Performance Report: Bennelong Long Short Equity Fund

9 Aug 2019 - Australian Fund Monitors

The Bennelong Long Short Equity Fund returned +6.92% in July, outperforming the ASX200 Accumulation Index by +3.98% and taking annualised performance since inception in February 2002 to +15.17% versus the Index's +8.55%.

9 Aug 2019 - Performance Report: Bennelong Long Short Equity Fund

By: Australian Fund Monitors

Report Date	09 August 2019
Manager	Bennelong Long Short Equity Management, a Bennelong boutique
Fund Name	Bennelong Long Short Equity Fund
Strategy	Equity Market Neutral
Latest Return Date	July 2019
Latest Return	6.92%
Latest 6 Months	6.15%
Latest 12 Months	0.19%
Latest 24 Months (pa)	4.41%
Annualised Since Inception	15.17%
Inception Date	01 January 2003
FUM (millions)	AU$386.2
Fund Overview	Bennelong Long Short Equity Management applies a qualitative stock selection process to construct a diversified portfolio of paired securities based on relative value. The Bennelong Long Short Equity Management strategy invests primarily in the S&P/ASX 100 and is dollar neutral at cost. 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 Bennelong Long Short Equity Fund returned +6.92% in July, outperforming the ASX200 Accumulation Index by +3.98% and taking annualised performance since inception in February 2002 to +15.17% versus the Index's +8.55%. The Fund's Sortino ratio of 1.48 versus the Index's 0.50 and down-capture ratio of -163.51% highlight the Fund's capacity to perform well in falling markets. During the month the Fund experienced a favourable balance of fundamental news. In addition, Bennelong noted appetite for higher yield stocks moderated, which was a tailwind for returns. They believe the elimination of the dividend in two ASX200 companies experiencing operating headwinds is a reminder that yield is no certainty in the equity markets. At the sector level Financials were the Fund's top contributor while Consumer Discretionary was the greatest detractor. The number of positive pairs exceeded the negative. The contribution of the Fund's negative pairs was modest.
More Information	Fund Profile Manager's Report AFM Research Reports

Another Trade War - This Time Without The US

9 Aug 2019 - Marcel von Pfyffer, Arminius Capital

With all the news about the Trump Administration's trade disputes with China, Japan, Canada, Mexico, and the EU, the ordinary investor probably hasn't noticed one trade war which doesn't involve the US but could have serious consequences...

Performance Report: Paragon Australian Long Short Fund

8 Aug 2019 - Australian Fund Monitors

The Paragon Australian Long Short Fund rose +9.4% in July, outperforming the ASX200 Accumulation Index by +6.46% and taking annualised performance since inception in February 2013 to +10.87% versus the Index's +9.22%.

