Performance Report: Bennelong Twenty20 Australian Equities Fund

22 Jan 2018 - Australian Fund Monitors

The Bennelong Twenty20 Australian Equities Fund returned +2.95% in December, taking 12-month performance to +16.33%.

22 Jan 2018 - Performance Report: Bennelong Twenty20 Australian Equities Fund

By: Australian Fund Monitors

Report Date	22 January 2018
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Twenty20 Australian Equities Fund
Strategy	Equity Long
Latest Return Date	December 2017
Latest Return	2.95%
Latest 6 Months	10.69%
Latest 12 Months	16.33%
Latest 24 Months	24.95%
Annualised Since Inception	10.86%
Inception Date	02 December 2015
FUM (millions)	AU$1.84
Fund Overview	The Fund aims to outperform the return of the S&P/ASX 300 Accumulation Index by 2% per annum after fees on a rolling three-year basis by combining indexed positions in the S&P/ASX 20 stocks with an actively managed exposure in primarily Australian stocks that are outside the S&P/ASX 20. 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 Bennelong Twenty20 Australian Equities Fund returned +2.95% in December, taking 12-month performance to +16.33% with a volatility of 6.08%. By contrast, the ASX200 Accumulation Index has returned +11.80% with a volatility of 6.30% over the same period. The Fund's up-capture and down-capture ratios since inception show that, on average, the Fund has outperformed in both rising and falling markets. Over the quarter the Fund outperformed the Index by +1.17%. Top contributors were BWX Limited, Experience Co, Costa Group and Aristocrat Leisure. Detractors included Reliance Worldwide and Flight Centre as well as the Fund's underweight position in the Resources and Energy sectors. Bennelong believe investors have become less cautious since the Fund's last quarterly report, pointing specifically to the recent demand for lithium stocks, disruptive technology names, pre-revenue concept stocks and bitcoin. They believe in these cases value seems to be largely in the eye of the beholder rather than any observable fundamentals. Bennelong see the greatest risk to equities at present to be a rise in interest rates and tightening of liquidity. Their view is that rates may lift, but not dramatically so.
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Performance Report: Allard Investment Fund

19 Jan 2018 - Australian Fund Monitors

The Allard Investment Fund fell -1.42% in December. The Fund has returned +12.16% over the past 12 months versus the ASX200 Accumulation Index's +11.80%.

19 Jan 2018 - Performance Report: Allard Investment Fund

By: Australian Fund Monitors

Report Date	19 January 2018
Manager	Allard Partners Management Limited
Fund Name	Allard Investment Fund
Strategy	Equity Long
Latest Return Date	December 2017
Latest Return	-1.42%
Latest 6 Months	5.21%
Latest 12 Months	12.16%
Latest 24 Months	22.53%
Annualised Since Inception	9.23%
Inception Date	01 July 2003
FUM (millions)	AU$161
Fund Overview	Allard Partners is an absolute return, long only equity investor with a single mission to provide its clients with a net compound rate of return on their capital of 15% per annum over the long term. With offices in Hong Kong, India and Australia, Allard invests in quoted companies in the Asia Pacific region. Allard's investment approach has remained consistent throughout their history: That is to invest prudently but proactively in well-managed businesses that achieve superior returns on capital in industries with long-term growth potential. The Manager uses both broad top-down guidance and detailed bottom-up analysis to identify suitable markets, industries and companies. Although long only investors, a critical factor in their strategy and performance is the ability to hold cash when they cannot find companies that meet their criteria or are at a sufficient discount to their valuations.
Manager Comments	The Allard Investment Fund fell -1.42% in December. The Fund has returned +12.16% over the past 12 months versus the ASX200 Accumulation Index's +11.80%. The Fund's 12-month up-capture and down-capture ratios indicate that, on average, the Fund has achieved positive performance in rising markets and significantly outperformed when the market has fallen. The Fund's latest report shows that holdings in Cash and Fixed Income have increased to 22.2% from 20.7% as at the end of November. The portfolios weightings were decreased in the Industrials, IT, Health Care, Utilities, Telco, Real Estate and Financial sectors while the Fund increased its Consumer Discretionary sector weighting. The portfolio remains highly concentrated, with 53% of NAV held in the Fund's top 10 stocks. Geographically, Hong Kong and China make up most of the portfolio (44.9%), followed by Singapore (13.0%), India (10.8%), Korea (4.9%), Indonesia (2.1%), Australia (1.1%) and Vietnam (1.0%).
More Information	Fund Profile Manager's Report

Performance Report: ARCO Absolute Trust (formerly Optimal)

18 Jan 2018 - Australian Fund Monitors

The ARCO Absolute Trust returned + 1.76% in December, taking 12-month performance to +8.47% and marking 10 consecutive years of positive performance.

