NEWS
Performance Report: Ark Global Fund - Class B AUD Hedged
25 Mar 2020 - Australian Fund Monitors
The Ark Global Fund (hedged) returned -4.81% in February, outperforming AFM's Global Equity benchmark by +0.76%. Since inception in July 2017, the Fund has returned +7.54% p.a. with an annualised volatility of 9.13%.
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25 Mar 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: Swiss Market Index future (+6.68% of NAV), Canada TSX 60 future (+3.36 of NAV), and FTSE100 future (+1.80% of NAV). The worst performing assets for the month were: Topix future (-4.60% of NAV), Gold future (-7.97% of NAV), and Euro Stoxx 50 future (-8.45% of NAV). The Manager noted the sudden rise in volatility didn't suit the Fund's systematic model well and was the major reason for the poor February result. However, the model has since adjusted to the larger market gyrations. AI Funds Management expect profitable opportunities to persist and for the Fund to demonstrate its major utility in providing uncorrelated and positive returns in all market conditions. |
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Performance Report: Quay Global Real Estate Fund
25 Mar 2020 - Australian Fund Monitors
The Quay Global Real Estate Fund returned -3.90% in February. Since inception in January 2016, the Fund has returned +10.43% p.a. with an annualised volatility of 10.48%. The largest drags on performance were STAG Industrial (US...
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25 Mar 2020 - 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 | Quay noted that, like many managers, they are trying to grapple with the implications of the virus on the investees of the portfolio and remain alert to any new opportunities that may emerge from general market volatility. They fear the worst is yet to come, particularly so for the US given that many US citizens remain uninsured or underinsured, anywhere between 58-70% of the US population has less than $1,000 in emergency savings, and nearly one in three private sector workers and 7 in 10 low-wage workers do not receive paid sick leave. In the face of these risks, the portfolio is generally weighted to less economically sensitive sectors (housing, storage, data storage, etc.), with low weights to more economically sensitive sectors (retail, office, industrial and tourism). Based on historic data, Quay expect the portfolio (along with a 12% cash weighting) to perform well in the event of a meaningful economic downturn. |
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Performance Report: Frazis Fund
24 Mar 2020 - Australian Fund Monitors
The Frazis Fund contracted 6.2% in February, roughly in line with global markets. The Fund has risen +4.49% YTD and +12.26% over the past 12 months.
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24 Mar 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 | Despite many of the Fund's peers moving to cash, Frazis noted they are staying invested. They are focusing all new purchases on core companies with net cash and positive free cash flow. The Fund does not hold leverage, nor does it have any short positions or derivatives. |
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Performance Report: Bennelong Emerging Companies Fund
24 Mar 2020 - Australian Fund Monitors
The Bennelong Emerging Companies Fund has returned +42.27% over the past 12 months versus the ASX200 Accumulation Index's +8.64%. Since inception in November 2017, the Fund has returned +27.64% p.a. versus the Index's +8.22%.
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24 Mar 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 | The Fund returned -11.30% in February. Bennelong noted this highlights the extra risk one takes in investing in emerging companies; greater risk, more volatility, larger drawdowns and a higher chance of loss. They emphasise the need for investors to take a longer term perspective when investing in the Fund as focusing solely on recent returns is a poor guide to the longer term performance. The Fund invests in a concentrated portfolio of high quality growth stocks that Bennelong believe will build shareholder value over time. The Fund's largest holdings as at February 2020 were Viva Leisure, Bwx and Mader. |
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Performance Report: Insync Global Quality Equity Fund
24 Mar 2020 - Australian Fund Monitors
The Insync Global Quality Equity Fund returned -2.94% in February, outperforming the Index by +2.63%. Since inception in October 2009, the Fund has returned +13.74% p.a. versus the Index's +11.22%.
