NEWS
Fund Review: Bennelong Twenty20 Australian Equities Fund March 2021
22 Apr 2021 - Australian Fund Monitors
The latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available. The Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of ex-20 stocks.
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22 Apr 2021 - Fund Review: Bennelong Twenty20 Australian Equities Fund March 2021
By: Australian Fund Monitors
AFM Fund Review - March 2021 (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 - March 2021 (pdf format)
Performance Report: Montgomery Small Companies Fund
22 Apr 2021 - Australian Fund Monitors
The Montgomery Small Companies Fund's 12-month performance remains strong with the fund returning to +66.84% vs the Index's +37.47%. Since inception in October 2019, the Fund has risen +18.99% p.a. vs the Index's +4.25%.
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22 Apr 2021 - Performance Report: Montgomery Small Companies Fund
By: Australian Fund Monitors
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| Fund Overview | Montgomery Lucent, a joint venture between Lucent Capital Partners and Montgomery Investment Management, is the investment manager of the Fund. Lucent Capital Partners is owned by its founders Gary Rollo and Dominic Rose. Gary and Dominic have worked together for three years as at February 2020 and have a combined three decades of portfolio management and equities research experience. The manager is able to invest up to 10% of the portfolio in pre-IPO opportunities. They search for companies likely to benefit from secular trends, industry change and with substantial competitive advantages. Cash typically ranges around 10%. |
| Manager Comments | The largest positive contributors for February included Airtasker (ASX:ART), Ramelius Resources (ASX:RMS) and Uniti Group (ASX:UWL). The largest detractors from performance included Aeris Resources (ASX:AIS), Alliance Aviation Services (ASX:AQZ) and Cashrewards (ASX:CRW). Montgomery remains active and pragmatic and are positioning the portfolio to benefit from a number of attractive themes, some of which are structural in nature and therefore expected to play out over the next five to seven years, while others are more tactical with a shorter duration. These themes include Cloud, Sustainable Income, Strength and Stimulus and De-Carbonisation. |
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Performance Report: Bennelong Australian Equities Fund
21 Apr 2021 - Australian Fund Monitors
The Bennelong Australian Equities Fund rose +0.62% in March, taking 12-month performance to +60.23% vs the ASX200 Accumulation Index's +37.47%. Since inception in February 2009, the Fund has returned +14.64% p.a. vs the Index's +10.16%.
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21 Apr 2021 - 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 | As at the end of March, the portfolio's weightings had been increased in the Discretionary, Communication and REITs sectors, and decreased in the IT, Industrials, Materials and Financials sectors. Relative to the ASX300 Index, the portfolio was significantly overweight the Discretionary sector (Fund weight: 46.9%, benchmark weight: 8.0%) and underweight the Financials sector (Fund weight: 6.7%, benchmark weight: 29.3%). |
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Performance Report: 4D Global Infrastructure Fund
20 Apr 2021 - Australian Fund Monitors
The 4D Global Infrastructure Fund rose +6.37% in March, outperforming its benchmark (OECD G7 Inflation Index +5.5%) by +5.80% and taking 12-month performance to +10.85%. Since inception in March 2016, the Fund has risen +9.37% p.a. with an...
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20 Apr 2021 - Performance Report: 4D Global Infrastructure Fund
By: Australian Fund Monitors
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| Fund Overview | The fund will be managed as a single portfolio of listed global infrastructure securities including regulated utilities in gas, electricity and water, transport infrastructure such as airports, ports, road and rail as well as communication assets such as the towers and satellite sectors. The portfolio is intended to have exposure to both developed and emerging market opportunities, with country risk assessed internally before any investment is considered. The maximum absolute position of an individual stock is 7% of the fund. |
| Manager Comments | The strongest performer for March was Brazilian Utility TAESA up 27.4% on the back of news that one of its controlling block is looking to exit with their stake to be sold by way of auction. The weakest performer in March was Chinese toll road operator Yuexiu Transport down 11.7% as it missed consensus forecasts for the FY and indicators suggest traffic remains under pressure from government mandated restrictions. 4D continue to position for the prevailing economic outlook and infrastructure as a means of a recovery as they continue to capitalize on the raft of opportunities currently on offer. |
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Fund Review: Bennelong Kardinia Absolute Return Fund March 2021
20 Apr 2021 - Australian Fund Monitors
The latest Fund Review for the Bennelong Kardinia Absolute Return Fund is now available. The Fund, which has been in operation for more than 10 years, has a long-biased, research driven, active equity long/short strategy and invests in...
