NEWS
31 Aug 2018 - IS VALUE INVESTING DEAD?
31 Aug 2018 - Launch Press Release
30 Aug 2018 - Performance Report: Bennelong Twenty20 Australian Equities Fund
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The Fund is managed as one portfolio but comprises and combines two separately managed exposures: 1. An investment in the top 20 stocks of the markets, which the Fund achieves by taking an indexed position in the S&P/ASX 20 Index; and 2. An investment in the stocks beyond the S&P/ASX 20 Index. This exposure is managed on an active basis using a fundamental core approach. The Fund may also invest in securities expected to be listed on the ASX, securities listed or expected to be listed on other exchanges where such securities relate to ASX-listed securities.Derivative instruments may be used to replicate underlying positions and hedge market and company specific risks. The companies within the portfolio are primarily selected from, but not limited to, the S&P/ASX 300 Accumulation Index. The Fund typically holds between 40-55 stocks and thus is considered to be highly concentrated. This means that investors should expect to see high short-term volatility. The Fund seeks to achieve growth over the long-term, therefore the minimum suggested investment timeframe is 5 years. |
| Manager Comments | As at the end of July, the Funds weightings were increased in the Industrials, Telco's and REIT's sectors, and decreased in the Discretionary, Consumer Staples, Health Care, IT, Energy, Financials and Materials sectors. The Fund's top holdings include CBA, BHP, Westpac, CSL, Reliance Worldwide, ANZ, NAB and Aristocrat Leisure. The Fund combines a passive investment in the S&P/ASX20 Index and an actively managed investment in the S&P/ASX ex-20. The passive position is achieved by investing individually in each of the ASX20 Index's Individual stocks with approximately the same weightings they represent in the S&P/ASX300. Currently, this weight is approximately 60% of the Fund's portfolio. The active position in ex-20 stocks aims to allow the Fund to outperform the broader market. |
| More Information |
29 Aug 2018 - Performance Report: 4D Global Infrastructure Fund
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | 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 +1.38% in July, outperforming its benchmark by +0.67% and taking annualised performance since inception in March 2018 to +11.70%. The strongest performer for July was Indonesian toll road operator Jasa Marga, up +12.2% for the month. The weakest performer was Chinese infrastructure conglomerate Shenzhen International, down -11%. Read their latest report for their thoughts on the markets over the past month. |
| More Information |
28 Aug 2018 - Performance Report: KIS Asia Long Short Fund
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | Whilst the Fund's primary strategy is focused on long/short equities, the ability to retain discretionary powers to allocate across a number of other investment strategies is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage, special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.). The Fund's geographic focus is Asia excluding Japan, but including Australia). The Fund may invest outside of this region to the extent that: 1. The investment decision is driven from the Asian region or; 2. The exposure is intended to mitigate risk or enhance return from factors external to the Asian region. |
| Manager Comments | The KIS Asia Long Short Fund rose +0.42% in July, taking annualised performance since inception in October 2009 to +13.11% versus the ASX200 Accumulation Index's +7.81% per annum. This return has been achieved with an annualised volatility of 5.19% versus the Index's 11.53%. The Fund has demonstrated a strong focus on downside protection; Sortino ratio of 4.28 versus the Index's 0.60, and down-capture ratio since inception of -95.13%. A negative down-capture ratio indicates that, on average, the Fund has achieved positive performance in the market's negative months. |
| More Information |
27 Aug 2018 - Bennelong Twenty20 Australian Equities Fund July 2018
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 - July 2018 (pdf format)
24 Aug 2018 - Hedge Clippings, 24 August 2018
Where's the leadership we deserve?
At a time when the government needed leadership, unity and stability, the combination of personal ambition and the desire for revenge delivered exactly the opposite. Irrespective of who one believed should be in the top job, the country deserved better, and only time will tell if it gets it.
Personalities, and personal ambition, and in our view a misreading of the mood of the majority of people in the street, has resulted in the running of the country put to one side, while a bunch of self-centered politicians have indulged themselves, in just the same way as their predecessors did.
The real tragedy is that the economy, while not booming, is sound and growing, employment is growing, inflation and interest rates are low (probably too low) and taxation, except for the "big" end of town, is coming down. The federal budget is forecast to make it back to a surplus way ahead of forecast, and given the potential change of government at the next election, that's probably now in doubt.
If there's one good (?) thing to come out of the debacle in Canberra it's probably that the chief destabiliser and those pulling the strings didn't win, although they'll no doubt be happy enough they've dispatched the one person - now the previous PM - they didn't want to win. The question is will they now be satisfied and pull their heads in, or will they work to destabilise another moderate?
If there's one good (?) thing to come out of the week's media focus it is that the Hayne Royal Commission wasn't on the front pages.
Meanwhile AMP's appointment gets out thumbs up - experience and ability, and hopefully prepared to make the changes necessary - or enforced by the HRC and future legislation. Hedge Clippings has previously been critical of both AMP and David Murray, but this is a good and smart move. However, there's still a long, long way to go.
24 Aug 2018 - Performance Report: Frazis Fund
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months (pa) | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The manager follows a disciplined, process-driven, and thematic strategy focused on five core investment strategies: 1) Growth stocks that are really value stocks; 2) Traditional deep value; 3) The life sciences; 4) Miners and drillers expanding production into supply deficits; 5) Global special situations; The manager uses a macro overlay to manage exposure, hedging in three ways: 1) Direct shorts 2) Upside exposure to the VIX index 3) Index optionality |
| Manager Comments | The Frazis Fund returned +2.04% in its first month, with top contributors including Afterpay (+1.9%), Cooper Energy (+0.9%) and HCA Healthcare (+0.7%), as well as the Fund's equity shorts (+1.9%). The Fund is 100% invested in the Manager's favourite themes, while hedging in three ways: direct shorts, VIX upside and index hedges. Read the monthly report for the Manager's reasoning behind this hedging strategy. |
| More Information |
24 Aug 2018 - Performance Report: Bennelong Kardinia Absolute Return Fund
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 | The Fund fell -0.68% in July, with resources stocks weighing on performance. A short position in a consumer staples stock was the largest individual contributor (+49bp contribution), driven by a significant profit downgrade caused by higher input costs and strong competition. Other positive contributors included ANZ (+37bp), Qantas (+23bp), CYBG (+20bp) and Aristocrat Leisure (+14bp). The individual stock short book made a positive contribution, with shorts in consumer stocks driving most of the performance. Detractors included Independence group (-40bp contribution), a short position in Share Price Index Futures (-31bp), Nine Entertainment (-27bp), Emeco (-19bp) and AGL (-14bp). Net equity market exposure (including derivatives) was increased from 40.3% to 67.3% (86.8% long and 19.5% short), with the addition of stock including NAB, Tabcorp, Viva Energy, Oz Minerals and Reliance Worldwide, and a reduction in the Fund's short position in Share Price Index Futures contracts. |
| More Information |