8 Aug 2019 - Performance Report: Paragon Australian Long Short Fund

By: Australian Fund Monitors

Report Date	08 August 2019
Manager	Paragon Funds Management
Fund Name	Paragon Australian Long Short Fund
Strategy	Equity Long/Short
Latest Return Date	July 2019
Latest Return	9.40%
Latest 6 Months	25.82%
Latest 12 Months	1.97%
Latest 24 Months (pa)	9.67%
Annualised Since Inception	10.87%
Inception Date	28 February 2013
FUM (millions)	AU$40.2
Fund Overview	The Paragon Fund is a concentrated long/short Australian listed equities product that is fundamentally driven with a focus on the industrial and resource sectors. Paragon's unique investment style, comprising thematic led idea generation followed with an in depth research effort, results in a concentrated portfolio of high conviction stocks. Conviction in bottom up analysis drives the investment case and ultimate position sizing: * Both quantitative analysis - probability weighted high/low/base case valuations - and qualitative analysis - company meetings, assessing management, the business model, balance sheet strength and likely direction of returns - collectively form Paragon's overall view for each investment case. * Paragon will then allocate weighting to each investment opportunity based on a risk/reward profile, capped to defined investment parameters by market cap, which are continually monitored as part of Paragon's overall risk management framework. The objective of the Paragon Fund is to produce absolute returns in excess of 10% p.a. over a 3-5 year time horizon with a low correlation to the Australian equities market.
Manager Comments	The Paragon Australian Long Short Fund rose +9.4% in July, outperforming the ASX200 Accumulation Index by +6.46% and taking annualised performance since inception in February 2013 to +10.87% versus the Index's +9.22%. Positive contributors came from gold holdings including Alacer Gold, as well as iSignthis, Xero, Agrimin and a short position in Pilbara. Paragon believe the move in gold, particularly the moves in their gold longs, are still in their infancy. Paragon noted they continue to be very constructive on gold, especially A$ gold. They added that gold particularly benefits from accommodative monetary policy (namely low and falling cash rates), quantitative easing (QE), falling bond rates (namely negative or approaching negative real rates) and global market volatility, all four of which arose in the last month. Paragon believe the best returns will be made in identifying key stocks that meet particular criteria: Emerging economic project developments such as RED 5 (discussed in their latest report); High-cost operating and/or leveraged mid-cap producers such as Perseus and Westgold; and Growing large-cap producers such as Northern Star and Alacer Gold (discussed in their latest report).
More Information	Fund Profile Manager's Report

5 Beliefs to Hold When The Market is Tanking

8 Aug 2019 - Dean Fergie, Cyan Investment Management

Navigating volatile markets is always challenging. Correction: navigating bearish markets is challenging; navigating bullish markets is usually pretty enjoyable. We've had it great in 2019; it's been the best start to a calendar...

New Funds on Fundmonitors.com

7 Aug 2019 - Australian Fund Monitors

Here are some of the latest additions to our database. Follow the links to view each fund's profile, where you'll have access to their offer documents, monthly reports, historical returns, performance analytics, rankings, research,...

7 Aug 2019 - New Funds on Fundmonitors.com

By: Australian Fund Monitors

New Funds on Fundmonitors.com

Below are some of the funds we've recently added to our database. Follow the links to view each fund's profile, where you'll have access to their offer documents, monthly reports, historical returns, performance analytics, rankings, research, platform availability, and news & insights.

Firetrail Absolute Return Fund

Inception date: 14 March 2018
Strategy: Equity Market Neutral
Geographic mandate: Australia/Global
Investor type: Wholesale & Retail

Minimum initial investment: AU$20,000
Distributions: 6 Monthly
Management fee: 1.5%
Performance fee: 20%

View Profile

Firetrail Australian High Conviction Fund

Inception date: 14 March 2018
Strategy: Equity Long
Geographic mandate: Australia/NZ
Investor type: Wholesale & Retail

Minimum initial investment: AU$20,000
Distributions: 6 Monthly
Management fee: 0.95%
Performance fee: 15%

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Janus Henderson Australian Fixed Interest Fund

Inception date: 31 August 1994
Strategy: Fixed Income
Geographic mandate: Australia
Investor type: Retail

Minimum initial investment: AU$25,000
Distributions: Quarterly
Management fee: 0.47%
Performance fee: Nil

View Profile

Lakehouse Global Growth Fund

Inception date: 01 December 2017
Strategy: Equity Long
Geographic mandate: Global
Investor type: Wholesale & Retail

Minimum initial investment: AU$100,000
Distributions: Annually
Management fee: 1.3%
Performance fee: 15.0%

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Lakehouse Small Companies Fund

Inception date: 15 November 2016
Strategy: Equity Long
Geographic mandate: Australia/NZ
Investor type: Wholesale & Retail

Minimum initial investment: AU$100,000
Distributions: 6 Monthly
Management fee: 1.3%
Performance fee: 15.0%

View Profile

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Hedge Clippings | 02 August 2019

2 Aug 2019 - Australian Fund Monitors

With the US Federal reserve cutting interest rates for the first time in 11 years overnight - the last easing being an early Christmas present way back in 2008 - it was yet another sign that what The Donald wants, The Donald usually gets.

