Attached is our most recently updated Fund Review on the Insync Global Titans Fund.  

We would like to highlight the following:

• The Global Titans Fund invests in a concentrated portfolio of 15-25 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
• Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
• The Fund?s unit price decreased by 0.6% in September. The main detractors for the month were GlaxoSmithKline, General Mills and SAP. The largest positive contributions came from our holdings in Reckitt Benckiser, British Sky Broadcasting, Safran and Nestle. Safran has more than a 75% market share in narrow-body aircraft engines, an industry with very high barriers to entry. There appears to be a long cycle of new engine orders underway, driven by a significant replacement cycle due to an ageing global airline fleet, a sharp increase in low-cost airlines, increased air traffic globally, and a significant improvement in fuel efficiency reducing the payback period for airlines on new aircraft investment.
• Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.

For further details on the Fund, please do not hesitate to contact us.

Australian Fund Monitors

Attached is our most recently updated Fund Review on the BlackRock Australian Equity Market Neutral Fund.

We would highlight the following:

• The Fund's portfolio generally consists of approx. 180 stocks in equally weighted long and short portfolios to maximise potential returns while minimising market volatility.

• The strategy has recorded a return of 12.14% since inception (Sept 2001) as compared to the ASX 200 Accumulation Index return of 8.37% and with a volatility less than one-half that of the Index at 5.7% pa as compared to 13.23% pa.

• The Fund has also recorded a maximum drawdown of 12.41% as compared to 47.19% for the Index and has had 78% positive months since inception.

• BlackRock is the world's largest fund management group. Since being established in 1988 it has grown organically and by acquisition to manage US$3.93 trillion as of March 2013.

• Operations cover 27 countries including Australia (where BlackRock has A$48.6 billion in FUM - March 2013) managing a broad range of strategies across a variety of asset classes.

Sean Webster

Research and Database Manager
Australian Fund Monitors

Attached is our most recently updated Fund Review on the AFM Prism Active Equity Fund.  

Attached is our most recent update of the Fund:

• The Prism Active Equity Fund ("Fund") comprises a portfolio of 5 to 10 underlying Australian absolute return managers each investing in ASX listed equities. 
• The Fund's objective is to achieve double-digit annualised returns with significantly lower volatility than the underlying equity markets, with a focus on capital protection.
• To date the Fund has delivered 5.59% and, in keeping with it's low volatility mandate, has an annualised standard deviation of 2.48% (since inception in October 2012). The Fund's maximum drawdown is 1.42% as compared to 6.72% for the ASX 200 Accum Index 
• Fund selection is made based on a combination of quantitative analysis of past performance and risk, coupled with extensive analysis and due diligence of the underlying manager's processes and pedigree.

Sean Webster

Research and Database Manager
Australian Fund Monitors