Consumer Discretionary sector weighting. The portfolio remains highly concentrated, with 53% of NAV held in the Fund's top 10 stocks. Geographically, Hong Kong and China make up most of the portfolio (44.9%), followed by Singapore (13.0%), India (10.8%), Korea (4.9%), Indonesia (2.1%), Australia (1.1%) and Vietnam (1.0%). |
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Performance Report: ARCO Absolute Trust (formerly Optimal)
18 Jan 2018 - Australian Fund Monitors
The ARCO Absolute Trust returned + 1.76% in December, taking 12-month performance to +8.47% and marking 10 consecutive years of positive performance.
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18 Jan 2018 - Performance Report: ARCO Absolute Trust (formerly Optimal)
By: Australian Fund Monitors
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| 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 | The portfolio's long positions dominated December's performance result. The Fund's resources exposure drove solid returns, with contributions from BHP, LYC, ORE and TAW. WFD and TLS also contributed positively. AHG and QUB were modest negative performers in the long portfolio, however, ARCO retain their conviction in these stocks with a positive outlook. The Fund's short portfolio contributed negatively overall, with select insurance and industrial shorts being the principal detractors. ARCO noted that they retain their cautious view of the local banking sector which they expect to continue to struggle in 2018 with low earning growth, adverse credit quality, restructuring and political risks representing headwinds blowing strongly in the face of still attractive dividend yields. |
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Bennelong Twenty20 Australian Equities Fund December 2017
17 Jan 2018 - Australian Fund Monitors
Latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available.
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17 Jan 2018 - Bennelong Twenty20 Australian Equities Fund December 2017
By: Australian Fund Monitors
AFM Fund Review - December 2017 (pdf format)
BENNELONG TWENTY20 AUSTRALIAN EQUITIES FUND
Attached is our most recently updated Fund Review on the Bennelong Twenty20 Australian Equities Fund.
- The Bennelong Twenty20 Australian Equities Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of stocks outside the Top 20. Construction of the ex-top 20 portfolio is fundamental, bottom-up, core investment style, biased to quality stocks, with a structured risk management approach.
- Mark East, the Fund's Chief Investment Officer, and Keith Kwang, Director of Quantitative Research have over 50 years combined market experience. Bennelong Funds Management (BFM) provides the investment manager, Bennelong Australian Equity Partners (BAEP) with infrastructure, operational, compliance and distribution services.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - December 2017 (pdf format)
