Uranium - Bulls Get Ready

26 Sep 2019 - Scott Williams - Fiftyone Capital

As uranium bulls, we are getting excited for the last few months of 2019 - which could see the uranium price appreciate materially. We are expecting the spot price of uranium to close the year somewhere between $30 and $35 (current spot...

Feature article: Comprehensive Income Products for Retirement - Treasury...

25 Sep 2019 - Gyrostat Capital Management

The Australian Government Treasury (Treasury) discussion papers on retirement income highlight the increasing focus on a more comprehensive risk assessment of retirement income products. The risk assessment considers the amount...

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...

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%.

23 Sep 2019 - Performance Report: Wheelhouse Global Equity Income Fund

By: Australian Fund Monitors

Report Date	23 September 2019
Manager	Wheelhouse Investment Partners, a Bennelong boutique
Fund Name	Wheelhouse Global Equity Income Fund
Strategy	Equity Income
Latest Return Date	August 2019
Latest Return	2.07%
Latest 6 Months	7.86%
Latest 12 Months	6.83%
Latest 24 Months (pa)	13.57%
Annualised Since Inception	9.63%
Inception Date	26 May 2017
FUM (millions)	AU$15.11
Fund Overview	The strategy of the Fund is based on the Morningstar Developed Markets ex Australia Wide Moat Focus Index ('Morningstar Portfolio'). However, in addition to this, it is designed to deliver returns with lower volatility, improved capital preservation, and higher income generation as a component of total return. 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 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%. By contrast, the Index has returned +12.26% p.a. with an annualised volatility of 10.42% over the same period. The Fund's focus on protecting investor capital in falling markets in highlight by its down-capture ratio of 46.67%. 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.
More Information	Fund Profile Manager's Report

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%.

23 Sep 2019 - Performance Report: Insync Global Quality Equity Fund

By: Australian Fund Monitors

Report Date	23 September 2019
Manager	Insync Fund Managers
Fund Name	Insync Global Quality Equity Fund
Strategy	Equity Long
Latest Return Date	August 2019
Latest Return	2.30%
Latest 6 Months	21.86%
Latest 12 Months	17.37%
Latest 24 Months (pa)	22.24%
Annualised Since Inception	13.99%
Inception Date	01 July 2018
FUM (millions)
Fund Overview	Insync's investment strategy is driven by fundamentals combined with active risk management with the aim of investing in high quality, large cap global companies at attractive prices. Insync looks for companies that can consistently pay rising dividends and earn high returns on invested capital. Insync aims to provide investors with long-term capital growth and some income. 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 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%. 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.
More Information	Fund Profile Manager's Report

Hedge Clippings | 20 September 2019

20 Sep 2019 - Australian Fund Monitors

As we have discussed before, whilst erring on the side of caution, given the current outlook for the bond market it is unlikely that the current equity bull run is likely to end. Interest rates are falling and unlikely to rise any time...

20 Sep 2019 - Hedge Clippings | 20 September 2019

By: Australian Fund Monitors

Hedge Clippings | Friday 20 September, 2019

Aside from anticipation surrounding the start of the RWC which kicks off this evening with Japan* taking on Russia, prior to the Wallabies taking on Fiji tomorrow, there hasn't been much of note this week...

Not much? Boris and Her Majesty the Queen (fresh from being embarrassed by former PM David Cameron's latest gaffe of actually opening up on their private conversations) might disagree, as might the Saudi's oil industry. Then again, the US Fed did drop interest rates by 25 basis points - as expected - and Australian unemployment crept up to 5.3% in August from 5.2% the month before, and 4.9% in February, increasing expectations of a further rate cut when the RBA meets in a couple of weeks. Overseas it was announced that globally negative yielding debt has now reached a peak of US$17 trillion, up from $10 trillion at the start of May.

As we have discussed before, whilst erring on the side of caution, given the current outlook for the bond market it is unlikely that the current equity bull run is likely to end. Interest rates are falling and unlikely to rise any time soon, and there's no sign of wages lead inflation or, if it comes to that, any other kind. Although kindling a fire under inflation that any increase in oil prices might create, it is much more likely to add to the potential of an economic slowdown - which would merely trigger calls for further easings in monetary policy, and fiscal stimulus.

Once again we quote and defer to commentary from Longview Economics and their excellent weekly research, who also agree that in the absence of any macro shocks, this bull market looks set to continue, despite some near term challenges for earnings growth. Added to which, they add, Trump's recent comments about a 'halfway house' type trade deal with China, plus his sacking of his most hawkish adviser, and his suggestion of a middle class tax cut, all point to a president who is increasingly focussing on re-election (and, given how he regards it as his key barometer for success, focussing on getting the stock market up).

