Performance Report: AIM Global High Conviction Fund

13 Nov 2020 - Australian Fund Monitors

The AIM Global High Conviction Fund has risen +15.21% over the past 12 months vs AFM's Global Equity Index's +2.95%. Since inception in July 2015, the Fund has returned +3.86% p.a. with an annualised volatility of 11.25%.

13 Nov 2020 - Performance Report: AIM Global High Conviction Fund

By: Australian Fund Monitors

Report Date	13 November 2020
Manager	Aitken Investment Management
Fund Name	AIM Global High Conviction Fund
Strategy	Equity Long
Latest Return Date	October 2020
Latest Return	-1.20%
Latest 6 Months	7.59%
Latest 12 Months	15.21%
Latest 24 Months (pa)	8.64%
Annualised Since Inception	3.86%
Inception Date	07 July 2015
FUM (millions)	AU$155
Fund Overview	This Fund's strategy is based on the belief that a concentrated portfolio of quality businesses, that can sustain high economic profits for an extended period of time due to powerful competitive advantages, will lead to compounding returns when purchased with a margin of safety and held for a long period. The strategy is long-only, with a mandate to be between 90% - 100% invested. The Fund also employs a construction framework that ensures there is a sensible mix of exposures within the limited number of businesses in the portfolio. These limits are: - Maximum individual position size 7.5% - Minimum individual position size 2.5% - Maximum sector exposure 30% The Fund targets a cash allocation of between 0-10% but can have as much as 20% of the portfolio in cash in the event of an unprecedented global shock. Liquidity is extremely important. The Fund will typically look to invest in businesses within a market cap range of US$7.5billion all the way up to the largest companies in the world with market capitalisations in excess of $200b. Occasionally, we may find a business that exhibits the traits of a quality investment, but it is much earlier in its business cycle. The Fund can invest in these businesses, but they must clear a much higher bar for inclusion. Individually, these future compounders cannot comprise more than 4% of the fund, these businesses cannot collectively exceed 10% of the fund.
Manager Comments	The AIM Global High Conviction Fund has risen +15.21% over the past 12 months vs AFM's Global Equity Index's +2.95%. Since inception in July 2015, the Fund has returned +3.86% p.a. with an annualised volatility of 11.25%. The Fund's up-capture and down-capture ratios for performance over the past 12 months, 134.1% and 65.9% respectively, highlight its capacity to significantly outperform in both rising and falling markets. The Fund returned -1.20% in October. Aitken noted fears of new rounds of hard lockdowns to halt the surge of cases of COVID-19 in Europe and the US, combined with uncertainty around the outcome of the US presidential election, saw volatility increase significantly in the latter half of the month, with markets selling off sharply in the final week. They added that being unhedged to the AUD has provided somewhat of a release valve for the Fund, as has been the case with the majority of market sell-offs this year. The biggest laggard in the portfolio for the month was Mastercard. The lack of high-margin cross-border transactions lead to a mix shift that depressed revenues and margins, missing market estimates of quarterly performance. Aitken believe consumers' inclination to pay with card rather than cash has only increased over the last 6 months and see that this has strengthened the cash-to-card transition that underpins Aitken's investment thesis. Aitken are focused on remaining disciplined in their approach, sticking to owning quality businesses and accepting that price volatility is the psychological cost of long-term compound returns.
More Information	View Fund's Profile View Manager's Report

4 answers to the RBA's toughest questions

12 Nov 2020 - - Nikko Asset Management

After six months of sitting on the sidelines, the RBA has finally eased rates. It's left many questioning their timing. So, we decided to explore what shifted in their thinking through a series of pertinent questions & answers.

Fund Review: Bennelong Twenty20 Australian Equities Fund October 2020

12 Nov 2020 - Australian Fund Monitors

The latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available. The Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of ex-20 stocks.

Amazon, Volatility, and the Virtue of Patience

11 Nov 2020 - Aitken Investment Management

How would looking beyond the P/E ratio have changed the investment case for Amazon through time? At this point, saying that ecommerce is a long-term trend with substantial scope for further consumer adoption feels like stating...

