Monthly Performance Report: April 2023
In April, the Fund rose 7.0% (after fees). This compares to an increase of 1.9% for the S&P/ASX200 and a rise of 2.8% for the Small Ords.
During April there was a significant contribution from a number of our holdings. Our best contributor for the month was Telix (ASX: TLX) which rose by 47%. Other larger holdings that rose included Temple and Webster 17%, Lovisa 10%, Johns Lyng 6% and QBE 5% (ASX: TPW, LOV, JLG and QBE).
Our approach to investing seeks out mispriced companies that will benefit from a step change in earnings due to recurring business situations. This month Telix was a strong example of this.
Telix jumped following disclosure that it had achieved over $100m in quarterly revenue and is now solidly cash flow positive. This is due to the success of its first imaging product in prostate cancer called Illuccix. Although Illuccix was only launched a year ago in the USA it has significant growth still to come in that market. It is yet to launch in any other large market. European approval is likely in the next 12months. In April Telix also held a briefing on its plans for China.
Telix’s second imaging product addresses renal cancer. It will likely be launched next year. It could be around 50% of the size of the opportunity for Illuccix. Telix is conducting a substantial amount of R&D. Several of its programs have a near term catalyst. The most significant of these is the first read out of the Stage 3 Global ProstACT program which is a prostate cancer therapy (rather than imaging).
We are able to justify the current Telix share price based on the Illuccix product alone, with the rest of the portfolio of program representing material blue sky potential.
Consumer Discretionary was the best performing sector in April, rising 6%. During the month RBA rate rises paused and news flow regarding the economy was encouraging; with retail data showing an improvement in sales of household goods and house prices having now risen for two consecutive months since February. This benefited our holdings in retailers, Temple & Webster and Lovisa, neither of which made trading updates during the month.
Over the last month we closed our 2 short positions and now temporarily have no shorts in the portfolio but we continue to evaluate short candidates.
Return Summary Since Inception1(after all fees)
| Since Inception (p.a.) | 10.22% |
| 1 Month | 7.01% |
| 3 Months | 1.29% |
| 6 Months | 2.26% |
| FYTD | 9.97% |
| 1 Year | 3.22% |
| 3 Years | 15.42% |
| 5 Years | 11.61% |
| 7 Years | 7.58% |
1Inception date of Fund is 2 July 2012.
Fund Strategy
The Monash Absolute Investment Fund ARSN 606 855 501 (Fund) seeks to implement the investment strategy by investing in a diversified portfolio of predominantly Australian equities (long and short), with overseas assets expected to average no more than 5% over time.
The investment strategy is Benchmark Unaware and there is no predetermined asset allocation; rather, the Fund only invests when suitable opportunities are identified. As such, asset exposures may vary significantly over time and without notice.
The Fund seeks to only invest in compelling opportunities. To identify these investment ideas, Monash Investors primarily employs fundamental, bottom-up company research and the judgement of its experienced portfolio managers.
Portfolio Analytics Since Inception
| Sharpe Ratio | 0.53 |
| Sortino Ratio | 0.93 |
| Standard Deviation (p.a.) | 16% |
| Positive Months | 60% |
| Maximum Drawdown | -29% |
| Avg Gross Exposure | 91% |
| Avg Net Exposure | 79% |
| Avg Beta | 0.69 |
Monthly Portfolio Metrics
| Outlook Stocks (Long) | 14 Positions: 64% |
| Outlook Stocks (Short) | 0 Positions: 0% |
| Event, Pair and Group (Long) | 5 Positions: 31% |
| Event, Pair and Group (Short) | 1 Positions: 0% |
| Cash | 5% |
| Gross Exposure | 95% |
| Net Exposure | 95% |
Key Fund Information
| FUM | $30m |
|---|---|
| Minimum Investment | $20,000 |
| Management Fee | 1.2813% p.a. |
| Performance Fee | 20.5% above the RBA Cash Rate + 5% with High Water Mark |
| Pricing Frequency | Daily |
| Distributions | Quarterly , targeting 1.50% p.a. of NAV each quarter |
| APIR Code | MON0001AU |
| Morningstar Category | Alternatives Strategies |
For all business development enquiries, please contact
Cameron Harris
P. +61 400 248 435
E. cameron@gsmcapital.com.au
For all investor enquiries, please contact
Apex Fund Services P: 1300 133 451 or by email at registry@apexgroup.com
Monash Absolute Investment Fund Registry Services, GPO Box 4968 , Sydney NSW 2001
For all other enquiries
E. contactus@monashinvestors.com
Cumulative Return Since Inception
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We would welcome you as a co-investor in the Fund.
Important Information This document is prepared and authorised for release by Monash Investors Pty Limited ABN 67 153 180 333, AFSL 417 201 (“Monash Investors”) as authorised representatives of Sanlam Private Wealth Pty Ltd ABN 18 136 960 775, AFSL 337 927 (“Sanlam”) for the provision of general financial product advice in relation to the Monash Absolute Active Trust (Hedge Fund) ARSN 642 280 331 and Monash Absolute Investment Fund ARSN 606 855 501 (“Funds”). Monash Investors is the investment manager of the Funds. The Trust Company (RE Services) Limited ABN 45 003 278 831, AFSL 235 150 (“Perpetual”) is responsible entity of, and issuer of units in the Funds. A Product Disclosure Statement (“PDS”) together with a Target Market Determination (“TMD”), both issued by Perpetual, is available for the Funds at www.monashinvestors.com. You should obtain and consider the PDS and TMD for the Funds before deciding whether to acquire, or continue to hold, an interest in the Funds. The Funds are appropriate for investors with “High” and Very High”” risk and return profiles. A suitable investor for the Funds is prepared to accept high risk in the pursuit of high growth with a medium to long investment timeframe. Investor should refer to the TMD for further information. The information provided is general information only and is not intended to provide you with financial advice, it does not consider your investment objectives, financial situation or particular needs. You should consider your own investment objectives, financial situation and particular needs before acting upon any information provided and consider seeking advice from a financial advisor if necessary. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. You should not base an investment decision simply on past performance. Past performance is not a reliable indicator of future performance. Returns are not guaranteed and so the value of an investment may rise or fall. Total returns shown have been calculated using using NAV prices after taking into account all ongoing fees and assuming reinvestment of distribution. No allowance has been made for taxation. Past performance is not a reliable indicator of future performance. Comparisons are provided for information purposes only and are not a direct comparison against benchmarks or indices that have the same characteristics as the Funds. Reference to Target Distributions, is a target return only. There is no guarantee the Funds will meet its investment objective. The payment of a quarterly distribution is a goal of the Funds only and neither Monash Investors or Perpetual provide any representations or warranty (whether express or implied) in relation to the payment of any quarterly cash income. The Funds reserves the discretion to amend its distribution policy.
The rating issued 09/21 APIR MON0001AU is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2021 Lonsec. All rights reserved.
The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned MON0001AU June 2021) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines