NEWS
15 Mar 2021 - Performance Report: Cyan C3G Fund
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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 Sharpe and Sortino ratios (since inception), 0.93 and 1.31 respectively, by contrast with the Index's Sharpe of 0.44 and Sortino of 0.49, highlight its capacity to produce superior risk-adjusted returns while avoiding the market's downside volatility over the long-term. The Fund's up-capture and down-capture ratios (since inception), 105.6% and 58.2% respectively, indicate that, on average, the Fund has outperformed in both the market's positive and negative months. Strong portfolio performers in February included Raiz (RZI), Alcidion (ALC) and Singular Health (SHG). Key detractors included Readcloud (RCL) and Quickstep (QHL). |
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15 Mar 2021 - Fund Review: Bennelong Long Short Equity Fund February 2021
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 19-years' track record and an annualised returns of 14.54%.
- The consistent returns across the investment history highlight 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 0.87 and 1.38 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - February 2021 (pdf format)
12 Mar 2021 - Hedge Clippings | 12 March 2021
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12 Mar 2021 - Manager Insights | Prime Value
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Damen Purcell, COO of Australian Fund Monitors, speaks with Richard Ivers from Prime Value Asset Management about the Prime Value Emerging Opportunities Fund. Since inception in October 2015, the Fund has returned 14.86% p.a. against the Index's annualised return over the same period of +9.64%. The Fund's Sortino ratio (since inception) of 1.27 vs the Index's 0.74, in conjunction with the Fund's down-capture ratio (since inception) of 45.74%, highlights its capacity to significantly outperform in falling markets.
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12 Mar 2021 - Manager Insights | AIM Investment Management
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Australian Fund Monitors' CEO, Chris Gosselin, speaks with Charlie Aitken from AIM Investment Management about the AIM Global High Conviction Fund's recent and long-term performance. The AIM Global High Conviction Fund is a long-only fund that invests in a high conviction portfolio of global stocks. The Fund has achieved a down-capture ratio since inception in July 2015 of 81.83%, highlighting its capacity to outperform when market's fall. The Fund has outperformed the Index in 7 out of 10 of the Index's worst months since the Fund's inception, further emphasising its strength in negative markets.
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12 Mar 2021 - Performance Report: Paragon Australian Long Short Fund
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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 in February included Cettire (long), Betmakers (long), Chalice (long), Ionic and Appen (short), marginally offset by declines in OceanaGold and PointsBet. In their latest report, Paragon highlight double-digit-% price rises across food, base metals, timber and house prices, however, their view is that headline CPI numbers are misrepresentative of true inflation. They believe markets are embracing the breadth and strength across Resources and increasingly the prospect of a super-cycle ahead. |
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12 Mar 2021 - Performance Report: Collins St Value Fund
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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 measures, 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 Fund has achieved up-capture and down-capture ratios over the past 12 months of 191.57% and 57.8%. This indicates that, on average, the Fund has risen almost twice as much as the market during the market's positive months while falling approximately half as much as the market during the market's negative months. The Fund has outperformed the market in 6 out of 10 of the market's worst months since the Fund's inception, notably outperforming by +4.9% during March 2020 when the Index fell -20.7%. |
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12 Mar 2021 - Performance Report: AIM Global High Conviction Fund
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| Fund Overview | AIM look for the following characteristics in the businesses they want to own: - Strong competitive advantages that enable consistently high returns on capital throughout an economic cycle, combined with the ability to reinvest surplus capital at high marginal returns. - A proven ability to generate and grow cash flows, rather than accounting based earnings. - A strong balance sheet and sensible capital structure to reduce the risk of failure when the economic cycle ends or an unexpected crisis occurs. - Honest and shareholder-aligned management teams that understand the principles behind value creation and have a proven track record of capital allocation. They look to buy businesses that meet these criteria at attractive valuations, and then intend to hold them for long periods of time. AIM intend to own between 15 and 25 businesses at any given point. They do not seek to generate returns by constantly having to trade in and out of businesses. Instead, they believe the Fund's long-term return will approximate the underlying economics of the businesses they own. They are bottom-up, fundamental investors. They are cognizant of macro-economic conditions and geo-political risks, however, they do not construct the Fund to take advantage of such events. AIM intend for the portfolio to be between 90% and 100% invested in equities. AIM do not engage in shorting, nor do they use leverage to enhance returns. The Fund's investable universe is global, and AIM look for businesses that have a market capitalisation of at least $7.5bn to guarantee sufficient liquidity to investors. |
| Manager Comments | AIM believe the central driving force behind markets in February was the sharp increase in longer-dated government bond yields. In anticipation of a potential increase in discount rates, the Fund had already reduced its exposure to technology businesses with long duration cash flows from September 2020, selling out of Apple, Netflix and Salesforce.com. Top contributors in February included Estee Lauder, Alphabeet, Mastercard, Berkshite Hathaway and PayPal. Key detractors included ICON PLC, Heineken, Keyence, Amazon.com and UnitedHealth. |
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12 Mar 2021 - The Case for Asian Equities
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The Case for Asian Equities Australian Fund Monitors 09 March 2021 Asia represents nearly one-third of global GDP, but Australian investors continue to allocate a relatively small amount towards Asian equities. We believe there is a case to be made for investing in Asian equities, noting there has been a belief that Asian markets are potentially more volatile and are therefore riskier. However, for the two years to 31 January 2021, Asian markets performed more strongly than the Australian and global markets. AFM's Asia Pacific ex-Japan benchmark returned 16 per cent for the two years compared to 13.5 per cent for the Global Equity benchmark and 9.9 per cent for the ASX 200 Total Return benchmark. The standard deviation for the Asian benchmark was also lower than both the global benchmark and the Australian benchmark with volatility of 11 per cent, 12.1 per cent and 20.2 per cent respectively. The maximum drawdown for the ASX 200 Total Return benchmark was -26.8 per cent compared to -7.89 per cent for the Asia Pacific ex-Japan benchmark. The maximum drawdown for the global market was also comparably large at -13.2 per cent. Looking at actively managed Asian equity funds, seven of the 24 Asian equity funds on AFM beat the index. On average long-only funds performed marginally better than long/short and market neutral funds over the last two years. However, the absolute return strategies performed better in the last 12 months. Funds with a high exposure to India had struggled to add value, versus the overall Asia Pacific ex-Japan index, while the two funds on the AFM database that focus on China returned 24.5 per cent and 2.67 per cent for the two years. Asian equity funds have an average correlation of 0.51 to the ASX 200 Total Return benchmark and 0.5 to the Global Equity benchmark, highlighting their potential to provide good diversification.
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11 Mar 2021 - Manager Insights | Premium China Funds Management
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Damen Purcell, COO of Australian Fund Monitors, speaks with Jonathan Wu, Executive Director at Premium China Funds Management. Premium China was started their first fund in 2005 and have grown to offer 4 actively managed specialist Asian equity and fixed-income funds to both Australian and New Zealand investors. Their Premium Asia fund, which was started in 2009 has returned 12.97% per annum since inception outperforming the Asia Pacific Ex Japan benchmark by over 8% per annum.
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