NEWS
Cyan C3G Fund
14 Apr 2016 - Australian Fund Monitors
The Cyan C3G Fund rose 2.20% in March 2016, compared to the ASX 200 Accumulation Index which returned +4.73%
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14 Apr 2016 - Cyan C3G Fund
By: Australian Fund Monitors
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| Fund Overview | Cyan C3G Fund is based on the investment philosophy which can be defined as a comprehensive, clear and considered process focused on delivering growth. These are identified through stringent filter criteria and a rigorous research process. The Manager uses a proprietary stock filter in order to eliminate a large proportion of investments due to both internal characteristics (such as gearing levels or cash flow) and external characteristics (such as exposure to commodity prices or customer concentration). Typically, the Fund looks for businesses that are one or more of: a) under researched, b) fundamentally undervalued, c) have a catalyst for re-rating. The Manager seeks to achieve this investment outcome by actively managing a portfolio of Australian listed securities. When the opportunity to invest in suitable securities cannot be found, the manager may reduce the level of equities exposure and accumulate a defensive cash position. Whilst it is the company's intention, there is no guarantee that any distributions or returns will be declared, or that if declared, the amount of any returns will remain constant or increase over time. The Fund does not invest in derivatives and does not use debt to leverage the Fund's performance. However, companies in which the Fund invests may be leveraged. |
| Manager Comments | For March, the Fund's top holdings all produced double digit returns including BlueSky (+21%), AMA Group (+12%), Vita Group, Opus Group and Adadcel. The negative returns came from their holding in Freelancer (-11%) and Touchcorp (-15%). Even though most of the core stocks remained reasonably constant, the weightings and allocations to these stocks changed depending on the attractiveness of investment opportunity. More specifically, the Fund reduced their holding in Vita Group, and increased their weightings in BlueSky, Freelancer and Opus Group. Click below to read the latest Fund Manager's Report. |
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Fund Review: Morphic Global Opportunities Fund March 2016
13 Apr 2016 - Australian Fund Monitors
Read the latest March Fund Review on Morphic Global Opportunities Fund.
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13 Apr 2016 - Fund Review: Morphic Global Opportunities Fund March 2016
By: Australian Fund Monitors
MORPHIC GLOBAL OPPORTUNITIES FUND
Attached is our most recently updated 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.
- 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.
Optimal Australia Absolute Trust
13 Apr 2016 - Australian Fund Monitors
Optimal Australia Absolute Trust recorded a positive 2.3% return in March.
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13 Apr 2016 - 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 | During March, the Fund had solid gains from their high-conviction longs in the retail, media and utility sectors. The hedging through short exposure was not too expensive, with loss attribution of around 0.70% arising almost solely from index futures - the stock shorts broke even for the month. The Fund's stock selection worked extremely well, however the net short through the month, detracted from the returns. At month-end, the Fund's gross exposure was at 72% and net at -15%. Click below to read the latest Fund monthly report. |
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Bennelong Kardinia Absolute Return Fund
12 Apr 2016 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose
0.30% in March.
0.30% in March.
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12 Apr 2016 - Bennelong Kardinia Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund's discretionary investment strategy commences with a macro view of the economy and direction to establish the portfolio's desired market exposure. Following this detailed sector and company research is gathered from knowledge of the individual stocks in the Fund's universe, with widespread use of broker research. Company visits, presentations and discussions with management at CEO and CFO level are used wherever possible to assess management quality across a range of criteria. Detailed analysis of company valuations using financial statements and forecasts, particularly focusing on free cash flow, is conducted. Technical analysis is used to validate the Manager's fundamental research and valuations and to manage market timing. A significant portion of the Fund's overall performance can be attributed to the attention and importance given to the macro economic outlook and the ability and willingness to adjust the Fund's market risk. |
| Manager Comments | Beadell, BHP and Aconex were all significant contributors to performance, whilst Share Price Index Futures (hedging long positions) and long positions in Caltex and Northern Star were the major detractors. Net equity market exposure including derivatives decreased to 22.6% (43.1% long and 20.5% short) Click below to read the latest Fund Report. |
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Fund Review: Meme Australian Share Fund March 2016
12 Apr 2016 - Australian Fund Monitors
March Fund Review is now available on Meme Australian Share Fund, that invests in ASX listed securities outside of the S&P/ASX20.
