NEWS
Performance Report: Bennelong Australian Equities Fund
27 Mar 2018 - Australian Fund Monitors
The Bennelong Australian Equities Fund rose +2.95% in February, outperforming the ASX200 Accumulation Index by +2.59% and taking annualised performance since inception to +14.07%.
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27 Mar 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 | By the end of the month, the Fund's weightings had been increased in the Discretionary, Health Care, Consumer Staples, IT and Materials sectors and decreased in the Industrials and Financials sectors. |
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Performance Report: Pengana Absolute Return Asia Pacific Fund
26 Mar 2018 - Australian Fund Monitors
The Pengana Absolute Return Asia Pacific Fund fell -2.2% in February. Since inception in October 2008, the Fund has returned +8.17% per annum with an annualised volatility of 6.05%.
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26 Mar 2018 - Performance Report: Pengana Absolute Return Asia Pacific Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will usually hold 40 to 80 positions and will be well diversified across the various event strategies. In keeping with the absolute return focus the Manager will eliminate market risk where appropriate by hedging market and foreign currency risks. Since inception the Fund has averaged a net equity market exposure of ~10%. Sizing of an investment position will depend on the expected risk adjusted returns while taking account the liquidity and volatility of the stock. In addition, the maximum potential loss on any one position should be greater than 0.5% of the NAV and the position should not exceed 30% participation of stressed volume assuming a $200m NAV. Other criteria considered are ability to hedge and the availability of pair candidates as well as the average bid-ask size. For M&A strategies average long position is 3 to 5.5% and average short position 2 to 5%. |
| Manager Comments | Pengana noted the return of volatility to equity markets is creating opportunities to capture pricing inefficiencies in the Fund's Relative Value and M&A sub-strategies. Pengana have therefore increased the Fund's Relative Value gross exposure to 112% and M&A exposure to 101%, whilst reducing the Directional Alpha book net exposure to 13.3%. The Manager has also partially hedged the Alpha exposure with puts and put-spread strategies to hedge out potential tail risk. The Fund's net and gross exposures were 13.3% and 242.3% respectively at the end of the month. |
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Performance Report: KIS Asia Long Short Fund
23 Mar 2018 - Australian Fund Monitors
The KIS Asia Long Short Fund returned +1.59% in February, outperforming the ASX200 Accumulation Index by +1.23% and taking annualised performance since inception to +13.72%.
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23 Mar 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 that in January the Fund suffered 106bp of losses due to usage of index futures and options to hedge the portfolio of stock positions which had a long bias. They contrast this with a gain of 160bp in February, noting that over the two months 1/3 of the Fund's gains came from long positions and 2/3 from shorts. In February, the Fund suffered on long stock positions with China Life Insurance Company Ltd H Share contributing a loss of 30bp and Flamingo AI contributing a loss of 28bp. On the short side, in addition to the gains from index hedges of 160bp, the Fund also made 42bp on the decline in share price of Vocus Group, a position KIS have now closed. In KIS Capital's latest commentary they give their view on the market decline in February. They noted that the decline was attributed by many to a positive feedback loop between increasing volatility, declining prices and shifts in correlation in bonds and equities with risk parity/targeted volatility strategies being blamed, and that the rally later in the month seemed to be supported by US corporate buyback programs. |
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Bennelong Twenty20 Australian Equities Fund February 2018
22 Mar 2018 - Australian Fund Monitors
The latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available. The Bennelong Twenty20 Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of...
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22 Mar 2018 - Bennelong Twenty20 Australian Equities Fund February 2018
By: Australian Fund Monitors
AFM Fund Review - February 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 - February 2018 (pdf format)
Fund Review: Bennelong Kardinia Absolute Return Fund February 2018
21 Mar 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...
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21 Mar 2018 - Fund Review: Bennelong Kardinia Absolute Return Fund February 2018
By: Australian Fund Monitors
AFM Fund Review - February 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 10.77% p.a. with a volatility of 6.93%, compared to the ASX200 Accumulation's return of 5.71% p.a. with a volatility of 13.48%.
- 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 - February 2018 (pdf format)
Performance Report: 4D Global Infrastructure Fund
20 Mar 2018 - Australian Fund Monitors
The 4D Global Infrastructure Fund returned -2.46% in February, with most of the Fund's stocks impacted by the general market sell-off compounded by a negative bond proxy trade as yields ticked up.
