NEWS
Performance Report: The Airlie Australian Share Fund
2 Nov 2020 - Australian Fund Monitors
The Airlie Australian Share Fund returned -3.42% in September, to take 12 month performance to -2.93% against a loss of -10.21% for the ASX200 Total Return Index.
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2 Nov 2020 - Performance Report: The Airlie Australian Share Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is long-only with a bottom-up focus. It has a concentrated portfolio of 15-35 stocks (target 25). Maximum cash holding of 10% with an aim to be fully invested. Airlie employs a prudent investment approach that identifies companies based on their financial strength, attractive durable business characteristics and the quality of their management teams. Airlie invests in these companies when their view of their fair value exceeds the prevailing market price. It is jointly managed by Matt Williams and Emma Fisher. Matt has over 25 years' investment experience and formerly held the role of Head of Equities and Portfolio Manager at Perpetual Investments. Emma has over 8 years' investment experience and has previously worked as an investment analyst within the Australian equities team at Fidelity International and, prior to that, at Nomura Securities. |
| Manager Comments | The Airlie Australian Share Fund returned -3.42% in September, to take 12 month performance to -2.93% against a loss of -10.21% for the ASX200 Total Return Index (TRI). Over the last 12 months the fund has recorded an upcapture ratio of 111% by returning 34% in the 7 positive months, whilst avoiding the worst of the 5 drawdown months with a downcapture ratio of 88%. Over the September quarter, which incorporated the reporting season, the fund rose 1.21% to outperform the ASX TRI which fell -0.44%. The fund's exposure to the building materials sector both at home and in the US via holdings in Reece and James Hardie (up 40% and 20% respectively) provided solid returns, whilst on the negative side weak energy markets negatively impacted holding in Origin (-18%) and Ampol (-18%). Commenting on the reporting season Portfolio Managers Matt Williams and Emma Fisher noted that it was 'one for the ages' as COVID19 wreaked havoc on global economies, and the average ASX200 company saw earnings per share in the 2nd half of FY2020 fall by 38%, with financials, REITS and energy stocks bearing the brunt of the crisis. On the positive side retail, iron ore, and technology thrived. Goverment spending, opening of borders and the possibility of a vaccine in 2021 could see sentiment and performance improve going forward. In particular the managers noted that the lack of spending alternatives, particularly overseas travel which accounts for approx. $40 billion p.a. or ~12% of retail sales, could help offset negative themes such as the staged withdrawal of stimulus spending. |
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Performance Report: Sandon Capital Activist Fund
30 Oct 2020 - Australian Fund Monitors
The Sandon Capital Activists Fund returned -0.24% over the past 12 months, outperforming the ASX200 Accumulation Index by +9.97%. Since inception in September 2009, the Fund has returned +10.73% p.a. vs the Index's annualised return of +6.86%.
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30 Oct 2020 - Performance Report: Sandon Capital Activist Fund
By: Australian Fund Monitors
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| Fund Overview | Once an opportunity rates on valuation metrics, Sandon Capital assesses whether there is the potential for influencing changes that seek to narrow the discount between the market price and the assessed intrinsic value. |
| Manager Comments | Key detractors for performance for the month were City Chic Collective Ltd (-1.2%) and Iluka Resources Ltd (-1.0%) with positive contributors including Boral Limited. Sandon believe that global markets remain at the mercy of the COVID-19 pandemic, the US presidential election and China tensions, and that the Australian market has been buoyed by the government's significant stimulus announcements. They believe significant proportion of the portfolio is likely to benefit from Federal, State and Local infrastructure spending. |
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Performance Report: Bennelong Twenty20 Australian Equities Fund
29 Oct 2020 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund rose +3.65% over the September quarter, outperforming the ASX200 Accumulation Index by +4.09%. Since inception in November 2009, the Fund has returned +9.55% p.a. vs the Index's annualised...
