Performance Report: Quay Global Real Estate Fund

3 Nov 2017 - Australian Fund Monitors

The Quay Global Real Estate Fund increased +1.3% in September. Since inception in July 2014, the Fund has outperformed its benchmark by +5.0% per annum.

3 Nov 2017 - Performance Report: Quay Global Real Estate Fund

By: Australian Fund Monitors

Report Date	03 November 2017
Manager	Quay Global Investors
Fund Name	Quay Global Real Estate Fund
Strategy	Real Estate
Latest Return Date	September 2017
Latest Return	1.30%
Latest 6 Months	4.65%
Latest 12 Months	3.69%
Latest 24 Months	8.80%
Annualised Since Inception	13.95%
Inception Date	31 July 2014
FUM (millions)	AU$20.4
Fund Overview	Quay is a boutique investment management business established in 2013 with a focus on preserving and creating wealth for investors through investments in real estate securities. Quay uses a dual manager approach to the investment and portfolio management decision making process. This involves both Principals collaborating to determine significant portfolio investments and positions. The Fund will invest in a number of global listed real estate companies, groups or funds. The investment strategy is to make investments in real estate securities at a price that will deliver a real, after inflation, total return of 5% per annum (before costs and fees), inclusive of distributions over a longer-term period. The Investment Strategy is indifferent to the constraints of any index benchmarks and is relatively concentrated in its number of investments. The Fund is expected to own between 20 and 40 securities, and from time to time up to 20% of the portfolio maybe invested in cash. The Fund is $A un-hedged.
Manager Comments	The Quay Global Real Estate Fund increased +1.3% in September, with approximately +1.5% derived from currency as the Fund's exposure to the UK benefited from a strong rally in the Sterling. Since inception in July 2014, the Fund has outperformed its benchmark (FTSE/EPRA NAREIT Developed Index Net TR AUD) by +5.0% per annum. The Manager highlighted Life Storage (LSI) as one of the Fund's top performers for the month, noting the significant loss of homes in Houston after Hurricane Harvey all but eliminated any excess supply in the Storage and Apartment markets. Among the largest detractors was American Campus Communities (US) as the company announced slightly weaker leasing headed into the school year, along with a significant acquisition ($590m) of seven student housing properties staged over the next two years. The Manager remains comfortable with their long-term themes including Affordable Accommodation, Healthcare and Storage. For the Mall operators, they noted the general sentiment was that the sell-off has been overdone, with many owners suggesting the worst of the bankruptcies was over. However, the Manager remains cautious for properties not deemed 'best in class'.
More Information	Fund Profile Manager's Report

Performance Report: Touchstone Index Unaware Fund

3 Nov 2017 - Australian Fund Monitors

The Touchstone Index Unaware Fund rose +0.39% in September, taking annualised performance over the past 12 months to +9.63%.

3 Nov 2017 - Performance Report: Touchstone Index Unaware Fund

By: Australian Fund Monitors

Report Date	03 November 2017
Manager	Touchstone Asset Management, A Bennelong Boutique
Fund Name	Touchstone Index Unaware Fund
Strategy	Equity Long
Latest Return Date	September 2017
Latest Return	0.39%
Latest 6 Months	-1.18%
Latest 12 Months	9.62%
Latest 24 Months
Annualised Since Inception	12.08%
Inception Date	04 April 2016
FUM (millions)	AU$4.18
Fund Overview	The Fund aims to deliver capital growth and a sustainable income stream to its investors by investing in a portfolio of primarily listed Australian shares and cash, aiming to provide a total return that exceeds the return of the S&P/ASX300 Accumulation Index by 2% p.a. (before fees and expenses) over a rolling 5 year period. The portfolio is constructed using Touchstone's Quality-At-a-Reasonable-Price ('QARP') investment process. QARP is a fundamental bottom-up process, however, it also incorporates a top-down risk management framework designed to successfully manage the portfolio during varying market conditions and economic cycles. The Touchstone Fund is concentrated, typically holding between 15-20 stocks. No individual stock will ever make up more than 10% of the portfolio at any one time. The Investment Manager may temporarily exceed the exposure limits of the Fund occasionally, particularly during periods of market volatility, to allow for holdings in excess of this 10% limit where the increase in value of the underlying security is due to market movement. The Fund may also hold between 0-50% of the portfolio in cash. The Fund has a high level of associated risk, therefore, the minimum suggested investment time-frame is 5 years.
Manager Comments	The Touchstone Index Unaware Fund rose +0.39% in September, taking annualised performance over the past 12 months to +9.63% and outperforming the ASX200 Accumulation Index by +0.38%. Positive performers for the month included Mantra (+8.9%) and Bingo Industries (+4.8%). Detractors included Treasury Wine Estates (-5.5%) and QBE (-4.1%), however, the Manager noted Treasury Wine Estates contributed positively over the quarter (+5.0%). The Manager believes the drivers for an earnings uplift are in place for QBE, with signs that the insurance pricing cycle has turned up. The Manager highlighted the disappointing performance in the Australian equity market compared to global share markets over the past six months. They believe weakness in consumer spending, rising input costs and increased competition will continue to weigh on the outlook for earnings growth. The Manager foresees a challenging FY18 growth outlook for the Banking sector, they also anticipate that a decline in commodity prices will impact the Resources sector's profit outlook. The Manager's view remains unchanged that, given the heightened global uncertainty, the market remains vulnerable to an external shock and as such remain focused on downside protection.
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Performance Report: Collins St Value Fund