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20 Mar 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 portfolio performer was Sempra, a US-regulated utility, up +3.3%. The weakest performer was Brazilian toll road operator CCR, falling -20% after it was named in a Car Wash scandal as part of a plea bargain for disgraced financial operator Adir Assad. The Manager noted CCR was quick to prove its innocence, and that, while this has yet to be resolved, on balance the Manager believes in CCR's corporate governance and thinks the stock was oversold and is very cheap at current levels. 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. In their latest report, the Manager briefly discussed US President Trump's announcement regarding his plan to rebuilt America's infrastructure and noted it explicitly targets the private sector for the majority of funds. |
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Performance Report: Bennelong Twenty20 Australian Equities Fund
19 Mar 2018 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund returned +0.54% in February, outperforming the ASX200 Accumulation Index by +0.18% and taking annualised performance since inception in November 2009 to +10.66%.
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19 Mar 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 | At the end of February the Fund's weightings had increased in the Discretionary, IT, Industrials and Materials sectors and decreased in the Consumer Staples, Health Care, Telco's, Financials, Energy and REIT's sectors. The Fund combines a passive investment in the S&P/ASX20 Index and an actively managed investment in Australian listed stocks outside this index. The passive position is achieved by investing individually in each of the S&P/ASX20 Index's individual stocks with approximately the same weightings they represent in the S&P/ASX300. Currently this weight is approximately 60% of the Fund's portfolio. The active position in ex-20 stocks has the goal of allowing the Fund to outperform the broader market. |
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Performance Report: NWQ Fiduciary Fund
16 Mar 2018 - Australian Fund Monitors
The NWQ Fiduciary Fund rose +0.45% in February, outperforming the ASX200 Accumulation Index by +0.09% and taking annualised performance since inception in May 2013 to +7.27%.
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16 Mar 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 | Both the Beta and Alpha managers made positive contributions to overall Fund performance in February, exhibiting the stock selection skills of the underlying managers who were on the whole positioned on the right side of the earnings announcements. |
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Performance Report: Bennelong Kardinia Absolute Return Fund
16 Mar 2018 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +0.56% in February, outperforming the ASX200 Accumulation Index by +0.20% and taking annualised performance since inception in May 2006 to +10.77%.
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16 Mar 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 | Most of the key positions in the portfolio reported solid results during reporting season. Positive contributors included Nine Entertainment (+61bp contribution), CSL (+54bp), Bellamy's (+47bp), Qantas (+43bp), Costa Group (+40bp), Seven Group (+37bp), Service Stream (+23bp) and Computershare (+18bp). Individual short positions in telco and consumer staples stocks also contributed positively. Detractors included BWX (-65bp), Star Entertainment (-57bp), Whitehaven Coal (-34bp), Westpac (-23bp), CYBG (-18bp) and South32 (-18bp). Net equity market exposure (including derivatives) was increased from 46.0% to 73.2% (100.3% long and 27.1% short) as the Manager added new positions in ANZ, BHP, Bluescope Steel, Nine Entertainment, Origin Energy and Westpac, increased weightings in Computershare and CSL, and bought back part of the Fund's short position in Share Price Index Futures. |
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Performance Report: ARCO Absolute Trust (formerly Optimal)
14 Mar 2018 - Australian Fund Monitors
The ARCO Absolute Trust fell -1.16% in February. Since inception in September 2008, the Fund has returned +8.35% per annum with an annualised volatility of 3.75%.
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14 Mar 2018 - Performance Report: ARCO Absolute Trust (formerly Optimal)
By: Australian Fund Monitors
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| Fund Overview | The Fund's bias is likely to be net long under normal market conditions, with the core strategy being to construct a portfolio of listed equity securities priced at levels that do not adequately reflect their underlying value. The Fund will seek to boost returns and limit potential market downside by selective short selling of individual stocks which are priced at levels that are viewed as materially above their underlying value. The Fund will also use certain trading strategies both within its core portfolio (through rebalancing stock weights and overall market exposure in response to price movements) and in certain other situations (typically of a shorter-duration and/or opportunistic nature) with the objective of further increasing returns. *Formerly the Optimal Australia Absolute Trust |
| Manager Comments | In February, the Fund's long portfolio recorded its first negative month and the short portfolio gave back some of its January gains. ARCO noted they ended the month with a neutral market exposure, and that they believe the local equity market has a downward bias. ARCO further diversified the Funds long positions, extended their exposure to Index Futures as additional portfolio 'insurance' and remain busy with short-theses as prices track back to an unhealthy premium to their fair value. The Fund continues to focus on minimising investor drawdown exposure, the risks for which ARCO believe are steadily rising. ARCO maintain that the best days of passive beta are behind us in this cycle and that too much money is placed on the same equity 'bets' with global inflation and interest rates trending upward. They believe more volatility spikes are the likely outcome looking forward. ARCO continue to look at market data pointing to a local property market correction that is already underway, with specific reference to a slump in residential building approvals, declining consumer sentiment and still-falling credit supply as recent economic indicators of this. |
| More Information |
