NEWS
Performance Report: KIS Asia Long Short Fund
26 Jun 2018 - Australian Fund Monitors
The KIS Asia Long Short Fund rose +1.06% in May, taking annualised performance since inception in October 2009 to +13.46% with an annualised volatility of 5.18%.
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26 Jun 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 | On the short side, key positive contributors in May included Treasury Wine Estates (+74bp contribution) and Metcash (+40bp). On the long side the Fund benefitted from owning call options on Petrochina Co Ltd (857 HK), as the stock rallied KIS sold stock to take profits as their options moved into the money (+38bp contribution). The Fund suffered a loss of -22bp on a short position in Qantas which KIS attribute to a share buyback, relatively cheap valuation, FYQ3 trading update and FY18 guidance giving the stock strong support and offsetting the long term impact of higher oil prices. In their latest commentary KIS point to risks in emerging markets, such as Brazil's truck driver's strike due to escalating fuel prices, the Italian election results and Turkish President Erdogan's decision to go to the polls early. KIS believe that, despite the apparent stability of developed markets such as HK, US and Australia, the close relationship between developed and emerging markets is often unclear until after the event, referencing the impact of LTCMs leveraged bond convergence trades in 1998 on the US financial system which is thought to have been triggered by defaults in Russian bonds. |
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Bennelong Twenty20 Australian Equities Fund May 2018
25 Jun 2018 - 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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25 Jun 2018 - Bennelong Twenty20 Australian Equities Fund May 2018
By: Australian Fund Monitors
AFM Fund Review - May 2018 (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 - May 2018 (pdf format)
Performance Report: Bennelong Kardinia Absolute Return Fund
25 Jun 2018 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +1.78% in May, outperforming the ASX200 Accumulation Index by +0.69%.
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25 Jun 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 | Top contributors in May included Emeco (+46bp contribution), Seven Group (+26bp), Qantas (+43bp), CSL (+37bp), Whitehaven (+35bp), Aristocrat (+32bp), Netwealth (+32bp). Detractors included RCR Tomlinson (-32bp), CYBG (-24bp), Bellamy's (-21bp), Ausdrill (-20bp) and Independence Group (-16bp). The short book contributed positively, driven by a short position in Share Price Index Futures (+26bp) and individual shorts in the retail, telco, banks and healthcare sectors. Net equity market exposure (including derivatives) was reduced from 60.7% to 12.9% (68% long and 55.1% short), with the addition of Kidman Resources and Reece more than offset by the sale of Bellamy's, Boral, Star Entertainment and Santos, as well as five new individual stock shorts and an increase in the Fund's short position in SPI Futures contracts. |
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Performance Report: NWQ Fiduciary Fund
22 Jun 2018 - Australian Fund Monitors
The NWQ Fiduciary Fund returned +1.20% in May, outperforming the ASX200 Accumulation Index by +0.11% and taking annualised performance since inception in May 2013 to +7.36%.
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22 Jun 2018 - 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 noted that, despite the modest rise in the equity market in May, there continues to be an elevated level of return dispersion at the stock level which was beneficial to the Fund's Alpha managers. NWQ's Investment Committee remains circumspect about the Fund's beta exposure (i.e. exposure to the directionality of the equity market) and continues to prefer market neutral or low net exposure strategies at this time. |
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Performance Report: Bennelong Australian Equities Fund
21 Jun 2018 - Australian Fund Monitors
The Bennelong Australian Equities Fund rose +6.44% in May, outperforming the ASX200 Accumulation Index by +5.35%.
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21 Jun 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 | As at the end of May, the Fund's weightings had been increased in the Discretionary, Industrials and Materials sectors, and had been decreased in the Health Care, Consumer Staples and Financial sectors. The Fund aims to invest in high quality companies with strong growth outlooks and underestimated earnings momentum and prospects. By comparison with the ASX300 Accumulation Index, the portfolio's characteristics show that its holdings, on average, have a higher Return on Equity and lower debt/equity (Premium Quality), higher sales growth and higher EPS growth (Superior Growth), as well as higher price/earnings and lower dividend yield (Reasonable Valuation). |
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Performance Report: Glenmore Australian Equities Fund
20 Jun 2018 - Australian Fund Monitors
The Glenmore Australian Equities Fund rose +4.68% in May, outperforming the ASX200 Accumulation Index by +3.59% and marking the completion of the Fund's first year of operations.
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20 Jun 2018 - 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 | Positive contributors in May included Emeco Holdings (+26.5%), Mastermyne (+23.6%), Navigator Global Investments (+19.8%), Pinnacle Investment Management (+16.4%), ALE Property Group (+6.5%), Jumbo Interactive (+6.4%) and Bravura Solutions (+6.2%). Negative contributors included Pioneer Credit (-4.6%) and Pacific Current (-4%), however for both there was no news flow and neither were materials to Fund performance. This month marks the completion of the Fund's first year of operations. Glenmore noted that they are pleased with the fund's return of +35% after fees over the period. The Fund's outperformance came from a wide range of stocks and sectors, with a relatively high weighting to large cap, defensive stocks in the early months of the Fund, and with zero contribution from higher risk sectors such as small cap resources and energy or speculative technology stocks. |
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Fund Review: Bennelong Long Short Equity Fund May 2018
19 Jun 2018 - 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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19 Jun 2018 - Fund Review: Bennelong Long Short Equity Fund May 2018
By: Australian Fund Monitors
AFM Fund Review - May 2018 (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 15-years' track record and an annualised returns of over 16%.
- The consistent returns across the investment history indicate 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 1.02 and 1.69 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - May 2018 (pdf format)
Performance Report: Cyan C3G Fund
18 Jun 2018 - Australian Fund Monitors
The Cyan C3G Fund returned +3.4% in May, outperforming the ASX200 Accumulation Index by +2.31% and taking annualised performance since inception in August 2014 to +24.58%.
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18 Jun 2018 - 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 | In May, 20 of the Fund's 22 positions contributed positively. Key positive contributors included Axsess Today (+10%), Acrow Formwork (+16%), Experience Co (+11%), Readcloud, Roots (+27%). The Fund has taken a handful of new investment positions in the past month, deploying a portion of the Fund's defensive cash balance. Cyan envisage further investment in the coming months as more new opportunities have now been identified. Cyan noted they have also reduced a couple of exposures as they are approaching Cyan's valuation target. |
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Fund Review: Bennelong Kardinia Absolute Return Fund May 2018
15 Jun 2018 - 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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15 Jun 2018 - Fund Review: Bennelong Kardinia Absolute Return Fund May 2018
By: Australian Fund Monitors
AFM Fund Review - May 2018 (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 10.67% p.a. with a volatility of 6.91%, compared to the ASX200 Accumulation's return of 5.69% p.a. with a volatility of 13.44%.
- 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 - May 2018 (pdf format)
Performance Report: Bennelong Long Short Equity Fund
14 Jun 2018 - Australian Fund Monitors
The Bennelong Long Short Equity Fund rose +4.75% in May, outperforming the ASX200 Accumulation Index by +3.66%. The Fund has returned +16.58% p.a. since inception in February 2002.
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14 Jun 2018 - 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 | Both the long and short portfolios contributed positively in May, with the majority of pairs positive. Bennelong noted company profit results and earnings guidance during the month's news flow affected the Fund; the portfolio experienced a positive skew of fundamental news with an even spread of upgrades to the long portfolio and downgrades to the short portfolio. The strongest pairs for the month were long Woolworths / short Metcash and long Aristocrat / short Tabcorp. The weakest pair was long Link / short ASX with Link affected by the Federal Budget proposal to close inactive and low balance superannuation accounts. |
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