NEWS
Performance Report: Allard Investment Fund
19 Jan 2018 - Australian Fund Monitors
The Allard Investment Fund fell -1.42% in December. The Fund has returned +12.16% over the past 12 months versus the ASX200 Accumulation Index's +11.80%.
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19 Jan 2018 - Performance Report: Allard Investment Fund
By: Australian Fund Monitors
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| Fund Overview | Allard's investment approach has remained consistent throughout their history: That is to invest prudently but proactively in well-managed businesses that achieve superior returns on capital in industries with long-term growth potential. The Manager uses both broad top-down guidance and detailed bottom-up analysis to identify suitable markets, industries and companies. Although long only investors, a critical factor in their strategy and performance is the ability to hold cash when they cannot find companies that meet their criteria or are at a sufficient discount to their valuations. |
| Manager Comments | The Fund's latest report shows that holdings in Cash and Fixed Income have increased to 22.2% from 20.7% as at the end of November. The portfolios weightings were decreased in the Industrials, IT, Health Care, Utilities, Telco, Real Estate and Financial sectors while the Fund increased its Consumer Discretionary sector weighting. The portfolio remains highly concentrated, with 53% of NAV held in the Fund's top 10 stocks. Geographically, Hong Kong and China make up most of the portfolio (44.9%), followed by Singapore (13.0%), India (10.8%), Korea (4.9%), Indonesia (2.1%), Australia (1.1%) and Vietnam (1.0%). |
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Performance Report: ARCO Absolute Trust (formerly Optimal)
18 Jan 2018 - Australian Fund Monitors
The ARCO Absolute Trust returned + 1.76% in December, taking 12-month performance to +8.47% and marking 10 consecutive years of positive performance.
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18 Jan 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 | The portfolio's long positions dominated December's performance result. The Fund's resources exposure drove solid returns, with contributions from BHP, LYC, ORE and TAW. WFD and TLS also contributed positively. AHG and QUB were modest negative performers in the long portfolio, however, ARCO retain their conviction in these stocks with a positive outlook. The Fund's short portfolio contributed negatively overall, with select insurance and industrial shorts being the principal detractors. ARCO noted that they retain their cautious view of the local banking sector which they expect to continue to struggle in 2018 with low earning growth, adverse credit quality, restructuring and political risks representing headwinds blowing strongly in the face of still attractive dividend yields. |
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Bennelong Twenty20 Australian Equities Fund December 2017
17 Jan 2018 - Australian Fund Monitors
Latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available.
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17 Jan 2018 - Bennelong Twenty20 Australian Equities Fund December 2017
By: Australian Fund Monitors
AFM Fund Review - December 2017 (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 - December 2017 (pdf format)
Fund Review: ARCO Absolute Trust December 2017
16 Jan 2018 - Australian Fund Monitors
Read the latest Fund Review on ARCO Absolute Trust.
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16 Jan 2018 - Fund Review: ARCO Absolute Trust December 2017
By: Australian Fund Monitors
AFM Fund Review - December 2017 (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 +8.53%. The Fund's approach to risk is shown by the Sharpe ratio of 1.39 (Index 0.30), Sortino ratio of 3.01 (Index 0.33), both of which are well above the ASX 200 Accumulation Index and has recorded over 79% positive months.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - December 2017 (pdf format)
Fund Review: Bennelong Long Short Equity Fund December 2017
15 Jan 2018 - Australian Fund Monitors
Latest Fund Review for the Bennelong Long Short Equity Fund is now available.
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15 Jan 2018 - Fund Review: Bennelong Long Short Equity Fund December 2017
By: Australian Fund Monitors
AFM Fund Review - December 2017 (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 large-caps from the ASX/S&P100 Index, with over fourteen-year track record and annualised returns of 16.38% p.a.
- 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 0.99 and 1.64 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - December 2017 (pdf format)
Performance Report: Cyan C3G Fund
12 Jan 2018 - Australian Fund Monitors
The Cyan C3G Fund returned +4.24% in December, taking 12-month performance to +33.71% and annualised performance since inception to +29.03%.
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12 Jan 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 | Positive contributors included Afterpay Touch (+20%), Bluesky Alternative (+13%), Kelly Partners (+9%) and Motorcycle Holdings (+7%). Positions in Longtable (LON) and Credible (CRD) also contributed positively. Top contributors over 2017 included Afterpay Touch (+136%), Bluesky (+108%), PSI Insurance (+63%), Experience Co. (+40%), Kelly Partners (+74%), Moelis (+62%), Motorcycle Holdings (+22%) and Family Zone (+86%). Cyan noted the Fund remains well diversified with 26 individual holdings and no position accounting for more than 7% of the total Fund. The weighted average market cap is approximately $300m and all have met or exceeded recent expectations for business performance. In addition, they all contain what Cyan believe to be positive business catalysts over the short to medium term. The Fund continues to hold a significant defensive cash balance (currently over 35%) which Cyan will look to carefully deploy as opportunities arise. |
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Performance Report: Paragon Australian Long Short Fund
11 Jan 2018 - Australian Fund Monitors
The Paragon Australian Long Short Fund rose +4.69% in December, taking 12-month performance to +44.06% versus the ASX200 Accumulation Index's +11.80%.
