Performance Report: Paragon Australian Long Short Fund

6 Sep 2019 - Australian Fund Monitors

The Paragon Australian Long Short Fund rose +2.6% in August, outperforming the ASX200 Accumulation Index by +4.96% and taking annualised performance since inception in March 2013 to +11.16% versus the Index's +8.69%.

6 Sep 2019 - Performance Report: Paragon Australian Long Short Fund

By: Australian Fund Monitors

Report Date	06 September 2019
Manager	Paragon Funds Management
Fund Name	Paragon Australian Long Short Fund
Strategy	Equity Long/Short
Latest Return Date	August 2019
Latest Return	2.60%
Latest 6 Months	27.81%
Latest 12 Months	9.71%
Latest 24 Months (pa)	7.24%
Annualised Since Inception	11.16%
Inception Date	28 February 2013
FUM (millions)	AU$40
Fund Overview	The Paragon Fund is a concentrated long/short Australian listed equities product that is fundamentally driven with a focus on the industrial and resource sectors. 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	The Paragon Australian Long Short Fund rose +2.6% in August, outperforming the ASX200 Accumulation Index by +4.96% and taking annualised performance since inception in March 2013 to +11.16% versus the Index's +8.69%. Positive contributors included the Fund's gold holdings, iSignthis (upgrade), Pilbara (downgrade; short), Jumbo (upgrade) and Mincor, partially offset by a decline in Champion Iron. Overall, the Fund had a solid August reporting season. Paragon noted that whilst they remain confident in the Fund's positioning and performance through this cycle, they will continue to watch macro-economic developments closely, and remain active, making any necessary adjustments to the portfolio accordingly.
More Information	Fund Profile Manager's Report

Performance Report: Spectrum Strategic Income Fund

6 Sep 2019 - Australian Fund Monitors

The Spectrum Strategic Income Fund rose +0.71% in July, taking annualised performance since inception to +8.02%.

The Impact and Opportunity of Artificial Intelligence

3 Sep 2019 - Australian Fund Monitors

At Insync Funds Management, one of the important parts of our future-focussed investment process is identifying enduring Megatrends that provide a runway of assured growth for companies that benefit from them. AI is unique as it has an...

Hedge Clippings | 30 August 2019

30 Aug 2019 - Australian Fund Monitors

Regular readers of Hedge Clippings would no doubt have noticed that we have been erring on the cautious side for some time, particularly when it comes to prevailing interest rates (which seem set to stay low, for longer, or go lower) and...

30 Aug 2019 - Hedge Clippings | 30 August 2019

By: Australian Fund Monitors

Hedge Clippings | Friday 30 August, 2019

Regular readers of Hedge Clippings would no doubt have noticed that we have been erring on the cautious side for some time, particularly when it comes to prevailing interest rates (which seem set to stay low, for longer, or go lower) and the impact of geo-political issues - or at least of powerful political personalities.

Many investors large and small are lamenting the effect that "unrealistically" low interest rates are having on equity valuations, but should be recognising that low to negative interest rates are the new normal and probably here to stay for the foreseeable future. Equally, given the antics of Xi, Trump and now Boris, it is fair to assume that the political risks which currently abound aren't going to dissipate any time soon.

In this environment the ability for central banks to cushion any market shock - or even do anything but keep reducing rates to try to avoid a recession - seems limited, and therein lies the danger. There's no firepower left to adjust to what might lie ahead. And as pointed out by no lesser hedge fund legend than Ray Dalio of Bridgewater Associates, with central banks considering issuing 50 and 100 year bonds, and with $US16 trillion in negative yielding bonds already on issue, the opportunities are limited.

No one, neither central bankers nor legendary fund managers, and certainly not yours truly, have witnessed this before, and there are no certain models or precedents on which to base the potential outcome.

Hence caution. Cash may well be a safe haven. Even at a negative yield.

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Performance Report: Gyrostat Absolute Return Income Equity Fund

30 Aug 2019 - Australian Fund Monitors

The Gyrostat Absolute Return Income Equity Fund has returned +5.50% over the past 12 months and +4.19% per annum since inception in December 2010. Gyrostat anticipate increasing levels of 'late cycle' market volatility.

