NEWS
Performance Report: Montgomery Small Companies Fund
22 Mar 2021 - Australian Fund Monitors
The Montgomery Small Companies Fund rose +4.52% in February, outperforming the ASX200 Accumulation Index by +3.52% and taking 12-month performance to +37.98% vs the Index's +6.48%. Since inception in October 2019, the Fund has risen...
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22 Mar 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 Aeris Resources (ASX:AIS), EML Payments (ASX:EML) and Uniti Group (ASX:UWL). The largest detractors from performance included GWA Group (ASX:GWA), NRW Holdings (ASX:NWH) and Ramelius Resources (ASX:RMS). Montgomery's central case is that markets will observe a vaccine rollout-driven acceleration of economic activity in most Western Economies over the next 6 months. They expect that the release of pent-up demand into certain ravaged sectors specifically and a wave of relief translating to broader strength in economic activity more generally will be profound. Accordingly they have positioned the portfolio to benefit from these 'reopeners'. February performance benefitted from these stocks as reporting season shone some light on to key factors that Montgomery expect to drive value over the coming months as visibility on the detail of the recovery takes shape. |
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Performance Report: Frazis Fund
22 Mar 2021 - Australian Fund Monitors
The Frazis Fund rose +2.50% in February, outperforming AFM's Global Equity Index by +1.03% and taking 12-month performance to +129.19% vs the Index's +10.24%. Since inception in July 2018 the Fund has returned +35.70% p.a. vs the Index's +10.79%.
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22 Mar 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 Fund's up-capture ratio (since inception) of 308.8% indicates that, on average, the Fund has risen more than three times as much as the market during the market's positive months, while the Fund's Sortino ratio (since inception) of 1.35 vs the Index's 1.19 highlights its capacity to avoid the market's downside volatility over the long-term. Frazis noted higher rates have obvious consequences for growth assets, however, they believe the recent retracement has as much to do with overextended valuations and sentiment as macro factors. As rates continue to rise, Frazis expect multiples to continue to compress. The recent reporting season suggests the Fund's holdings remain on track, though Frazis did close a small number that didn't prove up to scratch. |
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Fund Review: Bennelong Twenty20 Australian Equities Fund February 2021
22 Mar 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 Mar 2021 - Fund Review: Bennelong Twenty20 Australian Equities Fund February 2021
By: Australian Fund Monitors
AFM Fund Review - February 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 - February 2021 (pdf format)
Performance Report: Bennelong Emerging Companies Fund
19 Mar 2021 - Australian Fund Monitors
The Bennelong Emerging Companies Fund rose +4.56% in February, outperforming the ASX200 Accumulation Index by +3.56% and taking 12-month performance to +37.02% vs the Index's +6.48%. Since inception in November 2017, the Fund has risen...
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19 Mar 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's Sortino ratio since inception of 1.19 vs the Index's 0.49 highlights its capacity to avoid the market's downside volatility over the long-term. The Fund's up-capture ratio (since inception) of 350.92% indicates that, on average, it has risen more than 3 times as much as the market during the market's positive months. The Fund has achieved up-capture ratios above 284% over the past 12, 24, 36 months and since inception. Bennelong continue to seek to invest in high quality companies that they believe have solid growth prospects over the foreseeable future. They note that, despite the market's inevitable short-term volatility, they believe the portfolio's investments are all incrementally building value which they expect will underpin strong outperformance over the long-term. The portfolio remains diversified across sector and risk-return drivers. |
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Performance Report: Bennelong Kardinia Absolute Return Fund
19 Mar 2021 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +1.86% in February, outperforming the ASX200 Accumulation Index by +0.86% and taking 12-month performance to +6.72% with a standard deviation of 12.74%. Since inception in May 2006, the Fund...
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19 Mar 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 outperform in falling and volatile markets is highlighted by the following statistics (since inception): Sortino ratio of 1.25 vs the Index's 0.26, maximum drawdown of -11.71% vs the Index's -47.19%, and down-capture ratio of 48.66%. Top contributors included Proteomics, Paladin, Flight Centre, NAB and Galena Mining. Key detractors included Charter Hall, Harvest Tech, Pointsbet, MACA Limited and REA Group. The portfolio performed well during reporting season, with roughly 90% of companies either beating or meeting expectations. |
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Performance Report: 4D Global Infrastructure Fund
19 Mar 2021 - Australian Fund Monitors
The 4D Global Infrastructure Fund has risen +8.19% p.a. with an annualised volatility of 12.54% since inception in March 2016.
