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Performance Report: Bennelong Concentrated Australian Equities Fund
2 Oct 2019 - Australian Fund Monitors
The Bennelong Concentrated Australian Equities Fund rose +1.23% in August, outperforming the ASX200 Accumulation Index by +3.59% and taking annualised performance since inception in January 2009 to +16.40% versus the Index's +10.91%.
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2 Oct 2019 - Performance Report: Bennelong Concentrated Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The overriding objective of the Concentrated Australian Equities Fund is to seek investment opportunities which are under-appreciated and have the potential to deliver positive earnings, while satisfying our stringent quality criteria. Bennelong's investment process combines bottom-up fundamental analysis together with proprietary investment tools which are used to build and maintain high quality portfolios that are risk aware. The portfolio typically consists of 20-35 high-conviction stocks from the S&P/ASX 300 Index. The Fund may invest in securities listed on other exchanges where such securities relate to ASX-listed securities. Derivative instruments are mainly used to replicate underlying positions and hedge market and company specific risks. |
| Manager Comments | As at the end of August, the Fund's weightings had been increased in the Health Care, Consumer Staples, IT, Industrials, Communication and Financials sectors, and decreased in the Discretionary, REIT's and Materials sectors. Top holdings included CSL, Reliance Worldwide and Aristocrat Leisure. |
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Performance Report: DS Capital Growth Fund
1 Oct 2019 - Australian Fund Monitors
The DS Capital Growth Fund outperformed the ASX200 Accumulation Index by +1.74% in August, returning -0.62% against the Index's -2.36%. Since inception in January 2013, the Fund has returned +15.07% p.a. with an annualised volatility of only 7.20%.
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1 Oct 2019 - Performance Report: DS Capital Growth Fund
By: Australian Fund Monitors
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| Fund Overview | The investment team looks for industrial businesses that are simple to understand; they generally avoid large caps, pure mining, biotech and start-ups. They also look for: - Access to management; - Businesses with a competitive edge; - Profitable companies with good margins, organic growth prospects, strong market position and a track record of healthy dividend growth; - Sectors with structural advantage and barriers to entry; - 15% p.a. pre-tax compound return on each holding; and - A history of stable and predictable cash flows that DS Capital can understand and value. |
| Manager Comments | The Fund's Sharpe and Sortino ratios for performance since inception, 1.73 and 3.58 respectively, by contrast with the Index's Sharpe of 0.79 and Sortino of 1.17, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst avoiding the market's downside volatility. The Fund's down-capture ratio of 22.00%, average negative return of -1.25% versus the Index's -2.51% and maximum drawdown since inception of -8.80% versus the Index's maximum drawdown of -13.73% over the same period collectively demonstrate its capacity to outperform and thus protect investor capital in falling markets. The Fund aims to deliver an average return of at least 10% p.a. through the economic cycle, with a focus on capital preservation. The Fund comprises a concentrated portfolio of small and mid-cap investments selected through a process of quantitative and qualitative analysis. |
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Performance Report: Loftus Peak Global Disruption Fund
30 Sep 2019 - Australian Fund Monitors
The Loftus Peak Global Disruption Fund outperformed AFM's Global Equity Index by +0.74%, returning -0.66% against the Index's -1.40%. Since inception in November 2016, the Fund has returned +21.57% p.a. versus the Index's annualised return...
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30 Sep 2019 - Performance Report: Loftus Peak Global Disruption Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | Top contributors in August included Qualcomm, Roku and Microsoft. Detractors included Netflix, Xilinx and Tencent. Loftus Peak noted the high volatility in August led to some negative moves in companies with exposure to China's Huawei. They believe the choppy market will ultimately calm with underlying growth in the Fund's core positions coming to the fore. The Australian dollar depreciated -2.3% over the month against the US dollar, which meant the value of the Fund's US dollar positions increased. As at 31 August 2019, the Fund carried a foreign currency exposure of 95%. |
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Performance Report: Touchstone Index Unaware Fund
30 Sep 2019 - Australian Fund Monitors
The Touchstone Index Unaware Fund outperformed the ASX200 Accumulation Index by +0.44% in August, returning -1.92%. Since inception in April 2016, the Fund has returned +11.37% p.a. with an annualised volatility of 9.87%.
