Fund Review: Bennelong Long Short Equity Fund November 2015

15 Dec 2015 - Australian Fund Monitors

November Fund Review now available on Bennelong Long Short Equity Fund which has over 13 years track record & annualised return of 18.18% p.a.

Jamieson Coote Bonds Active Fund

14 Dec 2015 - Australian Fund Monitors

Jamieson Coote Bonds Active Fund declined 0.60% in November, outperforming the market by 0.33%.

14 Dec 2015 - Jamieson Coote Bonds Active Fund

By: Australian Fund Monitors

Report Date	10 December 2015
Manager	Jamieson Coote Bonds Pty Ltd
Fund Name	Jamieson Coote Bonds Active Fund
Strategy	Fixed Income
Latest Return Date	November 2015
Latest Return	-0.60%
Latest 6 Months	2.19%
Latest 12 Months
Latest 24 Months
Annualised Since Inception	4.99%
Inception Date	01 December 2014
FUM (millions)	AU$10
Fund Overview	The Jamieson Coote Bonds Active Fund (JCBAF) is a long only macroeconomic investment fund. JCB appointed Jamieson Coote Asset Management as the Manager of the Fund. JCBAF's investable universe is limited to AAA and AA+ Government and Semi (State) Government Bonds and agencies in Australian Dollars, explicitly backed by public institutions, creating a highly liquid product with capital preservation and risk adjusted alpha creation as its core tenant. The Fund usually holds around 20 bond securities of differing maturities and generally individual security selection does not exceed 20% of the Fund's NAV. JCBAF seeks to establish a mid to long term core portfolio using both domestic and global macroeconomic analysis. This is overlaid with a number of valuation indicators and international market intelligence from a global network of market moving investors, including central bankers and hedge funds, to construct an optimal indexed portfolio allocation at any given time. The Fund recognises short term oscillations driven by technical factors and supply dynamics create opportunities within short term pricing cycles, which can generate significant alpha when managed within a risk adjusted framework. The Fund aims to outperform its index using duration and curve management at appropriate times in the pricing cycle whilst retaining a core long. The JCB Active Fund gives direct access to the management team whilst providing portfolio balance with increased capital stability and a fixed income streams with both income and principle repayment secured by the Australian or State Governments.
Manager Comments	Jamieson Coote Bonds Active Fund declined 0.60% in November, outperforming the Bloomberg Australian Government Bond Index by 0.33%. At month-end, the portfolio mix was 54.64% of Australian Government Bonds, followed by 20.16% of State Government Bonds, with average duration of 4.76 years. The significant repricing of RBA expectations by the market caused the term structure to bear flatten over the month. The Fund was cautious on outright valuations coming into year end and therefore reduced its duration exposures. The re pricing of the RBA and the huge employment report, suggesting boom like employment conditions in Australia did not help the Fund performance. However, the Fund investment team there is nothing boom like about Australia's economic growth outlook and hence adding front end duration exposure was fundamentally justified into 2016. Click below to read the Fund's monthly performance and Fund Managers market outlook.
More Information	Fund Profile Manager's Report AFM Research Reports

Bennelong Kardinia Absolute Return Fund

11 Dec 2015 - Australian Fund Monitors

The Bennelong Kardinia Absolute Return Fund rose 1.16%, outperforming the ASX200 Accumulation Index, which fell 0.68%, by 1.84%.

11 Dec 2015 - Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	08 December 2015
Manager	Kardinia Capital, a Bennelong Funds Management boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	November 2015
Latest Return	1.16%
Latest 6 Months	3.13%
Latest 12 Months	9.38%
Latest 24 Months	15.21%
Annualised Since Inception	12.65%
Inception Date	01 May 2006
FUM (millions)	AU$252.6
Fund Overview	The Fund consists of a concentrated long/short portfolio typically comprising 20 to 50 ASX300 listed stocks, generally with a long bias aligned to the overall market direction. On average since inception the Fund's exposure has averaged 40% net long. There is a slight bias to large cap stocks on the long side of the portfolio, although in a rising market the portfolio will tend to hold smaller caps, including resource stocks, more frequently. On the short side, the portfolio is particularly concentrated, with stock selection limited by both liquidity and the difficulty of borrowing stock in smaller cap companies. Short positions are only taken when there is a high conviction view on the specific stock. The Fund uses derivatives in a limited way, mainly selling short dated covered call options to generate additional income. These typically have less than 30 days to expiry, and are usually 5% to 10% out of the money. ASX SPI futures and index put options can be used to hedge the portfolio's overall net position. 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	The Bennelong Kardinia Absolute Return Fund rose 1.16%, outperforming the ASX200 Accumulation Index, which fell 0.68%, by 1.84%. Since inception in May 2006, the Fund has an annualised performance of 12.65% p.a (ASX200 Accumulation Index 4.36% p.a). The Fund has achieved this performance with lower volatility of 7.26% than the Index (14.29%) to give notable Sharpe and Sortino ratio 1.11 (Index 0.09) and 2.11 (Index 0.02) respectively. BWX, Bellamy's, Surfstitch and Ramsay were the largest contributors to performance whilst Australian Careers Network, Vitaco and James Hardie were the largest detractors. Net equity market exposure (including derivatives) at month end sat at 53.6% (61.8% long and 8.2% short) Click below to read the November 2015 Fund Report.
More Information	Fund Profile Manager's Report AFM Research Reports