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19 Mar 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 February was Mexican airport operator Grupo ASUR +21.4% as vaccines continue to roll out across the globe and the expectation of the resumption of air travel gets closer. The weakest performer in February was Portuguese based renewable operator EDPR down 19.7%. 4D believe this to be profit taking after a very strong run in pure play renewables where they reduced their position on valuation. 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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Performance Report: Delft Partners Global High Conviction
18 Mar 2021 - Australian Fund Monitors
The Delft Global High Conviction Strategy rose +4.34% in February, outperforming AFM's Global Equity Index by +2.87% and taking annualised performance since inception in August 2011 to +15.30% vs the Index's +13.80%.
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18 Mar 2021 - Performance Report: Delft Partners Global High Conviction
By: Australian Fund Monitors
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| Fund Overview | The quantitative model is proprietary and designed in-house. The critical elements are Valuation, Momentum, and Quality (VMQ) and every stock in the global universe is scored and ranked. Verification of the quant model scores is then cross checked by fundamental analysis in which a company's Accounting policies, Governance, and Strategic positioning is evaluated. The manager believes strategy is suited to investors seeking returns from investing in global companies, diversification away from Australia and a risk aware approach to global investing. It should be noted that this is a strategy in an IMA format and is not offered as a fund. An IMA solution can be a more cost and tax effective solution, for clients who wish to own fewer stocks in a long only strategy. |
| Manager Comments | The Strategy's Sharpe and Sortino ratios (since inception) are 1.11 and 2.04 respectively, highlighting its capacity to achieve good risk-adjusted returns while avoiding the market's downside volatility. The Strategy has an average positive monthly return of +3.30% and an average negative monthly return of -2.05%. With respect to the Index's 10 best and worst months since the Strategy's inception, the Strategy has outperformed in 9 out of 10 of the Index's best months and 6 out of 10 of the Index's worst months, highlighting its capacity to outperform in both rising and falling markets. |
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Fund Review: Bennelong Kardinia Absolute Return Fund February 2021
17 Mar 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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17 Mar 2021 - Fund Review: Bennelong Kardinia Absolute Return Fund February 2021
By: Australian Fund Monitors
AFM Fund Review - February 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 8.83% p.a. with a volatility of 7.63%, compared to the ASX200 Accumulation's return of 6.05% p.a. with a volatility of 14.40%.
- 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 - February 2021 (pdf format)
Performance Report: Surrey Australian Equities Fund
16 Mar 2021 - Australian Fund Monitors
The Surrey Australian Equities Fund rose +3.16% in February, outperforming the ASX200 Accumulation Index by +1.71% and taking 12-month performance to +33.06% vs the Index's +6.48%. Since inception in June 2018, the Fund has risen +11.10%...
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16 Mar 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 | Top contributors in February included Sealink (SLK), Betmakers (BET) and Uniti Wireless (UWL). On the negative side, Cleanspace (CSX) and Domain Holdings (DHG) detracted from performance. Despite the negative share price performance of these two companies, Surrey remain confident in their long-term prospects and continue to hold their shares. The Fund ended the month with 4% in cash and 31 individual stock positions. By sector, the Fund was most heavily weighted towards the Industrials and IT sectors. Top holdings included Auckland International Airports, Omni Bridgeway, Pointsbet, Sealink and Uniti Wireless. |
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Performance Report: Cyan C3G Fund
15 Mar 2021 - Australian Fund Monitors
The Cyan C3G Fund rose +2.59% in February, outperforming the ASX200 Accumulation Index by +1.14% and taking 12-month performance to +27.92% vs the Index's +6.48%. Since inception in August 2014, the Fund has returned +16.75% p.a. vs the...
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15 Mar 2021 - Performance Report: 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's Sharpe and Sortino ratios (since inception), 0.93 and 1.31 respectively, by contrast with the Index's Sharpe of 0.44 and Sortino of 0.49, highlight its capacity to produce superior risk-adjusted returns while avoiding the market's downside volatility over the long-term. The Fund's up-capture and down-capture ratios (since inception), 105.6% and 58.2% respectively, indicate that, on average, the Fund has outperformed in both the market's positive and negative months. Strong portfolio performers in February included Raiz (RZI), Alcidion (ALC) and Singular Health (SHG). Key detractors included Readcloud (RCL) and Quickstep (QHL). |
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