18 Jan 2018 - Performance Report: ARCO Absolute Trust (formerly Optimal)

By: Australian Fund Monitors

Report Date	18 January 2018
Manager	ARCO Investment Management
Fund Name	ARCO Absolute Trust (formerly Optimal)
Strategy	Equity Long/Short
Latest Return Date	December 2017
Latest Return	1.76%
Latest 6 Months	7.33%
Latest 12 Months	8.47%
Latest 24 Months	13.61%
Annualised Since Inception	8.53%
Inception Date	15 September 2008
FUM (millions)	AU$138
Fund Overview	The investment objective of the Fund is to seek to achieve above average returns in absolute terms, through investing in listed securities in Australia and New Zealand, subject to the overarching requirement of capital preservation. Investments will predominantly be in equity securities but may include fixed interest instruments, money market instruments, derivatives and foreign exchange contracts. The Fund's bias is likely to be net long under normal market conditions, with the core strategy being to construct a portfolio of listed equity securities priced at levels that do not adequately reflect their underlying value. The Fund will seek to boost returns and limit potential market downside by selective short selling of individual stocks which are priced at levels that are viewed as materially above their underlying value. The Fund will also use certain trading strategies both within its core portfolio (through rebalancing stock weights and overall market exposure in response to price movements) and in certain other situations (typically of a shorter-duration and/or opportunistic nature) with the objective of further increasing returns. *Formerly the Optimal Australia Absolute Trust
Manager Comments	The ARCO Absolute Trust returned +1.76% in December, taking 12-month performance to +8.47% and marking 10 consecutive years of positive performance since inception in September 2008. The Fund has returned +8.53% p.a. with a volatility of 3.74% since inception. By contrast, the ASX200 Accumulation Index has returned +6.46% p.a. with a volatility of 13.66% over the same period. The Fund's Sharpe and Sortino ratios are 1.39 and 3.01 respectively, superior to the Index's Sharpe ratio of 0.30 and Sortino ratio of 0.33. The portfolio's long positions dominated December's performance result. The Fund's resources exposure drove solid returns, with contributions from BHP, LYC, ORE and TAW. WFD and TLS also contributed positively. AHG and QUB were modest negative performers in the long portfolio, however, ARCO retain their conviction in these stocks with a positive outlook. The Fund's short portfolio contributed negatively overall, with select insurance and industrial shorts being the principal detractors. ARCO noted that they retain their cautious view of the local banking sector which they expect to continue to struggle in 2018 with low earning growth, adverse credit quality, restructuring and political risks representing headwinds blowing strongly in the face of still attractive dividend yields.
More Information	Fund Profile Manager's Report AFM Research Reports

Bennelong Twenty20 Australian Equities Fund December 2017

17 Jan 2018 - Australian Fund Monitors

Latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available.

Fund Review: ARCO Absolute Trust December 2017

16 Jan 2018 - Australian Fund Monitors

Read the latest Fund Review on ARCO Absolute Trust.

Fund Review: Bennelong Long Short Equity Fund December 2017

15 Jan 2018 - Australian Fund Monitors

Latest Fund Review for the Bennelong Long Short Equity Fund is now available.

Performance Report: Cyan C3G Fund

12 Jan 2018 - Australian Fund Monitors

The Cyan C3G Fund returned +4.24% in December, taking 12-month performance to +33.71% and annualised performance since inception to +29.03%.

