NEWS
Fund Review: Alpha Beta Asian Fund AFM Fund Review December 2014
29 Jan 2015 - Australian Fund Monitors
Alpha Beta Asian Fund, an Asian Quantitative Fund, returned 4.01% over the last 12 months, with a volatility of 5.15%. Since inception the fund has returned 22.50%. The Fund CPD Points available for reading the review.
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29 Jan 2015 - Fund Review: Alpha Beta Asian Fund AFM Fund Review December 2014
By: Australian Fund Monitors
ALPHA BETA ASIAN FUND
AFM has updated the Fund Review on the Alpha Beta Asian Fund.
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
Key points include:
- The Fund The Alpha Beta Asian Fund invests in Asian listed equity markets with a focus on liquid companies in Australia, Japan, Hong Kong, Indonesia, Philippines and Thailand. The Fund uses a systematic approach to evaluate macroeconomic, company fundamental and price data, all of which are evaluated through a series of quantitative models.
- Sydney based Alpha Beta Capital was established by Andrew Barry and Ken Lewis in May 2012. Both Barry and Lewis have significant qualifications and international experience in funds management, including working together at Coronation International, a global multi-strategy hedge fund group in London.
- The Strategy relies on a number of core beliefs: Firstly that a well designed systematic investment process, operating within a multi-strategy framework will be able to extract consistent returns, on average, with low volatility. Secondly, by utilising holding periods substantially shorter than the industry-norm, profit opportunities consistently arise. Finally, a strategy that holds a large number of small positions versus a small number of concentrated positions, will remove much of the emotional angst of trading, and the investment process becomes repeatable.
- In keeping with the Manager's overall systematic approach the Risk Management includes real time monitoring of positions and market exposure, and is combined into a proprietary and automated system called PARMS (Portfolio and Risk Management System). PARMS is a centralised and integrated system which provides full functionality including stress testing.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Auscap Long Short Australian Equities Fund
29 Jan 2015 - Australian Fund Monitors
Auscap Long Short Australian Equities Fund recorded a return of 0.44% in December with the annual return 23.17% and a volatility of 7.46%.
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29 Jan 2015 - 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 | Average gross capital employed by the Fund was 141.1% long and 25.1% short. Average net exposure over the month was +116.0%. At the end of the month the Fund had 33 long positions and 5 short positions. The Fund's biggest stock exposures at month end were spread across the financials, consumer discretionary, healthcare, telecommunications and industrials sectors. The Fund's Sharpe ratio is 2.52 (0.33) and the Sortino ratio 7.78 (0.40) over the last 12 months with Up and Down Capture ratios notable at 1.10 and -0.02. |
| More Information | » View detailed profile of this fund |
Fund Review: Optimal Australia Absolute Trust December 2014
28 Jan 2015 - Australian Fund Monitors
Since inception the Fund has return of 9.23%, compared to the ASX200 Accumulation Index of 5.45%. The Fund has a very low volatility of 3.56% since inception compared to 14.52% for the index.
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28 Jan 2015 - Fund Review: Optimal Australia Absolute Trust December 2014
By: Australian Fund Monitors
OPTIMAL AUSTRALIA ABSOLUTE TRUST
AFM have released the most recently updated Fund Review on the Optimal Australia Absolute Trust.
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
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 supported by Stephen Nicholls and Justin Hay have over 100 years combined experience in equity markets.
- The Fund's approach to risk is shown by the Sharpe ratio of 1.51, Sortino ratio of 3.77, both of which are well above the ASX 200 Accumulation Index and has recorded 82% positive months.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Pengana Absolute Return Asia Pacific Fund
28 Jan 2015 - Australian Fund Monitors
Pengana Absolute Return Asia Pacific Fund returned 0.74% in December and 6.20% for the year (ASX200 Accum 5.61%) with a volatility of 2.79% and a Sharpe ratio of 1.29.
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28 Jan 2015 - Pengana Absolute Return Asia Pacific 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 | Despite the oil price volatility and festive holidays, December proved an active month for deal activity. The highlight was the mega merger between China CSR and China CNR, part of the SOE reform in China. The deal has been structured to eliminate competition between the two companies to create a domestic champion capable of competing internationally. The Fund profited from the announcement of the CSR/CNR merger as the Manager held the trade in expectation of CNR shareholders receiving premium in the deal (which actually translated to ~13%). The Manager continues to believe the SOE reform in China will be a major driving force for deals in 2015. |
| More Information | » View detailed profile of this fund |
Fund Review: Bennelong Kardinia Absolute Return Fund Dec 2014
27 Jan 2015 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund returned 1.53% compared 0.21% for ASX200 Accumulation Index. Since inception the fund has had an annualised return of 13.10% compared to 4.51% for the index. Volatility of the fund over the last...
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27 Jan 2015 - Fund Review: Bennelong Kardinia Absolute Return Fund Dec 2014
By: Australian Fund Monitors
BENNELONG KARDINIA ABSOLUTE RETURN FUND
Attached is our most recently updated Fund Review. You are also able to view the Fund's Profile.
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
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The Fund is long biased, research driven, active equity long/short strategy investing in listed ASX companies with an eight year track record.
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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 1.53% in December 2014 compared to the ASX200 Accumulation's return of 0.21%. Since inception the fund has volatility of 4.17% pa, compared to the ASX200 Accumulation's 10.95%.
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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
The Paragon Fund
27 Jan 2015 - Australian Fund Monitors
The Paragon Fund returned -0.50% (ASX 200 Accum 2.06%) during December with annual returns at 16.09% (Index 5.61%) with a volatility 15.16% (Index 10.95%).
