NEWS
Performance Report: Spectrum Strategic Income Fund
20 May 2019 - Australian Fund Monitors
The Spectrum Strategic Income Fund rose +0.31% in April, outperforming the average RBA Cash Rate by +0.18% and taking annualised performance since inception to +8.03%.
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20 May 2019 - Performance Report: Spectrum Strategic Income Fund
By: Australian Fund Monitors
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| Manager Comments | In line with the overall floating rate note market, most of the Fund's return in April came from interest income. The Fund mainly invests in floating rate notes, therefore, Spectrum noted, it has not benefitted much from the large fall in government bond yields that fixed rate funds have. They noted that the strategy for the fund is to continue to maintain a high average credit rating, currently 'A-', keep interest rate risk modest, liquidity high, continue to increase diversification and be ready for mispricing of credit risk. Their aim is to continue to beat deposits with less risk than equities and remain among the top performers of their peers. |
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Bennelong Twenty20 Australian Equities Fund April 2019
16 May 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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16 May 2019 - Bennelong Twenty20 Australian Equities Fund April 2019
By: Australian Fund Monitors
AFM Fund Review - April 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 - April 2019 (pdf format)
Fund Review: Bennelong Kardinia Absolute Return Fund April 2019
16 May 2019 - Australian Fund Monitors
The latest Fund Review for the Bennelong Kardinia Absolute Return Fund is now available. The Fund is a long-biased, research driven, active equity long/short strategy which invests in listed ASX companies with track records greater than 10 years.
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16 May 2019 - Fund Review: Bennelong Kardinia Absolute Return Fund April 2019
By: Australian Fund Monitors
AFM Fund Review - April 2019 (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 with over ten-year track record.
- 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 9.18% p.a. with a volatility of 7.07%, compared to the ASX200 Accumulation's return of 5.99% p.a. with a volatility of 13.27%.
- The Fund also has a strong focus on capital protection in negative markets. Portfolio Managers Mark Burgess and Kristiaan Rehder 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 - April 2019 (pdf format)
Performance Report: NWQ Fiduciary Fund
14 May 2019 - Australian Fund Monitors
The NWQ Fiduciary Fund rose +0.16% in April, taking annualised performance since inception in May 2013 to +5.33% with an annualised volatility of 4.86%.
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14 May 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 | The 'melt up' as the S&P500 entered new territory was a tailwind for the Fund's Beta managers, however, it was a more challenging environment for the Alpha managers with fundamentally supported relative value opportunities scarce as stocks rose indiscriminately. NWQ noted the trend of desynchronization in growth outlooks and policy settings across the major global economies continued in April. They pointed out the latest manufacturing PMI data (a barometer of economic activity) indicates that the US economy is relatively strong compared with those in Europe and Asia. However, they added, due to stubbornly low inflation in the US, traders are betting the next move from the Fed will be a rate cut. |
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Performance Report: Cyan C3G Fund
14 May 2019 - Australian Fund Monitors
The Cyan C3G Fund rose +2.07% in April, taking annualised performance since inception in August 2014 to +18.89% versus the ASX200's +7.15%.
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14 May 2019 - Performance Report: Cyan C3G Fund
By: Australian Fund Monitors
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| Fund Overview | Cyan C3G Fund is based on the investment philosophy which can be defined as a comprehensive, clear and considered process focused on delivering growth. These are identified through stringent filter criteria and a rigorous research process. The Manager uses a proprietary stock filter in order to eliminate a large proportion of investments due to both internal characteristics (such as gearing levels or cash flow) and external characteristics (such as exposure to commodity prices or customer concentration). Typically, the Fund looks for businesses that are one or more of: a) under researched, b) fundamentally undervalued, c) have a catalyst for re-rating. The Manager seeks to achieve this investment outcome by actively managing a portfolio of Australian listed securities. When the opportunity to invest in suitable securities cannot be found, the manager may reduce the level of equities exposure and accumulate a defensive cash position. Whilst it is the company's intention, there is no guarantee that any distributions or returns will be declared, or that if declared, the amount of any returns will remain constant or increase over time. The Fund does not invest in derivatives and does not use debt to leverage the Fund's performance. However, companies in which the Fund invests may be leveraged. |
| Manager Comments | Top contributors in April included Alcidion, Freelancer, and Readcloud. Key detractors included Atomos and Jaxsta. Cyan have met with all of their core holdings in the past couple of months and remain excited about their medium-term outlooks. They reiterate that, whilst month-to-month volatility can be expected, they have a firm view of long-term opportunity and remain confident in the outlook for the Fund into the future. |
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Performance Report: Bennelong Kardinia Absolute Return Fund
13 May 2019 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +0.55% in April, taking annualised performance since inception in May 2006 to +9.18% versus the ASX200's +5.99%.