12 Jan 2018 - Performance Report: Cyan C3G Fund

By: Australian Fund Monitors

Report Date	12 January 2018
Manager	Cyan Investment Management
Fund Name	Cyan C3G Fund
Strategy	Equity Long
Latest Return Date	December 2017
Latest Return	4.24%
Latest 6 Months	23.89%
Latest 12 Months	33.71%
Latest 24 Months	53.49%
Annualised Since Inception	29.03%
Inception Date	24 July 2014
FUM (millions)	AU$33
Fund Overview	The Cyan C3G Fund operates as a wholesale unregistered managed investment scheme under a unit trust structure. The Fund primarily invests in ASX listed companies outside the ASX 100 and typically holds between 15-35 stocks. 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 returned +4.24% in December, taking annualised performance since inception to +29.03% versus the ASX200 Accumulation Index's annualised return of +6.96%. The Fund's Sharpe and Sortino ratios since inception are 2.30 and 7.34 respectively, superior to the Index's Sharpe ratio of 0.45 and Sortino ratio of 0.62 for performance over the same period. The Fund's up-capture and down-capture ratios since inception indicate that, on average, the Fund has outperformed in both rising and falling markets. Positive contributors included Afterpay Touch (+20%), Bluesky Alternative (+13%), Kelly Partners (+9%) and Motorcycle Holdings (+7%). Positions in Longtable (LON) and Credible (CRD) also contributed positively. Top contributors over 2017 included Afterpay Touch (+136%), Bluesky (+108%), PSI Insurance (+63%), Experience Co. (+40%), Kelly Partners (+74%), Moelis (+62%), Motorcycle Holdings (+22%) and Family Zone (+86%). Cyan noted the Fund remains well diversified with 26 individual holdings and no position accounting for more than 7% of the total Fund. The weighted average market cap is approximately $300m and all have met or exceeded recent expectations for business performance. In addition, they all contain what Cyan believe to be positive business catalysts over the short to medium term. The Fund continues to hold a significant defensive cash balance (currently over 35%) which Cyan will look to carefully deploy as opportunities arise.
More Information	Fund Profile Manager's Report

Performance Report: Paragon Australian Long Short Fund

11 Jan 2018 - Australian Fund Monitors

The Paragon Australian Long Short Fund rose +4.69% in December, taking 12-month performance to +44.06% versus the ASX200 Accumulation Index's +11.80%.

11 Jan 2018 - Performance Report: Paragon Australian Long Short Fund

By: Australian Fund Monitors

Report Date	11 January 2018
Manager	Paragon Funds Management
Fund Name	Paragon Australian Long Short Fund
Strategy	Equity Long/Short
Latest Return Date	December 2017
Latest Return	4.69%
Latest 6 Months	53.01%
Latest 12 Months	44.06%
Latest 24 Months	53.88%
Annualised Since Inception	20.58%
Inception Date	28 February 2013
FUM (millions)	AU$84.4
Fund Overview	The Paragon Fund is a concentrated long/short Australian listed equities product that is fundamentally driven with a focus on the industrial and resource sectors. Paragon's unique investment style, comprising thematic led idea generation followed with an in depth research effort, results in a concentrated portfolio of high conviction stocks. Conviction in bottom up analysis drives the investment case and ultimate position sizing: * Both quantitative analysis - probability weighted high/low/base case valuations - and qualitative analysis - company meetings, assessing management, the business model, balance sheet strength and likely direction of returns - collectively form Paragon's overall view for each investment case. * Paragon will then allocate weighting to each investment opportunity based on a risk/reward profile, capped to defined investment parameters by market cap, which are continually monitored as part of Paragon's overall risk management framework. The objective of the Paragon Fund is to produce absolute returns in excess of 10% p.a. over a 3-5 year time horizon with a low correlation to the Australian equities market.
Manager Comments	The Paragon Australian Long Short Fund rose +4.69% in December, taking 12-month performance to +44.06% versus the ASX200 Accumulation Index's +11.80%. Since inception in March 2013, the Fund has returned +20.58% per annum, outperforming the Index by +12.28% per annum. The Fund's Sharpe and Sortino ratios are 1.06 and 1.93 respectively, superior to the Index's Sharpe ratio of 0.56 and Sortino ratio of 0.80 for performance over the same period. Performance in December was driven by contributions from long holdings in the Fund's electric vehicle theme, along with Updater, Aristocrat, Dacian Gold and Global Energy and short in Qantas, offset by declines in European Cobalt and New Century Zinc. At the end of the month the Fund had 39 long and 15 short positions. Paragon noted they remain constructive on markets, particularly within their areas of focus - Resources and Industrials, both exhibiting medium to long term tailwinds across the Fund's key thematics. In terms of the Fund's Resources thematics, Paragon noted Lithium and Cobalt continue to boast strong fundamentals. Paragon's proprietary Lithium Supply & Demand model shows industry deficits and strong Lithium prices for at least CY18 and CY19. With regards to the Industrials thematics, Paragon believe the strength in the emerging consumer will continue to drive ongoing growth in China facing industries. Paragon also believe their Medical Innovation and Mobile Internet thematics are set to go from strength to strength.
More Information	Fund Profile Manager's Report

Fund Review: Insync Global Titans Fund November 2017

10 Jan 2018 - Australian Fund Monitors

Latest Fund Review on Insync Global Titans Fund is now available.