30 Aug 2019 - Performance Report: Gyrostat Absolute Return Income Equity Fund

By: Australian Fund Monitors

Report Date	30 August 2019
Manager	Gyrostat Capital Management
Fund Name	Gyrostat Absolute Return Income Equity Fund
Strategy	Equity Income
Latest Return Date	July 2019
Latest Return	-1.30%
Latest 6 Months	1.89%
Latest 12 Months	5.50%
Latest 24 Months (pa)	3.69%
Annualised Since Inception	4.19%
Inception Date	10 December 2010
FUM (millions)	AU$12
Fund Overview	Our absolute return income equity fund combines protection, returns and regular income through all stages of the investment cycle (including large market falls). Our objective is to deliver regular and stable income stream (from ASX20 dividends) in a low interest rate environment with capital security - an 'alternative - defensive' asset class. Fund features: - holds a diversified portfolio of higher yielding ASX20 stocks. - has the lowest cost protection, always in place, at the stock specific level, with upside. - delivers regular equity income by passing through dividends. Advances in investment risk management enable cost effective protection to always be in place for a 'hard' defined risk parameter (say no more than 3% capital at risk). Returns are designed to increase as volatility levels increase, as this provides more opportunities to lower protection costs. Investment Objectives: - Returns: 6% - 8% pa in trending markets, greater than 8% pa in volatile markets, short term bond returns in stable markets - Income: Minimum cash rate + 3% paid semi-annually (currently 4.8% p.a.) from dividends and franking credits - Protection: No quarterly NAV draw-downs exceeding 3% Also includes a 'tail hedge' for gains on large market falls
Manager Comments	The Gyrostat Absolute Return Income Equity Fund has returned +5.50% over the past 12 months and +4.19% per annum since inception in December 2010. Gyrostat noted they anticipate increasing levels of 'late cycle' market volatility with heightened geopolitical tensions, historically high debt levels and elevated valuations. The Fund returned -1.3% in July. Gyrostat noted the Fund is a solution for falling interest rates. It has a 'conservative' asset allocation and has for 34 consecutive quarters since inception operated within a 'hard' defined risk parameter (no quarterly NAV draw-downs exceeding 3%), delivered regular equity income (by passing through ASX20 dividends), and returns increasing with volatility levels (includes a tail hedge for large gains on large market falls.) As at the 15th of August, the Fund had increased +4.6%.
More Information	Fund Profile Manager's Report

Performance Report: 4D Global Infrastructure Fund

30 Aug 2019 - Australian Fund Monitors

The 4D Global Infrastructure Fund rose +0.87% in July, taking annualised performance since inception in March 2016 to +14.29% with an annualised volatility of 9.26%.

30 Aug 2019 - Performance Report: 4D Global Infrastructure Fund

By: Australian Fund Monitors

Report Date	30 August 2019
Manager	4D Infrastructure, a Bennelong boutique
Fund Name	4D Global Infrastructure Fund
Strategy	Infrastructure
Latest Return Date	July 2019
Latest Return	0.87%
Latest 6 Months	13.66%
Latest 12 Months	20.82%
Latest 24 Months (pa)	14.79%
Annualised Since Inception	14.29%
Inception Date	07 March 2016
FUM (millions)	AU$45
Fund Overview	The 4D Global Infrastructure Fund aims to outperform the OECD G7 Inflation Index +5.5% p.a. over the long term by identifying quality listed global infrastructure securities, trading at or below fair value with sustainable, growing earning combined with sustainable, growing dividends. The fund will be managed as a single portfolio of listed global infrastructure securities including regulated utilities in gas, electricity and water, transport infrastructure such as airports, ports, road and rail as well as communication assets such as the towers and satellite sectors. The portfolio is intended to have exposure to both developed and emerging market opportunities, with country risk assessed internally before any investment is considered. The maximum absolute position of an individual stock is 7% of the fund.
Manager Comments	The 4D Global Infrastructure Fund rose +0.87% in July, taking annualised performance since inception in March 2016 to +14.29% with an annualised volatility of 9.26%. The strongest portfolio performer for July was Brazilian toll road operator Ecorodovias which was up +9.5%. 4D noted this was note driven by stock specific news but rather the entire Brazilian infrastructure space was up as Bolsonaro executes on reforms. The weakest performer was US midstream operator Williams, down -12.1% on the back of concerns that key counterparties are cutting production targets which will flow through to Williams' volumes and earnings. 4D believe the sell-off was overdone. Despite a slowing global macro environment, 4D's view is that it remains supportive of the Fund's overweight to user pay assets. However, ongoing geopolitical issues see them avoiding certain markets until issues are resolved (e.g. Brexit). They are also seeing certain markets move ahead of fundamentals and have taken a more defensive stance in these regions, increasing their exposure to defensive yield stories.
More Information	Fund Profile Manager's Report

Performance Report: Insync Global Capital Aware Fund

29 Aug 2019 - Australian Fund Monitors

The Insync Global Capital Aware Fund rose +4.07% in July, outperforming AFM's Global Equity Index by +1.20%. Over the past 12 months the Fund has returned +20.99% versus the Index's +11.87%.

