NEWS
Performance Report: Quay Global Real Estate Fund
8 May 2018 - Australian Fund Monitors
The Quay Global Real Estate Fund rose +4.7% in March, outperforming its benchmark (FTSE/NAREIT Developed Index) by +0.7%. The Fund has returned +12.72% p.a. since inception in July 2014.
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8 May 2018 - 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 | Approximately +3.1% of the Fund's return was derived from underlying stock exposure. A weaker AUD added to monthly performance, while underlying stocks bounced back from heavy selling earlier in the year. Top performers included Essex Property Trust (US Multifamily), Leg Immobilien (German Housing) and Hispania Activos (Spanish Hotels). Spectrum GGP (US Malls), Brixmor (US Shopping) and Hysan (Hong Kong Diversified) were the only three detractors. |
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Fund Review: Insync Global Titans Fund March 2018
7 May 2018 - Australian Fund Monitors
Latest Fund Review on Insync Global Titans Fund is now available. The Global Titans Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and...
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7 May 2018 - Fund Review: Insync Global Titans Fund March 2018
By: Australian Fund Monitors
AFM Fund Review - March 2018 (pdf format)
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans Fund.
We would like to highlight the following:
- The Global Titans 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 - March 2018 (pdf format)
Performance Report: Bennelong Australian Equities Fund
4 May 2018 - Australian Fund Monitors
The Bennelong Australian Equities Fund returned -2.82% in March, outperforming the ASX200 Accumulation Index by +0.95%. Since inception in January 2009 the Fund has returned +13.58% per annum.
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4 May 2018 - 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 quarter, many of the companies in the portfolio reported very strong first half results in the February earnings season, outperforming the market's expectations and, as a result, delivering outsized returns. The Manager added a few new names to the portfolio during the quarter and also sold out of some stocks that had matured in terms of their return potential. The Manager has increased the Fund's exposure to cyclicals, particularly to the resources sector. The Manager also noted they continue to avoid many of the pure bond proxies such as the REITs, Utilities and Infrastructure stocks, as well as blue chips like Woolworths, Telstra and AMP. In their latest report, the Manager discusses a few of the Fund's holdings including Flight Centre, CSL Limited and Aristocrat Leisure. Bennelong believe that, while it is always difficult to predict short term moves, it seems the Australian stock market looks well positioned to provide reasonably attractive returns over the foreseeable future. For the broader market, Bennelong point out that investor sentiment is cautious, valuations look reasonable and earnings are both solid and growing nicely. |
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Performance Report: Touchstone Index Unaware Fund
3 May 2018 - Australian Fund Monitors
The Touchstone Index Unaware Fund returned -1.04% in March, outperforming the ASX200 Accumulation Index by +2.73%. Since inception in April 2016, the Fund has returned +12.28% per annum.
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3 May 2018 - 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 | The Touchstone Index Unaware Fund primarily selects stocks from the S&P/ASX 300 Index and typically holds 10-30 stocks. It 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: Bennelong Concentrated Australian Equities Fund
2 May 2018 - Australian Fund Monitors
The Bennelong Concentrated Australian Equities Fund returned -2.47% in March, outperforming the ASX200 Accumulation Index by +1.3%. The Fund has returned +18.73% over the past 12 months versus the Index's +2.54%.
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2 May 2018 - 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 | The Fund continues to be invested in a selection of high quality and strongly growing companies that Bennelong believe will build value over time. Bennelong noted they continue to see attractive new opportunities emerge, and that over the quarter they added a few new names to the portfolio. The Manager has also sold out of some stocks that they believe had matured in terms of their return potential. One notable change over the quarter has been Bennelong's decision to increase exposure to cyclicals, particularly to the resources sector. The Manager noted they continue to avoid many of the pure bond proxies such as the REITs, Utilities and Infrastructure stocks, as well as less obvious bond proxies such as blue chips like Woolworths, Telstra and AMP that offer little if any growth but generous dividends. Bennelong believe that, while it is always difficult to predict short term moves, it seems the Australian stock market looks well positioned to provide reasonably attractive returns over the foreseeable future. For the broader market, Bennelong point out that investor sentiment is cautious, valuations look reasonable and earnings are both solid and growing nicely. |
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Performance Report: 4D Global Infrastructure Fund
1 May 2018 - Australian Fund Monitors
The 4D Global Infrastructure Fund rose +0.86% in March, outperforming its benchmark (OECD G7 Inflation Index +5.5%) by +0.30%. Since inception in March 2016, the Fund has returned +11.46% per annum.
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1 May 2018 - Performance Report: 4D Global Infrastructure Fund
By: Australian Fund Monitors
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| Fund Overview | The fund will be managed as a single portfolio of listed global infrastructure securities including regulated utilities in gas, electricity and water, transport infrastructure such as airports, ports, road and rail as well as communication assets such as the towers and satellite sectors. The portfolio is intended to have exposure to both developed and emerging market opportunities, with country risk assessed internally before any investment is considered. The maximum absolute position of an individual stock is 7% of the fund. |
| Manager Comments | The strongest performer in March was EDP Renovaveis, a Portuguese based global renewable operator, which was up +11.3%. The weakest performer was Brazilian toll road operator Ecorodovias, down -13%. The Manager noted that, given the ongoing global environment, they remain overweight user pay assets which have a direct correlation to macro strength. They also noted that, while they are underweight utilities ('bond proxies'), increasing geo-political concerns sees the Fund maintain core exposure to quality defensive utility assets. The Manager's outlook for global listed infrastructure over the medium term remains positive. They noted there has been a significant underinvestment in infrastructure around the world over the past 30 years and that public sector fiscal and debt constraints will limit governments' ability to respond, resulting in an increasing need for private sector capital as part of the funding solution. |
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Performance Report: Qato Capital Market Neutral Fund
30 Apr 2018 - Australian Fund Monitors
The Qato Capital Market Neutral Fund rose +2.06% in March, outperforming the ASX200 Accumulation Index by +5.83%. Over the quarter, the Fund is up +2.37% versus the Index which has fallen -3.86%.
