NEWS
Performance Report: AIM Global High Conviction Fund
8 Jul 2021 - Australian Fund Monitors
The AIM Global High Conviction Fund returned +5.01% in June, a difference of +0.47% compared with the Global Equity index, which rose by +4.54%. Since inception in July, 2019, the fund has returned +17.78% per annum, a difference of +2.34%...
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8 Jul 2021 - Performance Report: AIM Global High Conviction Fund
By: Australian Fund Monitors
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| Fund Overview | AIM are 'business-first' rather than 'security-first' investors, and see themselves as part owners of the businesses they invest in. AIM look for the following characteristics in the businesses they want to own: - Strong competitive advantages that enable consistently high returns on capital throughout an economic cycle, combined with the ability to reinvest surplus capital at high marginal returns. - A proven ability to generate and grow cash flows, rather than accounting based earnings. - A strong balance sheet and sensible capital structure to reduce the risk of failure when the economic cycle ends or an unexpected crisis occurs. - Honest and shareholder-aligned management teams that understand the principles behind value creation and have a proven track record of capital allocation. They look to buy businesses that meet these criteria at attractive valuations, and then intend to hold them for long periods of time. AIM intend to own between 15 and 25 businesses at any given point. They do not seek to generate returns by constantly having to trade in and out of businesses. Instead, they believe the Fund's long-term return will approximate the underlying economics of the businesses they own. They are bottom-up, fundamental investors. They are cognizant of macro-economic conditions and geo-political risks, however, they do not construct the Fund to take advantage of such events. AIM intend for the portfolio to be between 90% and 100% invested in equities. AIM do not engage in shorting, nor do they use leverage to enhance returns. The Fund's investable universe is global, and AIM look for businesses that have a market capitalisation of at least $7.5bn to guarantee sufficient liquidity to investors. |
| Manager Comments | Over the past 12 months, the fund's volatility has been 9.71% compared with the index's volatility of 7.95%. Since inception the fund's volatility has been 10.61% vs the index's volatility of 11.02%, and over all other time periods the fund's volatility has been lower than the Global Equity index. The fund's Sharpe ratio has ranged from a high of 2.42 over the most recent 12 months, to a low of 1.56 over the past 2 years. Since inception the fund's Sharpe ratio has been 1.56. The fund's Sortino ratio (which excludes volatility in positive months) ranged from a maximum of 7.49 over the most recent 12 months, to a low of 3.35 over the past 2 years. Since inception the fund's Sortino ratio has been 3.35. |
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Performance Report: Bennelong Long Short Equity Fund
8 Jul 2021 - Australian Fund Monitors
The Bennelong Long Short Equity Fund rose +10.11% in June, outperforming the ASX200 Accumulation Index by +7.85%. Since inception in February 2002, the Fund has returned +14.78% p.a. vs the Index's +8.43%.
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8 Jul 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 capacity to significantly outperform in falling and volatile markets is highlighted by the following statistics (since inception): Sortino ratio of 1.41 vs the Index's 0.47, maximum drawdown of -23.77% vs the Index's -47.19%, and down-capture ratio of -162%. During the month, market conditions were a tailwind for the portfolio. In addition, favourable fundamental news for a number of our companies was material. Most pairs were positive. At the sector level Materials stood out. MIN/BHP was the top pair with ongoing earnings upgrades for both companies. Since the trough in earnings forecasts last year BHP forecasts have been revised up 100%, but MIN have been revised up 200%. |
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Performance Report: Bennelong Concentrated Australian Equities Fund
2 Jul 2021 - Australian Fund Monitors
The Bennelong Concentrated Australian Equities Fund returned +3.53% in May, a difference of +1.19% compared with the ASX 200 Total Return index, which rose by +2.34%. Over the past 12 months the fund has returned +38.3%, compared with the...
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2 Jul 2021 - Performance Report: Bennelong Concentrated Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | Over the past 12 months, the fund's volatility has been 10.62% compared with the index's volatility of 10.43%. Since inception the fund's volatility has been 14.95% vs the index's volatility of 13.63%. The fund's Sortino ratio (which excludes volatility in positive months) vs the index has ranged from a maximum of 16.81 over the most recent 12 months, to a low of 0.77 over the past 3 years. Since inception the fund's Sortino ratio has been 1.44 vs the index's 0.81. Since inception in the months when the market was positive the fund provided positive returns 92% of the time. Over all other time periods its best result has been 100% over 2 years. It has an up-capture ratio ranging between 153.31% (since inception) and 109.55% (3 years), and over the most recent 12 months has provided an up-capture ratio of 123.87%. |
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Performance Report: Surrey Australian Equities Fund
30 Jun 2021 - Australian Fund Monitors
The Surrey Australian Equities Fund returned -2.52% in May. Over the past 12 months the fund has returned +34%, compared with the index, which returned +28.23%, for a difference of +5.76%. Since inception in June 2018, the fund has...