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27 Jan 2015 - 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 | Since inception the Paragon Fund has returned +37.5% after fees vs. the market (All Ordinaries Accumulation Index) +13.7%. Key drivers of the Paragon Fund performance for December included solid returns from industrial firms Qantas, Orora, Brambles and emerging healthcare firm Nanosonics, offset by falls across our smaller company holdings. At the end of December the fund had 27 long positions and 11 short positions. |
| More Information | » View detailed profile of this fund |
Fund Review: Insync Global Titans Fund December 2014
27 Jan 2015 - Australian Fund Monitors
The Fund's unit price increased by 2.57% in December with 12 month return at 10.40% compared to the ASX200 Accum 5.61%. The broad thesis behind the Fund's strategy and portfolio construction is that companies which have shown a consistent...
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27 Jan 2015 - Fund Review: Insync Global Titans Fund December 2014
By: Australian Fund Monitors
Insync Global Titans Fund AFM Review - Dec 2014 (pdf format)
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans Fund.
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
We would like to highlight the following:
- The Fund's unit price increased by 2.57% in December. The performance was driven by positive contributions from our holdings in Oracle, Express Scripts, Reckitt Benckiser, Zimmer and Comcast as well as the weaker Australian dollar. The main negative contributors were Hugo Boss, BAT and Sanofi. 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.
- The Global Titans Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research Manager
Australian Fund Monitors
Insync Global Titans Fund AFM Review - Dec 2014 (pdf format)
Cor Capital Fund
24 Jan 2015 - Australian Fund Monitors
Cor Capital Fund returned +1.93% during December bringing 2014 return to 5.35% with a volatility of 3.57%.
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24 Jan 2015 - 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 | The Fund Manager is pleased to report that the effects of recent energy, resources and currency volatility on Fund performance were relatively negligible and slightly positive. There were no changes to the portfolio at the asset class level during the month despite the year end approaching with higher volatility. |
| More Information | » View detailed profile of this fund |
Pengana Australian Equities Market Neutral Fund
23 Jan 2015 - Australian Fund Monitors
Pengana Australian Equities Market Neutral Fund returned -3.90% during December compared to the ASX200 Accum Indx 2.06%, bringing 2014 return to -13.53% (Index 5.61%)
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23 Jan 2015 - Pengana Australian Equities Market Neutral Fund
By: Australian Fund Monitors
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| Fund Overview | Following a review, Pengana Capital Limited have decided to change the investment team for the Pengana Australian Equities Market Neutral Fund. The new investment team will continue to manage the Fund in accordance with the Fund's current investment objectives. We expect to be able to advise the details of the new investment team within the next 2 to 3 weeks. Investors will not be exposed to investment performance risk during the transitionary phase. The assets of the Fund will be liquidated into cash pending the appointment of the new investment team. Following the appointment of the new investment team, the cash will then be reinvested into equities. Pengana Capital will issue an updated Product Disclosure Statement when the new investment team is formally appointed which we estimate to be in 2 to 3 weeks. There will be no change to the product features other than the investment team change and we envisage only minor refinements to the investment process and investment guidelines of the Fund, which will be disclosed in an updated Product Disclosure Statement. The Fund's Product Disclosure Statement has been withdrawn and, until the updated Product Disclosure Statement is issued, the Fund is closed to all applications. Any application requests received after 2pm on Thursday 15 January 2015 will not be processed and will be returned with all application monies. Withdrawals will continue to be processed as normal and payment made in accordance with instructions. Existing investors do not need to take any action at this time. We will advise them once the new investment team is appointed and the updated Product Disclosure Statement is issued. Should you require any further information at this time, please contact your Financial Adviser or Pengana's Client Services team: Phone: 02 8524 9900 Email: [email protected] |
| Manager Comments | Value was the worst performing factor over the quarter followed by Momentum, Quality and Revisions. Falling risk appetite continued to gather momentum over the quarter and was accentuated by falling market volatility and trade volumes over December. The fund benefitted from its short position in the iron ore exposed names of Arrium and Mount Gibson and its net short to the energy sector with Santos and AWE in particular adding value, however the long exposure to Lonestar Energy detracted value from the portfolio. The net short to mining services companies detracted value for the quarter in spite of their deteriorating outlook as miners and now oil and gas companies look to lower CAPEX budgets. Sharp falls, followed by strong rallies from the likes RCR Tomlinson and Skilled group were examples of a sector where performance was highly variable and volatile. The Consumer discretionary sector was a poor performer with the fund exposed to both Flight centre and STW communications at the time of both their profit downgrades. The model has identified Harvey Norman, Nine Entertainment and Dick Smith as core long positions representing both value and positive earnings momentum within the consumer sector. Peet is one of the fund's top holdings as it trades at a 13% discount to NTA, is exposed to the improving development market in Queensland and delivered solid margin expansion and EPS growth in FY14. It screens positively across most of our metrics especially within the property sector. Paladin energy now screens very poorly across all our Valuation and Quality metrics and is one of the largest short positions in the fund. |
| More Information | » View detailed profile of this fund |
Fund Review: Morphic Global Opportunities Fund December 2014
23 Jan 2015 - Australian Fund Monitors
The December Fund Review shows performance at 2.62% for the Morphic Global Opportunities Fund ahead of the Global Equity Index (2.03%) and a 12 month Sharpe ratio of 1.42. CPD Points available.
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23 Jan 2015 - Fund Review: Morphic Global Opportunities Fund December 2014
By: Australian Fund Monitors
MORPHIC GLOBAL OPPORTUNITIES FUND
Attached is our most recently updated Fund Review on the Morphic Global Opportunities Fund.
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
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.
Sean Webster
Research Manager
Australian Fund Monitors