29 Aug 2019 - Performance Report: Insync Global Capital Aware Fund

By: Australian Fund Monitors

Report Date	29 August 2019
Manager	Insync Fund Managers
Fund Name	Insync Global Capital Aware Fund
Strategy	Equity Long
Latest Return Date	July 2019
Latest Return	4.07%
Latest 6 Months	24.62%
Latest 12 Months	20.99%
Latest 24 Months (pa)	19.55%
Annualised Since Inception	11.36%
Inception Date	07 October 2009
FUM (millions)	AU$31.2
Fund Overview	Insync's investment strategy is driven by fundamentals combined with active risk management with the aim of to 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. The Global Capital Aware Fund is a concentrated portfolio of large cap global companies with downside protection. 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 of typically 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. At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio.
Manager Comments	The Insync Global Capital Aware Fund rose +4.07% in July (after the cost of downside protection), outperforming AFM's Global Equity Index by +1.20%. Over the past 12 months the Fund has returned +20.99% versus the Index's +11.87%. The Fund has returned +11.36% p.a. since inception in October 2009 versus the Index's +11.50% p.a. over the same period. The Fund's down-capture ratio of 58.95% and average negative return of -1.68% versus the Index's -2.06% highlight its capacity to protect investors' capital in falling markets. Insync noted strong stock selection was the key driver of the solid outperformance. Positive highlights during the month include London Stock Exchange, Intuit, Accenture, Apple and Visa. Detractors were Bristol-Myer Squibb, Heineken, Wirecard, TE Connectivity and PayPal. No currency hedging continues across both funds as Insync consider the main risks to the Australian dollar to be on the downside. Insync's view is that current market conditions continue to reflect the trend in place since the GFC of low growth and low inflation. They believe that if this trend continues then investing in a portfolio of high ROIC stocks benefitting from global megatrends should prevail.
More Information	Fund Profile Manager's Report AFM Research Reports

Performance Report: Bennelong Concentrated Australian Equities Fund

28 Aug 2019 - Australian Fund Monitors

The Bennelong Concentrated Australian Equities Fund rose +3.41% in July, outperforming the ASX200 Accumulation Index by +0.47%. Since inception in February 2009, the Fund has returned +16.41% p.a. versus the Index's annualised return of +11.26%.

28 Aug 2019 - Performance Report: Bennelong Concentrated Australian Equities Fund

By: Australian Fund Monitors

Report Date	28 August 2019
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Concentrated Australian Equities Fund
Strategy	Equity Long
Latest Return Date	July 2019
Latest Return	3.48%
Latest 6 Months	14.14%
Latest 12 Months	-3.70%
Latest 24 Months (pa)	12.70%
Annualised Since Inception	16.41%
Inception Date	30 January 2009
FUM (millions)	AU$838.15
Fund Overview	Bennelong Australian Equity Partners (BAEP) is a boutique asset manager offering Australian equities solutions for institutional and retail clients. The business was founded in 2008 by Paul Cuddy and Mark East, in partnership with Bennelong Funds Management. Prior to establishing BAEP, Paul and Mark were Co-Heads of Australian Equities at ING Investment Management. The overriding objective of the Concentrated Australian Equities Fund is to seek investment opportunities which are under-appreciated and have the potential to deliver positive earnings, while satisfying our stringent quality criteria. Bennelong's investment process combines bottom-up fundamental analysis together with proprietary investment tools which are used to build and maintain high quality portfolios that are risk aware. The portfolio typically consists of 20-35 high-conviction stocks from the S&P/ASX 300 Index. The Fund may invest in securities listed on other exchanges where such securities relate to ASX-listed securities. Derivative instruments are mainly used to replicate underlying positions and hedge market and company specific risks.
Manager Comments	The Bennelong Concentrated Australian Equities Fund rose +3.41% in July, outperforming the ASX200 Accumulation Index by +0.47%. Since inception in February 2009, the Fund has returned +16.41% p.a. versus the Index's annualised return of +11.26%. The Fund's up-capture and down-capture ratios for performance since inception, 133.2% and 91.2% respectively, indicate that, on average, the Fund has outperformed in both rising and falling markets. As at the end of July, the Fund's weightings had been increased in the Health Care, IT, Industrials, Communication, Materials and Financials sectors, and decreased in the Discretionary, REIT's and Consumer Staples sectors. Top holdings included CSL, BHP Billiton and Aristocrat Leisure. The Fund aims to invest in a concentrated portfolio of high quality companies with strong growth outlooks and underestimated earnings momentum and prospects. By comparison with the ASX300 Accumulation Index, the portfolio's holdings, on average, have a higher return on equity, lower debt/equity, higher sales growth, higher EPS growth, higher price/earnings and lower dividend yield. This highlights that the Fund is in line with its investment objectives.
More Information	Fund Profile Manager's Report