ESG INSIGHTS: Biden's most critical investment

10 Nov 2020 - Nikko Asset Management

At the time of writing, Democrat presidential candidate Joe Biden leads the polls by 10 percentage points and will likely be elected President of The United States on 3 November 2020. The potential for a Democrat "Blue Wave" with control...

Manager Insights | Prime Value

9 Nov 2020 - Australian Fund Monitors

Damen Purcell, COO of Australian Fund Monitors, speaks with Richard Ivers, Portfolio Manager at Prime Value, about the Prime Value Emerging Opportunities Fund. The Fund has risen +19.06% over the 12 months to the end of...

Hedge Clippings | 06 November 2020

6 Nov 2020 - Australian Fund Monitors

While we accept that the US system is democracy in action, one would have thought it is not what George Washington and his fellow founding fathers quite had in mind way back when they created the Constitution. They obviously hadn't allowed...

6 Nov 2020 - Hedge Clippings | 06 November 2020

By: Australian Fund Monitors

Hedge Clippings | Friday, 06 November 2020

"It has been said that democracy is the worst form of Government except for all those other forms that have been tried from time to time...." So said Winston Churchill on Armistice Day in 1947.

But Churchill's quote also included:

"Many forms of Government have been tried, and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all-wise."

Isn't that the truth!

And while we accept that the US system is democracy in action, one would have thought it is not what George Washington and his fellow founding fathers quite had in mind way back when they created the Constitution. They obviously hadn't allowed for Donald Trump, who, irrespective of one's liking or disliking of his policies, seems to be playing by his own rules.

It's been wall to wall, and minute by minute on the news channels, and if nothing else has pushed COVID, record low interest rates, and a record loss by the Wallabies to the inside pages. In the case of the Wallabies, thankfully so.

Amongst all the commentary and humour, we think this one sums it up best:

"A new analysis by some guy on Twitter has found that Donald Trump would have been re-elected with an overwhelming majority if none of the votes for Joe Biden had been counted."

You can read the full text here.

So there's nothing much that Hedge Clippings can really add to our comments of last week - namely that the polls might be incorrect, the result seemed to be up in the air, and that a tie or contested result wasn't out of the question. The sad reality is that whatever the result, the USA, as "leader" of the democratic world, will be at best divided, and at worst...

Back to interest rates, but more importantly to their "QE" program - namely buying $100 bn. of government bonds ($80bn Federal, $20bn State) over the next six months. While the new ultra-low rates won't make much difference to borrowers once the banks do/don't pass all the savings on, from the perspective of a depositor there doesn't seem to be much of a case for leaving any money in the bank. Unless of course you're worried about loss of capital.

While caution is required when reading glitzy ads (for example Mayfair 101 as reported by the AFR's Jonathan Shapiro) there are good opportunities to get both a reasonable return with acceptable risk. Check out www.fundmonitors.com.

We're living in strange times, and a strange economy. Major exports are under threat from China, who seem intent on punishing Australia for not kow-towing when told to, and having the temerity to have an independent opinion.

Domestic and regional tourism however seems to be going gangbusters, and with the opening up of state borders (more or less) likely to make up for much of the loss of overseas tourists.

Meanwhile Europe, and much of the rest of the world, continues to suffer with little end in sight to a long (indoor) winter.

As the old Chinese curse goes, "May you live in interesting times".