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29 Oct 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 | The Fund returned -4.15% in September. At month-end, the portfolio's weightings had been increased in the Health Care, Industrials and Financials sectors, and decreased in the Discretionary, IT, Consumer Staples, Materials and REITs sectors. The portfolio's weightings in the Communication and Energy sectors were left unchanged at 2.4% and 0.9% respectively. The Fund has positions in the top 20 stocks and approximately 20-30 ex-20 stocks. Sector exposures will deviate from the benchmark only to the extent that the actively managed investment in ex-20 stocks results in an over of under-weighting to any particular sector. The Fund has a significantly higher weighting towards the Discretionary sector than the benchmark, with an 'Active Weight' of 21.8%; the Discretionary sector makes up 29.7% of the Fund's portfolio but only 7.8% of the benchmark. |
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Performance Report: Gyrostat Absolute Return Income Equity Fund
28 Oct 2020 - Australian Fund Monitors
The Gyrostat Absolute Return Income Equity Fund rose +0.71% in September, taking 12-month performance to +7.11%. Since inception in December 2010, the Fund has returned +4.78% p.a. with an annualised volatility of 4.28%.
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28 Oct 2020 - Performance Report: Gyrostat Absolute Return Income Equity Fund
By: Australian Fund Monitors
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| Fund Overview | The investment objective is to deliver regular and stable income stream (from ASX20 dividends) in a low interest rate environment with capital security - a 'highly-defensive' asset class. Gyrostat has operated for 38 consecutive quarters within a 'hard' pre-defined risk parameter (no more than 3% capital at risk with the Fund's maximum draw-down 2.2% in any circumstances) always in place, delivering regular income by passing through ASX-20 dividends, and meeting returns guidance based upon market conditions (demonstrating increasing returns with market volatility). The Fund buys and holds ASX-20 and international assets with lowest cost protection always in place with upside. It is a conservative asset allocation. Note that Gyrostat have expanded their international assets within the Fund to include SP500, FANGS, Nikkei, Hang Seng, MSCI China, MSCI Developed and Developing markets. Advances in investment risk management enable cost-effective protection to always be in place for a 'hard' defined risk parameter (say no more than 3% capital at risk). Returns are designed to increase as volatility levels increase, as this provides more opportunities to lower protection costs. Investment Objectives: - Returns: 6% - 8% pa in trending markets, greater than 8% pa in volatile markets, BBSW90 + 3% in stable markets - Income: Minimum cash rate + 3% paid semi-annually (currently 4.0% p.a.) from dividends and franking credits - Protection: No quarterly NAV draw-downs exceeding 3% Also includes a 'tail hedge' for gains on large market falls. |
| Manager Comments | Market conditions in September enabled Gyrostat to enter positions for more elevated returns on any uplift in market volatility. The Fund's investment strategy allows for up to 15% of assets to be invested in international assets, with positions in S&P500, Nasdaq, Hang Seng, MSCI Developed and Emerging Markets (among others). Gyrostat anticipate returns in all market environments of at least BBSW 90 +3% which they expect will enable investors to receive income and capital growth. The Fund also includes a 'tail hedge' for gains on large market falls. Gyrostat anticipate increasing levels of 'late cycle' market volatility with elevated geopolitical risk, historically high debt levels and elevated valuations. |
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Performance Report: Australian Eagle Trust Long-Short Fund
28 Oct 2020 - Australian Fund Monitors
The Australian Eagle Long Short Fund's September return was broadly in line with the ASX200 Accumulation Index's -3.66%, while strongly outperforming by 15.3% over the past year deleivering investors a return of 5.11% vs the market's -10.21%.
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28 Oct 2020 - Performance Report: Australian Eagle Trust Long-Short Fund
By: Australian Fund Monitors
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| Manager Comments | The largest positive contributors for the month came from short positions in Virgin Money UK, Unibail-Rodamco-Westfield and Cimic, while the detractors included long positions in QBE, CBA, and Nearmap Ltd. At the end of the month the portfolio had 32 long positions and 22 shorts, with the largest exposure in medical devices & services and technology stocks, with less exposure to the banking and real estate sectors. |
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Performance Report: Montgomery Small Companies Fund
27 Oct 2020 - Australian Fund Monitors
The Montgomery Small Companies Fund rose +11.92% over the September quarter vs the ASX200 Accumulation Index's -0.44%. Since inception in October 2019, the Fund has returned +15.63% vs the Index's -10.21%.
