NEWS
Pengana Asia Special Events (Onshore) Fund
27 Dec 2013 - Australian Fund Monitors
Pengana Asian Special Events Fund returned 0.43% over the month and 12.41% for the previous twelve months with a beta of -0.03 and correlation of -0.1.
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27 Dec 2013 - Pengana Asia Special Events (Onshore) 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 performance of the underlying strategies was mixed during the month: M&A and Earnings Surprise contributed positively while Capital Management and Stubs trades detracted value. Positions in Japan and Thailand generated healthy profits for the Fund. During the month the Fund maintained an average net and gross exposure of 14% and 190% respectively. November's focus remained on China as details emerged of the reform package, while risk appetite in Japan remained healthy due to continued weakness in the Yen. Within the Capital Management strategy, spin offs is a key theme that we observe emerging in the Asian event landscape and it presents unique trading opportunities. |
| More Information | » View detailed profile of this fund |
Allard Investment Fund
24 Dec 2013 - Australian Fund Monitors
Allard Investment Fund returned 2.80% during November and 13.87% for the previous twelve months with a low volatility of 6.99%.
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24 Dec 2013 - Allard Investment Fund
By: Australian Fund Monitors
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| Manager Comments | The Fund's low volatility is evidenced by its maximum draw-down of 18.29% and downside deviation of 5.45% with the comparative S&P/ASX 200 Accum Index data of 47.19% and 9.90% respectively. Data is since inception in July 2003. Geographic exposure was China/HK 33.6%, Singapore 13.0% and Korea 9.9%. The industry break-down was dominated by Financial Services at 15.5%, Conglomerates at 12.0% and Telco's at 8.8%. |
| More Information | » View detailed profile of this fund |
Auscap Long Short Australian Equities Fund
23 Dec 2013 - Australian Fund Monitors
Auscap Long Short Australian Equities Fund returned 2.86% in November when the local equity market was weak returning -1.31%. Twelve month performance was 50.05%.
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23 Dec 2013 - 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 | The Fund had an average gross capital employed of 131.5% long and 13.8% short for a gross total of 145.3%. The Manager comments 'While we do not make forecasts, we do try to draw sensible conclusions about the economy and the stock-market in which we are a participant. It seems highly unlikely that the market will repeat or better last year's performance next year. The market has been assisted by a number of things during 2013, including the re-rating of equities as sentiment turned more positive and the rates of return offered by alternative assets declined.' |
| More Information | » View detailed profile of this fund |
Fund Review: Morphic Global Opportunities Fund
19 Dec 2013 - Australian Fund Monitors
Morphic Global Opportunities Fund returned 5.48% in November and 41.50% for the previous twelve months with a volatility of 9.06% p.a.
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19 Dec 2013 - Fund Review: Morphic Global Opportunities Fund
By: Australian Fund Monitors
MORPHIC GLOBAL OPPORTUNITIES FUND
AFM has updated the Fund Review on the Morphic Global Opportunities Fund.
Key points include:
- The Fund is a global equity long/short manager with a long bias and a macro-economic overlay. The mandate allows the Fund to short sell, use derivatives and invest in assets such as commodities & currencies.
- Portfolio construction is stock selection agnostic with a bias to value based and momentum strategies. Risk management is a primary consideration in portfolio construction and the strong emphasis on risk is evidenced by the Fund's annualised standard deviation of 8.80% (10.10% ASX 200 Accum Index), maximum drawdown of 1.57% (6.72% Index) and downside deviation of 1.68 (5.30 Index).
- Morphic's philosophy is that only funds with flexible investment and hedging strategies will be able to deliver acceptable, steady, real, absolute returns over the investment cycle.
- The Fund is an early stage, boutique, Sydney-based fund established in 2012 with experienced CIO's, and an investment team of 6 including a risk manager.
- The Board has a majority of independent members with significant risk and investment experience.
For further details on the Fund, please do not hesitate to contact us.
Morphic Global Opportunities Fund AFM Review - November 2013Cor Capital Fund
18 Dec 2013 - Australian Fund Monitors
Cor Capital Fund returned -0.90% during November, a weak month for equity markets which returned -1.31% (S&P/ASX 200 Accumulation Index).
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18 Dec 2013 - 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 Manager comments 'During November the Fund's cash holdings made the largest positive contribution to performance (+0.08%) with equities (-0.26%) and precious metals (-0.64%) making negative contributions to the overall return.' The Manager also notes that market volatility appears to be increasing again and the Fund's active re-balancing and broad asset allocation should allow it to capitalise while maintaining downside protection. Downside protection without the use of derivatives, gearing or short-selling necessitates an acceptance of some month-to-month volatility. The Manager expects the investment strategy to deliver medium-term stability regardless of financial market conditions given the Fund's asset allocation. |
| More Information | » View detailed profile of this fund |
Bennelong Long Short Equity Fund
18 Dec 2013 - Australian Fund Monitors
Bennelong Long Short Equity Fund returned -1.80% during November and 20.32% for the previous twelve months.