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30 Jun 2021 - Performance Report: Surrey Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The Investment Manager follows a defined investment process which is underpinned by detailed bottom up fundamental analysis, overlayed with sectoral and macroeconomic research. This is combined with an extensive company visitation program where we endeavour to meet with company management and with other stakeholders such as suppliers, customers and industry bodies to improve our information set. Surrey Asset Management defines its investment process as Qualitative, Quantitative and Value Latencies (QQV). In essence, the Investment Manager thoroughly researches an investment's qualitative and quantitative characteristics in an attempt to find value latencies not yet reflected in the share price and then clearly defines a roadmap to realisation of those latencies. Developing this roadmap is a key step in the investment process. By articulating a clear pathway as to how and when an investment can realise what the Investment Manager sees as latent value, defines the investment proposition and lessens the impact of cognitive dissonance. This is undertaken with a philosophical underpinning of fact-based investing, transparency, authenticity and accountability. |
| Manager Comments | The fund's Sharpe ratio has ranged from a high of 1.96 over the most recent 12 months, to a low of 0.61 over the past 3 years. Since inception the fund's Sharpe ratio has been 0.61 vs the index which has a Sharpe ratio of 0.6. The fund's Sortino ratio (which excludes volatility in positive months) vs the index has also ranged from a maximum of 8.06 over the most recent 12 months, to a low of 0.77 over the past 3 years. Since inception the fund's Sortino ratio has been 0.77 vs the index's 0.64. Since inception in the months when the market was positive the fund provided positive returns 81% of the time. Over all other time periods its best result has been 81% over 3 years. It has an up-capture ratio of 122.7% since inception and 110.09% over the past 12 months. Across all other time periods, it has ranged between 142.28% (2 years) and 122.7% (3 years). |
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Fund Review: Insync Global Capital Aware Fund May 2021
30 Jun 2021 - Australian Fund Monitors
Latest Fund Review on Insync Global Capital Aware Fund is now available. The Global Capital Aware Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend...
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30 Jun 2021 - Fund Review: Insync Global Capital Aware Fund May 2021
By: Australian Fund Monitors
AFM Fund Review - May 2021 (pdf format)
INSYNC GLOBAL CAPITAL AWARE FUND
Attached is our most recently updated Fund Review on the Insync Global Capital Aware Fund.
We would like to highlight the following:
- The Global Capital Aware Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - May 2021 (pdf format)
Performance Report: Quay Global Real Estate Fund
29 Jun 2021 - Australian Fund Monitors
The Quay Global Real Estate Fund returned +2.74% in May. Over the past 12 months the fund has returned 19.89%, and since inception in July 2014 the fund has returned +8.25% per annum.
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29 Jun 2021 - Performance Report: Quay Global Real Estate Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | Over the past 12 months, the fund's volatility has been 8.16%. Since inception the fund's volatility has been 11.66%. The fund's May return was almost entirely driven by local stock performance (currency only added +0.2%). UK Storage led the way with outstanding operational results, while German residential (driven by recent corporate activity) underpinned the performance for the month. Quay noted that, as per previous months, laggards continue to reflect the Covid defensive sectors including Life Science Office and Industrial property. Despite recent under-performance, Quay continue to expect these companies to comfortably exceed their long-term total return target of CPI + 5%. Quay believe the meaningful company profit recovery now underway will feed itself into real estate performance as companies gain confidence to 'invest' in new leases, residents return to work, and shoppers re-discover the mall. They continue to see excellent long term returns across their investees and remain near fully invested. |
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Performance Report: Insync Global Quality Equity Fund
28 Jun 2021 - Australian Fund Monitors
The Insync Global Quality Equity Fund returned -0.95% in May, and over the past 12 months has returned +12.57%. Since inception in September 2009 the fund has returned +13.8% per annum, a difference of 2.15% vs AFM's Global Equity Index...
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28 Jun 2021 - Performance Report: Insync Global Quality Equity Fund
By: Australian Fund Monitors
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| Fund Overview | 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 typically of 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. |
| Manager Comments | Over the past 12 months the fund has had a Sharpe ratio of 1.13 compared to the index's 2.6. Over all other periods the fund's Sharpe ratio has ranged from a high of 1.3 over the past 2 years, to a low of 1.05 since inception. The fund has recorded a Sortino ratio (which excludes volatility in positive months) of 2.22 over the past 12 months and 1.98 since inception, compared to the index's 25.49 and 1.46, during those same periods. Over all time periods, the fund's Sortino ratio has ranged from a maximum of 2.3 over the past 2 years, to a low of 1.91 over the past 3 years. It has a down-capture ratio of 8.01% since inception. Over all time periods its down-capture ratios range between 52.09% (3 years) and -9% (12 months). |
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Performance Report: Bennelong Emerging Companies Fund
28 Jun 2021 - Australian Fund Monitors
The Bennelong Emerging Companies Fund has risen +46.45% over the past 12 months, outperforming the ASX200 Accumulation Index by +18.22% and taking annualised performance since inception in November 2017 to +28.99% vs the Index's +9.60%.