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27 Oct 2020 - 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 Fund returned -2.16% in September, outperforming the Index by +1.5%. Top contributors included Bigtincan Holdings, Corporate Travel Management and Macquarie Telecom Group. The largest detractors included City Chic Collective, Marley Spoon and Sezzle. Montgomery noted the portfolio is structured around the following 'pillars': (1) a core of stocks that are not impacted by COVID-19, (2) exposure to market share winning structural growers, (3) augmented by the best 'tactical' opportunities available. They have been selling some of their bricks and mortar retail and technology exposures and reinvesting that money in stocks they see as levered to the next phase of economic 're-opening'. They have been positioning the Fund to benefit from a resumption in domestic travel and holidays, increased activity in hospitality and a shift from spending on goods and more towards services. |
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Performance Report: Laureola Investment Fund
27 Oct 2020 - Australian Fund Monitors
Laureola's Life Settlements fund continued its track record of 89 out of 90 positive returns with a positive 0.4% for the month, 11.3% over 12 months and 8% YTD, against the backdrop of increased market volatility and the COVID pandemic.
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27 Oct 2020 - Performance Report: Laureola Investment Fund
By: Australian Fund Monitors
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| Fund Overview | The investment strategy of The Laureola Investment Fund is dynamic and flexible, designed to take advantage of the frequent but temporary pricing anomalies of an asset class that is not yet fully understood by the majority of participants. Laureola Advisors applies 'best practices' common in the management of traditional assets, particularly the use of independent, in-house, proprietary research. |
| Manager Comments | Laureola reported that both the most recent month's and YTD returns have been almost all based on realised gains from maturities - as opposed to accounting gains from revaluations of currently held policies. |
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Performance Report: Surrey Australian Equities Fund
27 Oct 2020 - Australian Fund Monitors
The Surrey Australian Equities Fund returned -1.80% in September, outperforming the ASX200 Total Return Index by 1.86% and taking 12-month performance to 7.73% vs the Index's -10.21%. Since inception in June 2018, the Fund has returned...
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27 Oct 2020 - 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 concluded the month with 27 holdings and 10% in cash. Surrey noted that this larger than normal cash holding is a reflection of stock sales toward the end of the month as opposed to a negative view on the market. The fund top holding at the end of the month included Auckland International Airport, Imricor Medical Systems, Omni Bridgeway, Pointsbet and Xero Limited. In the approach to Christmas Surrey are expecting a large number of Initial Public Offerings (IPOs) as companies look to benefit from liquid markets as well as bolster their balance sheets, following the scare many experienced earlier in the year. |
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Performance Report: Atlantic Pacific Australian Equity Fund
26 Oct 2020 - Australian Fund Monitors
The Atlantic Pacific Australian Equity Fund returned 1.62% for the month of September and 20.63% for the 12 months to the end of September. Both figures are a strong outperformance over the ASX200 Total Return Index of -3.66% for September...
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26 Oct 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 | Stocks in the portfolio that contributed to the strong returns for the month were Boral, Citadel Group, Fortescue Metals and Ooh Media. Detractors from performance were Challenger, Iluka Resources, Metcash and Myer Holdings. The fund remains conservatively positioned with APSEC believing that the post-COVID minimisation of office space could lead to an oversupply of assets and a resulting property bubble burst. |
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Fund Review: Bennelong Twenty20 Australian Equities Fund September 2020
23 Oct 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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23 Oct 2020 - Fund Review: Bennelong Twenty20 Australian Equities Fund September 2020
By: Australian Fund Monitors
AFM Fund Review - September 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 - September 2020 (pdf format)
