NEWS
Fund Review: Bennelong Kardinia Absolute Return Fund March 2014
2 May 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Bennelong Kardinia Absolute Return Fund for March 2014. The Fund is characterised by steady returns and very low risk. The Fund returned 0.87% during March and since inception (May 2006) the Fund has...
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2 May 2014 - Fund Review: Bennelong Kardinia Absolute Return Fund March 2014
By: Australian Fund Monitors
Bennelong Kardinia AFM Fund Review March 2014 (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 an eight year track record.
Bennelong's Kardinia Long/Short equity fund returned 0.87% in March 2014, taking returns for the year to 7.73% (ASX 200 Accum 13.46%). Annualised returns since inception are 13.57% as compared to the Index at 4.87% and with a lower volatility of 7.70% pa as compared to 14.53% pa. At month-end the Fund's net exposure was 48%, with long exposure 81.1% and short exposures 33%.
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.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research Manager
Bennelong Kardinia AFM Fund Review March 2014 (pdf format)
Cor Capital Fund
1 May 2014 - Australian Fund Monitors
Cor Capital Fund returned -1.34% during March and 2.24% for the prior 12 months.
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1 May 2014 - 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 | During the quarter the Fund was up 1.9% and more than half of that return (+0.96%) was attributable to gold which was up 3.7% in Australian dollar terms. Cash (+0.20%), fixed interest (+0.33%) and equities (+0.41%) were all positive contributors across the quarter. With regard to the price of gold bullion, while events in the Ukraine may have pushed speculative money towards the precious metal over the last quarter the Fund's significant strategic exposure is much more about monetary distortion and eventual currency depreciation than any shorter term geopolitical tension. Volatility between the asset classes has been low and there were no re-balancing adjustments triggered throughout the quarter. |
| More Information | » View detailed profile of this fund |
KIS Asia Long Short Fund
30 Apr 2014 - Australian Fund Monitors
KIS Asia Long Short Fund returned 0.70% during March and 16.17% (ASX 200 Acc 13.46%) over the previous 12 months with an annualised vol of 2.67%(Index 11.03%).
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30 Apr 2014 - KIS Asia Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Whilst the Fund's primary strategy is focused on long/short equities, the ability to retain discretionary powers to allocate funds across a number of other investment strategies is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage, special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.). The Fund's geographic focus is Asia (ex Japan incl. Australia). The Fund may invest outside of this region to the extent that: • The investment decision is driven from the Asian region or • The exposure is intended to mitigate risk or enhance return from factors external to the Asian region. |
| Manager Comments | The Fund's low risk characteristics since inception (October 2009) are notable with an annualised vol of 5.58% as compared to 12.08% (Index), 80% positive months, maximum draw-down of 2.69% (15.13% Index) and a down capture ratio of -0.88. The Sharpe ratio is 2.30 over the same time frame. The Manager's market comment noted that 'Some 'growth darlings' in the NASDAQ suffered some extreme falls: Netflix lost 21%, Facebook 12% and Google 8%. These appear to be big numbers until phrased in terms of the number of months of recent gains that were lost: 5 months' of gains lost, 3 months and 4 months respectively. Some research seen recently highlighted that coming into 2014 the median of the most expensive top decile of stocks in the US had a Price/Book [PB] ratio of 9.4 the highest since 1926. Looking at eight other points (1929, 1937, 1946, 1961, 1968, 1973, 1990 and 2000) when markets peaked and had extreme distribution of valuations, the top decile of P/B lost an average of 30% over the following 18 months. We are a couple of months post the peak and have fallen 10%.' |
| More Information | » View detailed profile of this fund |
Laminar Credit Opportunities Fund
30 Apr 2014 - Australian Fund Monitors
Laminar Credit Opportunities Fund delivered 0.62% during March and 11.52% for the year with a low vol of 2.72%.
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30 Apr 2014 - Laminar Credit Opportunities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund may also invest in derivatives for hedging purposes. The portfolio of the Fund comprises primarily Investment Grade holding of 75% of the Fund's assets. Benchmark allocations are Australasia 50% to 100%, North America 0% to 50% and Europe 0% to 50%. Currency hedging may take place depending on benefits to the Fund. |
| Manager Comments | Since inception (October 2009) the Fund has recorded an annualised return of 21.62%, 92% positive months and, in line with fixed interest assets, a maximum draw-down of -1.23% as compared to the equity ASX 200 Accum Index maximum draw-down of -15.13%. The monthly Update notes that portfolio composition of the Fund has remained relatively unchanged for the month. Short dated loans have increased from around 10% at the end of February to 14% at the end of March. RMBS were 68% of the portfolio at month-end. |
| More Information | » View detailed profile of this fund |
Intelligent Investor Value Fund
29 Apr 2014 - Australian Fund Monitors
Intelligent Investor Value Fund recorded -1.28% during March and a strong 24.63% over the previous twelve months as compared to the ASX 200 Accum return of 13.46%.
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29 Apr 2014 - Intelligent Investor Value Fund
By: Australian Fund Monitors
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| Manager Comments | The Sharpe (0.78) and Sortino (1.33; Index 0.50) ratios, also since inception, are sound, however the Fund has an above average volatility at 13.27% (Index 12.17%) and a maximum draw-down of 16.05% as compared to the Index at 15.13%. The Manager's Quarterly Report entitled 'Ducks, Decoupling and Desiderata' covers investing, macro issues and the Fund's shares. The Report is available on the AFM website under the Fund's Profile. |
| More Information | » View detailed profile of this fund |
Pengana Asia Special Events (Onshore) Fund
29 Apr 2014 - Australian Fund Monitors
Pengana Asia Special Events (Onshore) Fund returned -1.3% during March and 9.27% for the year with an annualised volatility of 3.22% and Sharpe ratio of 1.98.