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30 Sep 2019 - Performance Report: Touchstone Index Unaware Fund
By: Australian Fund Monitors
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| Fund Overview | The portfolio is constructed using Touchstone's Quality-At-a-Reasonable-Price ('QARP') investment process. QARP is a fundamental bottom-up process, however, it also incorporates a top-down risk management framework designed to successfully manage the portfolio during varying market conditions and economic cycles. The Touchstone Fund is concentrated, typically holding between 15-20 stocks. No individual stock will ever make up more than 10% of the portfolio at any one time. The Investment Manager may temporarily exceed the exposure limits of the Fund occasionally, particularly during periods of market volatility, to allow for holdings in excess of this 10% limit where the increase in value of the underlying security is due to market movement. The Fund may also hold between 0-50% of the portfolio in cash. The Fund has a high level of associated risk, therefore, the minimum suggested investment time-frame is 5 years. |
| Manager Comments | As at the end of August, the Fund held 22 stocks with a median position size of 4.6%. The portfolio's holdings had an average forward year price/earnings of 16.1, forward year EPS growth of 4.0%, forward year tangible ROE of 22.5% and forward year dividend yield of 4.3%. The Fund's cash weighting left unchanged from the previous month at 5.1%. The Fund primarily seeks to select stocks from the ASX300 Index, typically holding between 10-30 stocks. The Fund seeks to invest in reasonably priced, good quality companies with a significant share of expected returns coming from sustainable dividends. |
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Performance Report: Bennelong Twenty20 Australian Equities Fund
27 Sep 2019 - Australian Fund Monitors
The Bennelong Twenty20 Australian Equities Fund outperformed the ASX200 Accumulation Index by +1.92% in August, returning -0.44% versus the Index's -2.36%. Since inception in November 2009, the Fund has returned +10.41% p.a. versus the...
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27 Sep 2019 - Performance Report: Bennelong Twenty20 Australian Equities Fund
By: Australian Fund Monitors
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| 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 | The Fund's top holdings as at the end of August included Commonwealth Bank, CSL, BHP Billiton, Westpac Banking, Goodman, Aristocrat Leisure, ANZ and NAB. As at the end of the month, the Fund's holdings had been increased in the Discretionary, Health Care, Consumer Staples, IT and Industrials sectors, and decreased in the REIT's, Communication, Energy, Materials and Financials sectors. |
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Fund Review: Insync Global Capital Aware Fund August 2019
24 Sep 2019 - Australian Fund Monitors
Latest Fund Review on Insync Global Capital Aware Fund is now available. The Global Capital Aware Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend...
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24 Sep 2019 - Fund Review: Insync Global Capital Aware Fund August 2019
By: Australian Fund Monitors
AFM Fund Review - August 2019 (pdf format)
INSYNC GLOBAL CAPITAL AWARE FUND
Attached is our most recently updated Fund Review on the Insync Global Capital Aware Fund.
We would like to highlight the following:
- The Global Capital Aware Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - August 2019 (pdf format)
Performance Report: Wheelhouse Global Equity Income Fund
23 Sep 2019 - Australian Fund Monitors
The Wheelhouse Global Equity Income Fund returned +2.07% in August, outperforming AFM's Global Equity Index by +3.47% and taking annualised performance since inception in May 2017 to +9.63% with an annualised volatility of 7.54%.
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23 Sep 2019 - Performance Report: Wheelhouse Global Equity Income Fund
By: Australian Fund Monitors
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| Fund Overview | To pursue this objective, the Investment Manager is responsible for actively managing, monitoring and tailoring the integration of derivative contracts alongside the Morningstar Portfolio, while taking into account changing market and stock specific conditions. The Investment Manager is responsible for maximising the structural benefits of short option positions (lowered Volatility, improved capital preservation, higher income generation), whilst mitigating, minimising and monitoring the structural negatives (variable market exposure, option expiries, collateral management and asymmetric return profiles). In addition, long derivatives positions are also used to enhance the capital preservation characteristics of the Fund in more extreme market movements. As a consequence of the integration of Derivatives, returns of the strategy, intra-cycle, are expected to vary from the underlying Morningstar Portfolio due to these characteristics. For example in weak markets, or in extended sideways markets, the Fund is expected to outperform relative to the Morningstar Portfolio. Conversely in strong positive markets the Fund is expected to underperform. |
| Manager Comments | The Fund's return in August comprised -0.22% from the portfolio (in USD) and +2.29% from the weakening of the Australian dollar against the US dollar. Top contributors included Amgen, KLA Corp, EssilorLuxottica, Medtronic and Western Union. Detractors included Union Pacific, Cheniere Energy, Emerson Electric, Pfizer and Bank of America. The Fund is designed to deliver equity returns with higher income generation and active downside protection. The strategy's high income generation and active tail risk program are designed to lower risk and deliver equity returns with a smoother, more retiree-friendly return profile. As a result, Wheelhouse intend for returns to add relative value in weak and low-growth markets, as has happened in August, and to drag in more positive markets. |
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Performance Report: Insync Global Quality Equity Fund
23 Sep 2019 - Australian Fund Monitors
The Insync Global Quality Equity Fund rose +2.30% in August, outperforming AFM's Global Equity Index by +3.7%. Since inception in October 2009, the Fund has returned +13.99% p.a. versus the Index's +11.24%.
