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Performance Report: Bennelong Concentrated Australian Equities Fund
28 Sep 2020 - Australian Fund Monitors
The Bennelong Concentrated Australian Equities Fund rose +10.20% in August, outperforming the ASX200 Accumulation Index by +7.37% and taking 12-month performance to +16.32% vs the Index's -5.08%. Since inception in February 2009, the Fund...
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28 Sep 2020 - 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 | As at the end of August, the portfolio's weightings had been increased in the Discretionary and IT sectors, and decreased in the Health Care, Consumer Staples, Materials, REIT's, Industrials and Financial sectors. The portfolio is significantly more heavily weighted towards the Discretionary and Health Care sectors, with 'Active Weightings' of 25.3% and 12% respectively; the portfolio's weighting towards the Discretionary sector is 32.9% vs the Index's 7.7%, and 32.9% for the Health Care sector vs the Index's 11.8%. |
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Performance Report: Harvest Lane Asset Management Absolute Return Fund
25 Sep 2020 - Australian Fund Monitors
The Harvest Lane Absolute Return Fund rose +1.66% in August. Since inception in July 2013, the Fund has returned +4.99% p.a. with an annualised volatility of 10.57%. The Fund has maintained a down-capture ratio for performance since...
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25 Sep 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 | The Harvest Lane Absolute Return Fund rose +1.66% in August. Since inception in July 2013, the Fund has returned +4.99% p.a. with an annualised volatility of 10.57%. The Fund has maintained a down-capture ratio for performance since inception of 16.29% which indicates that, on average, the Fund has significantly outperform during the market's negative months. Harvest Lane saw a lull in corporate activity during August as the market paused to assess the damage during reporting season. However, they noted this lull didn't last for long having seen a flurry of activity in the first week of September. Harvest Lane highlighted the transaction between Abano Healthcare (ABA.NZX) and BGH Capital as one of the most interesting they witnessed during the month. BGH Capital walked away from a NZ$5.70 per share transaction in March by relying on a Material Adverse Change (MAC) clause to exit the deal. The revised deal was struck at a lower headline price of NZ$4.45 with the added condition that the new deal could not be terminated due to a material adverse change. Other key transactions throughout the month are discussed in more detail in the latest performance report. Overall, Harvest Lane are pleased with the Fund's performance in August and expect September to be the same. They noted they continue to make progress making up the portfolio's recent underperformance and are genuinely encouraged by the level of corporate activity they are currently witnessing. |
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Performance Report: Ark Global Fund - Class B AUD Hedged
25 Sep 2020 - Australian Fund Monitors
The Ark Global Fund - Class B AUD Hedged was flat in August. Since inception in July 2017, the Fund has returned +6.82% p.a. with an annualised volatility of 9.27%.
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25 Sep 2020 - Performance Report: Ark Global Fund - Class B AUD Hedged
By: Australian Fund Monitors
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| Fund Overview | The investment objective of the Fund is to achieve long-term capital appreciation with low correlation to global equity markets through investment in the Underlying Fund. Fund One is a global macro fund that utilises quantitative research including machine learning techniques and fully automated trading algorithms which will aim to generate positive uncorrelated returns relative to any significant equity benchmark. The traded instruments are either major FX pairs or the most liquid exchange traded stock index, bond, and commodity futures across North America, Europe and Asia Pacific. The algorithm backtests over 10 years of tick data and in order to do so effectively requires machine learning to filter noise and identify meaningful signals, which results in statistically significant prediction of price movements. In production this processing is done in real time and the portfolio reacts to asset movements by rebalancing automatically to the desired risk exposure through the market impact optimised execution logic. Risk management layers built into the algorithm have been developed using the experience the team has gained from their decades in highly liquid fast-moving markets in the proprietary High Frequency Trading world. This allows the system to trade autonomously but safely to all trading opportunities and potential system issues, and to alert the team to any behaviour outside of strictly controlled bounds. The Fund is a 'feeder fund' which indirectly gains exposure to the underlying assets by investing all or substantially all of its assets in the Underlying Fund. The Fund may retain a certain amount of cash from the investment in the Fund for the purpose of payment of costs, fees, hedging and expenses. |
| Manager Comments | The best performing assets for the month were: Euro Stoxx 50 (+1.71% of NAV), Euro/USD (+0.86% of NAV) and 10-yr US Treasury Note (+0.80% of NAV). The worst performing assets were: E-mini S&P 500 (-0.47% of NAV), AUD/USD (-1.02% of NAV) and S&P/TSX 60 (-1.39% of NAV). |
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Performance Report: Bennelong Twenty20 Australian Equities Fund
25 Sep 2020 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund rose +6.57% in August, outperforming the ASX200 Accumulation Index by +3.74% and taking 12-month performance to +6.67% vs the Index's -5.08%. Since inception in November 2009, the Fund has...
