News
Pengana Absolute Return Asia Pacific Fund
22 May 2017 - Australian Fund Monitors
Pengana Absolute Return Asia Pacific Fund finished up 0.7% for the month of April 2017, compared to Asia Pacific markets which posted a gain of 1.3%.
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22 May 2017 - 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 | In the Stub universe, the position in Wharf/Wheelock, added favourably to overall performance. Also, the Fund's long/short position in Evolution Mining/Newcrest Mining contributed 38 basis points to overall performance. The M&A sub-strategy also posted a small contribution of 0.1% for the month, bring the total return for the current year to 2.9%. There were several M&A deals that successfully completed over the month including Cover More, Yingde Gases, and Innovalues. During the month, the Fund's net and gross exposures averaged 16.1% and 173.2% respectively. |
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Pengana Global Small Companies Fund
19 May 2017 - Australian Fund Monitors
Pengana Global Small Companies Fund returned +6.7% in April, outperforming the MSCI AC World SMID Cap Index, which returned 4.0%, by +2.7%.
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19 May 2017 - 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 | Currency had a positive impact on the performance of the Fund (adding 2.7%). The performance was also driven by the Fund's positions in boohoo.com Plc, Hostelworld Group Plc, a UK Auto Dealer, Oslo Bors VPS Holding ASA, and Wizz Air Holdings Plc. However, EPS Holdings, Inc., a Japanese Internet Company, Liberty Global Plc LiLAC Group Class C, Peyto Exploration & Development Corp., and PRA Group Inc detracted performance for the month. The investment team continues to ignore the market 'noise' and remains focused on the fundamental factors that drive long-term value: buying great companies at cheap prices. |
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Bennelong Twenty20 Australian Equities Fund
19 May 2017 - Australian Fund Monitors
Bennelong Twenty20 Australian Equities Fund returned +1.25% for the month of April, slightly outperforming the S&P/ASX-300 Accumulation Index return of 0.98%, by +0.26%.
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19 May 2017 - 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 | The Fund's performance is dictated largely, although not entirely, by the performance of the S&P/ASX 20 Index. Deviation from the benchmark, the S&P/ASX 300, arises to the extent of the Fund's relative performance in respect of its active management of ex-20 stocks. For April, the outperformance was due to the strong performances from the Fund's larger ex-20 positions. These include Aristocrat Leisure, Domino's Pizza Enterprises, Reliance Worldwide, and BWX. On the negative side, the Fund's small and selective exposure in the Retail sector detracted from performance. On an active portion of the portfolio, the Fund continues to remain stock selective which is guided by the company fundamentals. |
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Fund Review: Bennelong Long Short Equity Fund April 2017
18 May 2017 - Australian Fund Monitors
Latest Fund Review is now available on Bennelong Long Short Equity Fund which has an annualised return of 16.74% p.a.
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18 May 2017 - Fund Review: Bennelong Long Short Equity Fund April 2017
By: Australian Fund Monitors
AFM Fund Review - April 2017 (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 large-caps from the ASX/S&P100 Index, with over fourteen-year track record and annualised returns of 16.74% p.a.
- 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 1.01 and 1.69 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - April 2017 (pdf format)
Cyan C3G Fund
18 May 2017 - Australian Fund Monitors
Cyan C3G Fund gained 1.9% in April, to take the Fund's one year return to +14.49%.
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18 May 2017 - Cyan C3G Fund
By: Australian Fund Monitors
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| 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 | The Fund benefitted from price strength in a few of its key long-term holdings. This included Afterpay (AFY) and Touchcorpo (TCH). The AFY share price was up 9% in April, with TCH up 14%. Other contributors included Skydive the Beach (SKB) up 8%, Capitol Health (CAJ) up 12%, and Getswift (GSW) up 48%. The key performance detractors were Money3 (MNY) and Freelancer (FLN), down 4% and 13% respectively for the month. However, the investment team believes that both companies have a positive medium-term growth outlook and therefore continue to hold their positions in these two stocks. The Fund is currently conservatively positioned, however, the investment team has started to see positive signs in the market that the rotation of interest has returned to the small cap sector and thereby creating new investment opportunities for the Fund. |
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Affluence Investment Fund
17 May 2017 - Australian Fund Monitors
Affluence Investment Fund increased 0.53% in April, resulting in a +11.18% return for the latest 12 months.