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11 Jan 2018 - Performance Report: Paragon Australian Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Paragon's unique investment style, comprising thematic led idea generation followed with an in depth research effort, results in a concentrated portfolio of high conviction stocks. Conviction in bottom up analysis drives the investment case and ultimate position sizing: * Both quantitative analysis - probability weighted high/low/base case valuations - and qualitative analysis - company meetings, assessing management, the business model, balance sheet strength and likely direction of returns - collectively form Paragon's overall view for each investment case. * Paragon will then allocate weighting to each investment opportunity based on a risk/reward profile, capped to defined investment parameters by market cap, which are continually monitored as part of Paragon's overall risk management framework. The objective of the Paragon Fund is to produce absolute returns in excess of 10% p.a. over a 3-5 year time horizon with a low correlation to the Australian equities market. |
| Manager Comments | Performance in December was driven by contributions from long holdings in the Fund's electric vehicle theme, along with Updater, Aristocrat, Dacian Gold and Global Energy and short in Qantas, offset by declines in European Cobalt and New Century Zinc. At the end of the month the Fund had 39 long and 15 short positions. Paragon noted they remain constructive on markets, particularly within their areas of focus - Resources and Industrials, both exhibiting medium to long term tailwinds across the Fund's key thematics. In terms of the Fund's Resources thematics, Paragon noted Lithium and Cobalt continue to boast strong fundamentals. Paragon's proprietary Lithium Supply & Demand model shows industry deficits and strong Lithium prices for at least CY18 and CY19. With regards to the Industrials thematics, Paragon believe the strength in the emerging consumer will continue to drive ongoing growth in China facing industries. Paragon also believe their Medical Innovation and Mobile Internet thematics are set to go from strength to strength. |
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Fund Review: Insync Global Titans Fund November 2017
10 Jan 2018 - Australian Fund Monitors
Latest Fund Review on Insync Global Titans Fund is now available.
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10 Jan 2018 - Fund Review: Insync Global Titans Fund November 2017
By: Australian Fund Monitors
AFM Fund Review - November 2017 (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 - November 2017 (pdf format)
Performance Report: Bennelong Long Short Equity Fund
9 Jan 2018 - Australian Fund Monitors
The Bennelong Long Short Equity Fund returned +2.90% in December, taking annualised performance since inception to +16.50% per annum.
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9 Jan 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 evenly spread across the top eight pairs, with no standout pair. The Fund's top performing pair was Long ALS Limited (ALQ) / short Aurizon (AZJ). The weakest pair was long Qantas (QAN) / short Flight Centre (FLT). Long Harvey Norman (HVN) / short Myer (MYR) / short Metcash (MTS) benefitted from a downgrade to Myer on weak sales preceding Christmas, however that was overshadowed by an upgrade to Metcash following improved interim results. The latest report discusses the Manager's outlook for equity markets. Bennelong highlight the relative size of the stock market to the size of the economy as a measure of valuation, noting that the current ratio of the Wilshire 5000 Index to US nominal GDP is about 130%. They note that this compares to a history of significant variation ranging from 40% during the late 1970's to 140% in the lead up to the late 1990's dot-com bubble. |
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Performance Report: Collins St Value Fund
8 Jan 2018 - Australian Fund Monitors
The Collins St Value Fund fell by -0.27% in November after a Monash IVF downgrade and a board fight at BPS Technology paired back earlier gains.
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8 Jan 2018 - Performance Report: Collins St Value Fund
By: Australian Fund Monitors
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| Fund Overview | The managers of the fund intend to maintain a concentrated portfolio of investments in ASX listed companies that they have investigated and consider to be undervalued. They will assess the attractiveness of potential investments using a number of common industry based measured, a proprietary in-house model and by speaking with management, industry experts and competitors. Once the managers form a view that an investment offers sufficient upside potential relative to the downside risk, the fund will seek to make an investment. If no appropriate investment can be identified the managers are prepared to hold cash and wait for the right opportunities to present themselves. |
| Manager Comments | The Manager noted they continue to track economic activity and seek out value on a stock level, and that they currently own a number of positions that offer significant promise. The Fund invests in sustainable cash-flow generating businesses that are trading at significant discounts to their underlying worth. In the Fund's latest report, Collins St briefly discuss cryptocurrencies. They noted they don't offer a view when asked other than to note that most investors in the asset appear to be unsophisticated, and that current prices appear to be disconnected from the fundamental value of the underlying technology. Collins St continue to watch with fascination and a little trepidation. |
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