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25 Sep 2020 - Performance Report: 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 | As at the end of August, the portfolio's weightings had been increased in the Discretionary, IT and Health Care sectors, and decreased in the Communication, Consumer Staples, Industrials, Materials, Energy and Financial sectors. By comparison with the Fund's benchmark (ASX300 Accumulation Index), the portfolio is significantly more heavily weighted towards the Discretionary sector, with an 'Active Weight' of 19.6%. |
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Performance Report: Atlantic Pacific Australian Equity Fund
24 Sep 2020 - Australian Fund Monitors
The Atlantic Pacific Australian Equity Fund rose +0.93% in August, taking 12-month performance to +21.82% vs the ASX200 Accumulation Index's -5.08%. Since inception in June 2013, the Fund has returned +9.37% p.a. against the Index's...
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24 Sep 2020 - Performance Report: Atlantic Pacific Australian Equity Fund
By: Australian Fund Monitors
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| Fund Overview | The primary objective of the Atlantic Pacific Australian Equity Fund is to generate a mixture of capital and income returns for investors with a high risk profile, over a 5 to 7 year investment period. The Investment Manager believes that markets are fundamentally inefficient and that active investment management will result in higher than 'benchmark' returns. The Fund has adopted the S&P/ASX200 Accumulation Index as the benchmark for its performance. The Investment Manager also believes that, on review of many markets globally, no individual style or method of investing will always ensure outperformance in terms of return on investment. In light of this, the Investment Manager may adopt a 'value', 'growth' or 'momentum' style bias, for example, depending on where the market is in its investment cycle. Further, the Investment Manager believes that actual and forecasted events underpin absolute and relative price movements of securities. The Investment Manager will utilise a number of frameworks to assist in positioning the Fund's portfolio of investments. These include fundamental research, quantitative analysis, and macro and catalyst research. |
| Manager Comments | The following statistics (since inception) highlight the Fund's capacity to protect investors' capital in falling markets: Sortino ratio of 1.61 vs the Index's 0.52, maximum drawdown of -7.10% vs the Index's -26.75%, and down-capture ratio of 23.70%. Positive contributors in August included long positions in Adairs, Citadel Group, Mesoblast and Ooh Media. Key detractors included long positions in A2 Milk, Resmed and Terracom, as well as a short position in Altium. Altium noted the portfolio remains conservatively positioned with a continuation of weekend hedges. |
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Fund Review: Insync Global Capital Aware Fund August 2020
23 Sep 2020 - 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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23 Sep 2020 - Fund Review: Insync Global Capital Aware Fund August 2020
By: Australian Fund Monitors
AFM Fund Review - August 2020 (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 - August 2020 (pdf format)
Performance Report: Frazis Fund
23 Sep 2020 - Australian Fund Monitors
The Frazis Fund rose +15.5% in August, taking 12-month performance to +52.02% vs AFM's Global Equity Index's +6.41%. Since inception in July 2018, the Fund has returned +18.57% p.a. vs the Index's annualised return over the same period of +9.39%.