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23 Sep 2019 - Performance Report: Insync Global Quality Equity Fund
By: Australian Fund Monitors
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| Fund Overview | Insync employs four simple screens to narrow the universe of over 40,000 listed companies globally to a focus group of high-quality companies that it believes have the potential to consistently grow their profits and dividends. These screens are: size of the company, balance sheet performance, valuation and dividend quality. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio typically of 15-30 stocks. The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, derivatives (for example futures, options and swaps), currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled investment vehicles. |
| Manager Comments | The Fund's Sharpe and Sortino ratios for performance since inception, 1.09 and 2.15 respectively, versus the Index's Sharpe of 0.85 and Sortino of 1.42, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst avoiding the market's downside volatility. This is also supported by the Fund's down-capture ratio of 59.72%, indicating that, on average, the Fund has outperforming during months the market has fallen. Unlike Insync's Global Capital Aware Fund, the Global Quality Equity Fund has no downside protection. Insync noted stock selection was the key contributor to the Fund's strong outperformance. Positive contributors included Zoetis, Intuit, S&P Global and Booking Holdings Inc. Detractors included Facebook, Amadeus IT Group, Adidas and Tencent Holdings. The Fund continues to have no currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside. Insync's view is that current market conditions continue to reflect the trend in place since the GFC of low growth and low inflation. |
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Feature article: Equity income in retirement products
20 Sep 2019 - Gyrostat Capital Management
Falling interest rates are highlighting the limited range of investments that deliver a regular and stable income stream with capital security.
Article contents:
1. A framework for desired product features -...
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20 Sep 2019 - Feature article: Equity income in retirement products
By: Gyrostat Capital Management
Performance Report: Harvest Lane Asset Management Absolute Return Fund
20 Sep 2019 - Australian Fund Monitors
The Harvest Lane Absolute Return Fund weathered August's equity market volatility well, remaining remarkably flat over a month when the fell -2.36% to record a loss of just 0.17% by month end.
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20 Sep 2019 - Performance Report: Harvest Lane Asset Management Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | Harvest Lane Asset Management employs a conservative, highly selective and opportunistic approach. Using their extensive knowledge in the area of corporate actions, the Fund's managers assess each opportunity based on a thoughtful, diligent and disciplined process and invest where they believe an opportunity exists to generate above average investment returns relative to the risk incurred. Investment decisions are made without speculating on market direction, with rigid risk controls enforced to minimise the risk of large losses of investor capital. The Fund invests in securities that are predominantly listed on the ASX and occasionally in those listed in other developed markets. Equity swaps and other derivatives may be used at times to reduce risk. The fund typically holds high levels of cash in the absence of sufficiently attractive opportunities to deploy investor capital in accordance with its objectives. |
| Manager Comments | Harvest Lane weathered August's volatile equity markets, hit as reporting season and macroeconomic factors combined to see the ASX300 down over 5% at one point. In spite of this the fund's performance managed to remain flat throughout the month, finally preserving capital with a return of just -0.17%. The Manager noted that this could well be a prelude to what happens when the broader equity market runs into difficulty . Harvest Lane reported they were seeing a large amount of deal flow, and were enjoying the benefits of being somewhat spoilt for choice. The fund composition changed markedly from the start of the month, with ten new positions added, and the manager expects the current deals on hand to support strong performance in the months ahead.
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