2 Nov 2017 - Australian Fund Monitors

The Collins St Value Fund returned +1.83% in September, taking annualised performance since inception in February 2016 to +20.27%.

2 Nov 2017 - Performance Report: Collins St Value Fund

By: Australian Fund Monitors

Report Date	03 November 2017
Manager	Collins St Asset Management
Fund Name	Collins St Value Fund
Strategy	Equity Long
Latest Return Date	September 2017
Latest Return	1.83%
Latest 6 Months	5.42%
Latest 12 Months	15.46%
Latest 24 Months
Annualised Since Inception	20.06%
Inception Date	05 February 2016
FUM (millions)	AU$28
Fund Overview	The Collins Street Value Fund is an index unaware fund which seeks to create strong investment returns over the medium and long term with capital preservation a priority. The managers of the fund intend to maintain a concentrated portfolio of investments in ASX listed companies that they have investigated and consider to be undervalued. They will assess the attractiveness of potential investments using a number of common industry based measured, a proprietary in-house model and by speaking with management, industry experts and competitors. Once the managers form a view that an investment offers sufficient upside potential relative to the downside risk, the fund will seek to make an investment. If no appropriate investment can be identified the managers are prepared to hold cash and wait for the right opportunities to present themselves.
Manager Comments	The Collins St Value Fund returned +1.83% in September, outperforming the ASX200 Accumulation Index by +2.4% and taking annualised performance since inception in February 2016 to +20.27%. The Fund's up-capture and down-capture ratios indicate that, on average, the Fund has achieved positive performance in rising markets and has significantly outperformed in falling markets. Collins St note they spent much of the month investigating potential investment opportunities and continuing their due diligence on companies already owned. The average PE ratio of the Fund's equities holdings is 8.13x versus the market's 17.59x, indicating that the Fund invests in businesses trading at a significant discount to their underlying worth. At the end of the month, the portfolio comprised 80% ASX securities and 20% cash. Collins St noted the slightly larger cash position is due to the Fund having trimmed some of its positions, they believe the Fund remains well placed to take advantage of any opportunities that may arise. The Fund stands out as one of the few with zero management fees, charging performance fees only, ensuring the Manager's interests are aligned with investors'.
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Performance Report: MHOR Australian Small Cap Fund

2 Nov 2017 - Australian Fund Monitors

The MHOR Australian Small Cap Fund returned +2.43% in September. Since inception in August 2016, the Fund has returned +8.53%.

2 Nov 2017 - Performance Report: MHOR Australian Small Cap Fund

By: Australian Fund Monitors

Report Date	03 November 2017
Manager	MHOR Asset Management
Fund Name	MHOR Australian Small Cap Fund
Strategy	Equity Long
Latest Return Date	September 2017
Latest Return	2.43%
Latest 6 Months	12.66%
Latest 12 Months	6.06%
Latest 24 Months
Annualised Since Inception	7.28%
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 +2.43% in September. Since inception in August 2016, the Fund has returned +8.53%. They entered the month with 33 stocks and 14.6% cash and exited with 36 stocks and 6.7% cash. Top performers during the month included Syrah Resources (+16%), SpeedCast International (+9%) and G8 Education (+6%). One major detractor was TopBetta Holdings (-20%), sold off sharply after an article referenced RBW Nominees, one of TopBetta's shareholders, and raised issues related to misappropriated client funds by one of their associates. MHOR view this as 'noise' with no change to the underlying fundamentals, they expect further positive market updates as their internally tracked numbers suggest TopBetta are on track to exceed their $75m turnover forecast. MHOR believe that, with earnings season out of the way, near-term market sentiment will likely be macro driven. Their view is that fundamentals remain supportive of global equities. MHOR remain confident that the Fund is well positioned to outperform its benchmark (ASX Small Ords) with a diversified portfolio leveraged to multiple structural growth themes and trends, as well as a number of overlooked classic value plays.
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Performance Report: Bennelong Concentrated Australian Equities Fund

