NEWS
Cyan C3G Fund
21 Aug 2017 - Australian Fund Monitors
The Cyan C3G Fund rose +2.3% in July, outperforming the ASX Small Industrials Accumulation Index by +2.5%.
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21 Aug 2017 - 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 | The Fund's portfolio is diversified across 24 individual holdings with no position accounting for more than 6.5% of the total. The stocks lie across 6 broad industry sectors including consumer staples and discretionary, industrials, health care, technology and financials with a weighted average market cap of approximately $250m. |
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Fund Review: Bennelong Kardinia Absolute Return Fund July 2017
19 Aug 2017 - Australian Fund Monitors
Latest Fund Review for the Bennelong Kardinia Absolute Return Fund is now available.
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19 Aug 2017 - Fund Review: Bennelong Kardinia Absolute Return Fund July 2017
By: Australian Fund Monitors
AFM Fund Review - July 2017 (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 10.74% p.a. with a volatility of 7.06%, compared to the ASX200 Accumulation's return of 5.27% p.a. with a volatility of 13.78%.
- 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 - July 2017 (pdf format)
Collins St Value Fund
18 Aug 2017 - Australian Fund Monitors
The Collins St Value Fund rose +4.72% in July, outperforming the flat ASX200 Total Return by +4.73%.
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18 Aug 2017 - 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 | At the end of July, stocks in the Fund's portfolio had an average PE ratio of 8.88x versus that of the ASX200 which was 16.88x, indicating the Fund is continuing to trade in line with its objective. The portfolio's cash holdings decreased to 18% from 22% at the end of June. The Manager notes that they continue to be aware of market risks, with particular focus on tax changes on property for foreign investors and the effect of the removal of stamp duty concessions on the construction industry and property prices. |
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Optimal Australia Absolute Trust
15 Aug 2017 - Australian Fund Monitors
Optimal's Australia Trust weathers currency headlines in July to record a return of +0.24% leading into reporting season...
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15 Aug 2017 - Optimal Australia Absolute Trust
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. |
| Manager Comments | Meanwhile the manager's thinking has not changed much from recent months, citing a 'bubble of complacency' along with evidence of consumer mortgage stress (albeit only in certain demographic pockets) despite interest rates at generational lows, with the general consumer slow-down in the June quarter highlighting the broader sensitivity to interest rates. While generally not fans of the Australian consumer economy, the manager benefited from investments in several retail stocks where the discount to their fair value assessment seemed excessive, and where stock prices in the sector had been heavily influenced by short selling, and a deep fear that no local retail business model will survive Amazon's imminent arrival. The Fund's commodity and energy exposure, while small, also generated positive returns, particularly in the emerging lithium sector, while short positions (barring financials) also made a small positive net contribution to performance in July. |
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MHOR Australian Small Cap Fund
14 Aug 2017 - Australian Fund Monitors
The MHOR Australian Small Cap Fund completes its first year of operation with a strong result of +4.95% for the month, and gaining 10.82% over three months...
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14 Aug 2017 - MHOR Australian Small Cap Fund
By: Australian Fund Monitors
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| Fund Overview | MHOR looks for investment that exhibit the following set of characteristics: -Opportunity - to take advantage of growth and positive alignment with industry themes and trends. -Quality business - competitively advantaged product or service offering. -Financial flexibility - appropriately resourced to capture its opportunity. -Management - with the vision and capability to bring it all together. -Fundamentally undervalued. MHOR also considers labour standards, environmental, social and ethical considerations when making investment decisions but only to the extent that these factors impact the assessment of risk or return. The minimum suggested investment timeframe is 3-5 years. |
| Manager Comments | The Fund's stock holdings remained constant over the month at 31, and by month's end cash holdings were marginally higher at 9.2% of NAV. The portfolio continued to exhibit a growth bias and has considerable exposure to smaller undiscovered stocks, which the manager believes are the future growth stories. At the same time they continue to search and find interesting new and emerging small cap equity opportunities. |
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Fund Review: Optimal Australia Absolute Trust July 2017
8 Aug 2017 - Australian Fund Monitors
Read the latest Fund Review on Optimal Australia Absolute Trust.
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8 Aug 2017 - Fund Review: Optimal Australia Absolute Trust July 2017
By: Australian Fund Monitors
AFM Fund Review - July 2017 (pdf format)
OPTIMAL AUSTRALIA ABSOLUTE TRUST
AFM have released the most recently updated Fund Review on the Optimal Australia 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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In July, the Fund returned +0.24%, taking annualised return since inception to 8.12% p.a. The Fund's approach to risk is shown by the Sharpe ratio of 1.32 (Index 0.26), Sortino ratio of 2.71 (Index 0.26), 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 - July 2017 (pdf format)
Bennelong Twenty20 Australian Equities Fund July 2017
8 Aug 2017 - Australian Fund Monitors
Latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available.
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8 Aug 2017 - Bennelong Twenty20 Australian Equities Fund July 2017
By: Australian Fund Monitors
AFM Fund Review July 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 July 2017 (pdf format)
Paragon Australian Long Short Fund
8 Aug 2017 - Australian Fund Monitors
The Paragon Australian Long Short Fund has risen +1.5% over the past 3 months, outperforming the ASX All Ordinaries Accumulation Index by +3.6%.
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8 Aug 2017 - Paragon Australian Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Paragon believes that markets are not always efficient, exhibiting a common tendency to price securities well outside of their intrinsic value over the medium term. This market characteristic provides the opportunity for Paragon, an active manager with a flexible mandate, to generate superior investment returns over the longer term. Paragon believes that it is critical to understand both the companies and the industries in which they operate, in order to fully comprehend each investment opportunity. Accordingly, a fundamental approach to company research is taken. Assessing the potential downside is also paramount in framing the risk/reward trade-off for potential investments. |
| Manager Comments | Main contributors for July were gains in Agrimin, Global GeoScience, FastBrick Robotics and Lynas and shorts in Coca Cola and Westgold. These were offset by falls in offshore earners on the back of the rallying AUD. At the end of the month the Fund had 38 long positions and 19 short positions. Paragon continue to invest in key themes which typically make up 80% of the Fund's exposure, currently being Offshore Growth, Ageing Population, Electric Vehicles and Mobile Internet. |
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Fund Review: Insync Global Titans Fund July 2017
8 Aug 2017 - Australian Fund Monitors
Latest Fund Review on Insync Global Titans Fund is now available.
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8 Aug 2017 - Fund Review: Insync Global Titans Fund July 2017
By: Australian Fund Monitors
AFM Fund Review - July 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 - July 2017 (pdf format)
Bennelong Long Short Equity Fund
4 Aug 2017 - Australian Fund Monitors
Bennelong's long short fund drops -1.42% in July, but still manages a return of 12.01% for the latest six months, and +17.56% calendar year to date
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4 Aug 2017 - 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 | The manager's outlook for markets remains cautious. A statistic that caught their eye during the month was the news that the infamous VIX Index or 'fear index' (formerly, the Chicago Board Options Exchange Volatility Index) reached its lowest ever level in its 27 year history causing them to wonder if such complacency justified? Their response: Not according to Howard Marks at Oaktree Capital, who in his latest memo noted: 'The uncertainties are unusual in terms of number, scale and insolubility in areas including secular economic growth; the impact of central banks; interest rates and inflation; political dysfunction; geopolitical trouble spots; and the long-term impact of technology.' |
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