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12 Apr 2016 - Fund Review: Meme Australian Share Fund March 2016
By: Australian Fund Monitors
Meme Australian Share Fund
Attached is our most recently updated Fund Review on the Meme Australian Share Fund.
We would like to highlight the following aspects of the Fund;
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The Meme Capital Management is a Perth-based boutique Fund Manager, established in 2012 and manages the Meme Australian Share Fund.
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The Fund specializes in technical and quantitative strategies to identify investment opportunities expected to provide both positive price appreciation and relative price out-performance over the medium to long term.
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The Fund's objective is to outperform the S&P/ASX All Ordinaries Accumulation Index over rolling three year periods, through investing in ASX listed securities outside the S&P/ASX 20. The Fund only takes long positions and does not use derivatives.
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Over the past 12 months, the Fund has returned a positive 9.20%, versus the Index's negative 9.59% return.
Fund Review: Supervised High Yield Fund February 2016
11 Apr 2016 - Australian Fund Monitors
Fund review on Supervised High Yield Fund, a fixed income fund, is now available.
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11 Apr 2016 - Fund Review: Supervised High Yield Fund February 2016
By: Australian Fund Monitors
Supervised High Yield Fund AFM Review February 2016 (pdf format)
SUPERVISED HIGH YIELD FUND
Attached is AFM's updated Fund Review on the Supervised High Yield Fund.
We would like to highlight the following aspects of the Fund:
- The Supervised High Yield Fund (SHYF) has a 6 year track record investing in fixed interest investments. The Investment strategy aims to deliver returns with zero correlation to equity markets by investing in debt securities with minimal default probability and offering a premium return above the risk free rate.
- The Fund is managed by Philip Carden whose experience in debt and capital markets spans over 33 years, including time with JB Were's Capel Court Securities and Macquarie Bank, where he was the Executive Director responsible for the Debt Markets Division.
- SHYF is an Alternative Income fund which invests in Global and Australian debt markets, with all foreign currency receivables hedged back to Australian dollars.
- The Fund utilises a top down analysis of the economic environment and market to screen and identify debt market opportunities which it believes offer low risk with high yield. The next stage is the development of a risk matrix and investment strategy, following which detailed research is undertaken on specific investment opportunities which meet the pre-defined criteria established in the investment strategy.
- Prior to approving an investment for the Fund each potential investment is subject to two stress tests. The first of these is for credit and default risk, in which the investment is stress-tested to ensure that in a worst case economic environment it can repay 100% of its principal and interest obligations case scenario for the asset by examining the highest margin over the risk rate that the investment has previously experienced in a crisis situation. Any decline in value under the stress test that exceeds 10% of the Fund's value is avoided The second test examines market risk. In this case Carden looks at the worst case scenario for the asset by examining the highest margin over the risk rate that the investment has previously experienced in a crisis situation. Any decline in value under the stress test that exceeds 10% of the Fund's value is avoided.
Supervised High Yield Fund AFM Review February 2016 (pdf format)
The Paragon Fund
11 Apr 2016 - Australian Fund Monitors
The Paragon Fund returned +7.4% after fees for the month of March 2016.
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11 Apr 2016 - The Paragon Fund
By: Australian Fund Monitors
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| Fund Overview | Paragon believes that markets are not always efficient, exhibiting a common tendency to price securities well outside of their intrinsic value over the medium term. This market characteristic provides the opportunity for Paragon, an active manager with a flexible mandate, to generate superior investment returns over the longer term. Paragon believes that it is critical to understand both the companies and the industries in which they operate, in order to fully comprehend each investment opportunity. Accordingly, a fundamental approach to company research is taken. Assessing the potential downside is also paramount in framing the risk/reward trade-off for potential investments. |
| Manager Comments | Key positive contributors for March included longs in the lithium holdings, Netcomm Wireless, Aconex, Mayne Pharma, and the gold holdings. Short positions in Westpac and 1-Page also contributed. At the end of the month the Fund had 33 long positions and 12 short positions. Click below to read the latest monthly report. |
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Bennelong Long Short Equity Fund
8 Apr 2016 - Australian Fund Monitors
Bennelong Long Short Equity Fund returned -6.73% for the month of March.
