NEWS
Performance Report: Glenmore Australian Equities Fund
21 Dec 2018 - Australian Fund Monitors
The Glenmore Australian Equities Fund has returned +8.20% over the past 12 months versus the ASX200 Accumulation Index's -0.96%. Since inception in June 2017, the Fund has returned +21.64% p.a. versus the Index's +3.70%.
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21 Dec 2018 - Performance Report: Glenmore Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The main driver of identifying potential investments will be bottom up company analysis, however macro-economic conditions will be considered as part of the investment thesis for each stock. |
| Manager Comments | The Fund returned -2.06% in November, outperforming the ASX200 Accumulation Index by +0.15%. Key contributors included Stanmore Coal (+22%) and Jumbo Interactive (+14.6%). Detractors included Emeco Holdings (-9.1%), as well as Atlas Arteria, Bravura Solutions, Worley Parsons, Pinnacle Investment Management and Mastermyne. Glenmore's view is that the recent decline in equity markets has been more of a valuation-based correction, driven by a need for valuation metrics to move back to more reasonable levels. In Australia, they identify falling house prices and a potential change of federal government as emerging headwinds, however, Glenmore strongly believe that the domestic economy is still sufficiently healthy that quality businesses can continue to thrive and grow earnings through the cycle. |
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Performance Report: Loftus Peak Global Disruption Fund
20 Dec 2018 - Australian Fund Monitors
The Loftus Peak Global Disruption Fund has returned +4.90% over the past 12 months versus AFM's Global Equity Index's +2.92%. Since inception in November 2016, the Fund has returned +20.20% per annum.
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20 Dec 2018 - 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 | Loftus Peak noted November was another volatile month, marked by significant uncertainty as China and the US manoeuvred for position in the trade war, resulting in the Fund delivering -2.50%. Key detractors included Nvidia and Apple. Positive contributors included Alibaba, Tencent, NXPI, Broadcom and Tesla. In addition, Loftus peak noted the Australian dollar appreciated 3.24% over the month against the US dollar which hurt the value of the Fund's US dollar positions. As at 30 November 2018, the Fund carried a foreign currency exposure of 99%. |
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Performance Report: Bennelong Long Short Equity Fund
19 Dec 2018 - Australian Fund Monitors
The Bennelong Long Short Equity Fund has risen +3.33% over the past 12 months versus the ASX200 Accumulation Index's -0.96%. Since inception in February 2002, the Fund has returned +15.51% per annum.
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19 Dec 2018 - Performance Report: 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 | The Fund returned -3.07% in November, with performance impacted by elevated market volatility and macro concerns which overshadowed fundamental company news. Bennelong noted earnings updates provided at AGMs and financial results released during the month led to three profit downgrades in the short book, however, this was offset by two downgrades in the long book. The top pairs were long Orica / short Downer EDI and long Harvey Norman / short Myer/Coca-Cola Amatil. The worst performing pairs included long BlueScope Steel / short Sims Metal, long Origin Energy / short AGL Energy and long ALS Ltd / short Aurizon. |
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Performance Report: NWQ Fiduciary Fund
18 Dec 2018 - Australian Fund Monitors
The NWQ Fiduciary Fund has returned +5.51% per annum with an annualised volatility of only 4.97% since inception in May 2013. The ASX200 Accumulation Index has returned +6.21% p.a. with a volatility of 11.06% over the same period.
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18 Dec 2018 - Performance Report: NWQ Fiduciary Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund aims to produce returns, after management fees and expenses of between 8% to 11% p.a. over rolling five-year periods. Furthermore, the Fund aims to achieve these returns with volatility that is a fraction of the Australian equity market, in order to smooth returns for investors. |
| Manager Comments | The Fund returned -2.22% in November, with bonds providing only modest support (+0.24%). NWQ noted the relative weakness of high-quality growth stocks (favoured by the underlying managers) compared with defensive value stocks continued into November as markets were choppy and driven more by macro issues than company fundamentals. These macro issues included uncertainty around the Fed tightening cycle and the outlook for US interest rates, the issues faced by PM May in the UK on Brexit and the ongoing trade tensions between the US and China. NWQ believe that as markets gain clarity on these issues company fundamentals will once again be the dominant factor driving stock prices. In addition, they noted the Fund is well placed to benefit from such a shift. |
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Performance Report: Cyan C3G Fund
17 Dec 2018 - Australian Fund Monitors
The Cyan C3G Fund has returned +19.37% per annum since inception in August 2014 versus the ASX200 Accumulation Index's +4.78%. This return has been achieved with a similar level of volatility.
