NEWS
Fund Review: BlackRock Australian Equity Market Neutral Fund
4 Feb 2014 - Australian Fund Monitors
BlackRock Australian Equity Market Neutral Fund returned -0.01% in December bringing its since inception (Oct 2001) return to 11.77% pa (Index 8.62% pa) with a volatility of 5.63% p.a (Index 13.10% p.a.).
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4 Feb 2014 - Fund Review: BlackRock Australian Equity Market Neutral Fund
By: Australian Fund Monitors
BlackRock Australian Equity Market Neutral Fund (pdf format)
BLACKROCK AUSTRALIAN EQUITY MARKET NEUTRAL FUND
Attached is our most recently updated Fund Review on the BlackRock Australian Equity Market Neutral Fund.
We would highlight the following:
- The Fund's portfolio generally consists of approx. 180-200 stocks in equally weighted long and short portfolios to maximise potential returns while minimising market volatility.
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The strategy has recorded a return of 11.77% since inception (Sept 2001) as compared to the ASX 200 Accumulation Index return of 8.62% and with a volatility less than one-half that of the Index at 5.63% pa as compared to 13.10% pa.
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The Fund has also recorded a maximum drawdown of 12.41% as compared to 47.19% for the Index and has had 78% positive months since inception.
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Blackrock operates in 27 countries including Australia (where BlackRock has A$63.5 billion in FUM - December 2013) managing a broad range of strategies across a variety of asset classes.
Research and Database Manager
Australian Fund Monitors
BlackRock Australian Equity Market Neutral Fund (pdf format)
Pengana Asia Special Events (Onshore) Fund
4 Feb 2014 - Australian Fund Monitors
Pengana Asia Special Events (Onshore) Fund returned 1.22% over December and 11.55% for the previous twelve months. The Fund's strategy has seen a very volatility of 2.31% as compared to 11.43% (S&P/ASX 200 Acc) for CY2013.
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4 Feb 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 | Since inception has recorded beta of -0.03 and a correlation of -0.1 using the FTSE-Asia Pacific Total Return Index since inception. Over the quarter Capital Management and M&A strategies made significant contributions to the positive performance, with considerable gains made from positions in Australia, Japan and Thailand. The Fund maintained an average gross exposure of 169%, reflecting the strong opportunity set across Asian corporate events, whilst keeping an average net exposure of 12.5%. |
| More Information | » View detailed profile of this fund |
Fund Review: Morphic Global Opportunities Fund
3 Feb 2014 - Australian Fund Monitors
Morphic Global Opportunities Fund returned 3.85% in December and 42.49% for the previous twelve months with a volatility of 9.10% p.a.
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3 Feb 2014 - Fund Review: Morphic Global Opportunities Fund
By: Australian Fund Monitors
MORPHIC GLOBAL OPPORTUNITIES FUND
AFM has updated the Fund Review on the Morphic Global Opportunities Fund.
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.
- Portfolio construction is stock selection agnostic with a bias to value based and momentum strategies. Risk management is a primary consideration in portfolio construction and the strong emphasis on risk is evidenced by the Fund's since inception annualised standard deviation of 8.59% (9.83% ASX 200 Accum Index), maximum drawdown of 1.57% (6.72% Index) and downside deviation of 1.63 (5.14 Index).
- 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
Allard Investment Fund
31 Jan 2014 - Australian Fund Monitors
Allard Investment Fund had a flat December and returned 11.64% for the previous twelve months with a low standard deviation of 6.99%, in line with its conservative investment philosophy.
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31 Jan 2014 - Allard Investment Fund
By: Australian Fund Monitors
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| Manager Comments | Notable over the last twelve was the Fund's up capture ratio at 0.12 while the down capture ratio was -0.72. The Fund's Australian dollar performance this month was aided by the A$ depreciating 2.1% against the US dollar. At the end of December the asset breakdown of the portfolio stood at 74.8% invested in equities and 25.2% held in cash and fixed income. By geography the Fund's largest holdings were in HK/China 35.7%, Singapore 13.7% and Korea 9.7%. By sector, the largest holdings were in Financial Services 17.2%, Conglomerates 12.6% and Telco's at 9.5%. The top five holdings amounted to 42.3% of the portfolio. |
| More Information | » View detailed profile of this fund |
Fund Review: Insync Global Titans Fund
30 Jan 2014 - Australian Fund Monitors
AFM's updated Fund Review for Insync Global Titans Fund for December 2013 shows the Fund delivering an annualised return of 11.41% and annualised standard deviation of 8.50% (since inception in October 2009) with sound risk-reward statistics.
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30 Jan 2014 - Fund Review: Insync Global Titans Fund
By: Australian Fund Monitors
Insync Global Titans Fund AFM Review - December 2013 (pdf format)
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans Fund.
We would like to highlight the following:
- The Global Titans Fund invests in a concentrated portfolio of 15-25 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Key contributors for the month came from holdings in Disney, Oracle, Discover Financial Services, BSkyB and TEConnectivity. CR Bard and Coach were the only detractors. The Fund has no foreign exchange hedging in place and benefitted from the 2.1% depreciation of the Australian dollar against the US dollar in December.
- 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
Insync Global Titans Fund AFM Review - December 2013 (pdf format)
Pengana Australian Equities Market Neutral Fund
29 Jan 2014 - Australian Fund Monitors
Pengana Australian Equities Market Neutral Fund returned 3.6% during December and 19.11% for the year to December 2013, a sound performance given it's correlation of -0.03 and neutral market exposure.
