NEWS
Performance Report: Insync Global Capital Aware Fund
4 Nov 2019 - Australian Fund Monitors
The Insync Global Capital Aware Fund has returned +11.18% p.a. with an annualised volatility of 9.47% since inception in October 2009. Over the past 12 months, the Fund has returned +15.97% against AFM's Global Equity Index's +8.64%.
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4 Nov 2019 - 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 | The Fund returned -2.21% in September after the cost of fees and downside protection. Positive contributors included Apple, London Stock Exchange, Adidas and Bristol-Myer Squibb. Detractors included S&P Global, The Walt Disney Co, Visa and Intuit. The Fund continues to have no currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside. Insync believe current market conditions continue to reflect the trend in place since the GFC of low growth and low inflation. They noted that, if this trend continues over the medium to long-term, they expect their portfolio of high ROIC stocks benefitting from global megatrends should outperform as these companies are less dependent on the global economy to generate consistent profitable growth. |
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Performance Report: Bennelong Long Short Equity Fund
1 Nov 2019 - Australian Fund Monitors
The Bennelong Long Short Equity Fund's performance was flat in September. Since inception in February 2002, the Fund has returned +14.90% p.a. versus the ASX200 Accumulation Index's +8.43%.
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1 Nov 2019 - 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 majority of the Fund's pairs contributed positively during the month (17 of 29). The one negative pair of note was long Challenger (CGF) / short AMP & IOOF (IFL), with IFL experiencing a rally after news that the Federal Court ruled in favour of IFL in a case brought by APRA. On the positive side, the Fund had a solid contribution from a telco pair and two energy pairs. In their latest report, Bennelong highlight a chart which caught their attention in September which shows continued increase in debt levels of US corporates. Measured as a share of GDP, this now sits above prior peak levels. They noted they wonder what the end game is for cheap debt, and how much further indebtedness can rise before risk appetite changes. |
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Performance Report: NWQ Fiduciary Fund
1 Nov 2019 - Australian Fund Monitors
The NWQ Fiduciary Fund (Fund) delivered a return of +0.07% in September. Since inception, the Fund has returned 5.52% p.a. with an annualised volatility of 4.85%. By contrast, the ASX200 Accumulation Index has returned +8.76% p.a. with an...
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1 Nov 2019 - 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 between 8% to 11% 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 | NWQ's view is that global markets continue to be caught between the conflicting currents of a global economic slowdown and heightened geopolitical risk on the one hand and central bank policies designed to stimulate growth on the other. They noted the relative calm in equity markets during the month presented the Fund's managers with fewer opportunities than in recent months which was reflected in the Fund's flat performance in September. NWQ are satisfied with the Fund's return of +4.17% over the quarter. |
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Performance Report: Touchstone Index Unaware Fund
29 Oct 2019 - Australian Fund Monitors
The Touchstone Index Unaware Fund rose +2.62% in September, outperforming the ASX200 Accumulation Index by +0.78% and taking annualised performance since inception in April 2016 to +11.91% with an annualised volatility of 9.79%.
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29 Oct 2019 - Performance Report: Touchstone Index Unaware Fund
By: Australian Fund Monitors
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| Fund Overview | The portfolio is constructed using Touchstone's Quality-At-a-Reasonable-Price ('QARP') investment process. QARP is a fundamental bottom-up process, however, it also incorporates a top-down risk management framework designed to successfully manage the portfolio during varying market conditions and economic cycles. The Touchstone Fund is concentrated, typically holding between 15-20 stocks. No individual stock will ever make up more than 10% of the portfolio at any one time. The Investment Manager may temporarily exceed the exposure limits of the Fund occasionally, particularly during periods of market volatility, to allow for holdings in excess of this 10% limit where the increase in value of the underlying security is due to market movement. The Fund may also hold between 0-50% of the portfolio in cash. The Fund has a high level of associated risk, therefore, the minimum suggested investment time-frame is 5 years. |
| Manager Comments | As at the end of September, the Fund held 21 stocks with a median position size of 4.6%. The portfolio's holdings had an average forward year price/earnings of 16.6, forward year EPS growth of 4.3%, forward year tangible ROE of 21.6% and forward year dividend yield of 4.2%. The Fund's cash weighting was increased to 5.3% from 5.1% as at the end of August. The Fund primarily seeks to select stocks from the ASX300 Index, typically holding between 10-30 stocks. The Fund seeks to invest in reasonably priced, good quality companies with a significant share of expected returns coming from sustainable dividends. |
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Performance Report: Paragon Australian Long Short Fund
25 Oct 2019 - Australian Fund Monitors
The Paragon Australian Long Short Fund has returned +10.48% p.a. since inception in March 2013. By contrast, the ASX200 Accumulation Index has returned +8.88% p.a. over the same period.