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17 Dec 2018 - Performance Report: Cyan C3G Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | Cyan noted the difficult market conditions continued to drag on performance in November, resulting in the Fund retracing -1.9%. The Fund has retained slightly more cash than it did last month which has helped in the bearish environment. Key detractors included Pivotal Systems (-20%) and Motorcycle Holdings (-27%). Positive contributors included Afterpay (+15%), Experience Co (+16%), Freelancer (+30%). Cyan exited their position in Pivotal Systems and entered a new position in Isentia (ISD). |
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Hedge Clippings - 14 December, 2018
14 Dec 2018 - Australian Fund Monitors
Looking back it was a year when the music stopped on a number of fronts - although it had been becoming pretty discordant for some time.
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14 Dec 2018 - Hedge Clippings - 14 December, 2018
By: Australian Fund Monitors
This is our last "Hedge Clippings" for the year. Thank you for your support and feedback over 2018, we hope our various Friday afternoon musings have been to your liking - or at least if not, of interest. We'll be back after the break, but in the meantime would like to take this opportunity of wishing you and your families a Happy Christmas and a Healthy and Prosperous New Year.
Looking back it was a year when the music stopped on a number of fronts - although it had been becoming pretty discordant for some time. It's been a year when geopolitics has been the dominant theme - or themes, with markets and economists trying to work out what's next, and getting the wobbles in the process:
Brexit - David Cameron will be remembered for making an offer he didn't need to, and giving 36% of the UK electorate control over an outcome he didn't want. It was always going to be ugly, but it has turned out to be a disaster where no one is likely to be happy with whatever the eventual outcome holds. What on earth was he thinking? The truth is he probably wasn't, so he neatly sidestepped his responsibility, leaving it to his stoic but hapless successor to sort out the mess he created.
Trump - Where do you start? The Donald seems immune to any kind of advice or what one might call statesmanlike behaviour. He thrives on confrontation and apportioning blame and responsibility for his mistakes to others - aides, Chiefs of Staff, Lawyers - and even the Federal Reserve. He has certainly achieved certain gaols - to what extent they'll be of the own goal variety (or maybe that should be in goal?) remain to be seen.
China - The music hasn't stopped but it is getting louder! The Chinese Communist Party finally seems to be being held to account for wanting to dominate the world's economy, and is not liking the pushback it is receiving from the incumbents.
Australia - A combination of the Hayne Royal Commission, and the revolving door at the Lodge are threatening what's been a record economic run. The HRC has helped to put the skids under an overly heated residential property market - something the Reserve Bank had been trying to do more subtlety for a while. Either way the above combinations - along with the strong chance of a change of government next year - are likely to see consumer confidence erode further, with the risk that the economic record comes to an end.
The music may not have stopped, but the tune will have changed significantly.
Fund Review: Bennelong Kardinia Absolute Return Fund November 2018
13 Dec 2018 - Australian Fund Monitors
The latest Fund Review for the Bennelong Kardinia Absolute Return Fund is now available. The Fund is a long-biased, research driven, active equity long/short strategy which invests in listed ASX companies with track records greater than 10 years.
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13 Dec 2018 - Fund Review: Bennelong Kardinia Absolute Return Fund November 2018
By: Australian Fund Monitors
AFM Fund Review - November 2018 (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 9.31% p.a. with a volatility of 7.14%, compared to the ASX200 Accumulation's return of 5.14% p.a. with a volatility of 13.36%.
- 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 - November 2018 (pdf format)
Fund Review: Bennelong Long Short Equity Fund November 2018
12 Dec 2018 - Australian Fund Monitors
Latest Fund Review for the Bennelong Long Short Equity Fund is now available. The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large-caps from the ASX/S&P100 Index...
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12 Dec 2018 - Fund Review: Bennelong Long Short Equity Fund November 2018
By: Australian Fund Monitors
AFM Fund Review - November 2018 (pdf format)
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 15-years' track record and an annualised returns of over 15.5%.
- The consistent returns across the investment history indicate 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 0.92 and 1.50 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - November 2018 (pdf format)
Bennelong Twenty20 Australian Equities Fund November 2018
11 Dec 2018 - Australian Fund Monitors
The latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available. The Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of ex-20 stocks.
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11 Dec 2018 - Bennelong Twenty20 Australian Equities Fund November 2018
By: Australian Fund Monitors
AFM Fund Review - November 2018 (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 - November 2018 (pdf format)
Fed's Bad Santa
10 Dec 2018 - Geoff Wood, Morphic Asset Management
In our office, we have switched from Secret Santa to Bad Santa. In Bad Santa, each member of the office draws a number from a hat. The lowest number then starts by picking and opening a present from a pile of wrapped presents. The next...
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10 Dec 2018 - Fed's Bad Santa
By: Geoff Wood, Morphic Asset Management
