NEWS
QATO Capital Market Neutral Long/Short Fund
24 Nov 2016 - Australian Fund Monitors
Qato Capital Market Neutral Long/Short Fund returned -1.43% for the month of October, outperforming the ASX-100's fall of -1.90%, by +0.47%.
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24 Nov 2016 - QATO Capital Market Neutral Long/Short Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund seeks to preserve capital and maximise absolute returns through active and constant risk management, targeting monthly a net market exposure of 0% to hedge broader market risks with up to 50 S&P/ASX-100 positions (up to 25 long positions & 25 short positions). Historically, the strategy has been uncorrelated to traditional asset classes with a negative beta to equity markets. Qato Capital's process is entirely systematic - stock selection and risk management are all employed in a rules based approach. Positions in Qato's long-portfolio and short-portfolio are rotated monthly dependent upon their Q-Score ranking. The strategy employs no financial leverage/gearing to purchase securities, no derivatives and no financial products to imitate leverage. |
| Manager Comments | Materials were the strongest performing sector of October, posting a +1.20% gain for the period. Qato's long position in Fortescue (+11.10%), reported strong results in October. South 32, also held in Qato's long-book reported in line with its previous guidance, closing the month up +6.60%. Assuming commodity prices remain at current spot levels, Qato believes further EPS upgrades in FY17 and FY18 as Materials continue to experience strong fundamental improvements. The Fund currently holds several positions in this sector. Another positive contributor was AMP, which came from Qato's short-book, added generous alpha of +14.90% for the Fund. However, the negative performance in REITs of -7.40%, adversely affected Qato's long-book, as the Fund held a number of positions in this sector. |
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Fund Review: APN Asian REIT Fund October 2016
23 Nov 2016 - Australian Fund Monitors
October Fund Review is now available on APN Asian REIT Fund, a property securities fund, investing primarily in the Asian REITS.
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23 Nov 2016 - Fund Review: APN Asian REIT Fund October 2016
By: Australian Fund Monitors
AFM Fund Review - October 2016 (pdf format)
APN Asian REIT Fund
Attached is our most recently updated Fund Review on the APN Asian REIT Fund.
We would like to highlight the following aspects of the Fund;
- APN is an ASX-listed fund manager specialising in property investment, with an investment team of six. Established in 1996, APN now has FUM of $A2.4bn including four REIT (Real Estate Investment Trust) funds.
- The APN Asian REIT Fund (Fund) is a property securities fund that invests in a quality portfolio of Asian REITs, listed on the securities exchanges of the Asian Region, with the ability to hold some cash and fixed interest investments.
- The Fund aims to deliver a competitive yield with lower risk than the market. The underlying stocks are selected based on a highly disciplined investment approach that focuses on the fundamentals and number of valuation approaches. The universe can include new IPO's, other corporate actions take place and / or corporate governance improvements at country or REIT level bring new stocks into focus.
- The Fund provides access to a wide spread of property-based revenue streams that are specifically analysed, selected and weighted with the aim of delivering strong and sustainable income returns. The Fund is an unhedged product.
- APN's Asian REIT Fund invests in a portfolio of 25-40 listed Asian REITs with a core philosophy of investing in properties with sustainable rental income streams.
- The Fund has delivered an annualised return of 15.65% p.a., since inception in July 2011 with a standard deviation of 9.46% p.a. The Sharpe and Sortino ratios are 1.30 and 2.38 respectively.
AFM Fund Review - October 2016 (pdf format)
Bennelong Twenty20 Australian Equities Fund
23 Nov 2016 - Australian Fund Monitors
Bennelong Twenty20 Australian Equities Fund returned -2.20% in October to take latest 6-months return to 4.25%.
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23 Nov 2016 - Bennelong Twenty20 Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is managed as one portfolio but comprises and combines two separately managed exposures: 1. An investment in the top 20 stocks of the markets, which the Fund achieves by taking an indexed position in the S&P/ASX 20 Index; and 2. An investment in the stocks beyond the S&P/ASX 20 Index. This exposure is managed on an active basis using a fundamental core approach. The Fund may also invest in securities expected to be listed on the ASX, securities listed or expected to be listed on other exchanges where such securities relate to ASX-listed securities.Derivative instruments may be used to replicate underlying positions and hedge market and company specific risks. The companies within the portfolio are primarily selected from, but not limited to, the S&P/ASX 300 Accumulation Index. The Fund typically holds between 40-55 stocks and thus is considered to be highly concentrated. This means that investors should expect to see high short-term volatility. The Fund seeks to achieve growth over the long-term, therefore the minimum suggested investment timeframe is 5 years. |
| Manager Comments | From the active position in the ex-20 stocks, Star Entertainment Group and Ramsay Health Care were the biggest two detractors. However, this portfolio benefited from a position in Fortescue Metals Group, which was one of the best performing stocks on the ASX over the month. With lofty expectations baked into share prices, it will be important to be invested in companies that can achieve what is expected of them. The investment team believes that for the Fund, this involves attempting to gain conviction in earnings delivery at the individual stock level. Click below to read the latest Fund Report. |
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Touchstone Index Unaware Fund
22 Nov 2016 - Australian Fund Monitors
Touchstone Index Unaware Fund returned -2.84% in October.
