NEWS
Totus Alpha Fund
26 Sep 2014 - Australian Fund Monitors
During August the Totus Alpha Fund delivered 2.02% bringing the 12 month performance to 37.96% with a volatility of 15.63%.
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26 Sep 2014 - Totus Alpha Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is a long/short investment fund principally investing in listed entities, commodities, futures and options in Australia and internationally. The Fund is not a market neutral fund and accordingly may switch between net long positions and net short positions. The Fund may use short sales and derivatives. Gearing may be used to enhance returns and the Fund may be geared in excess of 100% of the Fund's Net Asset Value. There is a limit to net exposure of 150%. |
| Manager Comments | The Up and Down Capture ratios are notable at 1.6 and -0.50 respectively. The current market setup is potentially favourable for a nimble long short manager. We have the possibility of QE ending in the USA next month, volatility is so low at present that the risk from here is more than likely to the upside and corporate activity (such as IPO's, placements) is still very strong. with events such as the IPO of Medibank (due to list before xmas) capable of moving the performance needle for a small fund like ours. Top contributors to performance in August were our long positions in McMillan Shakespeare +1.13% & Intueri Education +0.94% (scarce growth). Index Futures positions also contributed +1.00%. Biggest detractors from performance were our long positions in Fortescue Metals -0.76% (deleveraging), Mint Wireless -0.69% (cashless society) & Henderson Group -0.34% (financial services). |
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Fund Review: Microequities Deep Value Microcap Fund August 2014
25 Sep 2014 - Australian Fund Monitors
Latest Fund Review now online, shows 12 month performance result of 25.92% . CPD Points available.
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25 Sep 2014 - Fund Review: Microequities Deep Value Microcap Fund August 2014
By: Australian Fund Monitors
Microequities Deep Value Microcap Fund Review August (pdf format)
MICROEQUITIES DEEP VALUE FUND
Attached is our most recently updated Fund Review on the Microequities Deep Value Fund.
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
We would like to highlight the following aspects of the Fund:
- The Microequities Deep Value Fund has a 5 year track record investing in ASX listed equities. The Fund is a fundamental, research-driven Fund investing in equities with a market cap below $250m. The Fund uses a value philosophy based on the view that microcaps are often under-researched and under-valued.CIO Carlos Gil has over 15 years financial market experience across a broad range of equities.
- The Fund does not short, use derivatives or borrow i.e., it is long only and is concentrated; usually with 15 to 20 companies across industrial sectors.
- Resource stocks are avoided.
If you have any questions in relation to the Fund Review or the CPD points, please do not hesitate to contact us.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Microequities Deep Value Microcap Fund Review August (pdf format)
Pengana Absolute Return Asia Pacific Fund
25 Sep 2014 - Australian Fund Monitors
Pengana Absolute Return Asia Pacific Fund returned 0.60% in August and 7.57% for the year with a volatility of 2.85% and a Sharpe ratio of 1.72.
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25 Sep 2014 - Pengana Absolute Return Asia Pacific Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund seeks to profit from trading securities which are primarily subject to corporate events or from trading-related securities which the Investment Manager believes are mispriced by the market. The Fund invests in securities that are listed on Asian stock markets and other markets where related securities may be listed and in securities which are listed on markets outside of Asia where more than 70% (by assets or earnings) of the underlying business originates from an Asian country. The Fund aims to generate consistently positive returns which have a low correlation to the Asian stock markets. The objective is to generate 10-20% pa with a standard deviation of 6-10% |
| Manager Comments | The Fund finished up 0.6% for the month, while Asian markets (FTSE Asia Pacific Index) fell -0.6%. Investor focus shifted to the impending China 'Through Train' as we observed significant movements in some dual listed structures. The Fund maintained average gross and net exposure of 215.7% and 10.2% respectively during the month. With focus on the 'Through Train', the Fund analysed the movements in the Hong Kong listed holding companies and noted that a contraction of the discounts was very much in swing since early in July. Prior to the Through Train announcement in April, we observed Hong Kong holding companies trading at ~ 35% discounts, which had contracted to ~ 25% by the end of August. The connectivity of the China and Hong Kong exchanges is very much a liquidity event which will present unique trading opportunities. |
| More Information | » View detailed profile of this fund |
Auscap Long Short Australian Equities Fund
24 Sep 2014 - Australian Fund Monitors
Auscap Long Short Australian Equities Fund returned 5.24% during August, a strong out-performance of the equity market return of 0.62%, with a 12 month performance of 44.87% and a volatility of 6.55%.
