NEWS

6 Feb 2020 - Trends in Renewable Energy and some thoughts on climate change

6 Feb 2020 - Coronavirus - Worse than you think, but not necessarily bad for stocks

5 Feb 2020 - Retirement Income Review Submission

5 Feb 2020 - New Funds on Fundmonitors.com
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New Funds on Fundmonitors.com |
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| 1851 Emerging Companies Fund | ||||
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| Delft Partners Global Infrastructure Strategy | ||||
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| Chester High Conviction Fund | ||||
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| Smarter Money (Active Cash) Fund (SMAC) | ||||
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| Smarter Money Higher Income Fund (SMHI) | ||||
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| Smarter Money Long Short Credit Fund (LSCF) | ||||
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5 Feb 2020 - Performance Report: Ark Global Fund - Class B AUD Hedged
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| Fund Overview | The investment objective of the Fund is to achieve long-term capital appreciation with low correlation to global equity markets through investment in the Underlying Fund. Fund One is a global macro fund that utilises quantitative research including machine learning techniques and fully automated trading algorithms which will aim to generate positive uncorrelated returns relative to any significant equity benchmark. The traded instruments are either major FX pairs or the most liquid exchange traded stock index, bond, and commodity futures across North America, Europe and Asia Pacific. The algorithm backtests over 10 years of tick data and in order to do so effectively requires machine learning to filter noise and identify meaningful signals, which results in statistically significant prediction of price movements. In production this processing is done in real time and the portfolio reacts to asset movements by rebalancing automatically to the desired risk exposure through the market impact optimised execution logic. Risk management layers built into the algorithm have been developed using the experience the team has gained from their decades in highly liquid fast-moving markets in the proprietary High Frequency Trading world. This allows the system to trade autonomously but safely to all trading opportunities and potential system issues, and to alert the team to any behaviour outside of strictly controlled bounds. The Fund is a 'feeder fund' which indirectly gains exposure to the underlying assets by investing all or substantially all of its assets in the Underlying Fund. The Fund may retain a certain amount of cash from the investment in the Fund for the purpose of payment of costs, fees, hedging and expenses. |
| Manager Comments | The Fund's top performing assets for the month were: S&P/TSX 60 Index (+2.57% of NAV), 10-Year T-Bond (+1.72% of NAV), and AUD/USD (+1.60% of NAV). The worst performing assets were: Platinum (-1.84% of NAV), E-mini S&P 500 (-1.12% of NAV), and 10-Year Government of Canada Bond (-0.96% of NAV). Ark noted the following popular predictions for what 2020 holds in store for investors: no global recession, no rate rises, some rate cuts, steady stock markets (thanks to the rate cuts) and another good year for tech stocks. |
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4 Feb 2020 - Performance Report: Bennelong Concentrated Australian Equities Fund
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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 | The Fund returned +5.51% over the December quarter versus the Index's +0.68%. The main contributor to the quarterly return was the Fund's outsized position in the healthcare sector, and in particular its positions in Fisher & Paykel Healthcare and CSL. The other main contributor to the Fund's relative outperformance was avoiding the banks' underperformance - the Fund owns no banks. There were detractors, however they didn't detract significantly from performance. The largest detractor was Afterpay, which gave back some of the outperformance delivered in previous periods. Bennelong believe the many social, political and economic uncertainties that overshadowed markets in 2019 remain. They expect the ASX to produce reasonable returns over the medium term, albeit with ups and downs along the way. The Fund is selectively invested in a group of high quality growth stocks including names such as CSL and Fisher & Paykel Healthcare. |
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3 Feb 2020 - Performance Report: Datt Capital Absolute Return Fund
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| Fund Overview | Our investment objectives are: 1) To minimise the risk of permanent capital loss 2) Generate a net return of 10% through the economic cycle An unconstrained, concentrated approach focused on superior risk-adjusted returns. The investment strategy: - targets long-term capital growth in a prudent manner, with an emphasis on capital preservation and low volatility in returns - aims to outperform in markets where equities are down - diversifies investments across asset classes and duration to reduce risk while maintaining relatively concentrated exposure to attractive investment opportunities - is an application of the Manager's investment process, that has no institutional constraints and is completely benchmark unaware |
| Manager Comments | During December the Fund evaluated 2 debt deals and invested in 1 new opportunity in commercial real estate. Datt Capital continue to monitor a number of fixed income instruments in the distressed and special situation space. The Fund's equity exposure decreased as the manager decided to exit Lynas. The Fund's current equity exposures are: Afterpay, Adriatic Metals, Alice Queen, Argonaut Resources, Valmec, Whitehaven Coal and Yandal Resources. Datt Capital noted they have a full pipeline of potential investment opportunities which they consider materially undervalued and will carefully consider for inclusion in the portfolio at the appropriate time. |
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3 Feb 2020 - Fund Review: Bennelong Long Short Equity Fund December 2019
BENNELONG LONG SHORT EQUITY FUND
Attached is our most recently updated Fund Review on the Bennelong Long Short Equity Fund.
- The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large-caps from the ASX/S&P100 Index, with over 16-years' track record and an annualised returns of 15.17%.
- The consistent returns across the investment history highlight the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market. The Fund's Sharpe Ratio and Sortino Ratio are 0.94 and 1.55 respectively.
For further details on the Fund, please do not hesitate to contact us.

31 Jan 2020 - Hedge Clippings | 31 January 2020
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31 Jan 2020 - Performance Report: DS Capital Growth Fund
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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 rose +4.43% over the December quarter, outperforming the Index by +3.75%. During November DS Capital visited the UK and found that most businesses were deferring investment decisions due to election and Brexit related uncertainty. Portfolio constituents which made positive announcements during the quarter included Resimac Group, Ooh!Media and Uniti Group. Negative announcements came from McMillan Shakespeare. On the IPO front the Fund realised a profit on a small investment in an infant formula business called Nuchev. The Fund participated in secondary capital raisings for Uniti Group and Zip Co. The Fund has also sold its holdings in Challenger and in Cineworld (UK listed cinema group). DS Capital noted there is a long list of economic and political events that will make headlines in 2020 and influence stock markets to varying degrees. These include Brexit, US elections, trade talks and mid-east tensions. They expect the real influences on investment markets to come from economic fundamentals and corporate profits. |
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