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25 Oct 2019 - Performance Report: Paragon Australian Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Paragon's unique investment style, comprising thematic led idea generation followed with an in depth research effort, results in a concentrated portfolio of high conviction stocks. Conviction in bottom up analysis drives the investment case and ultimate position sizing: * Both quantitative analysis - probability weighted high/low/base case valuations - and qualitative analysis - company meetings, assessing management, the business model, balance sheet strength and likely direction of returns - collectively form Paragon's overall view for each investment case. * Paragon will then allocate weighting to each investment opportunity based on a risk/reward profile, capped to defined investment parameters by market cap, which are continually monitored as part of Paragon's overall risk management framework. The objective of the Paragon Fund is to produce absolute returns in excess of 10% p.a. over a 3-5 year time horizon with a low correlation to the Australian equities market. |
| Manager Comments | The Paragon Australian Long Short Fund has returned +10.48% p.a. since inception in March 2013. By contrast, the ASX200 Accumulation Index has returned +8.88% p.a. over the same period. The Fund has a down-capture ratio of performance of 40%, indicating that, on average, the Fund has significantly outperformed in falling markets since inception. The Fund returned -3.1% in September. Positive contributors included Atrum, Jumbo and Nickel Mines. These were offset by declines in iSignthis, Agrimin and the Fund's gold holdings. Paragon noted in the previous bull cycle of 2009 - 2011, gold had ten corrections greater than 5% amid its 167% gain. Their view is that volatility in gold bull cycles is a given and historically being patiently invested has paid very well. During the month Paragon visited Atrum's Elan project in Canada and Adriatic released initial metallurgical resutls, both surprising to the upside and discussed in more depth in the Fund's September report. Paragon noted that whilst they're pleased with Atrum's stock price doubling since initiating their position in February, they believe there remains considerable upside ahead. |
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Fund Review: Bennelong Long Short Equity Fund September 2019
25 Oct 2019 - 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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25 Oct 2019 - Fund Review: Bennelong Long Short Equity Fund September 2019
By: Australian Fund Monitors
AFM Fund Review - September 2019 (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 14.90%.
- 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 0.89 and 1.45 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - September 2019 (pdf format)
Fund Review: Bennelong Twenty20 Australian Equities Fund September 2019
24 Oct 2019 - 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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24 Oct 2019 - Fund Review: Bennelong Twenty20 Australian Equities Fund September 2019
By: Australian Fund Monitors
AFM Fund Review - September 2019 (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 2019 (pdf format)
Performance Report: Quay Global Real Estate Fund
23 Oct 2019 - Australian Fund Monitors
The Quay Global Real Estate Fund returned +0.9% in September, including a -0.1% return from currency. Since inception in January 2016, the Fund has returned +11.73% p.a. with an annualised volatility of 10.31%.
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23 Oct 2019 - 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 | The three best contributors for the month in order were Brixmor (US Retail), Unite Group (UK Student Housing) and Coresite (US Data Centres). The largest detractors were Leg Immobilon (German Apartments), Scentre (Aust Retail) and Shurgard (Euro Storage). The investment team noted that during the month they met with investees, their competitors and potential investment opporunities from the US, UK, Europe and Hong Kong. There were no new additions or deletions from the Fund during the month. |
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Performance Report: Bennelong Australian Equities Fund
23 Oct 2019 - Australian Fund Monitors
The Bennelong Australian Equities Fund rose +2.23% in September, outperforming the ASX200 Accumulation Index by +0.39% and taking annualised performance since inception in February 2009 to +13.74% versus the Index's +11.01%.
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23 Oct 2019 - Performance Report: Bennelong Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The Bennelong Australian Equities Fund seeks quality investment opportunities which are under-appreciated and have the potential to deliver positive earnings. The investment process combines bottom-up fundamental analysis with proprietary investment tools that are used to build and maintain high quality portfolios that are risk aware. The investment team manages an extensive company/industry contact program which helps identify and verify various investment opportunities. The companies within the portfolio are primarily selected from, but not limited to, the S&P/ASX 300 Index. The Fund may invest in securities listed on other exchanges where such securities relate to the ASX-listed securities. The Fund typically holds between 25-60 stocks with a maximum net targeted position of an individual stock of 6%. |
| Manager Comments | Over the September quarter than Fund returned +4.55% against the Index's +2.37%. Bennelong noted most portfolio holdings announced very strong financial results during reporting season in August which were largely in line with the investment team's expectations. Bennelong added that these results provided evidence of strong business momentum, better than expected near-term outlooks and bright longer-term prospects. Top contributors included Treasury Wine Estates, Reliance Worldwide and Afterpay. Bennelong believe it is becoming increasingly important to be selective when investing in equities, particularly given earnings risks appear to be on the way up. They have positioned the Fund appropriately and see it offering an attractive risk-reward proposition. |
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Performance Report: Bennelong Twenty20 Australian Equities Fund
22 Oct 2019 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund rose +3.13% in September, outperforming the ASX200 Accumulation Index by +1.29%. Since inception in November 2009, the Fund has returned +10.66% p.a. versus the Index's +8.44%.
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22 Oct 2019 - 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 | Over the September quarter the Fund rose 5.5%, outperforming the Index by +3.13%. This outperformance owes itself to the outperformance of the ex-20 stocks chosen for the portfolio. Bennelong noted most of these ex-20 stock holdings announced very strong financial results during reporting season in August which were largely in line with the investment team's expectations. Top contributors included BWX, Afterpay and Resmed. Major detractors included REITs (particularly Goodman and Dexus Property) and the Gold sector (in which the Fund is underweight but which performed strongly). |
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