News & Insights

Video interview with Richard Ivers from Prime Value

ESG INSIGHTS Biden's most critical investment by Nikko Asset Management

Performance News

The Airlie Australian Share Fund: +4.63% p.a. since inception in June 2018

Quay Global Real Estate Fund: +5.05% p.a. since inception in July 2014

Touchstone Index Unaware Fund: +6.08% p.a. since April 2016

AIM Global High Conviction Fund: +3.86% p.a. since July 2015

Bennelong Long Short Equity Fund: +15.86% p.a. since January 2003

Australian Eagle Trust Long-Short Fund: +4.35% in October, +17.50% since inception in June 2016

Delft Partners Global High Conviction: +14.04% p.a. since July 2011

If you'd like to receive Hedge Clippings direct to your inbox each Friday

JOIN OUR MAILING LIST

Performance Report: Touchstone Index Unaware Fund

6 Nov 2020 - Australian Fund Monitors

The Touchstone Index Unaware Fund rose +0.94% over the September quarter. Since inception in April 2016, the Fund has returned +6.08% p.a. with an annualised volatility of 15.71%.

6 Nov 2020 - Performance Report: Touchstone Index Unaware Fund

By: Australian Fund Monitors

Report Date	06 November 2020
Manager	Touchstone Asset Management, a Bennelong boutique
Fund Name	Touchstone Index Unaware Fund
Strategy	Equity Long
Latest Return Date	September 2020
Latest Return	-2.89%
Latest 6 Months	17.57%
Latest 12 Months	-12.04%
Latest 24 Months (pa)	-2.85%
Annualised Since Inception	6.08%
Inception Date	04 April 2016
FUM (millions)	AU$4.36
Fund Overview	The Fund aims to deliver capital growth and a sustainable income stream to its investors by investing in a portfolio of primarily listed Australian shares and cash, aiming to provide a total return that exceeds the return of the S&P/ASX300 Accumulation Index by 2% p.a. (before fees and expenses) over a rolling 5 year period. 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 rose +0.94% over the September quarter. Since inception in April 2016, the Fund has returned +6.08% p.a. with an annualised volatility of 15.71%. The Fund has achieved an average positive monthly return since inception of +2.74%. As at the end of September, the Fund held 20 stocks with a median position size of 4.3%. The portfolio's holdings had an average forward-year price/earnings of 21.5, forward-year tangible ROE of 10.7% and forward-year dividend yield of 2.6%. The Fund ended the month with a cash weighting of 3.2%, down from 6.1% as at the end of August.
More Information	View Fund's Profile View Manager's Report

Performance Report: Insync Global Quality Equity Fund

6 Nov 2020 - Australian Fund Monitors

The Insync Global Quality Equity Fund rose +0.33% in September, outperforming AFM's Global Equity Index by +0.66% and taking 12-month performance to +19.31% vs the Index's +4.16%. Since inception in October 2009, the Fund has returned...

6 Nov 2020 - Performance Report: Insync Global Quality Equity Fund

By: Australian Fund Monitors

Report Date	06 November 2020
Manager	Insync Fund Managers
Fund Name	Insync Global Quality Equity Fund
Strategy	Equity Long
Latest Return Date	September 2020
Latest Return	0.33%
Latest 6 Months	22.06%
Latest 12 Months	19.31%
Latest 24 Months (pa)	17.81%
Annualised Since Inception	14.17%
Inception Date	01 July 2018
FUM (millions)	AU$23.8234
Fund Overview	Insync's investment strategy is driven by fundamentals combined with active risk management with the aim of investing in high quality, large cap global companies at attractive prices. Insync looks for companies that can consistently pay rising dividends and earn high returns on invested capital. Insync aims to provide investors with long-term capital growth and some income. 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 typically of 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.
Manager Comments	The Insync Global Quality Equity Fund rose +0.33% in September, outperforming AFM's Global Equity Index by +0.66% and taking 12-month performance to +19.31% vs the Index's +4.16%. Since inception in October 2009, the Fund has returned +14.17% p.a. vs the Index's +10.74%. The Fund's Sharpe and Sortino ratios (since inception), 1.07 and 2.03 respectively, by contrast with the Index's Sharpe of 0.81 and Sortino of 1.27, highlight its capacity to achieve superior risk-adjusted returns while avoiding the market's downside volatility. The Fund's ability to outperform in falling markets is supported by its down-capture ratio (since inception) of 66.8%. As at the end of September, the portfolio's top holdings included Domino's Pizza, Dollar General, PayPal, S&P Global, Visa, Facebook, Adobe, JD Sports Fashion, Microsoft and Nvidia. The top three megatrends in the portfolio by weight were the 'Cashless Society' megatrend (14% of the portfolio), the 'Age related health solutions' megatrend (13%) and the 'Digitisation' megatrend (12%). By sector, the portfolio was most heavily weighted towards the IT and Consumer Discretionary sectors.
More Information	View Fund's Profile View Manager's Report