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17 May 2017 - Affluence Investment Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund does not invest directly into any asset class, rather, it invests in investment managers which satisfy Affluence Funds Management's investment criteria; its investment philosophy is based on a formula developed by CEO/Portfolio Manager Daryl Wilson since the start of his career in 1999. The Fund targets total returns of at least 5% above inflation over rolling 3 year periods with volatility of returns less than 50% of the ASX200 Index. The Fund also aims to provide investors with a distribution yield of at least 5% p.a. To ensure appropriate diversity of managers and limit the potential for conflicts of interest, no more than 20% of the Fund will be invested with any one external manager. Affluence seeks to achieve the Funds' investment objective by choosing attractively priced investments overseen by quality managers. The Fund uses a number of processes to identify potential investments including quantitative screens for investments which meet historical performance, volatility and other criteria. They also use a number of external researchers and information sources to assist in this process. |
| Manager Comments | The top contributors included the Brookfield Prime Property Fund (up 14.8%), the Bronte Capital Amalthea Fund (up 7%) and India Avenue Equity Fund (up 5.1%). The Fund had no major detractors for the month, however, results were fairly choppy across the board. At month end, 61% of the Fund was invested in unlisted investments, 20% in the Affluence LIC Fund, 6% in other listed investments, and 13% in cash. The Fund currently provides exposure to over 25 unlisted funds, and over 20 LIC's and other listed entities. |
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Fund Review: APN Asian REIT Fund April 2017
17 May 2017 - Australian Fund Monitors
April Fund Review is now available on APN Asian REIT Fund, a property securities fund, investing primarily in the Asian REITS.
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17 May 2017 - Fund Review: APN Asian REIT Fund April 2017
By: Australian Fund Monitors
AFM Fund Review - April 2017 (pdf format)
APN Asian REIT Fund
Attached is our most recently updated Fund Review on the APN Asian REIT Fund.
We would like to highlight the following aspects of the Fund;
- APN is an ASX-listed fund manager specialising in property investment, with an investment team of six. Established in 1996, APN now has FUM of $A2.4bn including four REIT (Real Estate Investment Trust) funds.
- The APN Asian REIT Fund (Fund) is a property securities fund that invests in a quality portfolio of Asian REITs, listed on the securities exchanges of the Asian Region, with the ability to hold some cash and fixed interest investments.
- The Fund aims to deliver a competitive yield with lower risk than the market. The underlying stocks are selected based on a highly disciplined investment approach that focuses on the fundamentals and number of valuation approaches. The universe can include new IPO's, other corporate actions take place and/or corporate governance improvements at the country or REIT level bring new stocks into focus.
- The Fund provides access to a wide spread of property-based revenue streams that are specifically analysed, selected and weighted with the aim of delivering strong and sustainable income returns. The Fund is an unhedged product.
- APN's Asian REIT Fund invests in a portfolio of 25-40 listed Asian REITs with a core philosophy of investing in properties with sustainable rental income streams.
- The Fund has delivered an annualised return of 14.28% p.a., since inception in July 2011 with a standard deviation of 9.35% p.a. The Sharpe and Sortino ratios are 1.2 and 2.14 respectively.
AFM Fund Review - April 2017 (pdf format)
NWQ Fiduciary Fund
16 May 2017 - Australian Fund Monitors
NWQ Fiduciary Fund returned +0.25% in April and has returned +5.74% p.a. since its inception in May 2013.
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16 May 2017 - 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 | There was a higher level of dispersion in the performance of the Fund's underlying managers in April with four of the nine managers delivering a positive return. The Fund's Alpha managers made a positive contribution (+0.50%) to the Fund's overall performance. However, in a month, where the market was up, the Fund's Beta managers made a negative contribution to performance (-0.18%). NWQ continues to believe that there exists further potential for destructive equity and bond market volatility in the coming months, and therefore, the portfolio continues to remain overweight to the Alpha or market neutral strategies. |
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Bennelong Australian Equities Fund
16 May 2017 - Australian Fund Monitors
Bennelong Australian Equities Fund returned a positive 2.79% in April, outperforming the S&P/ASX-300 Accumulation Index which returned 0.98%, by 1.80%.
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16 May 2017 - 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 | Some of the Fund's larger stock positions performed positively over the month, including Aristocrat Leisure, CSL and Domino's Pizza Enterprises. The Fund also benefited from having no exposure to the Telecommunications sector, which was very weak. The investment team continues to remain focused on the company fundamentals, particularly in an environment of macro and political uncertainty. |
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Bennelong Kardinia Absolute Return Fund
15 May 2017 - Australian Fund Monitors
Bennelong Kardinia Absolute Return Fund rose 0.89% in April, taking the annualised return since inception to 11.09% p.a.
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15 May 2017 - Bennelong Kardinia Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | For the month, Aristocrat Leisure (+27bp) was the largest contributor to the Fund's performance. Other key positive contributors included ANZ (+25bp), NAB (+16bp), Challenger (+16bp), Computershare (+14bp) and CSR (+14bp). The key negative contributors included Bluescope Steel (-14bp), RCR Tomlinson (-10bp), and Bapcor (-6bp). Net equity market exposure fell from 69.9% to 60.3% (70.6% long and 10.3% short). The Fund reduced its exposure to the Banks during the month and initiated a short position in SPI Futures. |
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