Performance Report: Bennelong Long Short Equity Fund

9 Jan 2018 - Australian Fund Monitors

The Bennelong Long Short Equity Fund returned +2.90% in December, taking annualised performance since inception to +16.50% per annum.

9 Jan 2018 - Performance Report: Bennelong Long Short Equity Fund

By: Australian Fund Monitors

Report Date	09 January 2018
Manager	Bennelong Long Short Equity Management, a Bennelong boutique
Fund Name	Bennelong Long Short Equity Fund
Strategy	Equity Market Neutral
Latest Return Date	December 2017
Latest Return	2.90%
Latest 6 Months	2.33%
Latest 12 Months	22.03%
Latest 24 Months	6.08%
Annualised Since Inception	16.50%
Inception Date	01 January 2003
FUM (millions)	AU$417.2
Fund Overview	Bennelong Long Short Equity Management applies a qualitative stock selection process to construct a diversified portfolio of paired securities based on relative value. The Bennelong Long Short Equity Management strategy invests primarily in the S&P/ASX 100 and is dollar neutral at cost. In a typical environment the Fund will hold around 70 stocks comprising 35 pairs. Each pair contains one long and one short position each of which will have been thoroughly researched and are selected from the same market sector. Whilst in an ideal environment each stock's position will make a positive return, it is the relative performance of the pair that is important. As a result the Fund can make positive returns when each stock moves in the same direction provided the long position outperforms the short one in relative terms. However, if neither side of the trade is profitable, strict controls are required to ensure losses are limited. The Fund uses no derivatives and has no currency exposure. The Fund has no hard stop loss limits, instead relying on the small average position size per stock (1.5%) and per pair (3%) to limit exposure. Where practical pairs are always held within the same sector to limit cross sector risk, and positions can be held for months or years. The Bennelong Market Neutral Fund, with same strategy and liquidity is available for retail investors as a Listed Investment Company (LIC) on the ASX.
Manager Comments	The Bennelong Long Short Equity Fund returned +2.90% in December, taking annualised performance since inception to +16.50% per annum. By contrast, the ASX200 Accumulation Index has risen +8.13% per annum over the same period. The Fund's up-capture and down-capture ratios since inception indicate that, on average, the Fund has achieved positive performance in rising markets and significantly outperformed in falling markets. Positive performance was evenly spread across the top eight pairs, with no standout pair. The Fund's top performing pair was Long ALS Limited (ALQ) / short Aurizon (AZJ). The weakest pair was long Qantas (QAN) / short Flight Centre (FLT). Long Harvey Norman (HVN) / short Myer (MYR) / short Metcash (MTS) benefitted from a downgrade to Myer on weak sales preceding Christmas, however that was overshadowed by an upgrade to Metcash following improved interim results. The latest report discusses the Manager's outlook for equity markets. Bennelong highlight the relative size of the stock market to the size of the economy as a measure of valuation, noting that the current ratio of the Wilshire 5000 Index to US nominal GDP is about 130%. They note that this compares to a history of significant variation ranging from 40% during the late 1970's to 140% in the lead up to the late 1990's dot-com bubble.
More Information	Fund Profile Manager's Report

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22 Jan 2018 - Performance Report: Bennelong Twenty20 Australian Equities Fund

19 Jan 2018 - Performance Report: Allard Investment Fund

18 Jan 2018 - Performance Report: ARCO Absolute Trust (formerly Optimal)

17 Jan 2018 - Bennelong Twenty20 Australian Equities Fund December 2017

16 Jan 2018 - Fund Review: ARCO Absolute Trust December 2017

ARCO ABSOLUTE TRUST (formerly Optimal Australia Absolute Trust)

15 Jan 2018 - Fund Review: Bennelong Long Short Equity Fund December 2017

12 Jan 2018 - Performance Report: Cyan C3G Fund

11 Jan 2018 - Performance Report: Paragon Australian Long Short Fund

10 Jan 2018 - Fund Review: Insync Global Titans Fund November 2017

9 Jan 2018 - Performance Report: Bennelong Long Short Equity Fund

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