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24 Mar 2020 - 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 | The Fund returned -2.94% in February, outperforming the Index by +2.63%. Positive contributors included Adobe, Dominos Pizza Inc, Nvidia and Ross Stores. Detractors included Accenture, Apple, Amadeus IT and Walt Disney. The Fund continues to have no currency hedging in place as Insync consider the main risks to the Australian dollar to be skewed to the downside. Insync's core view is that the prevailing low growth and low inflation environment is unlikely to change in the medium term with the recent data only re-enforcing their base case. |
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Performance Report: NWQ Fiduciary Fund
23 Mar 2020 - Australian Fund Monitors
The NWQ Fiduciary Fund outperformed the ASX200 Accumulation Index by +5.82% in February, returning -1.87%. Since inception in May 2013, the Fund has returned +5.58% p.a. with an annualised volatility of 4.84%.
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23 Mar 2020 - Performance Report: NWQ Fiduciary Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund aims to produce returns after management fees and expenses of RBA Cash Rate + 4.0-5.0% p.a. over rolling five-year periods. Furthermore, the Fund aims to achieve these returns with volatility that is a fraction of the Australian equity market, in order to smooth returns for investors. |
| Manager Comments | The NWQ Fiduciary Fund substantially hedged out the fall in the Australian equity market in February (-1.87% versus the Index's -7.69%). Two of the eight managers in the portfolio were up during the month with a further three managers recording modest losses of less than 2%. NWQ noted that while results were mixed, all managers operated within their parameters and made adjustments consistent with expectations. NWQ's investment committee believe the prospective environment to be favourable for stock picking as dispersion increases and will be putting additional capital to work in the coming months. |
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Performance Report: Bennelong Concentrated Australian Equities Fund
20 Mar 2020 - Australian Fund Monitors
The Bennelong Concentrated Australian Equities Fund outperformed the ASX200 Accumulation Index by +1.82% in February, returning -5.87%. The Fund has returned +16.34% p.a. since inception in February 2009 versus the Index's +10.33%.
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20 Mar 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 February, the Fund's weightings had been increased in the Discretionary, Health Care, Consumer Staples and IT sectors, and decreased in the Materials, Industrials and Communications sectors. The Fund's top three holdings were CSL, Idp Education and James Hardie Industries PLC. The Fund aims to invest in a concentrated portfolio of high quality companies with strong growth outlooks, underestimated earnings momentum and underestimated prospects. By comparison with the ASX300 Accumulation Index, the portfolio's holdings, on average, have a higher return on equity, lower debt/equity, higher sales growth, higher EPS growth, higher price/earnings and lower dividend yield which collectively indicate that the Fund is in line with its investment objectives. |
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Fund Review: Insync Global Capital Aware Fund February 2020
20 Mar 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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20 Mar 2020 - Fund Review: Insync Global Capital Aware Fund February 2020
By: Australian Fund Monitors
AFM Fund Review - February 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 - February 2020 (pdf format)
Fund Review: Bennelong Twenty20 Australian Equities Fund February 2020
19 Mar 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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19 Mar 2020 - Fund Review: Bennelong Twenty20 Australian Equities Fund February 2020
By: Australian Fund Monitors
AFM Fund Review - February 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 - February 2020 (pdf format)
Performance Report: Glenmore Australian Equities Fund
18 Mar 2020 - Australian Fund Monitors
The Glenmore Australian Equities Fund has risen +15.98% over the past 12 months versus the ASX200 Accumulation Index's +8.64%. Since inception in June 2017, the Fund has returned +21.26% p.a. versus the Index's +8.81%.
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18 Mar 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 | The Fund returned -9.9% in February. Glenmore noted February was a very busy month, with essentially all of the Fund's holdings reporting their results for the last 6 months. Despite the monthly return, the vast majority of the Fund's holdings had excellent results which were overwhelmed by coronavirus sentiment in the last week of the month. Glenmore expect the aggressive market sell-off will produce outstanding buying opportunities over the next few months. Top contributors during the month included Opticomm and Pinnacle Investment Management. Detractors included NRW Holdings, Bravura Solutions, Magellan Financial Group and Kangaroo Island Plantation Timbers. Glenmore have not made significant changes to the portfolio with the cash weighting at approximately 15% at month-end. |
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