NEWS
Performance Report: Bennelong Emerging Companies Fund
23 Nov 2020 - Australian Fund Monitors
The Bennelong Emerging Companies Fund rose 4.78% over the month of October against the ASX200 Accumulation Index's 1.93%. Since inception in November 2017, the Fund has returned 26.91% p.a. against the Index's 4.09%.
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23 Nov 2020 - 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 | Bennelong noted that despite the inevitable ups and downs of the market in the short term, they believe the portfolio's investments are all incrementally building value. The portfolio remains reasonably diversified across sector and risk-return drivers. |
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Performance Report: Delft Partners Global High Conviction
20 Nov 2020 - Australian Fund Monitors
The Delft Partners Global High Conviction Strategy rose +1.00% in October, outperforming AFM's Global Equity Index by +1.57% and taking annualised performance since inception in August 2011 to +14.04% with an annualised volatility of 11.64%.
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20 Nov 2020 - 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 has achieved an average positive monthly return since inception of +3.20% vs the Index's +2.94%. The Strategy's Sharpe and Sortino ratios for performance since inception are 1.02 and 1.81 respectively. With respect to the Index's 10 best and worst months since the Strategy's inception, the Strategy has outperformed in 6 out of 10 of the Index's worst months and 9 out of 10 of the Index's best month. This highlights the Strategy's capacity to perform well in both rising and falling markets. |
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Performance Report: Australian Eagle Trust Long-Short Fund
19 Nov 2020 - Australian Fund Monitors
The Australian Eagle Trust Long-Short Fund rose +4.35% in October, outperforming the ASX200 Accumulation Index by +2.42% and taking 12-month performance to +10.06% vs the Index's -8.15%. Since inception in July 2016, the Fund has returned...
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19 Nov 2020 - Performance Report: Australian Eagle Trust Long-Short Fund
By: Australian Fund Monitors
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| Manager Comments | The Fund's Sharpe and Sortino ratios (since inception), 1.07 and 1.50 respectively, by contrast with the Index's Sharpe of 0.47 and Sortino of 0.49, highlight its capacity to achieve superior risk-adjusted returns while avoiding the market's downside volatility. The Fund's ability to significantly outperform in both rising and falling markets is demonstrated by its up-capture and down-capture ratios (since inception) of 147.9% and 81.1% respectively. The portfolio's largest positive contributors in October came from long positions in ResMed Inc, AMP Ltd and Commonwealth Bank of Australia Ltd. The largest detractors were short positions in Challenger Ltd, Virgin Money UK and Cimic Ltd. The Fund ended the month with 32 long positions and 20 short position, with the largest exposure to medical devices & services and technology stocks. The Fund ended the month with relatively less exposure to banking and real estate stocks. |
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Fund Review: Bennelong Kardinia Absolute Return Fund October 2020
18 Nov 2020 - 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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18 Nov 2020 - Fund Review: Bennelong Kardinia Absolute Return Fund October 2020
By: Australian Fund Monitors
AFM Fund Review - October 2020 (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 8.21% p.a. with a volatility of 7.45%, compared to the ASX200 Accumulation's return of 5.27% p.a. with a volatility of 14.34%.
- 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 - October 2020 (pdf format)
Performance Report: Harvest Lane Asset Management Absolute Return Fund
17 Nov 2020 - Australian Fund Monitors
The Harvest Lane Asset Management Absolute Return Fund rose 3.61% in October, outperforming the ASX200 Accumulation Index by 1.68% and ending the 12 months to the end of October down -7.68% vs the Index's -8.15%.
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17 Nov 2020 - Performance Report: Harvest Lane Asset Management Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | Harvest Lane Asset Management employs a conservative, highly selective and opportunistic approach. Using their extensive knowledge in the area of corporate actions, the Fund's managers assess each opportunity based on a thoughtful, diligent and disciplined process and invest where they believe an opportunity exists to generate above average investment returns relative to the risk incurred. Investment decisions are made without speculating on market direction, with rigid risk controls enforced to minimise the risk of large losses of investor capital. The Fund invests in securities that are predominantly listed on the ASX and occasionally in those listed in other developed markets. Equity swaps and other derivatives may be used at times to reduce risk. The fund typically holds high levels of cash in the absence of sufficiently attractive opportunities to deploy investor capital in accordance with its objectives. |
| Manager Comments | Harvest Lane noted that after three months of comparatively outsized returns to start FY 20-21, the highlight of the month was not so much the continuation of recent performance, but the breadth and quality of new opportunities that appeared. They have said that deal flow in recent months has mainly been focused in the smaller end of the market while confidence in M&A has remained low and that there has been a general lack of larger size transactions for various reasons. Harvest Lane are encouraged by recent results and believe the portfolio is primed to continue its run of good performance to finish the year. |
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Performance Report: Bennelong Long Short Equity Fund
17 Nov 2020 - Australian Fund Monitors
The Bennelong Long Short Fund has risen +24.95% over the past 12 months vs the ASX200 Accumulation Index's -8.15%. Since inception in February 2002, the Fund has returned +15.86% p.a. vs the Index's annualised return of +7.42%.