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24 Sep 2014 - Auscap Long Short Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund focuses on fundamental long and short investments. The Fund may utilise a multi-strategy approach if short term opportunities to increase returns, hedge the portfolio, protect capital or minimise volatility are found. The Fund is a high conviction fund and the combined portfolio will typically have 25-45 positions, investing primarily in stocks in the ASX200. The Fund may be net long, short or neutral depending on the strategies employed at the time. The Fund may hold cash so that it is in a position to take advantage of market volatility and compelling investment opportunities as and when they arise. The Fund may be geared up to 200% gross long or short and up to 150% net long or short. |
| Manager Comments | Over the last 12 months the Fund has recorded a Sharpe ratio of 5.40, 100% positive months with Up and Down Capture ratios of 1.73 and -1.00 with the Sharpe ratio since inception (Dec 2012) is 3.39. Average gross capital employed by the Fund was 144.8% long and 22.5% short and average net exposure over the month was +122.3%. At the end of the month the Fund had 37 long positions and 5 short positions. Over the course of the last financial year, the Fund had a large exposure to the consumer discretionary, diversified financials, healthcare, industrials, real estate and telecommunications sectors. These sectors contributed most of the Fund's FY14 returns. The Fund had very little exposure to the two largest sectors in the market, Banks and Materials. |
| More Information | » View detailed profile of this fund |
Fund Review: Monash Absolute Investment Fund August 2014
23 Sep 2014 - Australian Fund Monitors
Monash Absolute Investment Fund returned 2.30% in August. The Fund's investment strategy is best described as long biased, equity long-short, with a strong focus on absolute returns rather than relative to an index or the market.
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23 Sep 2014 - Fund Review: Monash Absolute Investment Fund August 2014
By: Australian Fund Monitors
Monash Absolute Investment Fund Review August (pdf format)
MONASH ABSOLUTE INVESTMENT FUND
Attached is our most recently updated Fund Review. You are also able to view the Fund's Profile
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
We would like to highlight the following:
- The Fund is a research driven, active equity long/short strategy investing in listed ASX companies.
- The Fund seeks to identify opportunities in the share market to make positive returns (long and short) irrespective of market conditions. It is style agnostic, as compelling investment opportunities exist across all investment styles from time to time. The Fund places a high priority on capital preservation, and has an absolute return focus in accepting market risk.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research Manager
Monash Absolute Investment Fund Review August (pdf format)
Laminar Credit Opportunities Fund
23 Sep 2014 - Australian Fund Monitors
During August the Laminar Credit Opportunities Fund returned 0.53% for a 12 month return of 9.64% (RBA Cash Rate average 2.50%) with a volatility of 0.59%.
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23 Sep 2014 - Laminar Credit Opportunities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund may also invest in derivatives for hedging purposes. The portfolio of the Fund comprises primarily Investment Grade holding of 75% of the Fund's assets. Benchmark allocations are Australasia 50% to 100%, North America 0% to 50% and Europe 0% to 50%. Currency hedging may take place depending on benefits to the Fund. |
| Manager Comments | Volatility returned to the markets in August caused by the Ukraine crisis. On the equity side the ASX fell almost 4% from the start of the month, although it did recover to be marginally up 0.3% for the month. Investment grade credit spreads performed better than equities. The Australian iTraxx index widened to 90 basis points within the first week of August before ending the month at 80 basis points, a 7 basis point tightening. |
| More Information | » View detailed profile of this fund |
KIS Asia Long Short Fund
22 Sep 2014 - Australian Fund Monitors
KIS Asia Long Short Fund returned -0.1% during August and 9.57% over the prior twelve months with a low volatility of 2.65%.
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22 Sep 2014 - KIS Asia Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Whilst the Fund's primary strategy is focused on long/short equities, the ability to retain discretionary powers to allocate across a number of other investment strategies is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage, special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.). The Fund's geographic focus is Asia excluding Japan, but including Australia). The Fund may invest outside of this region to the extent that: 1. The investment decision is driven from the Asian region or; 2. The exposure is intended to mitigate risk or enhance return from factors external to the Asian region. |
| Manager Comments | The Sharpe ratio is 2.54 and the Up and Down capture ratios 0.25 and -0.70 respectively. Data is for the last 12 months. Since inception in October 2009 the Sharpe ratio is 2.15, the Sortino ratio of 4.92 with the Fund recording 78% positive months. Long Short: This portfolio lost 20bp. The portfolio as a whole suffered on the short side. The Fund increased its gross book exposures over the month and the short side suffered as the equity markets rallied and ran an average net short exposure of -9% and this suffered as the market rallied in later part of August. The Arbitrage Portfolio Hedge, Convertible Bonds and Special Situations did not make significant contributions over the month. |
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Alpha Beta Asian Fund
19 Sep 2014 - Australian Fund Monitors
Alpha Beta Asian Fund returned 0.90% during August and 10.62% over the prior 12 months with a volatility of 4.18%.