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30 Apr 2018 - Performance Report: Qato Capital Market Neutral Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund seeks to preserve capital and maximise absolute returns through active and constant risk management, targeting monthly a net market exposure of 0% to hedge broader market risks by generally holding up to 50 S&P/ASX-100 positions (up to 25 long positions & 25 short positions). Historically, the strategy has been uncorrelated to traditional asset classes with a negative beta to equity markets. Qato Capital's process is entirely systematic - stock selection and risk management are all employed in a rules based approach. Positions in Qato's long-portfolio and short-portfolio are rotated monthly dependent upon their Q-Score ranking. The strategy employs no financial leverage/gearing to purchase securities, no derivatives and no financial products to imitate leverage. |
| Manager Comments | The telecommunications sector, down -30.88% over the past 12 months, continued its decline in March and added +1.20% to the Fund's performance with Qato holding short positions in Telstra (-6.27%) and TPG Telecomm (-10.15%). The Fund's short positions in the Financial sector also contributed positively as the sector fell due to increasing global funding costs and the ramifications of the Royal Commission, these included short positions in Bank of Queensland (-13.22%), Bendigo Bank (-10.44%), ANZ (-7.54%), NAB (-5.60%) and Westpac (-6.99%) which contributed +0.99% overall. Whilst the Fund's short weightings to the Financial sector were reduced at the end of the month, Qato still see headwinds for the sector with loan growth slowing and offshore borrowing costs increasing. Insurance Australia Group also contributed positively to performance (+0.45) after falling steadily throughout March (-8.78%). Other positive contributors included Evolution Mining (long, +0.42%), Graincorp (long, +0.28%). |
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Performance Report: Bennelong Kardinia Absolute Return Fund
27 Apr 2018 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund returned -1.9% in March, outperforming the ASX200 Accumulation Index by +1.87%.
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27 Apr 2018 - 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 | A short position in Share Price Index Futures (+96bp contribution for the month) was the biggest contributor given the fall in the market. Other positive contributors included Bellamy's (+28bp), Alumina (+16bp) and Lynas (+11bp). The short book also made a solid contribution, with individual stock short positions in telcos, financial services, infrastructure and consumer staples comprising five of the top eight stock contributors for the month. Negative contributors included ANZ (-44bp), Westpac (-40bp), Bluescope (-25bp), CSL (-24bp), Birimian (-22bp), Independence Group (-22bp) and Janus Henderson (-22bp). Net equity market exposure was reduced from 73.2% to 59.1% (93.5% long and 34.4% short), largely driven by an increased short position in Share Price Index Futures and lower weightings in ANZ and Westpac. |
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Performance Report: Bennelong Twenty20 Australian Equities Fund
26 Apr 2018 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund returned -3.21% in March, outperforming the ASX200 Accumulation Index by +0.56%.
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26 Apr 2018 - 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 | Bennelong's view is that, while it's always difficult to predict short term moves, they believe the Australian stock market looks well positioned to provide attractive returns over the foreseeable future. For the broader market, Bennelong pointed out that investor sentiment is cautious, valuations look relatively attractive and earnings are solid and growing nicely, and that these factors support Bennelong's bottom-up assessment of a positive outlook for returns. |
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Performance Report: KIS Asia Long Short Fund
25 Apr 2018 - Australian Fund Monitors
The KIS Asia Long/Short Fund rose +0.71% in March, outperforming the ASX200 Accumulation Index by +4.48%.
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25 Apr 2018 - Performance Report: KIS Asia Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Whilst the Fund's primary strategy is focused on long/short equities, the ability to retain discretionary powers to allocate across a number of other investment strategies is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage, special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.). The Fund's geographic focus is Asia excluding Japan, but including Australia). The Fund may invest outside of this region to the extent that: 1. The investment decision is driven from the Asian region or; 2. The exposure is intended to mitigate risk or enhance return from factors external to the Asian region. |
| Manager Comments | KIS noted with relatively sharp declines in equities they suffered on many of their long positions, however, none of these losses were significant in their own right. Two of the Fund's largest three profitable investments came from long positions contributing 31bp between them. The Fund also benefited from a short position in Challenger Finance where KIS had concerns about their expansion into Japan and the impact of rising yields, especially on weaker credits, could have on their portfolio of assets. KIS also noted that their discipline of maintaining a hedged portfolio using index to rebalance any significant difference between the Fund's stock longs and shorts contributed 57bp. In their latest commentary, KIS discuss what they believe to be two key drivers of the Australian market's performance in March - the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, and Labor's suggested changes to the dividend imputations/credit system. |
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