*For those interested in tonight's team selections, here's the Japanese line up:

Pity the poor commentators!

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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 -...

Feature article: Sequencing risk for retirees - the consequences of loss 'late...

20 Sep 2019 - Gyrostat Capital Management

Many clients, particularly retirees, are worried about the consequences of another significant market correction. The consensus view is that markets are now 'late cycle'. Most major corrections occur within 8 years, we are now at year 12,...

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.

20 Sep 2019 - Performance Report: Harvest Lane Asset Management Absolute Return Fund

By: Australian Fund Monitors

Report Date	18 September 2019
Manager	Harvest Lane Asset Management
Fund Name	Harvest Lane Asset Management Absolute Return Fund
Strategy	Equity Market Neutral
Latest Return Date	August 2019
Latest Return	-0.17%
Latest 6 Months	-0.04%
Latest 12 Months	6.28%
Latest 24 Months (pa)	10.78%
Annualised Since Inception	8.35%
Inception Date	01 July 2013
FUM (millions)	AU$13.1
Fund Overview	The Fund aims to deliver a return of greater than 10% p.a. after all fees and charges over a 3 year period with low or no correlation to the Australian equity market. By focusing on select takeover and corporate activity the fund aims to achieve this whilst also exhibiting lower than average volatility than the market. 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.
More Information	Fund Profile Manager's Report

Performance Report: Bennelong Emerging Companies Fund

20 Sep 2019 - Australian Fund Monitors

The Bennelong Emerging Companies Fund rose +6.80% in August, outperforming the ASX200 Accumulation Index by +9.16%. Since inception in November 2017, the Fund has returned +36.12% p.a. versus the Index's +10.96%.

20 Sep 2019 - Performance Report: Bennelong Emerging Companies Fund

By: Australian Fund Monitors

Report Date	20 September 2019
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Emerging Companies Fund
Strategy	Equity Long
Latest Return Date	August 2019
Latest Return	6.80%
Latest 6 Months	41.68%
Latest 12 Months	30.21%
Latest 24 Months (pa)
Annualised Since Inception	36.12%
Inception Date	01 November 2017
FUM (millions)	AU$18.05
Fund Overview	The Fund invests in ASX-listed securities of small and micro capitalised companies that are covered by the investment research capabilities of Bennelong Australian Equity Partners ('BAEP'). The Fund may invest in securities expected to be listed on the ASX within 12 months. The Fund may also invest in securities listed, or expected to be listed, on other exchanged where such securities relate to ASX-listed securities
Manager Comments	The Bennelong Emerging Companies Fund rose +6.80% in August, outperforming the ASX200 Accumulation Index by +9.16%. Since inception in November 2017, the Fund has returned +36.12% p.a. versus the Index's +10.96%. As is expected of a fund investing in micro and small caps, this return has been achieved with higher volatility than the market. The Fund's up-capture ratio of +273.13% highlights its capacity to significantly outperform in rising markets. The Fund's top five holdings as at the end of August included Eml Payments, Bwx, Viva Leisure, Prospa and Zip Co. Bennelong noted the portfolio holdings showed good business momentum, strong near-term earnings growth and bright long term outlooks throughout reporting season. They have taken the opportunity to trim or sell out some positions and purchase new stock ideas. The Fund has been sitting with a relatively high cash position recently. Currently, it sits at neatly 20%, but it has been over 10% since May. Bennelong noted this meant less risk and the ability to be opportunistic. They manage the portfolio with a view to appropriately balance out the risks and returns, both of which can be large in the case of micro and small caps.
More Information	Fund Profile Manager's Report

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26 Sep 2019 - Uranium - Bulls Get Ready

25 Sep 2019 - Feature article: Comprehensive Income Products for Retirement - Treasury framework

24 Sep 2019 - Fund Review: Insync Global Capital Aware Fund August 2019

23 Sep 2019 - Performance Report: Wheelhouse Global Equity Income Fund

23 Sep 2019 - Performance Report: Insync Global Quality Equity Fund

20 Sep 2019 - Hedge Clippings | 20 September 2019

20 Sep 2019 - Feature article: Equity income in retirement products

20 Sep 2019 - Feature article: Sequencing risk for retirees - the consequences of loss 'late cycle'

20 Sep 2019 - Performance Report: Harvest Lane Asset Management Absolute Return Fund

20 Sep 2019 - Performance Report: Bennelong Emerging Companies Fund

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