Performance Report: Delft Partners Global High Conviction

5 Nov 2020 - Australian Fund Monitors

The Delft Partners Global High Conviction Strategy returned -0.29% in September vs AFM's Global Equity Index's -0.33%. Since inception in August 2011, the Strategy has returned +14.05% p.a. with an annualised volatility of 11.69%.

5 Nov 2020 - Performance Report: Delft Partners Global High Conviction

By: Australian Fund Monitors

Report Date	05 November 2020
Manager	Delft Partners
Fund Name	Delft Partners Global High Conviction
Strategy	Equity Long
Latest Return Date	September 2020
Latest Return	-0.29%
Latest 6 Months	0.55%
Latest 12 Months	-3.78%
Latest 24 Months (pa)	0.75%
Annualised Since Inception	14.05%
Inception Date	15 July 2011
FUM (millions)	AU$9.2
Fund Overview	The Global High Conviction Strategy seeks to outperform the MSCI World Index by 3-5% p.a. over rolling 5 year periods. The Fund invests in companies listed on major global developed market exchanges by combining 'fundamental' analysis with quantitative stock selection tools. There is typically a bias to large caps and a 'value' tilt resulting in higher dividend yield than the index. The quantitative model is proprietary and designed in-house. The critical elements are Valuation, Momentum, and Quality (VMQ) and every stock in the global universe is scored and ranked. Verification of the quant model scores is then cross checked by fundamental analysis in which a company's Accounting policies, Governance, and Strategic positioning is evaluated. The manager believes strategy is suited to investors seeking returns from investing in global companies, diversification away from Australia and a risk aware approach to global investing. It should be noted that this is a strategy in an IMA format and is not offered as a fund. An IMA solution can be a more cost and tax effective solution, for clients who wish to own fewer stocks in a long only strategy.
Manager Comments	The Delft Partners Global High Conviction Strategy returned -0.29% in September vs AFM's Global Equity Index's -0.33%. Since inception in August 2011, the Strategy has returned +14.05% p.a. with an annualised volatility of 11.69%. By contrast, the Index has returned +13.45% p.a. with an annualised volatility of 10.42% over the same period. The Strategy has achieved an average positive monthly return of +3.23% vs the Index's +2.94%. The Strategy's Sharpe and Sortino ratios for performance since inception are 1.02 and 1.80 respectively. With respect to the Index's 10 best and worst months since inception, the Strategy has outperformed in 7 out of 10 of the Index's worst months and 9 out of 10 of the Index's best months. This highlights the Strategy's capacity to perform well in both rising and falling markets.
More Information	View Fund's Profile View Manager's Report

Search for:
Fund:	Type a few letters to search
Manager:
Publish Dates:	From: To:

Fund Monitors Pty Ltd

News

NEWS

13 Nov 2020 - Performance Report: AIM Global High Conviction Fund

12 Nov 2020 - 4 answers to the RBA's toughest questions

12 Nov 2020 - Fund Review: Bennelong Twenty20 Australian Equities Fund October 2020

11 Nov 2020 - Amazon, Volatility, and the Virtue of Patience

10 Nov 2020 - ESG INSIGHTS: Biden's most critical investment

9 Nov 2020 - Manager Insights | Prime Value

6 Nov 2020 - Hedge Clippings | 06 November 2020

6 Nov 2020 - Performance Report: Touchstone Index Unaware Fund

6 Nov 2020 - Performance Report: Insync Global Quality Equity Fund

5 Nov 2020 - Performance Report: Delft Partners Global High Conviction

Category

Search

Events Calendar