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29 Jan 2014 - Pengana Australian Equities Market Neutral Fund
By: Australian Fund Monitors
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| Fund Overview | The manager's investment approach is premised on the belief that fundamental factors (such as earnings, cash flow and profit growth) affect stock prices, but that the adoption of quantitative techniques (i.e. computer based models) provides an advantage in assimilating and analysing this information, and building an efficient portfolio. The Fund's portfolio is constructed to be 'Market Neutral' i.e. it aims to have little or no overall exposure to movements in the equity market. The aim of low exposure to market movements is to enhance the consistency of the portfolio's performance and to provide diversification from other market oriented investments. |
| Manager Comments | The Australian Share Market had a volatile fourth quarter finishing up 3.4% however it lagged global indices as multiple IPO's and equity raisings weighed on the market. The quarter was dominated by the possible tapering of QE, but the local AGM season and quarterly updates brought mixed news. The Banks, Telco's, Health Care and the Materials sectors were the main drivers of the market as investors sought yield and growth. Against the fall over the quarter, risk appetite increased in December with the market once again shifting its focus towards smaller cap, higher risk cyclical stocks. This also occurred in the third quarter where we saw an increase in risk appetite at month end. |
| More Information | » View detailed profile of this fund |
Auscap Long Short Australian Equities Fund
28 Jan 2014 - Australian Fund Monitors
Auscap Long Short Australian Equities Fund delivered 2.57% during December and, taking full advantage of buoyant equity markets, returned 51.86% for the year.
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28 Jan 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 | Average net exposure over the month was +119.4%, with gross longs at 145.6% and gross shorts at 26.2%. At month end the Fund had 30 long positions and 5 short positions. The Fund's biggest exposures at month end were in the consumer discretionary, financials and telecommunications sectors. The Manager notes that '...the Christmas Grinch almost stole the traditional December rally for 2013. Despite a large negative move at the start of the month, the All Ordinaries Accumulation Index managed to finish up 0.92%. The 4.6% fall in the first couple of weeks created a buying opportunity, particularly in strong, defensive businesses where declining share prices appeared to reflect an unwind of the \'carry trade\' in the Australian market rather than any change in the underlying fundamentals of the companies.' |
| More Information | » View detailed profile of this fund |
Fund Review: Bennelong Long Short Equity Fund
28 Jan 2014 - Australian Fund Monitors
The Bennelong Long Short Equity Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large cap stocks from the ASX/S&P100 Index, with a ten year track record and annualised net returns of over 20%.
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28 Jan 2014 - Fund Review: Bennelong Long Short Equity Fund
By: Australian Fund Monitors
Bennelong Long Short Equity Fund (pdf format)
BENNELONG LONG SHORT EQUITY FUND
Attached is our most recently updated Fund Review on the Bennelong Long Short Equity Fund.
- The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large cap stocks from the ASX/S&P100 Index, with a ten year track record and annualised net returns of over 20% pa.
- Fund performance was satisfactory this month despite a major surprise profit warning and substantial correction by one of the long financial positions (QBE Insurance Group). At the sector level, strong returns were made in Industrials and Health Care and Financials and Consumer Staples recorded negative returns.
- Since inception in January 2003 the Fund has had positive annual returns each year, including an 11.95% return in 2008 and 20.6% in 2011, both of which were negative years for the ASX200.
- The Fund's risk statistics are also sound with maximum drawdown of 12.22% and 71% positive months. Both the Sharpe Ratio at 1.26 and the Sortino ratio at 2.20, indicate a high reward-to-risk ratio.
- The consistent returns across the investment history indicates the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market.
Research and Database Manager
Australian Fund Monitors
Bennelong Long Short Equity Fund (pdf format)
Intelligent Investor Value Fund
24 Jan 2014 - Australian Fund Monitors
Intelligent Investor Value Fund returned 0.38% during December and 44.21% over the last twelve months with a set of very strong risk statistics, notably a Sharpe ratio of 3.36.
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24 Jan 2014 - Intelligent Investor Value Fund
By: Australian Fund Monitors
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| Manager Comments | The Fund also had a maximum draw-down of -0.69% as compared to 6.72% for the ASX 200 Accum and an up capture ratio of 1.06 and down capture ratio of -0.64. The Manager notes that 'With the exception of US markets and the industrials side of the Australian market, we are finding plenty of interesting ideas to invest in. But those two exceptions are in the middle of our circle of competence. With significant amounts of cash in both portfolios, a correction of any sort would be welcome.' |
| More Information | » View detailed profile of this fund |
Totus Alpha Fund
23 Jan 2014 - Australian Fund Monitors
Totus Alpha Fund returned -0.39% during December and 60.19% for the year to December. Top contributors to performance over the month were long positions in Australian index futures +1.72%, Japanese index futures +1.6% and a short in...
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23 Jan 2014 - Totus Alpha Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is a long/short investment fund principally investing in listed entities, commodities, futures and options in Australia and internationally. The Fund is not a market neutral fund and accordingly may switch between net long positions and net short positions. The Fund may use short sales and derivatives as determined by Totus Capital. Gearing may be used to enhance returns and the Fund may be geared in excess of 100% of the Fund's Net Asset Value. There is a limit to net exposure of 150%. |
| Manager Comments | The Fund was notable in having an up capture ratio of 1.16 and down capture ratio of -1.52 over the last 12 months. Correlation with the ASX 300 Accum has been very low at -0.052 (since inception). As at 31 December, the fund had a net exposure of 93% and a gross exposure of 248%. The fund held 98 positions (54 long and 44 short) and major investment exposures were as follows: Longs: Online 14%, Sustainable yield 21%, Scarce growth 29%; Shorts: Structural change 19%, Mining Capex 29%, Gold miners 16%. |
| More Information | » View detailed profile of this fund |