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17 Nov 2020 - 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 returned -0.65% in October. Performance was largely attributed to the top and bottom pairs with many of the pairs in between contributing nothing. Top pairs were long QAN / short FLT, long NWL, short IFL, and long LNK / short CPU. Bottom pairs included long A2M / short CCL, long CAR / short NEC. Bennelong noted wage subsidies, fiscal stimulus and other measures to compensate for lockdown are distorting measures of economic activity. They point specifically to the collapse in the number of companies entering administration (see latest report for the graph). Consequently, they foresee a high level of uncertainty regarding prospects for the economy when temporary measures are withdrawn. They also believe the RBA's recent interest rate cut, guidance on the duration of effective zero interest rates and quantum of QE is an indication of their concern. |
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Performance Report: Bennelong Kardinia Absolute Return Fund
16 Nov 2020 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund returned -0.70% in October, underperforming the ASX200 Accumulation Index by 2.63% and taking 12-month performance to -1.08% vs the Index's -8.15%.
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16 Nov 2020 - 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 | Positive contributors included Nickel Mines, Star Entertainment, CBA, NAB and Aussie Broadband. Key detractors included Harvest Tech, Temple and Webster, Flight Centre and Kogan. The short book was also a detractor to performance. Kardinia reduced net market exposure to 30.4% (55.3% long and 24.9% short) in the face of US election uncertainty, with the key changes being a reduction in the size of long positions, partially offset by some initial public offerings and an increase in weighting of Commonwealth Bank. Kardinia maintain a bias towards stocks that benefit from a re-opening of economies scenario. They believe good progress is being made on potential vaccines and treatments and Governments will increasingly move towards a 'living with the virus' approach as the economic damage from lockdowns becomes apparent. |
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Fund Review: Bennelong Long Short Equity Fund October 2020
16 Nov 2020 - 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 Nov 2020 - Fund Review: Bennelong Long Short Equity Fund October 2020
By: Australian Fund Monitors
AFM Fund Review - October 2020 (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 16-years' track record and an annualised returns of 15.86%.
- 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 0.97 and 1.62 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - October 2020 (pdf format)
Performance Report: AIM Global High Conviction Fund
13 Nov 2020 - Australian Fund Monitors
The AIM Global High Conviction Fund has risen +15.21% over the past 12 months vs AFM's Global Equity Index's +2.95%. Since inception in July 2015, the Fund has returned +3.86% p.a. with an annualised volatility of 11.25%.
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13 Nov 2020 - Performance Report: AIM Global High Conviction Fund
By: Australian Fund Monitors
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| Fund Overview | The strategy is long-only, with a mandate to be between 90% - 100% invested. The Fund also employs a construction framework that ensures there is a sensible mix of exposures within the limited number of businesses in the portfolio. These limits are: - Maximum individual position size 7.5% - Minimum individual position size 2.5% - Maximum sector exposure 30% The Fund targets a cash allocation of between 0-10% but can have as much as 20% of the portfolio in cash in the event of an unprecedented global shock. Liquidity is extremely important. The Fund will typically look to invest in businesses within a market cap range of US$7.5billion all the way up to the largest companies in the world with market capitalisations in excess of $200b. Occasionally, we may find a business that exhibits the traits of a quality investment, but it is much earlier in its business cycle. The Fund can invest in these businesses, but they must clear a much higher bar for inclusion. Individually, these future compounders cannot comprise more than 4% of the fund, these businesses cannot collectively exceed 10% of the fund. |
| Manager Comments | The Fund returned -1.20% in October. Aitken noted fears of new rounds of hard lockdowns to halt the surge of cases of COVID-19 in Europe and the US, combined with uncertainty around the outcome of the US presidential election, saw volatility increase significantly in the latter half of the month, with markets selling off sharply in the final week. They added that being unhedged to the AUD has provided somewhat of a release valve for the Fund, as has been the case with the majority of market sell-offs this year. The biggest laggard in the portfolio for the month was Mastercard. The lack of high-margin cross-border transactions lead to a mix shift that depressed revenues and margins, missing market estimates of quarterly performance. Aitken believe consumers' inclination to pay with card rather than cash has only increased over the last 6 months and see that this has strengthened the cash-to-card transition that underpins Aitken's investment thesis. Aitken are focused on remaining disciplined in their approach, sticking to owning quality businesses and accepting that price volatility is the psychological cost of long-term compound returns. |
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Fund Review: Bennelong Twenty20 Australian Equities Fund October 2020
12 Nov 2020 - 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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12 Nov 2020 - Fund Review: Bennelong Twenty20 Australian Equities Fund October 2020
By: Australian Fund Monitors
AFM Fund Review - October 2020 (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 - October 2020 (pdf format)