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22 Nov 2016 - Touchstone Index Unaware Fund
By: Australian Fund Monitors
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| Fund Overview | The portfolio is constructed using Touchstone's Quality-At-a-Reasonable-Price ('QARP') investment process. QARP is a fundamental bottom-up process, however, it also incorporates a top-down risk management framework designed to successfully manage the portfolio during varying market conditions and economic cycles. The Touchstone Fund is concentrated, typically holding between 15-20 stocks. No individual stock will ever make up more than 10% of the portfolio at any one time. The Investment Manager may temporarily exceed the exposure limits of the Fund occasionally, particularly during periods of market volatility, to allow for holdings in excess of this 10% limit where the increase in value of the underlying security is due to market movement. The Fund may also hold between 0-50% of the portfolio in cash. The Fund has a high level of associated risk, therefore, the minimum suggested investment time-frame is 5 years. |
| Manager Comments | However, the cash position was a positive contributor and the investment team took the opportunity to deploy some the Fund's cash as the market fell during the month. It continues to remain the view of the team, that the Fund is well-positioned in light of extended financial asset valuations in general and given the heightened geopolitical and economic uncertainty going forward. Click below to read in more detail. |
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APN AREIT Fund
22 Nov 2016 - Australian Fund Monitors
APN AREIT Fund returned -7.1% in October. The long term performance since inception remains strong with annual returns of 16.58% p.a.
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22 Nov 2016 - APN AREIT Fund
By: Australian Fund Monitors
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| Fund Overview | The senior management of APN FM all have significant experience in their fields. They include CEO Real Estate Securities, Michael Doble who has 25 years'experience having held various senior roles specialising in real estate valuation, consultancy and funds management. Immediately prior to joining APN in 2003 he was Head of Property at ANZ Funds Management. He is a fellow of the Australian Property Institute and FINSIA as well as holding a Bachelor of Business (Property). The Fund aims to deliver a competitive yield with lower risk than the market. The underlying stocks are selected based on a highly disciplined investment approach that focuses on the fundamentals and number of valuation approaches. The Fund provides access to a wide spread of property-based revenue streams that are specifically analysed, selected and weighted with the aim of delivering strong and sustainable income returns. The Fund is suited to medium to long term investors seeking a relatively high monthly income and some capital growth over the long term. |
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NWQ Fiduciary Fund
21 Nov 2016 - Australian Fund Monitors
NWQ Fiduciary Fund returned -2.26% in October and +11.97% over the latest 24-months.
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21 Nov 2016 - 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's negative performance was mainly due to the macro and political factors that fuelled market uncertainty. The portfolio's Beta managers, utilizing a range of long/short equity strategies, attributed -0.74% for the month. Alpha managers were also down for the month, attributing -1.45%. The Fund is currently invested in nine Australian-domiciled investment managers - five equity market neutral and four equity beta-correlated strategies, complemented by a modest cash allocation. Throughout the month, selective rebalancing was implemented within the Beta strategy and the cash allocation was increased to provide optionality around this rebalancing. NWQ continues to expect destructive equity and bond market volatility and therefore the portfolio remains overweight to the Alpha or market neutral strategies. Click below to read the latest Fund's Report. |
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Pengana Absolute Return Asia Pacific Fund
21 Nov 2016 - Australian Fund Monitors
The Pengana Absolute Return Asia Pacific Fund rose 0.43% in October, compared to MSCI ACWI Asia Pacific markets which returned -0.49%.
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21 Nov 2016 - Pengana Absolute Return Asia Pacific Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will usually hold 40 to 80 positions and will be well diversified across the various event strategies. In keeping with the absolute return focus the Manager will eliminate market risk where appropriate by hedging market and foreign currency risks. Since inception the Fund has averaged a net equity market exposure of ~10%. Sizing of an investment position will depend on the expected risk adjusted returns while taking account the liquidity and volatility of the stock. In addition, the maximum potential loss on any one position should be greater than 0.5% of the NAV and the position should not exceed 30% participation of stressed volume assuming a $200m NAV. Other criteria considered are ability to hedge and the availability of pair candidates as well as the average bid-ask size. For M&A strategies average long position is 3 to 5.5% and average short position 2 to 5%. |
| Manager Comments | A number of strategies contributed positively, for the month. The stub strategy was the largest contributor (+0.45%) to Fund performance, bringing the YTD contribution from the strategy to 3.9%. The Fund maintains a healthy gross exposure to this strategy of 25% of NAV. The M&A sub-strategy also contributed positively (+0.24%) to the Fund, with the most notable development being in Vitaco (VIT AU) where the offeror received key regulatory approvals which de-risked the transaction and the spread tightened. The Fund's existing position in Coca-Cola West (2579 JT) also benefited from a reported capital tie-up with Kirin (2503 JT). The Fund continued to develop the credit sub-strategy, which focuses on Convertible Bonds and the arbitrage opportunities they create and has reduced the exposure to M&A. For the month, the Fund averaged a gross and net exposure of 198.9% and 15.3% respectively. Click below to read the latest Fund Manager's Report. |
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Affluence Investment Fund
18 Nov 2016 - Australian Fund Monitors
Affluence Investment Fund returned -0.41% in October to take the annualised performance since inception to 10.22% p.a.
