| 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 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 Bennelong Kardinia Absolute Return Fund returned -0.86% in February, outperforming the ASX200 Accumulation Index by +6.83% and taking annualised performance since inception in May 2006 to +8.98% with an annualised volatility of 7.12%. By contrast, the Index has returned +6.02% p.a. with an annualised volatility of 13.22% over the same period. The Fund's Sortino ratio of 1.34 versus the Index's 0.26 and down-capture ratio of 43.20% for performance since inception highlight the Fund's capacity to protect investor capital in falling markets. The Fund's focus on avoiding the market's downside is discussed in more detail in the latest report. Key contributors during the month included West African Resources, Imdex, Goodman Group and National Australia Bank. Detractors included James Hardie, BHP, Aristocrat, Rio Tinto and Coles. The Short Book contributed +400 basis points to performance, protecting the portfolio from the market's significant decline. Kardinia reduced the Fund's net equity market exposure from 30.9% to -5.6% (34.2% long and 39.8% short), with the key changes being lower weightings across the board in the Fund's Long Book (particularly James Hardie, Commonwealth Bank, National Australia Bank, Goodman Group, Coles and Macquarie), 7 new short positions and the sale of Santos, Woodside Petroleum, EML Payments, Independence Group, Altium and Bravura Solutions. |
| More Information |