2 Aug 2019 - Hedge Clippings | 02 August 2019

By: Australian Fund Monitors

Hedge Clippings | Friday 02 August, 2019

With the US Federal reserve cutting interest rates for the first time in 11 years overnight - the last easing being an early Christmas present way back in 2008 - it was yet another sign that what The Donald wants, The Donald usually gets.

But not always. No sooner had Donald advised that the Fed's easing was the first in a series (as he had wanted), than Fed Chairman Jerome Powell contradicted him by saying:

"We're thinking of it essentially as a mid-cycle adjustment to policy. I'm contrasting it there with the beginning, for example, the beginning of a lengthy cutting cycle. That's not what we're seeing now. That's not our perspective or outlook."

No wonder the markets were confused! One wonders exactly where the "mid-cycle adjustment to policy" terminology came from, or for those wondering what the next move is, how to factor those comments into their investment decisions. As a result, markets that should have been buoyed by lower interest rates were left decidedly underwhelmed, although while the consensus seems to be that there will be at least one more cut in the US before this year is out, they weren't banking on it.

At the same time Trump flagged the potential for further tariff action against the Chinese, no doubt just to remind everyone that, as far as he's concerned, he holds the upper hand in the trade war.

From Australia's perspective the expectation from economists is certainly that there is at least one more cut of 0.25%, and possibly a further one after that, before the RBA is finished. Obviously what happens in the US will have some impact on that outcome, but so will the effect of the past two cuts and the stimulus provided by tax refunds which should start to flow through.

Elsewhere overnight news came through that the U.K.'s new prime minister had lost his first by-election (that didn't take long!), taking his parliamentary majority down to a minuscule, and minimum, of one. Boris is quite happy, it appears, to take the UK out of the EU with a no deal Brexit, which might just be a better outcome than a general election resulting in a Corbyn Labour government.

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The winners and losers of a more sustainable approach to plastics

1 Aug 2019 - Ramoun Lazar, Equity Analyst at Firetrail Investments

Demand for convenience has seen plastic use multiply and today plastics are fundamental to many aspects of daily life. As consumers we interact with plastics many times a day. Whether it be drinking water from a PET bottle, eating yoghurt...

Performance Report: NWQ Global Markets Fund

31 Jul 2019 - Australian Fund Monitors

The NWQ Global Markets Fund rose +0.11% in June, taking performance since inception in September 2018 to +2.30%. There were strong positive contributions to the Fund's overall return in June from its equity and fixed income exposures.

31 Jul 2019 - Performance Report: NWQ Global Markets Fund

By: Australian Fund Monitors

Report Date	31 July 2019
Manager	NWQ Capital Management Pty Ltd
Fund Name	NWQ Global Markets Fund
Strategy	Multi Strategy
Latest Return Date	June 2019
Latest Return	0.11%
Latest 6 Months	-1.41%
Latest 12 Months
Latest 24 Months (pa)
Annualised Since Inception	2.76%
Inception Date	01 September 2018
FUM (millions)
Fund Overview	The NWQ Global Markets Fund (Fund), managed by NWQ Capital Management, is a diversified multi manager portfolio. The principal investment objective of the Fund is to produce returns commensurate with the volatility target of 15% p.a. as measured by the long term standard deviation of monthly returns. This is achieved through active allocations to a select number of liquid alternative managers that employ a variety of strategies. The Fund places emphasis on managers who demonstrate a rigorous and repeatable investment process that has delivered a strong track record.
Manager Comments	The NWQ Global Markets Fund rose +0.11% in June, taking performance since inception in September 2018 to +2.30%. There were strong positive contributions to the Fund's overall return in June from its equity and fixed income exposures. The Fund also saw a positive contribution from its commodity exposures. However, NWQ noted these were partially offset by losses from the Fund's currency exposures. NWQ's view is that equity and bond market pricing reflect two very different outlooks for the global economy; equity investors are looking through falling earnings and expecting the Fed to step in and cut interest rates to justify current multiples, while bond investors see deteriorating economic fundamentals and geopolitical risks as potentially leading to a recession in the near term. NWQ believe we are likely to see higher levels of volatility whilst these conflicting outlooks resolve themselves. In this scenario they consider having a diversified portfolio of managers a sound way of navigating the potentially challenging times ahead.
More Information	Fund Profile Manager's Report

