NEWS
Bennelong Long Short Equity Fund
5 May 2017 - Australian Fund Monitors
Bennelong Long Short Equity Fund rose 5.84% for the month of April, outperforming the S&P/ASX 200 Accumulation Index, which returned 1.03%, by +4.81%.
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5 May 2017 - Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | Performance was broad based with a high ratio of profit vs loss making pairs (19 out of 30). The Fund's top three spreads for the month were long Harvey Norman (HVN) / short Meyer (MYR) and Metcash (MTS), long Aristrocrat (ALL) / short Tabcorp (TAH) and long Ramsay Health (RHC) / short Primary (PRY) and Healthscope (HSO). So far this year, unlike the second half of last year, the investment team has been observing performance mainly being driven by stock fundamentals, rather than thematic factors. |
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Insync Global Titans Fund
4 May 2017 - Australian Fund Monitors
Insync Global Titans Fund increased 2.4% in March, outperforming the MSCI All Country World ex-Australia Net Total Return Index ($A), which returned 2%, by +0.4%.
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4 May 2017 - Insync Global Titans 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 of typically 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. At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio. |
| Manager Comments | The performance was driven by positive contributions from the holdings in BAT, Oracle, Unilever, Microsoft and Heineken. The main negative contributors were eBay and Thermo Fisher Scientific. The Fund continues to have no foreign currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside. Over 50% of the Fund is currently protected using the put protection strategy. |
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Pengana Absolute Return Asia Pacific Fund
3 May 2017 - Australian Fund Monitors
Pengana Absolute Return Asia Pacific Fund returned -1.15% for the month of March, compared to Asia Pacific markets which posted a return of 1.3%.
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3 May 2017 - Pengana Absolute Return Asia Pacific Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will usually hold 40 to 80 positions and will be well diversified across the various event strategies. In keeping with the absolute return focus the Manager will eliminate market risk where appropriate by hedging market and foreign currency risks. Since inception the Fund has averaged a net equity market exposure of ~10%. Sizing of an investment position will depend on the expected risk adjusted returns while taking account the liquidity and volatility of the stock. In addition, the maximum potential loss on any one position should be greater than 0.5% of the NAV and the position should not exceed 30% participation of stressed volume assuming a $200m NAV. Other criteria considered are ability to hedge and the availability of pair candidates as well as the average bid-ask size. For M&A strategies average long position is 3 to 5.5% and average short position 2 to 5%. |
| Manager Comments | The M&A sub-strategy posted a positive performance of +0.4%, bringing the total return for the current year to 2.8%. The biggest positive contributor of 0.15% was from the position in Yingde Gases. Within Capital Management, the bulk of the negative performance was due to the short position in Kaisa. After a 2-year trading suspension, the stock resumed trading with an uptick of 60%, forcing the Fund to cover its short position. In the Holding Company strategy, the positions in Jardine Matheson / Jardine Strategic and Wharf / Wheelock also underperformed. During the month, the Fund's net and gross exposures averaged 15.7% and 229.6% respectively. |
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Touchstone Index Unaware Fund
2 May 2017 - Australian Fund Monitors
Touchstone Index Unaware Fund slightly outperformed the market over the month, advancing by +3.38% versus the Index return of +3.32%.
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2 May 2017 - 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 | The Fund benefited from its holding in Star Entertainment (+12.1% mom, +7.4% qoq) which has risen steadily since its interim result in February. QBE Insurance (+7.5% mom, +6.5% qoq) also rallied higher for the month. The main detractor for the month was Trade Me Group (-3.0% mom, -2.4% qoq), which was impacted as its largest shareholder sold down part of its stake in the company. Resmed (-0.8% mom, +8.8% qoq) was also a negative contributor, due to the concerns around continuing production delays for its new mask range. The investment team regards both these companies as attractive investment options and therefore continue to hold them in the portfolio. With the current political risks elevated globally, combined with market uncertainties, the investment team remains focused on downside protection. |
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Fund Review: Bennelong Twenty20 Australian Equities Fund March 2017
1 May 2017 - Australian Fund Monitors
Latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available.
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1 May 2017 - Fund Review: Bennelong Twenty20 Australian Equities Fund March 2017
By: Australian Fund Monitors
AFM Fund Review - March 2017 (pdf format)
BENNELONG TWENTY20 AUSTRALIAN EQUITIES FUND
Attached is our most recently updated Fund Review on the Bennelong Twenty20 Australian Equities Fund.
- The Bennelong Twenty20 Australian Equities Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of stocks outside the Top 20. Construction of the ex-top 20 portfolio is fundamental, bottom-up, core investment style, biased to quality stocks, with a structured risk management approach.
- Mark East, the Fund's Chief Investment Officer, and Keith Kwang, Director of Quantitative Research have over 50 years combined market experience. Bennelong Funds Management (BFM) provides the investment manager, Bennelong Australian Equity Partners (BAEP) with infrastructure, operational, compliance and distribution services.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - March 2017 (pdf format)
MHOR Australian Small Cap Fund
28 Apr 2017 - Australian Fund Monitors
MHOR Small Cap Fund returned +1.57% for the month of March, compared to the Small Ordinaries index which returned +2.66%.