Morphic Global Opportunities Fund

10 Dec 2015 - Australian Fund Monitors

Morphic Global Opportunities Fund returned -1.35% in November, outperforming its benchmark (MSCI AC World Total Return in Australian Dollars), which fell 2.35%, by 1.00%.

10 Dec 2015 - Morphic Global Opportunities Fund

By: Australian Fund Monitors

Report Date	08 December 2015
Manager	Morphic Asset Management
Fund Name	Morphic Global Opportunities Fund
Strategy	Equity Long/Short
Latest Return Date	November 2015
Latest Return	-1.35%
Latest 6 Months	-1.48%
Latest 12 Months	14.78%
Latest 24 Months	32.41%
Annualised Since Inception	23.24%
Inception Date	02 August 2012
FUM (millions)	AU$128
Fund Overview	The Fund will primarily consist of Global listed shares, and will generally have at least 50% of its net assets invested in these. It may also have short positions in shares that the Manager believes are over-valued, and likely to fall in price, as well as long and short positions in index futures and other derivatives, fixed interest instruments, commodities, credit instruments and currencies.
Manager Comments	Morphic Global Opportunities Fund returned -1.35% in November, outperforming its benchmark (MSCI AC World Total Return in Australian Dollars), which fell 2.35%, by 1.00%. The Fund has an annualised return since inception of 23.24% p.a., with notable Sharpe and Sortino ratios of 2.02 and 4.81 respectively. The largest stock contributor was Open House, a Tokyo based property developer, which reported earnings significantly above market expectations and raised guidance for 2016. Gains were also made from opportunities in European bank recapitalizations and government disposals of banks they were forced to take over in the GFC. The Fund's short position in Aberdeen Asset Management proved to be profitable as the company reported poor flows for their funds and rising costs, which saw the stock fall 8% over the month. Large gains in the basket of high quality US regional banks, were substantially eroded by the long Wells Fargo position. Underperformance also came from German copper smelter Aurubis and their holdings in US healthcare. The Fund began December fully invested. Fund positioning is generally neutral in regard to sectors and countries. Click below to read more.
More Information	Fund Profile Manager's Report AFM Research Reports

The Paragon Fund

10 Dec 2015 - Australian Fund Monitors

The Paragon Fund rose 2.60% for the month of November, outperforming the ASX200 Accumulation Index by 3.28%

10 Dec 2015 - The Paragon Fund

By: Australian Fund Monitors

Report Date	08 December 2015
Manager	Paragon Funds Management
Fund Name	The Paragon Fund
Strategy	Equity Long/Short
Latest Return Date	November 2015
Latest Return	2.60%
Latest 6 Months	2.70%
Latest 12 Months	15.50%
Latest 24 Months	34.58%
Annualised Since Inception	18.54%
Inception Date	28 February 2013
FUM (millions)	AU$35
Fund Overview	The Paragon Fund is a concentrated long/short Australian equities product that is fundamentally driven with a focus on the industrial and resource sectors. Paragon's own research process and active portfolio management is overlaid with risk management and an overarching focus on capital preservation. 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	The Paragon Fund rose 2.60% after fees for the month of November 2015, outperforming the ASX200 Accumulation Index by 3.28%. Since inception in February 2013, the Fund has a cumulative return of +59.64% vs. the Index's +14.53%. The Fund has a notable Sharpe and Sortino ratios of 1.35 (Index 0.27) and 2.73 (Index 0.30) respectively. Key positive contributors for November included Longs in NetComm Wireless, Mayne Pharma, and APN Outdoor. At the end of the month the Fund had 34 long positions and 16 short positions. Majority of the Fund's net industry exposure was in the Industrial sector at 54%, followed by Financial sectors, 13.9%. Over one-fifth of the portfolio was held in cash (23.1%). Click below to read the latest monthly report, highlighting two stocks; Mayne Pharma and Netcomm Wireless that the Fund Manager believes will provide long term growth.
More Information	Fund Profile Manager's Report

