• The Fund is long biased, research driven, active equity long/short strategy investing in listed ASX companies with an eight year track record. 

• The Fund has significantly outperformed the ASX200 Accumulation Index since its inception in April 2006 and also has significantly lower risk KPI's. The Bennelong Kardinia Absolute Return Fund returned 1.90% in February and has volatility of 7.38% pa, compared to the ASX200 Accumulation's 14.30%.

• 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 the Bennelong Group provide infrastructure, operational, compliance and distribution capabilities.

ATTACHED FILESFund Review: Bennelong Kardinia Absolute Return Fund February 2015 (pdf format)

MORPHIC GLOBAL OPPORTUNITIES FUND

ATTACHED FILESFund Review: Morphic Global Opportunities Fund February 2015 (pdf format)

Chris Gosselin, CEO of Australian Fund Monitors explains questions asked by investors about the Fees, Terms and Conditions of Hedge Funds and Absolute Return Funds.

Take a look at the earlier videos in the Understanding Hedge Funds series.

What difference a word makes!

Everyone understands that markets are waiting for the inevitable rate rise in the US, but it was not until this week that it became apparent that those same markets are hanging out not just for the latest economic statistics, nor for the latest pronouncements from the US Federal Reserve. What became apparent this week was that markets are reacting (or should that be overreacting?) to the slightest nuance in Fed speak.

This time it was the Fed's removal of the word patient from their statement, although it was helped along by a lowering of their economic and inflation outlook. This saw market expectations for rate rise pushed out by two or three months. As a result the US dollar's recent rise came to an abrupt halt, and equity markets soared.

So the question is that if markets can react so dramatically on the basis of the removal of one word, and the delay of the inevitable rate rise of somewhere between one and three months, how are they going to react when that inevitability turns to fact?

As much as Janet Yellen and her US Central Bank colleagues would like to smooth and calm markets by managing their expectations, all the indications are that the herd is likely to break from a trot into a stampede when she finally makes her move.

Locally the ASX200 has risen over 12% year to date, approximately double its rise in 2014 as a whole, as investors' expectations for a rate cut remain on track, in spite of the slump in commodity prices, and the longer term outlook for the federal budget deficit which only Tony Abbott himself now seems to see as a problem.

We remain concerned about the government's seeming inability to communicate effectively at nearly any level, be it one on one in the Senate, or more broadly with the electorate via the media where their credibility seems limited at best, and a boring budget in a couple of months won't help. Consumer and business confidence is significantly at risk as a result.

Specific results received this week include the following PERFORMANCE UPDATES:

Chris
CEO, AUSTRALIAN FUND MONITORS

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Jack Lowenstein, the Joint CIO of the Morphic Global Opportunities Fund discusses the market outlook for 2015 and the Fund strategies.

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