NEWS
Performance Report: Bennelong Twenty20 Australian Equities Fund
25 May 2018 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund rose +2.88% in April, taking annualised performance since inception in December 2015 to +10.39% per annum.
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25 May 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 | By the end of April, the Fund's weightings were increased in the Consumer Staples, Health Care, IT, Energy and Materials sectors, and decreased in the Discretionary, Telco's, Industrials and Financials 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 aims to allow the Fund to outperform the broader market. |
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Performance Report: Bennelong Kardinia Absolute Return Fund
24 May 2018 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +1.56% in April, taking annualised performance since inception in May 2006 to +10.58% per annum with an annualised volatility of 6.93%.
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24 May 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 for the month included CSL (+40 basis points contribution), Bluescope (+38bp), Alumina (+37bp), Independence Group (+32bp), BHP (+20bp), Origin Energy (+28bp), WorleyParsons (+27bp), Santos (+26bp) and Macquarie Group (+29bp). A short position in Share Price Index Futures (-88bp contribution) was the biggest detractor given the rise in the market. Other detractors included Boral (-31bp) and Bellamy's (-18bp). Overall, the short book made a negative contribution for the month. Net equity market exposure (including derivatives) was kept steady at 60.7% (75.1% long and 14.4% short), with the addition of Rio Tinto and the buyback of part of the Fund's short position in SPI Futures contracts offsetting the sale of ANZ, BHP and Westpac and a reduction in the size of some key holdings including Boral, Star Entertainment, Janus Henderson, Aristocrat and CSL. |
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Performance Report: Cyan C3G Fund
23 May 2018 - Australian Fund Monitors
The Cyan C3G Fund returned -5.28% in April. This comes after a sustained period of outperformance, with the Fund having risen +19.5% after fees over the past 12 months.
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23 May 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 | Cyan noted that the Fund struggled to find a position that rose in April, despite the positive underlying market. Two key detractors included BlueSky (BLA), which impacted performance at the start of the month, and Experience Co (EXP), which downgraded earnings on the 30th of April and thus impacted performance at the end of the month. Other detractors included AMA Group (-11%), Motorcycle Holdings (-20%) and Moelis (-10%). In light of recent price movements, Cyan's near-term outlook is positive. They feel there is some value creeping into their end of the market, and noted that they'll likely add to many of the Fund's existing holdings in the coming months in addition to searching for new core Fund positions. |
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Performance Report: Qato Capital Market Neutral Fund
22 May 2018 - Australian Fund Monitors
The Qato Capital Market Neutral Strategy rose +1.12% in April. Qato attribute this to machine learning model enhancements the Fund began using this year.
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22 May 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 | Qato's long portfolio had a mining bias for April, most of which benefited from bounding commodity prices. Positive contributors from the sector included South32 (+15.88%), Bluescope Steel (+9.47%) and Rio Tinto (+10.27%). In Healthcare, CSL (+9.69%) contributed positively, whilst accounting software provider Xero also added value. Qato noted that, given the broad-based rally in the ASX100, the short book found generating positive performance difficult by comparison with the long portfolio. One laggard of the broader market highlighted by Qato was packaging company Amcor, retracing -2.79% in April and -11.67% over the past 6 months. |
| More Information |
Bennelong Twenty20 Australian Equities Fund April 2018
18 May 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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18 May 2018 - Bennelong Twenty20 Australian Equities Fund April 2018
By: Australian Fund Monitors
AFM Fund Review - April 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 - April 2018 (pdf format)
Fund Review: Bennelong Kardinia Absolute Return Fund April 2018
17 May 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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17 May 2018 - Fund Review: Bennelong Kardinia Absolute Return Fund April 2018
By: Australian Fund Monitors
AFM Fund Review - April 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 10.58% p.a. with a volatility of 6.93%, compared to the ASX200 Accumulation's return of 5.63% 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 - April 2018 (pdf format)
Performance Report: ARCO Absolute Trust (formerly Optimal)
16 May 2018 - Australian Fund Monitors
The ARCO Absolute Trust returned -0.54% in April. Since inception in September 2008, the Fund has returned +8.29% per annum with a volatility of 3.75%.
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16 May 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 | Over 70% of the long positions in the portfolio were positive contributors to performance during April, most notably BHP, Alumina Ltd, Nufarm, Westfield and Lynas. ARCO increased the Fund's exposure to BHP and Nufarm over the month as their analysis continues to highlight further upside potential from their respective capital and asset management strategies. Negative contributors in the long portfolio included Boral, Link and AHG. The short portfolio also broadly detracted from performance, with the exception of select short positions in the banking sector which ARCO continue to view as a short-side trade. |
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Performance Report: Bennelong Long Short Equity Fund
15 May 2018 - Australian Fund Monitors
The Bennelong Long Short Equity Fund returned +1.96% in April. Since inception in February 2002, the Fund has returned +16.34% per annum versus the ASX200 Accumulation Index's +8.02%.
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15 May 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 | Positive performance was driven by a wide range of pairs from all sectors. A number of the Fund's best pairs benefited from a positive contribution from the short, as well as the long. With the backdrop of a very strong equity market the overall performance of the short portfolio was a feature of the fund's positive return. On the negative side, the weakest pairs were long Woolworths (WOW) / short Metcash (MTS) and long Ramsay (RHC) / short Healthscope (HSO) / short Primary (PRY). |
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Performance Report: Bennelong Australian Equities Fund
14 May 2018 - Australian Fund Monitors
The Bennelong Australian Equities Fund rose +4.56% in April, outperforming the ASX200 Accumulation Index by +0.65%. Since inception in January 2009, the Fund has returned +13.99% per annum.
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14 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 | As at the end of April, the portfolio's weightings were increased in the Health Care, Consumer Staples, IT, Industrials and Materials sectors, and decreased in the Discretionary and Financials sectors. |
| More Information |
Fund Review: ARCO Absolute Trust April 2018
11 May 2018 - Australian Fund Monitors
Read the latest Fund Review on ARCO Absolute Trust. ARCO Investment Management is a specialist Australian equity investment manager and the Fund has a long/short equity strategy typically with a low but variable net market exposure...
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11 May 2018 - Fund Review: ARCO Absolute Trust April 2018
By: Australian Fund Monitors
AFM Fund Review - April 2018 (pdf format)
ARCO ABSOLUTE TRUST (formerly Optimal Australia Absolute Trust)
AFM have released the most recently updated Fund Review on the ARCO Absolute Trust.
We would like to highlight the following aspects of the Fund;
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ARCO Investment Management is a specialist Australian equity investment manager and the Fund has a long/short equity strategy typically with a low but variable net market exposure comprising 40 to 65 stocks broadly selected from within the ASX200.
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The investment team comprising George Colman, Peter Whiting, and Stephen Nicholls bring 100 years combined experience in equity markets.
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The Fund has an annualised return since inception of +8.29%. The Fund's approach to risk is shown by the Sharpe ratio of 1.38 (Index 0.30), Sortino ratio of 2.88 (Index 0.32), both of which are well above the ASX 200 Accumulation Index and has recorded over 78% positive months.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - April 2018 (pdf format)