Optimal Australia Absolute Trust

9 Dec 2015 - Australian Fund Monitors

Optimal Australia Absolute Trust returned +1.0%, and outperformed the the ASX200 Accumulation Index's by +1.68%.

9 Dec 2015 - Optimal Australia Absolute Trust

By: Australian Fund Monitors

Report Date	07 December 2015
Manager	Optimal Fund Management Australia
Fund Name	Optimal Australia Absolute Trust
Strategy	Equity Long/Short
Latest Return Date	November 2015
Latest Return	1.00%
Latest 6 Months	5.00%
Latest 12 Months	6.50%
Latest 24 Months	12.26%
Annualised Since Inception	9.19%
Inception Date	15 September 2008
FUM (millions)	AU$100
Fund Overview	The investment objective of the Fund is to seek to achieve above average returns in absolute terms, through investing in listed securities in Australia and New Zealand, subject to the overarching requirement of capital preservation. Investments will predominantly be in equity securities but may include fixed interest instruments, money market instruments, derivatives and foreign exchange contracts. 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	Optimal Australia Absolute Trust returned +1.0%, and outperformed the the ASX200 Accumulation Index's by +1.68%. The Fund's annualised return since inception was 9.19% p.a. (Index 4.72% p.a.). This has been achieved with notably low volatility of 3.65% p.a. (Index 14.55% p.a). The Fund held average gross at 110% of NAV, with net short exposure averaging 7% of NAV, avoiding the negative drag from another weak market, and recorded gains on both sides of the ledger. The Fund's long positions strongly outperformed the market, with attribution of +0.8% on average long exposure of 50% of NAV. Key contributors again included some recovery situations in retail (Myer, Metcash, Super Retail Group), Financials (banks and Perpetual), and some bottom-fishing in the energy and commodity groups. The Fund's short positions served as a useful hedge, with attribution of +0.6% % on average short (stock) exposure of 36% of NAV. Click below to read the latest Fund Monthly Report.
More Information	Fund Profile Manager's Report AFM Research Reports

Bennelong Long Short Equity Fund

7 Dec 2015 - Australian Fund Monitors

Bennelong Long Short Equity Fund rose 0.65% in November, to bring latest 12-month return to 32.76%.

7 Dec 2015 - Bennelong Long Short Equity Fund

By: Australian Fund Monitors

Report Date	04 December 2015
Manager	Bennelong Long Short Equity Management, a Bennelong Funds Management boutique
Fund Name	Bennelong Long Short Equity Fund
Strategy	Equity Market Neutral
Latest Return Date	November 2015
Latest Return	0.65%
Latest 6 Months	23.67%
Latest 12 Months	32.76%
Latest 24 Months	23.78%
Annualised Since Inception	18.18%
Inception Date	01 January 2003
FUM (millions)	AU$367
Fund Overview	Bennelong Long Short Equity Management applies a qualitative stock selection process to construct a diversified portfolio of paired securities based on relative value. The Bennelong Long Short Equity Management strategy invests primarily in the S&P/ASX 100 and is dollar neutral at cost. 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	Bennelong Long Short Equity Fund rose 0.65% in November, to bring latest 12-month return to 36.26%. Long term performance since inception in January 2003, remains sound with annual returns of 18.18% p.a. (Index 7.54% p.a.) and a volatility of 11.86% (Index 13.01%). The Fund performance featured an event split of winning and losing pairs. The two strongest contributors to performance were pairs in Energy and Healthcare driven by short positions in Santos and Primary Health Care. On the negative side, the Fund's position in a building materials pair detracted from performance as the long side (James Hardie) disappointed. Portfolio positioning over the month featured several modest adjustments to portfolio weightings, as well as the introduction of a new position in the healthcare sector. Click below to read the Fund Manager's commentary and future market outlook.
More Information	Fund Profile Manager's Report AFM Research Reports

Meme Australian Share Fund

4 Dec 2015 - Australian Fund Monitors

For the month of November, the Meme Australian Share Fund gained 3.11% compared to the ASX200 Accumulation Index's loss of 0.68%, an outperformance of 3.80%.