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28 Apr 2017 - MHOR Australian Small Cap Fund
By: Australian Fund Monitors
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| Fund Overview | MHOR looks for investment that exhibit the following set of characteristics: -Opportunity - to take advantage of growth and positive alignment with industry themes and trends. -Quality business - competitively advantaged product or service offering. -Financial flexibility - appropriately resourced to capture its opportunity. -Management - with the vision and capability to bring it all together. -Fundamentally undervalued. MHOR also considers labour standards, environmental, social and ethical considerations when making investment decisions but only to the extent that these factors impact the assessment of risk or return. The minimum suggested investment timeframe is 3-5 years. |
| Manager Comments | The Fund's largest positive contributions came from Spirit Telecom (ST1), NextDC (NXT) and AirXpanders (AXP). While the major detractor was Ellex Medical Lasers (ELX). The portfolio continues to have growth bias and has considerable exposure to stocks that the investment team believes to have attractive undervalued growth opportunities. The team continues to search and find new emerging small cap equity stories with little or no institutional ownership, picking those that have the scope to be discovered by larger small-cap funds has so far served the fund well. |
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Bennelong Twenty20 Australian Equities Fund
28 Apr 2017 - Australian Fund Monitors
Bennelong Twenty20 Australian Equities Fund rose 3.43% for the month of March, slightly outperforming the S&P/ASX-300 Accumulation Index return of 3.28%, by +0.16%
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28 Apr 2017 - 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 | This quarter's performance was due to the large out-performances of Aristocrat, Treasury Wine Estates and BWX. On the other hand, the Fund has a large position in Domino's Pizza Enterprises, which performed poorly. In terms of the active ex-20 sleeve of the portfolio, the investment team continues to remain focused on the company fundamentals, particularly in an environment of macro and political uncertainty, to find high quality, above average growing companies for the portfolio. |
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4D Global Infrastructure Fund
27 Apr 2017 - Australian Fund Monitors
4D Global Infrastructure Fund recorded a net gain of 5.91% for the month of March, outperforming the FTSE infrastructure Index, which returned 3.20%, by 2.71%.
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27 Apr 2017 - 4D Global Infrastructure Fund
By: Australian Fund Monitors
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| Fund Overview | The fund will be managed as a single portfolio of listed global infrastructure securities including regulated utilities in gas, electricity and water, transport infrastructure such as airports, ports, road and rail as well as communication assets such as the towers and satellite sectors. The portfolio is intended to have exposure to both developed and emerging market opportunities, with country risk assessed internally before any investment is considered. The maximum absolute position of an individual stock is 7% of the fund. |
| Manager Comments | The strongest performer for March was OHL Mexico, which was up 25.7% on the revival of take-out rumors with its parent. The UK satellite operator, Inmarsat, was again up 19.5% for the month. The weakest performer was the Brazilian contract generator AES Tiete, on news that hydrology for 2017 was not looking great. The Fund remains overweight Europe and Emerging Markets at the expense of the USA and utilities. The investment team continues to have a positive outlook for global listed infrastructure (GLI) over the medium term, due to a number of powerful macro forces that support the sector. |
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Bennelong Australian Equities Fund
27 Apr 2017 - Australian Fund Monitors
Bennelong Australian Equities Fund returned a positive 3.37% in March, compared to the S&P/ASX-300 Accumulation Index, which returned 3.28%.
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27 Apr 2017 - Bennelong Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The Bennelong Australian Equities Fund seeks quality investment opportunities which are under-appreciated and have the potential to deliver positive earnings. The investment process combines bottom-up fundamental analysis with proprietary investment tools that are used to build and maintain high quality portfolios that are risk aware. The investment team manages an extensive company/industry contact program which helps identify and verify various investment opportunities. The companies within the portfolio are primarily selected from, but not limited to, the S&P/ASX 300 Index. The Fund may invest in securities listed on other exchanges where such securities relate to the ASX-listed securities. The Fund typically holds between 25-60 stocks with a maximum net targeted position of an individual stock of 6%. |
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Fund Review: Bennelong Kardinia Absolute Return Fund March 2017
26 Apr 2017 - Australian Fund Monitors
Latest Fund Review is now available on Bennelong Kardinia Absolute Return Fund, which has an annualised return since inception of 11.09% p.a.
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26 Apr 2017 - Fund Review: Bennelong Kardinia Absolute Return Fund March 2017
By: Australian Fund Monitors
AFM Fund Review - March 2017 (pdf format)
BENNELONG KARDINIA ABSOLUTE RETURN FUND
Attached is our most recently updated Fund Review. You are also able to view the Fund's Profile.
- The Fund is long biased, research driven, active equity long/short strategy investing in listed ASX companies with over ten-year track record.
- The Fund has significantly outperformed the ASX200 Accumulation Index since its inception in May 2006 and also has significantly lower risk KPIs. The Fund has an annualised return of 11.09% p.a. with a volatility of 7.14, compared to the ASX200 Accumulation's return of 5.59% p.a. with a volatility of 13.95%.
- The Fund also has a strong focus on capital protection in negative markets. Portfolio Managers Mark Burgess and Kristiaan Rehder have significant market experience, while Bennelong Funds Management provide infrastructure, operational, compliance and distribution capabilities.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - March 2017 (pdf format)