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13 May 2019 - 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 | Top contributors included A2 Milk (+35 basis point contribution), Polynovo (+23bp), Afterpay (+17bp) and Macquarie Group (+16bp). Detractors included Northern Star (-15bp), Independence Group (-14bp), Charter Hall (-14bp), Fortescue Metals (-12bp), Rio Tinto (-10bp) and Oz Minerals (-10bp). The short book made a negative contribution of -46bp, with shorts in financials and Share Price Index Futures the key detractors. Net equity market exposure was increased from 38.9% to 51.5% (57.0% long and 5.6% short), with the key changes being new positions in Commonwealth Bank, Fortescue and Rhipe, increased weightings in Macquarie Group, A2 Milk and Polynovo, and a reduction in several short positions, including Share Price Index futures contracts. |
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Performance Report: NWQ Global Markets Fund
13 May 2019 - Australian Fund Monitors
The NWQ Global Markets Fund rose +2.13% in April, taking cumulative performance since inception in September 2018 to +3.92% versus the ASX200's +2.85%.
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13 May 2019 - Performance Report: NWQ Global Markets Fund
By: Australian Fund Monitors
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| Fund Overview | This is achieved through active allocations to a select number of liquid alternative managers that employ a variety of strategies. The Fund places emphasis on managers who demonstrate a rigorous and repeatable investment process that has delivered a strong track record. |
| Manager Comments | The Fund's currency and equities exposures delivered strong positive returns in April with contributions from the relative value positioning in both developed and developing market currencies and relative value positioning in European equities vs. US equities. The Fund's fixed income positions combined to produce a modest loss while there was a small gain overall from the Fund's commodities positions. NWQ noted the trend of desynchronization in growth outlooks and policy settings across the major global economies continued in April. They pointed out the latest manufacturing PMI data (a barometer of economic activity) indicates that the US economy is relatively strong compared with those in Europe and Asia. However, they added, due to stubbornly low inflation in the US, traders are betting the next move from the Fed will be a rate cut. Against this backdrop there were positive contributions to the Fund's overall return from both the systematic (+1.49%) and discretionary (+0.84%) managers. |
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Performance Report: Harvest Lane Asset Management Absolute Return Fund
10 May 2019 - Australian Fund Monitors
The Harvest Lane Absolute Return Fund rose +1.65% in April, taking annualised performance since inception in July 2013 to +8.78% with a volatility of 7.03%.
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10 May 2019 - 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 the portfolio made quick time in recouping a significant portion of March's losses. The gain was attributed mainly to two positions that showcased the additional upside the strategy has in the presence of competing bids. The remainder of the portfolio saw broad based gains that rounded out a strong month. Harvest Lane believe corporate activity levels continue to show strength and the portfolio remains well positioned to capitalise for the remainder of the financial year and beyond. |
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Performance Report: Bennelong Long Short Equity Fund
10 May 2019 - Australian Fund Monitors
The Bennelong Long Short Equity Fund rose +0.54% in April, taking annualised performance since inception in Feb 2002 to +14.93% versus the ASX200's +8.16%.
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10 May 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 | Bennelong noted Fund volatility continued to settle down in April. At the sector level Consumer Discretionary was the strongest contributor and Healthcare was the greatest detractor, with both similar in magnitude. More than half of the Fund's pairs were positive, with both positive and negative pair returns generally muted. Top pairs included long Magellan / short Perpetual and long Caltex / short Viva Energy. The worst performing pairs included long Ramsay Health Care / short Healius and long Challenger / short IOOF/ANZ. |
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Fund Review: Bennelong Long Short Equity Fund April 2019
7 May 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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7 May 2019 - Fund Review: Bennelong Long Short Equity Fund April 2019
By: Australian Fund Monitors
AFM Fund Review - April 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 14.93%.
- 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 1.44 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - April 2019 (pdf format)
