NEWS
Insync Global Titans Fund
22 Dec 2016 - Australian Fund Monitors
The Insync Global Titans Fund returned +0.40% in November, compared to the MSCI All Country World ex-Australia Net Total Return Index in $A, which returned +3.80%.
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22 Dec 2016 - Insync Global Titans Fund
By: Australian Fund Monitors
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| Fund Overview | Insync employs four simple screens to narrow the universe of over 40,000 listed companies globally to a focus group of high quality companies that it believes have the potential to consistently grow their profits and dividends. These screens are size of the company, balance sheet performance, valuation and dividend quality. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio of typically 15-30 stocks. The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, derivatives (for example futures, options and swaps), currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled investment vehicles. At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio. |
| Manager Comments | The performance was driven by positive contributions from the holdings in Comcast, McDonald's, Oracle and Microsoft. The main negative contributors were PayPal, Nestle, Heineken, Visa and Medtronic. The Fund continues to have no foreign currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside. Over 50% of the Fund is currently protected using the put protection strategy. |
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Fund Review: Optimal Australia Absolute Trust November 2016
22 Dec 2016 - Australian Fund Monitors
Read the latest Fund Review on Optimal Australian Absolute Trust.
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22 Dec 2016 - Fund Review: Optimal Australia Absolute Trust November 2016
By: Australian Fund Monitors
AFM Fund Review - November 2016 (pdf format)
OPTIMAL AUSTRALIA ABSOLUTE TRUST
AFM have released the most recently updated Fund Review on the Optimal Australia Absolute Trust.
We would like to highlight the following aspects of the Fund;
- 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 investment team comprising George Colman, Peter Whiting, and Stephen Nicholls bring nearly 100 years combined experience in equity markets.
- In October, the Fund rose 0.95%, to take annualised return since inception to 8.59% p.a. The Fund's approach to risk is shown by the Sharpe ratio of 1.39 (Index 0.21), Sortino ratio of 2.92 (Index 0.19), both of which are well above the ASX 200 Accumulation Index and has recorded 80% positive months.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - November 2016 (pdf format)
Fund Review: APN Asian REIT Fund November 2016
21 Dec 2016 - Australian Fund Monitors
November Fund Review is now available on APN Asian REIT Fund, a property securities fund, investing primarily in the Asian REITS.
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21 Dec 2016 - Fund Review: APN Asian REIT Fund November 2016
By: Australian Fund Monitors
AFM Fund Review - November 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 14.59% p.a., since inception in July 2011 with a standard deviation of 9.62% p.a. The Sharpe and Sortino ratios are 1.19 and 2.10 respectively.
AFM Fund Review - November 2016 (pdf format)
Affluence Investment Fund
21 Dec 2016 - Australian Fund Monitors
Affluence Investment Fund returned +0.16% in November to take prior 24-months to 20.68%.
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21 Dec 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 | The returns for the Fund's underlying investments ranged from negative 10% to positive 4%. In November, the Fund took advantage of market volatility and added to some existing investments. These included the Phoenix Opportunities Fund, Baker Steel Gold Fund, Smallco Broadcap Fund and Smallco Investment Fund, and the Affluence LIC Fund. At the end of November, the Fund held investments in 23 unlisted funds, representing 58% of the total portfolio. The Affluence LIC Fund accounted for 19% of the total portfolio and provided exposure to 21 LIC's. The Fund held investments in 5 other listed entities which represented 6% of the total portfolio, with the remaining 17% held in cash. |
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Fund Review Pengana Absolute Return Asia Pacific Fund November 2016
20 Dec 2016 - Australian Fund Monitors
Latest Fund Review is now available on Pengana Absolute Return Asia Pacific Fund, which has over 7 years of positive track record and an annualised return of 8.60% p.a.
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20 Dec 2016 - Fund Review Pengana Absolute Return Asia Pacific Fund November 2016
By: Australian Fund Monitors
AFM Fund Review - November 2016 (pdf format)
PENGANA ABSOLUTE RETURN ASIA PACIFIC FUND
Attached is our most recently updated Fund Review on the Pengana Absolute Return Asia Pacific Fund.