1 Nov 2017 - Australian Fund Monitors

The Bennelong Concentrated Australian Equities Fund rose +3.07% in September, taking annualised performance since inception in January 2009 to +17.74%.

1 Nov 2017 - Performance Report: Bennelong Concentrated Australian Equities Fund

By: Australian Fund Monitors

Report Date	03 November 2017
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Concentrated Australian Equities Fund
Strategy	Equity Long
Latest Return Date	September 2017
Latest Return	3.07%
Latest 6 Months	8.52%
Latest 12 Months	14.48%
Latest 24 Months	44.47%
Annualised Since Inception	17.75%
Inception Date	30 January 2009
FUM (millions)	AU$221.03
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 +3.07% in September, taking annualised performance since inception in January 2009 to +17.75% and outperforming the ASX200 Accumulation Index by +7.24% per annum. The Fund's up-capture and down-capture ratios since inception show that, on average, it has outperformed in both rising and falling markets. The Fund's outperformance over the quarter benefited from strong returns from Reliance Worldwide, Flight Centre and Costa Group. Bennelong believe the market is underestimating the quality of Reliance Worldwide and Flight Centre, two of the most heavily shorted stocks on the ASX. The largest detractors were Domino's Pizza Enterprises and Aristocrat Leisure, as well as the Fund's underweight exposure to the strong performing Resources sector. Bennelong believe the market underestimates the longer-term growth prospects of Domino's Pizza Enterprises, they also foresee stronger than expected earnings growth and a lower PE multiple for Aristocrat Leisure. Bennelong identify a rise in interest rates as a major risk to the Australian stock market, their view is that rates may lift, but not dramatically. Their belief is that higher rates will be attributable to higher inflation, which is likely to result from factors relating to innovation, demographics and under-employment.
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Fund Review: Insync Global Titans Fund September 2017

1 Nov 2017 - Australian Fund Monitors

Latest Fund Review on Insync Global Titans Fund is now available.

Performance Report: Bennelong Kardinia Absolute Return Fund

27 Oct 2017 - Australian Fund Monitors

The Bennelong Kardinia Absolute Return Fund increased +0.66% in September. Since inception in May 2006, the Fund has outperformed the ASX200 Accumulation Index by +5.41% per annum.

27 Oct 2017 - Performance Report: Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	27 October 2017
Manager	Kardinia Capital, A Bennelong boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	September 2017
Latest Return	0.66%
Latest 6 Months	0.96%
Latest 12 Months	1.56%
Latest 24 Months	5.31%
Annualised Since Inception	10.67%
Inception Date	01 May 2006
FUM (millions)	AU$245.1
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 increased +0.66% in September. Since inception in May 2006, the Fund has outperformed the ASX200 Accumulation Index by +5.41% per annum. The Fund's Sharpe and Sortino ratios over this period are 0.96 and 1.76 respectively, compared with the market's Sharpe ratio of 0.17 and Sortino ratio of 0.14. Positive performers included South32 (+0.22%), RCR Tomlinson (+0.19%) and Costa Group (+0.15). Negative contributors included Amcor (-0.12%), BHP (-0.09%) and Evolution (-0.09%). The short book performed well, with Fortescue and Telstra the key contributors adding +0.2% for the month. Net equity market exposure, including derivatives, was reduced from 35.8% to 22.4% as the Manager sold their holdings in ANZ and NAB and added short positions in Fortescue and Share Price Index Futures.
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Performance Report: Glenmore Australian Equities Fund

27 Oct 2017 - Australian Fund Monitors

The Glenmore Australian Equities Fund returned +3.05% in September, taking performance since inception in June 2017 to +13.42%.

Performance Report: KIS Asia Long Short Fund

27 Oct 2017 - Australian Fund Monitors

The KIS Asia Long Short Fund returned +1.82% in September with an annualised return since inception in October 2009 of +13.79%.