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19 Sep 2014 - Alpha Beta Asian Fund
By: Australian Fund Monitors
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| Fund Overview | The investment objective of the Fund is to produce positive annual returns without excessive risk. This is achieved through the use of a quantitative approach to invest both long and short in large cap companies listed on Asian stock exchanges. The Fund may also use index futures to manage risk. Stock prices and company fundamental data are decomposed into directional and mean reverting components. Each of Alpha Beta's models are based on either of these known behaviours with capital management built into each model. The benefit of a quantitative approach is that it is both repeatable and unemotional, and allows a different source of returns to be extracted from a very noisy market environment. |
| Manager Comments | At month-end the Fund had a net exposure of 15% and a gross exposure of 175% and held 401 positions. From an attribution perspective, the Hong Kong Directional (+0.77%) and Australian Directional (0.62%) strategies were strongly positive. The Japanese Mean Reversion (-0.66%) strategy was the largest detractor. From a regional perspective both Australian (+0.76%) and Hong Kong (+0.69%) books performed well. The market neutral behaviour of ABAF is confirmed by the low mapped Beta (+0.08) and low correlation to the Asian equity markets (+0.15). |
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Cor Capital Fund
18 Sep 2014 - Australian Fund Monitors
Cor Capital Fund "The Cor Capital Fund returned 0.10 % during August bringing 12 month performance to 1.93 percent with a volatility of 3.62%.
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18 Sep 2014 - Cor Capital Fund
By: Australian Fund Monitors
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| Fund Overview | The Cor Capital Fund is a Multi- Asset Fund which combines a pre-determined strategic asset allocation with active but systemised rebalancing to generate returns and manage volatility whilst maintaining transparency and liquidity. The Fund strategy is not reliant on accurate market predictions, forecasts or timing for success. Returns are generated in a number of ways; 1) by maintaining sufficiently large positions in a diverse group of asset classes, 2) via the 'volatility harvesting' consequences of active rebalancing, and 3) from the offsetting behaviour of certain asset classes under specific conditions. The combined portfolio is expected to exhibit relatively low volatility and low turnover. In the interests of avoiding complexity, maintaining liquidity, and minimising reliance on third parties, the Fund strategy does not employ gearing, derivatives or short-selling. |
| Manager Comments | The main return contribution for August came following another strong month for fixed interest (+0.22%). Equities (+0.09%) and cash (+0.06%) also made positive contributions and precious metals (-0.27%) subtracted from returns. There were no changes to the Fund portfolio during the month as there were no breaches of the Fund's defined asset class limits. |
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Aurora Fortitude Absolute Return Fund
16 Sep 2014 - Australian Fund Monitors
Aurora Fortitude Absolute Return Fund returned 0.30% during August and 3.56% over the previous 12 months with a very low volatility of 0.96%.
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16 Sep 2014 - Aurora Fortitude Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund aims to produce positive returns irrespective of the direction of the share market. For each investment the manager considers the risk, the timeline of that risk occurring and then the potential return. Low transaction costs and liquidity are other important factors in the success and implementation of the strategies. |
| Manager Comments | Reserve Bank Governor, Glenn Stevens, commented during the month that "Volatility in many financial prices is currently unusually low" and this seems to heavily discount any possibility of interest rate rises or "other unforeseen event". This is a thematic that we have commented on a number of times in recent months as we strive to hedge our portfolio consistently using a strategy that relies on a degree of volatility and market uncertainty. We believe that it is the most appropriate strategy for the portfolio over the investment cycle, but particularly in the current environment where, as Governor Stevens highlights, a large portion of investors seem to be comfortable with current risk levels. The Fund returned +0.30%, and as is often the case during reporting season Options Protection delivered the bulk of these returns (0.32%). The most significant contributor was Suncorp Group which surprised the market with a "special dividend" on top of increasing its ordinary dividend payment. Conversely the Fund also benefited from the severe negative reaction to the BHP Limited announcement that it would spin off its mineral diversion but not conduct a buyback or pay a special dividend. |
| More Information | » View detailed profile of this fund |