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28 Jun 2021 - Performance Report: Bennelong Emerging Companies Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund may invest in securities expected to be listed on the ASX within 12 months. The Fund may also invest in securities listed, or expected to be listed, on other exchanged where such securities relate to ASX-listed securities |
| Manager Comments | The Fund has achieved an up-capture ratio since inception of 315%, indicating that, on average, it has risen more than three times as much as the market during the market's positive months. The Fund has achieved up-capture ratios greater than 151% over the past 1, 2 and 3 year periods. True to the Fund's investment style, they continue to seek to invest in high quality companies that they believe have solid growth prospects over the foreseeable future. Despite the inevitable ups and downs of the market in the short term, they believe the portfolio's investments are all incrementally building value, which they believe should ultimately underpin decent returns over the long term. The portfolio remains reasonably diversified across sector and risk-return drivers. Bennelong believe it is currently well set up for attractive returns over the long term, regardless of whatever the market throws up in the short term. |
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Performance Report: Laureola Australia Feeder Fund
25 Jun 2021 - Australian Fund Monitors
The Laureola Master Fund returned 0.4% for May and is up 1.3% ytd. The AUD feeder fund rose +0.3% and is up +0.6% ytd. Returns in May were mostly driven by the maturity of a smaller policy; the purchase of 8 small face policies at below...
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25 Jun 2021 - Performance Report: Laureola Australia Feeder Fund
By: Australian Fund Monitors
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| Fund Overview | Life Settlements are resold life insurance policies and can be thought of as a form of finance extended to an individual backed by the person's life insurance policy. This financing is repaid upon maturity by collecting the death benefit from the insurance company. Risk mitigation measures implemented by Laureola include science-driven due diligence of policies, active monitoring of insured through a vertically integrated operation, and investor aligned fund design. |
| Manager Comments | Since inception in May 2013, the fund has returned +15.65% p.a. with an annualised volatility of 5.51%. By contrast, the S&P500 Accumulation Index has returned +15.00% p.a. with an annualised volatility of 13.56% over the same period. The fund's uncorrelated nature is demonstrated by its down-capture ratios over all time periods. Its down-capture ratio since inception of -37.5% indicates that, on average, the fund has risen during the market's negative months. Laureola noted maturities for 2021 have been below expectations in the first 5 months of the year and this has resulted in returns below expectation for this period. They added that experienced Life Settlement investors will remember that there is randomness in the timing of maturities; such is the nature of mortality. Laureola Advisors continues its in-depth research into mortality, and new channels of supply are being established, including some that are proprietary. The portfolio now holds 189 policies of which 20% have insureds over age 90; many are not well. Over 35% of the policies have insureds with life expectancies of less than 48 months. The portfolio is overdue maturities, especially on its larger policies. |
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Performance Report: Longlead Pan-Asian Absolute Return Fund
25 Jun 2021 - Australian Fund Monitors
The Longlead Pan-Asian Absolute Return Fund returned -7.48% in May, with this performance predominantly attributable to a correction in Taiwanese equities which was the Fund's largest geographic exposure.
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25 Jun 2021 - Performance Report: Longlead Pan-Asian Absolute Return Fund
By: Australian Fund Monitors
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| Manager Comments | Intra-month, the Taiwanese index fell 14% peak to trough with this selloff attributable to a Covid-19 virus spike in the country. Longlead noted the magnitude of the selloff was surprising, being disproportionately greater than other markets that have also had to navigate recent virus spikes and led to heavy selling pressure in many of the Fund's long holdings in Taiwan during the month. As the initial surprise of the event passed, Taiwanese longs began to rebound late in May, continuing into early June. Taiwan represented the vast majority of the Fund's drawdown in May. By sector, Financials exposures generated positive performance in May, while losses were experienced in Information Technology and Materials positions. The team remains constructive on the Fund's Taiwanese investments. The government has introduced measures to stem the spread of the virus and the team expects that the companies in which the Fund is invested will ultimately rebound. Notwithstanding this, the Fund's risk management protocol is to reduce gross exposure in response to broad based events such as these where market wide uncertainty may persist for an extended period. Once conditions begin to normalise the Fund can take the opportunity to add exposure back. |
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