27 Oct 2017 - Performance Report: KIS Asia Long Short Fund

By: Australian Fund Monitors

Report Date	27 October 2017
Manager	KIS Capital Partners
Fund Name	KIS Asia Long Short Fund
Strategy	Equity Long/Short
Latest Return Date	September 2017
Latest Return	1.82%
Latest 6 Months	1.91%
Latest 12 Months	4.73%
Latest 24 Months	22.07%
Annualised Since Inception	13.79%
Inception Date	01 October 2009
FUM (millions)	AU$140.092
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 returned +1.82% in September with an annualised return since inception in October 2009 of +13.79%. The Fund has achieved this return with an annualised volatility of 5.35%, compared with the ASX200 Accumulation Index's return of +6.91% per annum with an annualised volatility of 11.84% over the same period. The Fund was able to generate returns on both the long and short side of the book. On the long side the Manager was successful on 53% of their ideas. KIS Capital note the majority of the alpha came from their 'slug ratio' which is a ratio of how much a winning trade generates vs a losing trade, here the ratio was 1.8x. On the short side 51% of the Manager's ideas were successful, their slug ratio was 1.9x. KIS Capital participated in Cre8tek Limited's capital raising and bought shares on the market during September, this contributed +0.28%. They also participated in a block trade to sell some of their exposure in Cardinal Resources which contributed +0.22%. KIS Capital took profits on a long position in Independence Group NL early in the month as they felt the rally in stock was too fast, they started to rebuild the long position later in the month after the stock slipped back to less elevated levels. On the losing side no single name lost the portfolio more than 0.2%.
More Information	Fund Profile Manager's Report

Performance Report: Allard Investment Fund

27 Oct 2017 - Australian Fund Monitors

The Allard Investment Fund returned +0.53% in September, taking annualised performance since inception to +9.20%.

27 Oct 2017 - Performance Report: Allard Investment Fund

By: Australian Fund Monitors

Report Date	27 October 2017
Manager	Allard Partners Management Limited
Fund Name	Allard Investment Fund
Strategy	Equity Long
Latest Return Date	September 2017
Latest Return	0.53%
Latest 6 Months	4.09%
Latest 12 Months	10.24%
Latest 24 Months	18.04%
Annualised Since Inception	9.20%
Inception Date	01 July 2003
FUM (millions)	AU$150
Fund Overview	Allard Partners is an absolute return, long only equity investor with a single mission to provide its clients with a net compound rate of return on their capital of 15% per annum over the long term. With offices in Hong Kong, India and Australia, Allard invests in quoted companies in the Asia Pacific region. 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 Allard Investment Fund returned +0.53% in September, taking annualised performance since inception to +9.20%. This return has been achieved with an annualised standard deviation of 8.03% versus that of the ASX200 Accumulation Index which is 12.88% over the same period. The Fund's up-capture and down-capture ratios over the past 12 months show that the Fund has performed positively during the market's positive months whilst significantly outperforming the market during negative months. The Fund's latest report shows that holdings in cash and fixed income have decreased to 23.2% of the portfolio, down from 23.7% as at the end of August. The portfolio's weightings were decreased in the Industrials, IT, Health Care, Telco and Financials sectors while its weightings in the Utilities, Consumer Discretionary, Consumer Staples and Real Estate sectors were increased. The portfolio remains highly concentrated, with 52.7% of NAV held in the Fund's top 10 stocks. Geographically, Hong Kong and China make up most of the portfolio (43.4%), followed by Singapore (+14.3), India (+11.4%), Korea (+5.1%), Vietnam (+1.6%) and Indonesia (+1.0%).
More Information	Fund Profile Manager's Report

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News

3 Nov 2017 - Performance Report: Quay Global Real Estate Fund

3 Nov 2017 - Performance Report: Touchstone Index Unaware Fund

2 Nov 2017 - Performance Report: Collins St Value Fund

2 Nov 2017 - Performance Report: MHOR Australian Small Cap Fund

1 Nov 2017 - Performance Report: Bennelong Concentrated Australian Equities Fund

1 Nov 2017 - Fund Review: Insync Global Titans Fund September 2017

27 Oct 2017 - Performance Report: Bennelong Kardinia Absolute Return Fund

27 Oct 2017 - Performance Report: Glenmore Australian Equities Fund

27 Oct 2017 - Performance Report: KIS Asia Long Short Fund

27 Oct 2017 - Performance Report: Allard Investment Fund

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