| 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 | Cyan C3G Fund is based on the investment philosophy which can be defined as a comprehensive, clear and considered process focused on delivering growth. These are identified through stringent filter criteria and a rigorous research process. The Manager uses a proprietary stock filter in order to eliminate a large proportion of investments due to both internal characteristics (such as gearing levels or cash flow) and external characteristics (such as exposure to commodity prices or customer concentration). Typically, the Fund looks for businesses that are one or more of: a) under researched, b) fundamentally undervalued, c) have a catalyst for re-rating. The Manager seeks to achieve this investment outcome by actively managing a portfolio of Australian listed securities. When the opportunity to invest in suitable securities cannot be found, the manager may reduce the level of equities exposure and accumulate a defensive cash position. Whilst it is the company's intention, there is no guarantee that any distributions or returns will be declared, or that if declared, the amount of any returns will remain constant or increase over time. The Fund does not invest in derivatives and does not use debt to leverage the Fund's performance. However, companies in which the Fund invests may be leveraged. |
| Manager Comments | The Cyan C3G Fund has returned +20.48% p.a. since inception in August 2014, outperforming the ASX200 Accumulation Index by 12.54% on an annualised basis. The Fund has achieved this return with approximately the same level of volatility as the market. The Fund's Sharpe and Sortino ratios, 1.59 and 3.31 respectively, by contrast with the Index's Sharpe of 0.60 and Sortino of 0.82, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst avoiding the market's downside volatility. The Fund's up-capture ratio for performance since inception of 93.6% and down-capture ratio of 0.1% indicate that, on average, the Fund has captured almost all of the market's upside and none of its downside. The Fund returned -1.64% in October. Cyan noted this weakness was not unexpected given that seven of the Fund's holdings rose more than 30% in September. They reiterated that the reason they didn't sell out completely in September is that they are patient long-term growth investors and have a long-term horizon with respect to valuations. Top contributors during the month included Quickstep and Jaxsta. Key detractors included Alcidion and Oventus. Cyan also exited their position in Afterpay which you can read more about here. In addition, in light of recent trends, Cyan have rotated some funds into more defensive valuation positions such as AMA Group (AMA), McPersons (MCP), RPM Global (RUL) and VitaGroup (VTG). The Fund also participated in 2 capital raisings and 3 new IPO's in October. |
| More Information |
