21 Dec 2018 - Performance Report: Glenmore Australian Equities Fund

By: Australian Fund Monitors

Report Date	21 December 2018
Manager	Glenmore Asset Management Pty Ltd
Fund Name	Glenmore Australian Equities Fund
Strategy	Equity Long
Latest Return Date	November 2018
Latest Return	-2.06%
Latest 6 Months	-0.60%
Latest 12 Months	8.20%
Latest 24 Months
Annualised Since Inception	21.64%
Inception Date	06 June 2017
FUM (millions)	AU$5.2
Fund Overview	The Fund is index unaware with an absolute return focus. The Fund seeks to invest in companies generating strong cashflows at attractive valuations. In absence of attractive investments being identified, the fund will hold cash. Glenmore will use a fundamental, research driven investment process to identify undervalued securities. The main driver of identifying potential investments will be bottom up company analysis, however macro-economic conditions will be considered as part of the investment thesis for each stock.
Manager Comments	The Glenmore Australian Equities Fund has returned +8.20% over the past 12 months versus the ASX200 Accumulation Index's -0.96%. Since inception in June 2017, the Fund has returned +21.64% p.a. versus the Index's +3.70%. The Fund's Sharpe and Sortino ratios, 1.50 and 2.34 respectively, by contrast with the Index's Sharpe of 0.29 and Sortino of 0.34, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst ensuring investors' capital is protected. The Fund's up-capture and down-capture ratios since inception, +200.74% and +48.39% respectively, indicate that, on average, the Fund has achieved double the Index's return in rising markets and less than half the Index's return in falling markets. The Fund returned -2.06% in November, outperforming the ASX200 Accumulation Index by +0.15%. Key contributors included Stanmore Coal (+22%) and Jumbo Interactive (+14.6%). Detractors included Emeco Holdings (-9.1%), as well as Atlas Arteria, Bravura Solutions, Worley Parsons, Pinnacle Investment Management and Mastermyne. Glenmore's view is that the recent decline in equity markets has been more of a valuation-based correction, driven by a need for valuation metrics to move back to more reasonable levels. In Australia, they identify falling house prices and a potential change of federal government as emerging headwinds, however, Glenmore strongly believe that the domestic economy is still sufficiently healthy that quality businesses can continue to thrive and grow earnings through the cycle.
More Information	Fund Profile Manager's Report

Fund Monitors Pty Ltd

21 Dec 2018 - Performance Report: Glenmore Australian Equities Fund