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29 Apr 2014 - 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 Manager comments that 'Intra month volatility presented challenging trading conditions within the holding company universe. We have observed a dislocation in discounts without a reversion in the short term. The Fund has tactically reduced gross exposure to this sub strategy to 18% until more visibility over hard catalysts can be ascertained. On the back of M&A deal closing and tactical reduction of gross exposure in the Holding company sub-strategy, the average gross was 131.8% for the month with a net long exposure of 13%.' |
| More Information | » View detailed profile of this fund |
Fund Review: Optimal Australia Absolute Trust March 2014
28 Apr 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Optimal Australia Absolute Trust for March 2014 has been released. The fund is characterised by very low risk with an annualised standard deviation 3.53% (Index 14.95%)and a Sharpe Ratio since inception of 1.73.
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28 Apr 2014 - Fund Review: Optimal Australia Absolute Trust March 2014
By: Australian Fund Monitors
OPTIMAL AUSTRALIA ABSOLUTE TRUST
Attached is our most recently updated Fund Review on the Optimal Australia Absolute Trust.
We would like to highlight the following:
- Optimal Australia is a specialist Australian equity investment manager and the Fund has a long/short equity strategy typically with a low but variable net market exposure comprising 40 to 65 stocks broadly selected from within the ASX200.
- The Fund returned 0.04% in March with an annual return of 3.30% and a very low standard deviation of 1.89% (ASX 200 Acc 11.03%).
- The Fund has recorded out-performance of the market since inception in September 2008 with approximately 83% of monthly performances having positive returns and the largest drawdown was -1.38% (Index -33.11%).
- The Fund has sound Sharpe and Sortino ratios at 1.73 and 5.06 since inception, as compared to the Index ratios of 0.19 and 0.15 respectively.
- The investment team comprising George Colman, Peter Whiting and Stephen Nicholls have close to 90 years combined experience in equity markets.
For further details on the Fund, please do not hesitate to contact us.
Research and Database Manager
Australian Fund Monitors
Avenir Value Fund
24 Apr 2014 - Australian Fund Monitors
Avenir Value Fund had a sound March delivering 2.50% during the month bringing twelve month performance to 45.57% with a very low vol of 6.92%.
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24 Apr 2014 - Avenir Value Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will invest in securities where Avenir believes the company is simply mis-priced and deeply undervalued and offers significant potential for revaluation. The Fund will also invest in companies that are subject to specific corporate events such as mergers, acquisitions, restructurings, recapitalisations, spin-offs, demergers, management change, distressed situations, and other sharply delineated corporate events. The Fund will also selectively invest in short positions in companies where Avenir believes the company is significantly overvalued or where the company's business model is broken or structurally challenged. |
| Manager Comments | The Sharpe ratio was very high at 5.17 and the Fund had no draw-downs over the twelve months to March with the lowest return 1.05%. The up and down capture ratio were 0.79 and -1.76 respectively. The Fund's geographic exposure was US 37%, W Europe 12%, Asia 6%, Australia 3% and Other 23%. Cash holdings were 17%. |
| More Information | » View detailed profile of this fund |
The Paragon Fund
23 Apr 2014 - Australian Fund Monitors
The Paragon Fund returned a sound 3.60% during March with the 12 month return 24.83% with volatility of 7.73% compared to 11.03% for the ASX 200 Accumulation Index.
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23 Apr 2014 - The Paragon Fund
By: Australian Fund Monitors
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| Fund Overview | Paragon accepts that markets are not always efficient in pricing information into securities and that no one investment style works in every stage of the investment cycle. Subsequently Paragon adopts a top down thematic led approach to identify companies exhibiting sustainable or improving returns on capital driven by volume growth, pricing power and competitive advantages. Paragon utilises both quantitative analysis to provide probability weighted high/low/base case valuations and qualitative analysis in assessing management, the business model and likely direction of returns. Paragon will allocate assets to each investment opportunity based on a risk/reward profile. Positions have defined investment parameters and risk limits, which are then monitored on an ongoing basis. |
| Manager Comments | The Fund Update notes key drivers for March included a combination of: • Continued solid returns from core holdings in G8 Education and Donaco • Strong gains from machine to machine (M2M) technology company NetComm Wireless, and Liquefied Natural Gas. In the Manager's report they discussed their holding in an emerging infrastructure company exposed to the US shale gas revolution: Liquefied Natural Gas (LNG AU). |
| More Information | » View detailed profile of this fund |
Auscap Long Short Australian Equities Fund
22 Apr 2014 - Australian Fund Monitors
Auscap Long Short Australian Equities Fund returned 0.70% in March and a very strong 57.71% for the preceding twelve months.
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22 Apr 2014 - 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 | March average exposures were long 107.4%, short 32.1% and gross 139.5%. Net exposure was 75.2% and Beta-adjusted net 50.6%. The Manager's newsletter discusses the topic 'Does the Real Yield on Equities Represent Value?' and is available at Auscap Asset Management's Profile on the AFM website. |
| More Information | » View detailed profile of this fund |