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23 Sep 2020 - 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 August return was achieved with over 35 positions. Since initial purchase, some of the Fund's best performing investments include Afterpay (return since initial purchase of 17x), Carvana (5x), Shopify (5x), Xero (4x) and Tesla (4x). Frazis noted their systematic framework based around customer love and explosive growth is working to identify strong performing stocks long before they become household names. They are currently working on a number of new undisclosed opportunities that, in addition to having a devoted customer fanbase and explosive growth, are trading at the low multiples that marked the stocks mentioned previously as good buys. Frazis aim to remain invested in the highest quality and fastest growing companies they can find. |
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Performance Report: Glenmore Australian Equities Fund
22 Sep 2020 - Australian Fund Monitors
The Glenmore Australian Equities Fund rose +11.52% in August, outperforming the ASX200 Accumulation Index by +8.69%. Since inception in June 2017, the Fund has returned +19.02% p.a. vs the Index's annualised return over the same period of +5.90%.
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22 Sep 2020 - Performance Report: Glenmore Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The main driver of identifying potential investments will be bottom up company analysis, however macro-economic conditions will be considered as part of the investment thesis for each stock. |
| Manager Comments | Top contributors to performance in August included People Infrastructure, ARB Corporation, Temple and Webster, Integral Diagnostics, NRW Holdings, Alliance Aviation Services, Fiducian Group, Mineral Resources and Collins Foods. There were no detractors of any materiality during the month. Glenmore noted in their latest report that in Australia, with the exception of Victoria, all other states appear to have the virus under control. They believe the most likely scenario to be a continuation of the current economic settings (low interest rates, subdued economic growth, fiscal stimulus), which they expect will be sufficient for continued positive market conditions for equity investors. |
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Performance Report: Bennelong Kardinia Absolute Return Fund
22 Sep 2020 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +5.63% in August, outperforming the ASX200 Accumulation Index by +2.8% and taking 12-month performance to +4.69% vs the Index's -5.08%. Since inception in May 2006, the Fund has returned...
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22 Sep 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 | The best performers in the portfolio in August included stocks leveraged to new technologies whilst more defensive stocks lagged. Positive contributors included Zip Co, Pointsbet, Harvest Technology, Kogan and Charter Hall. Key detractors included West African, Aroa Biosurgery, National Australia Bank, Pilbara and Polynovo. Kardinia increased net market exposure modestly to 74.5% (90.0% long and 15.5% short), with the key changes being new positions in NRW Holdings, Qantas, Redbubble and Vicinity Centres, as well as increased weightings in Austal, Alumina, Flight Centre and Pointsbet. This was partially offset by a short position in Share Price Index Futures. Kardinia believe the portfolio has a good mix of stocks that benefit from both a lockdown scenario and a re-opening scenario, with more recent additions resulting in a tilt towards the latter. They believe good progress is being made on potential vaccines and treatments and expect Governments will increasingly move towards a 'living with the virus' approach as the economic damage from lockdowns becomes apparent. |
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Performance Report: Insync Global Capital Aware Fund
21 Sep 2020 - Australian Fund Monitors
The Insync Global Capital Aware Fund rose +6.52% in August, outperforming the AFM Global Equity Index by +3.73% and taking 12-month performance to +20.86% vs the Index's +6.41%. Since inception in October 2009, the Fund has returned...
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21 Sep 2020 - Performance Report: Insync Global Capital Aware 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 of typically 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. At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio. |
| Manager Comments | At month-end, the portfolio's top holdings included PayPal, Facebook, Adobe, Visa, Microsoft, Domino's Pizza, S&P Global, JD Sports Fashion, Walt Disney and Nvidia. The top three megatrends in the portfolio by weight were the 'Digitisation' megatrend (14% of the portfolio), 'Age related health solutions' megatrend (12%) and the 'Cashless Society' megatrend (12%). In their latest report, Insync discuss the 'Universal Basic Income' megatrend; a secular shift towards value-for-money based consumption. They expect that by 2040 automation, AI and robots will be in operation in businesses across all industries, improving efficiencies and creating profit while displacing many jobs. The UBI megatrend is one of the 16 global megatrends in the portfolio and exemplifies the diversity of the Fund's investments. |
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