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18 Nov 2016 - Affluence Investment Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund does not invest directly into any asset class, rather, it invests in investment managers which satisfy Affluence Funds Management's investment criteria; its investment philosophy is based on a formula developed by CEO/Portfolio Manager Daryl Wilson since the start of his career in 1999. The Fund targets total returns of at least 5% above inflation over rolling 3 year periods with volatility of returns less than 50% of the ASX200 Index. The Fund also aims to provide investors with a distribution yield of at least 5% p.a. Finally, the Fund aims to outperform the Australian stock market (S&P/ASX 200 Accumulation Index) by at least 5% in any year in which that index delivers a negative return. To ensure appropriate diversity of managers and limit the potential for conflicts of interest, no more than 20% of the Fund will be invested with any one manager. Affluence seeks to achieve the Funds' investment objective by choosing attractively priced investments overseen by quality managers. The Fund uses a number of processes to identify potential investments including quantitative screens for investments which meet historical performance, volatility and other criteria. They also use a number of external researchers and information sources to assist in this process. |
| Manager Comments | It was a mixed month for the underlying managers. Of the Fund's 25 unlisted fund investments, only 9 provided positive returns. The Wentworth Williamson Fund, Lanyon Australian Value Fund and the Affluence LIC Fund were the biggest positive contributors to performance. The largest detractors were the long/short funds and the gold/commodities funds. At the end of October, the 24 unlisted funds represented 59% of the portfolio. The Affluence LIC fund and 5 other listed entities, represented 26% of the portfolio, while the remaining balance of 15% was held in cash. Click below to read the latest Fund Manager's report. |
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APN Asian REIT Fund
17 Nov 2016 - Australian Fund Monitors
APN Asian REIT Fund returned -3.28% in October, outperforming the Bloomberg Asia REIT Index which returned -3.65%, by 0.37%.
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17 Nov 2016 - APN Asian REIT Fund
By: Australian Fund Monitors
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| Fund Overview | Pete Morrissey and Corrine Ng are the Portfolio Managers of the Fund. Morrissey has over 15 years financial markets experience and joined APN in 2006. Previously, he worked at Lonsec and also managed an internationally focused private investment fund as well as spending several years as an analyst in the UK for Nomura, amongst others. He has also completed Masters level academic research papers on both commercial real estate cycles and global property cycles. Ng also has a strong background in property and REITs in Australia, Asia and the North American markets. Prior to joining APN, Ng worked for Aviva Investors (Senior Investment Analyst, North America Real Estate Securities Team) and Goldman Sachs & Co (Vice President, Goldman Sachs Asset Management Real Estate Securities Team) in New York. The Fund aims to deliver a competitive yield with lower risk than the market. The underlying stocks are selected based on a highly disciplined investment approach that focuses on the fundamentals and number of valuation approaches. The universe is expected to be dynamic as new IPO's, other corporate actions take place and / or corporate governance improvements at country or REIT level bring new stocks into focus. The Fund focuses on passive rental earnings derived from well managed Asian REITs listed in mature capital markets and will not invest in infrastructure, property development companies or stocks with a 'loose association with property'. The Fund provides access to a wide spread of property-based revenue streams that are specifically analysed, selected and weighted with the aim of delivering strong and sustainable income returns. The Fund is an unhedged product. The Fund is suited to medium to long term investors seeking a relatively high income and some capital growth over the long term. |
| Manager Comments | In the month of October, the portfolio had significant exposure to Japan (40.9%) and Singapore (31.2%). The majority (64.3%) of the Fund was invested in Retail REITs (37.8%) and Office REITs (26.5%). The top five holdings were Gip J-REIT, Japan Retail Fund Investment, Ascendas Real Estate Inv Trust, Keppel Dc REIT and Link REIT, which made over 20% of the portfolio with 3 of the holdings above 4% each. Click below to read the latest Fund's performance report. |
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Fund Review: Bennelong Kardinia Absolute Return Fund October 2016
17 Nov 2016 - Australian Fund Monitors
Latest Fund Review is now available on Bennelong Kardinia Absolute Return Fund, which has over 10 years of positive track record.
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17 Nov 2016 - Fund Review: Bennelong Kardinia Absolute Return Fund October 2016
By: Australian Fund Monitors
AFM Fund Review - October 2016 (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 a nine-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 11.29% p.a. with a volatility of 7.26%, compared to the ASX200 Accumulation's return of 4.63% p.a. with a volatility of 14.11%.
- 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 - October 2016 (pdf format)