Performance Report: Loftus Peak Global Disruption Fund

31 Jul 2019 - Australian Fund Monitors

The Loftus Peak Global Disruption Fund rose +6.5% in June, outperforming AFM's Global Equity benchmark by +1.2% and taking annualised performance since inception in November 2016 to +21.94% versus the Index's +15.45%.

31 Jul 2019 - Performance Report: Loftus Peak Global Disruption Fund

By: Australian Fund Monitors

Report Date	31 July 2019
Manager	Loftus Peak
Fund Name	Loftus Peak Global Disruption Fund
Strategy	Equity Long
Latest Return Date	June 2019
Latest Return	6.50%
Latest 6 Months	22.40%
Latest 12 Months	12.02%
Latest 24 Months (pa)	18.56%
Annualised Since Inception	21.94%
Inception Date	15 November 2016
FUM (millions)	AU$68.7
Fund Overview	The fund aims to deliver a return over the MSCI All Countries World Index (net dividends reinvested) in AUD over the medium to long term by bringing a disciplined investment process to listed global companies impacted by disruption. The investment process involves a combination of top-down analysis with fundamental bottom-up qualitative and quantitative research to derive a risk-adjusted discounted cash flow (DCF) valuation of companies in the target universe. The investment team will generally buy stocks from the pool of securities that are trading below Loftus Peaks' valuation and sell them when they are trading above Loftus Peak's valuation. The approach allows for both fundamental accounting information as well as market-oriented inputs to be factored into the portfolio construction process. Loftus Peak's model typically does not rely on leverage to deliver investment returns and specifically takes into account risk in the valuation process. Capital preservation can be managed by holding up to 50% cash. Index and currency options and futures may also be used to manage risk.
Manager Comments	The Loftus Peak Global Disruption Fund rose +6.5% in June, outperforming the ASX200 Accumulation Index by +1.2% and taking annualised performance since inception in November 2016 to +21.94% versus the Index's +15.45%. Loftus Peak noted the Fund's performance in May was largely reversed in June as Presidents Trump and Xi signalled their intentions to restart trade negotiations. As a result, at the end of June a number of Loftus Peak's investee companies performed more strongly after having been unable to sell to Huawei because of the ban. Top contributors included Qualcomm, Xilinx, Nvidia and Apple. Detractors included VMware, Nutanix and Google. At the end of the month the Fund was 82% invested in 23 holdings with the balance in cash. The Australian dollar appreciated +1.3% over the month against the US dollar, which meant the value of the Fund's US dollar positions decreased. As at 30 June 2019, the Fund carried a foreign currency exposure of 99%.
More Information	Fund Profile Manager's Report

US Treasury Term Premium: Pricing for Disaster

31 Jul 2019 - Ken Liow, Realm Investment House

The term premium is the difference between bond yields for a given maturity and the expected path of short-term interest rates over the same period. By examining the term premium of the US treasury market, we find that this is now of a...

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9 Aug 2019 - Performance Report: Bennelong Long Short Equity Fund

9 Aug 2019 - Another Trade War - This Time Without The US

8 Aug 2019 - Performance Report: Paragon Australian Long Short Fund

8 Aug 2019 - 5 Beliefs to Hold When The Market is Tanking

7 Aug 2019 - New Funds on Fundmonitors.com

2 Aug 2019 - Hedge Clippings | 02 August 2019

1 Aug 2019 - The winners and losers of a more sustainable approach to plastics

31 Jul 2019 - Performance Report: NWQ Global Markets Fund

31 Jul 2019 - Performance Report: Loftus Peak Global Disruption Fund

31 Jul 2019 - US Treasury Term Premium: Pricing for Disaster

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