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Performance Report: Bennelong Long Short Equity Fund
17 Nov 2017 - Australian Fund Monitors
The Bennelong Long Short Equity Fund rose +5.29% in October, taking annualised performance since inception to +16.50%.
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17 Nov 2017 - 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 | Performance during the month reflected a broad spread of positive contributions across two thirds of the portfolio. Losing pairs made small contributions with long Ramsay/short Primary and Healthscope the only one of significance. Long BlueScope/short Sims Metal was the biggest contributor driven by a recovery in BlueScope from a depressed level. Elsewhere, AGM trading updates have been broadly positive for the Fund. The Manager's view is that share markets remain well bid at present with improved earnings and sentiment overcoming any valuation concerns from inevitable policy normalisation. They also noted the recent rally in the local market has taken it to the upper bound of its trading range of between 5,000 - 6,000 for the last 4 years. |
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Performance Report: Cyan C3G Fund
16 Nov 2017 - Australian Fund Monitors
The Cyan C3G Fund returned +6.1% in October. Since inception in July 2014, the Fund has returned +28.1% per annum and outperformed the ASX200 Accumulation Index by +21.9% per annum.
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16 Nov 2017 - 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 performers in October included Afterpay Touch (+25%), BlueSky Alternative Investments (+28%), AxsessToday (+11%) and Motorcycle Holdings (+15%). The only detractor was cyber safety business Family Zone (-8%), however, the Manager noted the Fund had been reducing its holding as the stock rose and hence the recent retracement was immaterial to the Fund's overall return. Cyan noted that, in recent months, the small cap market has been conducive to making money and they believe there's no sign of it slowing at this stage. That said, Cyan noted one of their ongoing focal points is the risk/reward metric and they therefore retain a relatively high proportion of cash. The Fund is well diversified, with 22 individual holdings and no position accounting for more than 9% of the total fund. |
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Performance Report: NWQ Fiduciary Fund
15 Nov 2017 - Australian Fund Monitors
The NWQ Fiduciary Fund rose +2.50% in October, taking annualised performance since inception in May 2013 to +6.58%.
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15 Nov 2017 - 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 | The Manager noted that following strong performance in September, in which the equity market fell along with the bond market, the 'all weather' strategy of the fund delivered another strong showing in October as the overall market reversed course and rallied strongly. Fund performance was broad based for the month, with strong contributions from both Beta (25% of the portfolio) and Alpha managers (70% of the portfolio). |
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Performance Report: Bennelong Kardinia Absolute Return Fund
14 Nov 2017 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose +3.18% in October, taking annualised performance since inception to +10.89%.
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14 Nov 2017 - 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 | Positive performers during the month included BWX, NAB, Westpac, Clean TeQ, Aristocrat and Costa Group. The Manager noted the short book was a small drag on performance given the strong market, although shorts in Fortescue and Perpetual performed well. Detractors included Updater and a short position in Share Price Index Futures which was closed out early in the month. Net equity market exposure, including derivatives, was increased from 22.4% to 65.5% (74.3% long and 8.8% short) as the Manager bought back a short position in Share Price Index Futures and added 10 new positions to the portfolio, including NAB, Westpac and a number of resource stocks. |
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Bennelong Twenty20 Australian Equities Fund October 2017
13 Nov 2017 - Australian Fund Monitors
Latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available.
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13 Nov 2017 - Bennelong Twenty20 Australian Equities Fund October 2017
By: Australian Fund Monitors
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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 - October 2017 (pdf format)
Performance Report: Allard Investment Fund
10 Nov 2017 - Australian Fund Monitors
The Allard Investment Fund returned +2.77% in October. The Fund's annualised return since inception in July 2003 is +9.35%.
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10 Nov 2017 - 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 decreased to 23.0% of the portfolio, down from 23.2% as at the end of September. The portfolio's weightings were decreased in the Industrials, IT, Health Care and Financials sectors while its weightings in the Utilities, Consumer Discretionary, Consumer Staples sectors were increased. The portfolio remains highly concentrated, with 53.2% of NAV held in the Fund's top 10 stocks. Geographically, Hong Kong and China make up most of the portfolio (44%), followed by Singapore (13.9%), India (11.1%), Korea (4.8%), Vietnam (1.6%) and Indonesia (1.6%). |
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Performance Report: ARCO Absolute Trust (formerly Optimal)
10 Nov 2017 - Australian Fund Monitors
The ARCO Absolute Trust returned +1.08% in October, taking annualised performance since inception in September 2008 to +8.30%.
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10 Nov 2017 - 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 | Positive performers included Fairfax, CYBG, MQG, ORE, PLS, Link, Caltex and Woolworths. Having recently exited GXY and reduced their position in PLS, the Fund's exposure to the lithium sector is now below 7%. The Fund's short exposure to select banks and other financials were detractors. ARCO also noted portfolio hedging was a drag on returns, however, they continue to believe it is appropriate given current market conditions. The Fund's total market exposure moved to -3.7% by the end of the month. ARCO noted that, at current stock prices, they have become more defensive with the portfolio settings for investors as they seek to protect capital from the higher downside risk of the market. |
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Performance Report: Paragon Australian Long Short Fund
9 Nov 2017 - Australian Fund Monitors
The Paragon Australian Long Short Fund returned +14.0% in October, taking performance over the last 3 months to +30.9%.
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9 Nov 2017 - 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 | Positive contributors included long holdings in the Fund's Electric Vehicle theme (CleanTeq, Kidman and Orocobre) along with Aristocrat, Agrimin, Link Financial, Macquarie, New Century Zinc, Cimic, Wattle Health, Cann Group and Global Energy Ventures. Detractors included Updater, Lend Lease and Lynas. At the end of the month the Fund had 39 long and 15 short positions. Paragon noted that FY18 has commenced strongly, with performance driven by their thematic-led, high-conviction fundamental stock picks delivering as anticipated. Despite several stocks already rerating, Paragon sees attractive risk-reward in these key long positions, along with others yet to rerate boasting near term catalysts and remaining well placed to deliver. |
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Fund Review: ARCO Absolute Trust October 2017
9 Nov 2017 - Australian Fund Monitors
Read the latest Fund Review on ARCO Absolute Trust.
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9 Nov 2017 - Fund Review: ARCO Absolute Trust October 2017
By: Australian Fund Monitors
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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 +8.30%. The Fund's approach to risk is shown by the Sharpe ratio of 1.36 (Index 0.29), Sortino ratio of 2.87 (Index 0.30), 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 - October 2017 (pdf format)
Fund Review: Bennelong Kardinia Absolute Return Fund October 2017
8 Nov 2017 - Australian Fund Monitors
Latest Fund Review for the Bennelong Kardinia Absolute Return Fund is now available.
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8 Nov 2017 - Fund Review: Bennelong Kardinia Absolute Return Fund October 2017
By: Australian Fund Monitors
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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 10.89% p.a. with a volatility of 7.01%, compared to the ASX200 Accumulation's return of 5.58% p.a. with a volatility of 13.68%.
- 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 - October 2017 (pdf format)