- The Pengana Absolute Return Asia Pacific Fund ("PARAP") was established in 2008 by portfolio managers Antonio Meroni and Vikas Kumra. The Fund is a feeder fund into a Cayman Islands AUD share class fund.
- The Fund invests both long and short in Asia Pacific equities, including in Australian and New Zealand, after a stock specific "event" has either occurred or been announced and the portfolio aims to be uncorrelated to the underlying equity markets. A combination of the Manager's experience, thorough research and continuous back- testing identify the most attractive of these events.
- Risk controls include limits on individual positions as well as gross and net exposure. Limits are in place for option exposure and cash borrowing, with stop loss limits on individual positions. Overall the manager is looking to derive returns from the event strategies as opposed to any currency or market exposures.
- Since inception, the Fund has an annualised return of 8.60% p.a., compared to the MSCI ACWI Asia Pacific Price Index's return of 2.95% p.a.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - November 2016 (pdf format)
QATO Capital Market Neutral Long/Short Fund
20 Dec 2016 - Australian Fund Monitors
Qato Capital Market Neutral Long/Short Fund returned +0.79% for the month of November.
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20 Dec 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 | The ASX-100 rallied aggressively post the US Election moving +5.80% to close up +2.53% for November. Prior to the rally, Qato's Risk Model triggered a risk-on signal and the Fund immediately reduced its short exposure to higher beta companies - those that are most inclined to rally aggressively - with Qato's net exposure shifting from -4% to +18%. Qato's short positions in QBE Insurance, Henderson Group, and Origin Energy rallied the most. Once the risk-on signal had subsided, net exposures were readjusted towards 0%. On this occasion, the Qato Risk Model saved the Fund +1.51% during November. This coupled with July's risk-on trigger, has benefited fund performance by +4.68%. |
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APN AREIT Fund
19 Dec 2016 - Australian Fund Monitors
APN AREIT Fund returned +0.35% in November. The long term performance since inception remains strong with annual returns since inception of 16.44%.
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19 Dec 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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Bennelong Twenty20 Australian Equities Fund
19 Dec 2016 - Australian Fund Monitors
Bennelong Twenty20 Australian Equities Fund returned +2.19% for the month of November.
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19 Dec 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 | The market has been sluggish over the last three to six months and a number of good growth companies have been sold off without any deterioration in company fundamentals. This has opened up some attractive investment opportunities for the Fund and focused on those companies that will be able to deliver or hopefully beat expectations of their earnings. |
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Bennelong Kardinia Absolute Return Fund
16 Dec 2016 - Australian Fund Monitors
Bennelong Kardinia Absolute Return Fund returned -0.37% in November to take annual returns since inception to 11.16%.
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16 Dec 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 | National Australia Bank, Commonwealth Bank, ANZ Bank and RIO were the largest positive contributors to performance whilst Share Price Index Futures (hedging longs), Scottish Pacific and Service Stream were the largest detractors. Net equity market exposure (including derivatives) was increased to 54.4% (62.6% long and 8.2% short). |
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Pengana Absolute Return Asia Pacific Fund
16 Dec 2016 - Australian Fund Monitors
The Pengana Absolute Return Asia Pacific Fund finished down -1.65% for the month of November 2016, compared to Asian markets which returned -2.4%.
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16 Dec 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 | The Fund was largely insulated due to its hedges, from the significant volatility generated from the US Presidential election during the Asian trading hours. However, this volatility subsided few hours after the US election and unfortunately, the Fund did not take any profits in its long volatility position as the view was that volatility would remain elevated for at least several trading days. For the month, the M & A and capital management strategies were the biggest detractors. However, the market volatility created a trading environment conducive for the stubs strategy, which contributed +0.5%. During the month, the Fund increased gross exposure by circa 25%, although this was partially attributable to an increase in index hedges. Exposure to the M & A, capital structure and capital management strategies were increased. From a country perspective, trade allocations increased in Hong Kong/China, India and Korea. |
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