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20 Apr 2021 - Fund Review: Bennelong Kardinia Absolute Return Fund March 2021
By: Australian Fund Monitors
AFM Fund Review - March 2021 (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.
- 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 8.75% p.a. with a volatility of 7.61%, compared to the ASX200 Accumulation's return of 6.19% p.a. with a volatility of 14.36%.
- The Fund also has a strong focus on capital protection in negative markets. Portfolio Managers Kristiaan Rehder and Stuart Larke 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 2021 (pdf format)
Performance Report: Frazis Fund
19 Apr 2021 - Australian Fund Monitors
The Frazis Fund has risen +188.55% over the past 12 months vs AFM's Global Equity Index's +24.91%. Since inception in July 2018, the Fund has returned +29.86% p.a. vs the Index's +12.10%.
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19 Apr 2021 - Performance Report: Frazis Fund
By: Australian Fund Monitors
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| Fund Overview | The manager follows a disciplined, process-driven, and thematic strategy focused on five core investment strategies: 1) Growth stocks that are really value stocks; 2) Traditional deep value; 3) The life sciences; 4) Miners and drillers expanding production into supply deficits; 5) Global special situations; The manager uses a macro overlay to manage exposure, hedging in three ways: 1) Direct shorts 2) Upside exposure to the VIX index 3) Index optionality |
| Manager Comments | The Frazis Fund has risen +188.55% over the past 12 months vs AFM's Global Equity Index's +24.91%. Since inception in July 2018, the Fund has returned +29.86% p.a. vs the Index's +12.10%. The Fund has achieved an up-capture ratio since inception of 247%, indicating that, on average, the Fund has risen more than twice as much as the market during the market's positive months. The Fund has achieved a 12-month up-capture ratio of 499.1%. The Fund returned -9.1% in March. In their latest report, Frazis look back at what they wrote this time 12 months ago. At the time they said that they were highly optimistic. They wrote that if they'd been asked to describe a perfect situation for equities, their response would have been: '- a temporary shock, with early signs that the temporary shock was abating, - A 30-40% decline across major indices, with low quality small caps and cyclicals down twice as much, - A total derisking/move to cash/increase in short interest by both retail and professional investors alike, - Enormous fiscal and monetary easing, rates at zero, cash transfers to businesses and citizens around the world, with a dramatic increase in payments to the unemployed.' Looking forward, Frazis' view is that there is a lot going on under the surface. They believe the regime shift that began in April 2020 may have come to an end in February, and that the sharp change in spending patterns triggered last year when travel and dining budgets were cut to zero and consumer spending exploded will at least partly reverse. They also highlight the arrival of inflation and noted that they believe it will have unpredictable consequences. |
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Performance Report: Equitable Investors Dragonfly Fund
19 Apr 2021 - Australian Fund Monitors
The Equitable Investors Dragonfly Fund has risen +96.14% over the past 12 months vs the ASX200 Accumulation Index's +37.47%. The Fund has achieved up-capture and down-capture ratios over that period of 239.7% and 83.9% respectively,...
