NEWS
Fund Review: Bennelong Long Short Equity Fund April 2018
10 May 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, with over...
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10 May 2018 - Fund Review: Bennelong Long Short Equity Fund April 2018
By: Australian Fund Monitors
AFM Fund Review - April 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 1.00 and 1.65 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - April 2018 (pdf format)
Performance Report: Insync Global Titans Fund
9 May 2018 - Australian Fund Monitors
The Insync Global Titans Fund returned -0.69% in March. Since inception in October 2009, the Fund has returned +9.88% per annum after fees and the cost of protection.
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9 May 2018 - Performance Report: Insync Global Titans Fund
By: Australian Fund Monitors
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| Fund Overview | Insync employs four simple screens to narrow the universe of over 40,000 listed companies globally to a focus group of high quality companies that it believes have the potential to consistently grow their profits and dividends. These screens are size of the company, balance sheet performance, valuation and dividend quality. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio of typically 15-30 stocks. The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, derivatives (for example futures, options and swaps), currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled investment vehicles. At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio. |
| Manager Comments | Performance in March was driven by positive contributions from Heineken, Zoetis, Booking Holdings, Estee Lauder and London Stock Exchange. The main negative contributors were eBay, Accenture, Google and Facebook. The Fund continues to have no foreign currency hedging in place as Insync considers the main risks to the Australian dollar to be on the downside. Insync continues to utilise index put options to buffer sharp falls in equity markets (catastrophes) not yet having cause to exercise them. |
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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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