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8 Apr 2016 - Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| Fund Overview | In a typical environment the Fund will hold around 70 stocks comprising 35 pairs. Each pair contains one long and one short position each of which will have been thoroughly researched and are selected from the same market sector. Whilst in an ideal environment each stock's position will make a positive return, it is the relative performance of the pair that is important. As a result the Fund can make positive returns when each stock moves in the same direction provided the long position outperforms the short one in relative terms. However, if neither side of the trade is profitable, strict controls are required to ensure losses are limited. The Fund uses no derivatives and has no currency exposure. The Fund has no hard stop loss limits, instead relying on the small average position size per stock (1.5%) and per pair (3%) to limit exposure. Where practical pairs are always held within the same sector to limit cross sector risk, and positions can be held for months or years. The Bennelong Market Neutral Fund, with same strategy and liquidity is available for retail investors. |
| Manager Comments | The short book drove the under-performance with a negative return contribution approximately twice the size of the positive return generated from the long book. By way of pairs, loss-making pairs outnumbered profitable ones, again by a ratio of about two to one. The short book showed that across the top 10 losing positions in March, all of the price action was driven by sentiment and liquidity factors as opposed to fundamental earnings. The Fund's investment philosophy has always centred upon fundamentals and therefore have not responded to the events of March with any notable portfolio changes. Click below to read the Fund Manager's commentary and market outlook. |
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Morphic Global Opportunities Fund
8 Apr 2016 - Australian Fund Monitors
Morphic Global Opportunities Fund fell 0.41% in March, underperforming its benchmark (MSCI AC World Total Return in Australian Dollars), which fell 0.27%, by 0.14%.
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8 Apr 2016 - Morphic Global Opportunities Fund
By: Australian Fund Monitors
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| Manager Comments | The best gain came from the Fund's three long short pairs in Japanese retail. Drugstore chains Tsuruha and Kusuri No Aoki outperformed the overall stock market and the over-priced, exgrowth drugstore chain Cosmos, while Tokyo regional supermarket chain Yaoko also beat the struggling but expensive giant retail conglomerate Aeon. In Australia, the Fund made money being long in Fortescue and short in Woolworths. The biggest loser was US banking giant Wells Fargo. The Fund continues to remain fully invested and grow their over-weight position to emerging markets and US Healthcare services, while reducing their overall exposure to US banks. Click below to read more. |
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Supervised High Yield Fund
7 Apr 2016 - Australian Fund Monitors
Supervised High Yield Fund returned a positive 0.20% for the month of February, to bring annualised performance since inception to 9.39% p.a.
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7 Apr 2016 - Supervised High Yield Fund
By: Australian Fund Monitors
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| Fund Overview | The fund may also invest in interest rate swaps, options over authorized investments and exchange traded futures contracts. All these will be either listed or traded in a market where they can be independently valued. Fundamental to the investment procedure is the tenet that no debt security will qualify for investment unless it can repay 100% of its principal and interest in a worst case economic scenario. |
| Manager Comments | More than half of the portfolio's composition (as a percentage of NAV) was invested in Residential Mortgage-Backed Securities (RMBS) 61.29%. The rest of the portfolio composition was in USD Corporate Loans at 21.68%, Cash at 12.46% and AUD Corporate Loans at 4.57%. The Fund Manager believes that individual valuation prices should follow recent market price activity pointing to improved performance in the period ahead for the type of assets held in the Supervised High Yield Fund. During the first half of March 2016 the reversals in price direction have continued with Treasury Bonds selling off whilst Corporate notes and bonds have been increasing in value along with commodities and equities. Click below to view the latest Fund Manager Report. |
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