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19 Apr 2021 - Performance Report: Equitable Investors Dragonfly Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is an open ended, unlisted unit trust investing predominantly in ASX listed companies. Hybrid, debt & unlisted investments are also considered. The Fund is focused on investing in growing or strategic businesses and generating returns that, to the extent possible, are less dependent on the direction of the broader sharemarket. The Fund may at times change its cash weighting or utilise exchange traded products to manage market risk. Investments will primarily be made in micro-to-mid cap companies listed on the ASX. Larger listed businesses will also be considered for investment but are not expected to meet the manager's investment criteria as regularly as smaller peers. |
| Manager Comments | Over the quarter the Fund returned +19.45% vs the Index's +4.26%. Throughout the quarter the Fund's greatest returns were made away from the ASX. There was the revaluation of the Fund's unlisted holding in digital diagnostics company Ellume, and also a surge in the price of NZ-listed tradie and field services app developer Geo (NZ: GEO). Back on the ASX, traffic monitoring group Redflex (RDF) did well for the Fund early in the quarter thanks to a takeover offer. The Fund returned -1.94% in March. March was a month in which most Fund investments made gains or held steady but three of the Fund's top nine holdings ticked backwards - despite positive developments that Equitable Investors elaborate upon in their latest report. Equitable Investors consider the current state of investment markets to be such that it is more important than ever to have an awareness of who the other shareholders are in any company and how they are likely to act. They believe that if the marginal buyers don't know what they are doing, they won't have the conviction to hold for the medium-to-longer term. |
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Performance Report: Bennelong Kardinia Absolute Return Fund
16 Apr 2021 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund has returned +8.75% p.a. with an annualised volatility of 7.61% since inception in May 2006. By contrast, the ASX200 Accumulation Index has returned +6.19% p.a. with an annualised volatility of...
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16 Apr 2021 - Performance Report: 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 | The Fund's capacity to significantly outperform in falling and volatile markets is highlighted by the following statistics (since inception): Sortino ratio of 1.24 vs the Index's 0.27, maximum drawdown of -11.71% vs the Index's -47.19%, and down-capture ratio of 48.66%. The Fund's down-capture ratio indicates that, on average, the Fund has fallen less than half as much as the market during the market's negative months. The Fund returned -0.36% in March. Positive contributors included Cyprium Metals, NAB, Bluescope Steel, Graincorp and Pentanet. Detractors included Zip Co, Fortescue, Proteomics and Nickel Mines. The Short Book also detracted from performance. Kardinia kept their net market exposure relatively steady at 68.4% (87.1% long and 18.7% short) with new positions including Cyprium and Webjet offset by reduced positions in some resource holdings and the sale of Independence Group. They maintain a bias towards stocks that benefit from a re-opening of economies scenario, with Banks, Resources and Technology the largest sector weights. |
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Fund Review: Bennelong Long Short Equity Fund March 2021
16 Apr 2021 - 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...
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16 Apr 2021 - Fund Review: Bennelong Long Short Equity Fund March 2021
By: Australian Fund Monitors
AFM Fund Review - March 2021 (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 19-years' track record and an annualised returns of 14.10%.
- The consistent returns across the investment history highlight 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 0.83 and 1.31 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - March 2021 (pdf format)
Performance Report: Bennelong Long Short Equity Fund
15 Apr 2021 - Australian Fund Monitors
The Bennelong Long Short Equity Fund has returned +14.10% p.a. with an annualised volatility of 12.76% since inception in February 2002. By contrast, the ASX200 Accumulation Index has returned +8.10% p.a. with an annualised volatility of...
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15 Apr 2021 - Performance Report: Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| 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 Sharpe and Sortino ratios (since inception) of 0.83 and 1.31 respectively, by contrast with the Index's Sharpe of 0.39 and Sortino of 0.43, highlight its capacity to achieve superior risk-adjusted returns while avoiding the market's downside volatility. The Fund's significant outperformance in falling markets is demonstrated by the following statistics (since inception): worst month of -10.11% vs the Index's -20.65%, maximum drawdown of -23.77% vs the Index's -47.19%, and down-capture ratio of -162%. The Fund's down-capture ratio indicates that, on average, it has risen during the market's negative months. Bennelong noted the rotation into leveraged cyclicals which hit the Fund in February continued into the first half of March. The portfolio stabilised in the second half of March, ending the month down -5.95%. Contribution was spread across half a dozen sectors with none standing out. Contribution from the top and bottom pairs was similar in magnitude. |
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