4 Dec 2015 - Meme Australian Share Fund

By: Australian Fund Monitors

Report Date	03 December 2015
Manager	Meme Capital Management Pty Ltd
Fund Name	Meme Australian Share Fund
Strategy	Equity Long
Latest Return Date	November 2015
Latest Return	3.11%
Latest 6 Months	6.41%
Latest 12 Months	28.38%
Latest 24 Months	44.14%
Annualised Since Inception	17.96%
Inception Date	01 July 2013
FUM (millions)	AU$2
Fund Overview	The Meme Australian Share Fund uses a robust and back-tested quantitative trend-following strategy to identify investment opportunities expected to provide both positive price appreciation and relative price outperformance over the medium to long term. The Fund invests on a long-only basis and does not use derivatives. Meme's investment philosophy is logically derived from addressing our prime investment objectives of creating and preserving wealth. The philosophy therefore comprises elements which separately address investment returns and investment risks while at the same time respecting the interplay between them. The Fund's investment strategy seeks to identify low-risk entry opportunities and then build positions in these stocks. Once established in the portfolio, individual stock holdings are maintained for as long as their long-term upward trend remains intact and while they continue to make positive contributions to portfolio growth. Positions are reduced and ultimately closed out as their trends become exhausted or as their relative long-term performance against the broad market weakens. The Fund believes that longer time frame investments also provide a number of advantages. The effect of false signals and 'noise' which attend shorter term time frames is mitigated by only attending to signals which are confirmed by our longer term assessments. Also, the Fund gains exposure to the more expansive price trends which can last for months and years, allowing dividends and distributions received during this time to further enhance portfolio returns.
Manager Comments	For the month of November, the Meme Australian Share Fund gained 3.11% compared to the ASX200 Accumulation Index's loss of 0.68%, an out-performance of 3.80%. Since inception, the Fund has an annualised return of 17.96% p.a (Index 7.90% p.a.) with notable Sharpe and Sortino Ratios of 1.22 and 1.96 respectively. The most significant positive contributors to the fund's performance were Netcomm Wireless (NTC, +1.81%), Norwood Systems (NOR, +1.09%), Lynas Corporation (LYC, +0.44%) and Hub24 (HUB, +0.43%). The month's the largest negative contributions were St. Barbara (SBM, -0.43%), SMS Management (SMX, -0.32%) and Pilbara Minerals (PLS, -0.28%). The total number of portfolio stocks increased from the previous month's 79 to 101, due to strong investor inflows allowing a number of new positions to be secured. During the month, the Fund's exposure to the Materials, Energy and Information Technology sectors decreased and to the Industrials, Property and Health sectors increased, with exposure to other sectors remained relatively stable. Click below to read the latest Fund Manager's commentary on the Fund.
More Information	Fund Profile Manager's Report AFM Research Reports

Fund Review: Supervised High Yield Fund October 2015

2 Dec 2015 - Australian Fund Monitors

Fund review on Supervised High Yield Fund, a fixed income fund, is now available.

2 Dec 2015 - Fund Review: Supervised High Yield Fund October 2015

By: Australian Fund Monitors

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 32years, 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.

Australian Fund Monitors

ATTACHED FILES

Supervised High Yield Fund AFM Review October 2015 (pdf format)

Fund Review: Insync Global Titans Fund October 2015

1 Dec 2015 - Australian Fund Monitors

Latest Fund Review on Insync Global Titans Fund is now available.

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15 Dec 2015 - Fund Review: Bennelong Long Short Equity Fund November 2015

14 Dec 2015 - Jamieson Coote Bonds Active Fund

11 Dec 2015 - Bennelong Kardinia Absolute Return Fund

10 Dec 2015 - Morphic Global Opportunities Fund

10 Dec 2015 - The Paragon Fund

9 Dec 2015 - Optimal Australia Absolute Trust

7 Dec 2015 - Bennelong Long Short Equity Fund

4 Dec 2015 - Meme Australian Share Fund

2 Dec 2015 - Fund Review: Supervised High Yield Fund October 2015

1 Dec 2015 - Fund Review: Insync Global Titans Fund October 2015

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