Performance Report: Quay Global Real Estate Fund

27 Aug 2019 - Australian Fund Monitors

The Quay Global Real Estate Fund returned +1.6% in July, driven in part by currency returns of +1.0%. Since inception in January 2016, the Fund has returned +10.60% per annum.

27 Aug 2019 - Performance Report: Quay Global Real Estate Fund

By: Australian Fund Monitors

Report Date	27 August 2019
Manager	Quay Global Investors
Fund Name	Quay Global Real Estate Fund
Strategy	Real Estate
Latest Return Date	July 2019
Latest Return	1.60%
Latest 6 Months	11.15%
Latest 12 Months	17.84%
Latest 24 Months (pa)	17.02%
Annualised Since Inception	10.60%
Inception Date	31 July 2014
FUM (millions)	AU$28
Fund Overview	Quay is a boutique investment management business established in 2013 with a focus on preserving and creating wealth for investors through investments in real estate securities. Quay uses a dual manager approach to the investment and portfolio management decision making process. This involves both Principals collaborating to determine significant portfolio investments and positions. The Fund will invest in a number of global listed real estate companies, groups or funds. The investment strategy is to make investments in real estate securities at a price that will deliver a real, after inflation, total return of 5% per annum (before costs and fees), inclusive of distributions over a longer-term period. The Investment Strategy is indifferent to the constraints of any index benchmarks and is relatively concentrated in its number of investments. The Fund is expected to own between 20 and 40 securities, and from time to time up to 20% of the portfolio maybe invested in cash. The Fund is $A un-hedged.
Manager Comments	The Quay Global Real Estate Fund returned +1.6% in July, driven in part by currency returns of +1.0%. Since inception in January 2016, the Fund has returned +10.60% per annum. The Fund's three best contributors for the month were Brixmor (US Retail), LEG Immobilian (German Apartments) and Store Capital (US Triple Net). Largest detractors were Coresite (US Data Centres), Wharf REIC (HK Retail) and Hysan (HK Diversified). Quay noted the Fund's Hong Kong names have been buffeted by poor sentiment as a result of ratcheting trade wars and increasing protests in HK. They also added a new investee to the portfolio, American Homes for Rent (AMH), which is in the US single family sector. AMH owns a portfolio of 53,000 houses across the US that it rents to people seeking rental accommodation.
More Information	Fund Profile Manager's Report

Fund Review: Insync Global Capital Aware Fund July 2019

27 Aug 2019 - Australian Fund Monitors

Latest Fund Review on Insync Global Capital Aware Fund is now available. The Global Capital Aware Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend...

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6 Sep 2019 - Performance Report: Paragon Australian Long Short Fund

6 Sep 2019 - Performance Report: Spectrum Strategic Income Fund

3 Sep 2019 - The Impact and Opportunity of Artificial Intelligence

30 Aug 2019 - Hedge Clippings | 30 August 2019

30 Aug 2019 - Performance Report: Gyrostat Absolute Return Income Equity Fund

30 Aug 2019 - Performance Report: 4D Global Infrastructure Fund

29 Aug 2019 - Performance Report: Insync Global Capital Aware Fund

28 Aug 2019 - Performance Report: Bennelong Concentrated Australian Equities Fund

27 Aug 2019 - Performance Report: Quay Global Real Estate Fund

27 Aug 2019 - Fund Review: Insync Global Capital Aware Fund July 2019

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