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18 Dec 2013 - Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| Manager Comments | The Fund's long-term performance remains strong with a since inception (Jan 2003) annual return of 20.82% as compared to the Index of 10.08% p.a with a slightly below Index volatility. The Fund's maximum draw-down is notable at -12.22% as compared to the Index value of -47.19% as is the Fund's Sharpe ratio at 1.25 as compared to 0.43 (Index). Fund performance was weak as several stock specific issues affected returns. The portfolio was impacted primarily by a profit warning on one of the long positions, an earnings miss by another long and a re-rating by the market of some our short exposures in consumer discretionary and healthcare. The Fund did not make any major portfolio adjustments during November. Negative returns in the long book were not fully offset by short position positive returns. The Financials sector returns were profitable in long and short positions whilst consumer discretionary positions were loss making in longs and shorts. |
| More Information | » View detailed profile of this fund |
Aurora Fortitude Absolute Return Fund
17 Dec 2013 - Australian Fund Monitors
Aurora Fortitude Absolute Return Fund continues to deliver low risk returns recording 0.52% during November and 6.80% for the last 12 months with a volatility of 1.67%.
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17 Dec 2013 - 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 | The Fund has a Sharpe ratio of 2.33 and a maximum draw-down of 0.19% over the last twelve months as compared to the S&P/ASX 200 Accumulation Index draw-down of 6.72%. The Manager comments that 'Two very important market fundamentals were reinforced during the month: a) The market does not always go up and the timing of declines is difficult to predict; and b) Each Merger and Acquisition deal is unique and should be priced on the risks inherent in each deal.' Despite the GNC loss, Mergers and Acquisitions contributed +0.24% to the Fund's performance for the month. Positive contributions came from the Trust Company scheme of arrangement with Perpetual after the scheme was approved by shareholders and similarly Clough Resources. The Options portfolio contributed +0.15% of performance on the back of a small increase in volatility. Positions in over-sold industrial companies provided opportunities through significant short term share price rallies. |
| More Information | » View detailed profile of this fund |
Optimal Australia Absolute Trust
16 Dec 2013 - Australian Fund Monitors
Optimal Australia Absolute Trust returned -0.52 during November bringing annualised returns since inception (Sept 2008) to 10.45% p.a. with a volatility of 3.62% p.a.
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16 Dec 2013 - Optimal Australia Absolute Trust
By: Australian Fund Monitors
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| Fund Overview | The Fund's bias is likely to be net long under normal market conditions, with the core strategy being to construct a portfolio of listed equity securities priced at levels that do not adequately reflect their underlying value. The Fund will seek to boost returns and limit potential market downside by selective short selling of individual stocks which are priced at levels that are viewed as materially above their underlying value. The Fund will also use certain trading strategies both within its core portfolio (through rebalancing stock weights and overall market exposure in response to price movements) and in certain other situations (typically of a shorter-duration and/or opportunistic nature) with the objective of further increasing returns. |
| Manager Comments | The Fund's net risk exposure was 4.0% while gross exposure was 67.2%. Long investments returned -0.58% while short investments returned 0.04%. The Manager notes 'that the nature of leadership in the Australian equity market is starting to change....in an encouraging manner. The 'great rotation' out of bonds into equities appears largely done. The blind chase for equity yield, irrespective of the payout ratio, earnings valuation or quality of that yield, seems less frenetic. While the effects of financial repression continue to ripple through all asset markets, local equity investors seem slightly more discriminating. Single day post-downgrade price collapses of 26% (Worley Parsons) and 22% (QBE) remind us that stocks can be dangerous to hold at any time. The massive flood of corporate equity issuance (much of it from Private Equity vendors) has led to some real indigestion: of the 13 IPO deals so far this quarter, five (39%) are now trading underwater.' |
| More Information | » View detailed profile of this fund |
Insync Global Titans Fund
13 Dec 2013 - Australian Fund Monitors
Insync Global Titans Fund returned 4.4% during November and twelve month return of 23.47% with low volatility of 6.67% p.a.
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13 Dec 2013 - Insync Global Titans Fund
By: Australian Fund Monitors
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| Manager Comments | The Fund's continues to record sound risk statistics with an annualised volatility of 8.36% p.a. (S&P/ASX 200 Accumulation Index 12.24% p.a.), a maximum draw-down of 4.39% (15.13%) and a down capture ratio of -0.52. The biggest contributors for the month were Time Warner Cable (a subject of takeover speculation), Coach, Wyndham Worldwide, Reckitt Benckiser and Oracle. The Fund benefited from the depreciation of the Australian dollar during the month, having no foreign exchange hedging in place. |
| More Information | » View detailed profile of this fund |
Fund Review: BlackRock Multi Opportunity Fund
12 Dec 2013 - Australian Fund Monitors
AFM's updated Fund Review for the BlackRock Multi Opportunity Fund for October. The current strategy has returned 8.74% pa since inception (July 2004) and had only three negative months since May 2010.
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12 Dec 2013 - Fund Review: BlackRock Multi Opportunity Fund
By: Australian Fund Monitors
BLACKROCK MULTI OPPORTUNITY FUND
Attached is our most recently updated Fund Review on the BlackRock Multi Opportunity Fund.
We would like to highlight the following aspects of the Fund:
- The Fund offers broad diversification across asset classes including equities, fixed income, currencies and commodities with an attractive risk profile, having provided double digit returns in 2009 through 2012 with low volatility of 4.17% since inception.
- The current strategy has seen the Fund record only three negative months since May 2010, leading to annualised returns over the past 48 months (to October 2013) of 11.74% and an annualised volatility of 2.16% pa. The four year Sharpe Ratio is 3.60, indicating an excellent reward-to-risk ratio.
- BlackRock's Active Scientific involves extensive research into every aspect of the investment process starting with the identification of fundamental investment insights. These are thoroughly tested to ensure that the outcome consistently adds to performance: Quantitative analysis is also applied to balance both performance and risk ensuring the position is only taken when the potential for reward is adequate. Only insights meeting this multi level process are implemented into portfolios.
Research and Database Manager
Australian Fund Monitors
