NEWS
Optimal Australia Absolute Trust
13 Mar 2014 - Australian Fund Monitors
Optimal Australia Absolute Trust returned 1.06% during February with a net exposure of 3.1% with a 12 month return of 3.20% and volatility of 1.90% (11.49% Index).
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13 Mar 2014 - Optimal Australia Absolute Trust
By: Australian Fund Monitors
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| Fund Overview | 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 | The Manager's monthly report comments that 'Despite a stronger market in February, 2014 still strikes us as less about a one-way bet on equities and the impact of ultra-low interest rates on risk assets, and much more about stock selection and risk management. More volatility should be expected, and hopefully more differentiation in stock performance within the index. We are seeing more of the former, but so far not too much of the latter. When we do see sporadic market weakness, the default investor reaction is to sell resources and materials stocks, and buy defensives and financials at almost any valuation. This mindset is somewhat scary. There is no doubt that infrastructure stocks, as one example, generate cash flows with low volatility from quality assets. But their valuations are highly sensitivity to discount rates, which are rising, so these types of stocks are far from low-risk right now. That they are seen as so "safe" (with unfranked yields now under 5%, in some cases) seems to again point a gradual de-sensitisation towards risk, which is of course the objective and consequence of extended financial repression. As risk-averse investors, we remain profoundly suspicious of a world where equities win because they are the least bad alternative: the TINA (There Is No Alternative) doctrine.' |
| More Information | » View detailed profile of this fund |
Morphic Global Opportunities Fund
12 Mar 2014 - Australian Fund Monitors
Morphic Global Opportunities Fund returned -0.71% during February with a net exposure of 101% and gross exposure at 157%.
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12 Mar 2014 - Morphic Global Opportunities Fund
By: Australian Fund Monitors
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| Manager Comments | The Fund closed the month fully invested, reflecting a conviction that while the market remains jittery, the bulls have certainly emerged with the upper hand. No currencies are hedged back into Australian dollars. The Fund was slightly overweight the US and Europe, and slightly underweight emerging markets through selected short positions in stock markets and currencies felt to be more vulnerable to economic and political turmoil. |
| More Information | » View detailed profile of this fund |
Bennelong Kardinia Absolute Return Fund
11 Mar 2014 - Australian Fund Monitors
Bennelong Kardinia Absolute Return Fund had a strong February making the most of the buoyant equity markets to return 2.69% (-2.12% January).
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11 Mar 2014 - Bennelong Kardinia Absolute Return Fund
By: Australian Fund Monitors
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| 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. There is a slight bias to large cap stocks in 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. |
| Manager Comments | The Manager's Report notes that Seek, Henderson, Westpac, Ramsay Health Care and James Hardie were all significant contributors to performance, whilst Share Price Index Futures (hedging long positions), Amcor and Ansell were the major detractors. The Fund's 12 month performance was in line with the market at 10.27% as compared to 10.56% however this was achieved with approximately one-third of the Index volatility (4.15% and 11.49% Index). The fund's Sharpe ratio was notable at 1.76 (0.71 Index). |
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Bennelong Long Short Equity Fund
10 Mar 2014 - Australian Fund Monitors
Bennelong Long Short Equity Fund returned 2.50% in February and 20.61% since inception in January 2003 with below Index volatility.
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10 Mar 2014 - Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| Manager Comments | The Sharpe ratio is 1.25 and maximum drawdown 12.22%. Up and down capture ratios are 0.16 and -1.76. All data is since inception. The Manager notes that the fund performed satisfactorily through what was quite a turbulent month due to a number of positions in the portfolio experiencing significant price movements in response to company earnings releases. An example was Seek/Fairfax, where Seek reported one of the best results in the reporting season and the stock rallied +38% for the month. This was offset when Fairfax managed to deliver on their cost out program and the stock rallied +41% over the same period. |
| More Information | » View detailed profile of this fund |
Fund Review: Aurora Fortitude Absolute Return Fund
7 Mar 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Aurora Fortitude Absolute Return Fund for January 2014. The Fund is characterised by steady returns and very low risk. Since inception (March 2005) the Fund has returned 8.12% pa.
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7 Mar 2014 - Fund Review: Aurora Fortitude Absolute Return Fund
By: Australian Fund Monitors
AURORA FORTITUDE ABSOLUTE RETURN FUND
We would like to highlight the following aspects of the Fund;
- The Aurora Fortitude Absolute Return Fund (AFARF) has a 8 year track record investing in ASX listed equities. A Market Neutral overlay is used across a multi strategy approach which allows for flexible asset allocation to maximise returns and minimise risk under a variety of market conditions and cycles.CIO John Corr has over 20 years financial market experience with a strong focus on risk.
- Significant use of low risk "long" derivatives and option overlays has provided positive returns with low volatility during periods of market dislocation. Annualised return since inception is 8.12% with a very low standardised standard deviation of 2.74%. Over 88% of monthly performances have been positive, with no losing months in 2008 with the Fund's largest drawdown -2.09%.
- ASX listed Aurora Funds Limited was established on the merger of three existing fund management businesses, managing approx. $480m on behalf of more than 2,500 retail and wholesale investors.
Sean Webster
Research and Database Manager
Fund Review: Insync Global Titans Fund
6 Mar 2014 - Australian Fund Monitors
AFM's updated Fund Review for Insync Global Titans Fund for January 2014 shows the Fund delivering an annualised return of 10.96% and annualised standard deviation of 8.46% (since inception in October 2009) with sound risk-reward statistics.
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6 Mar 2014 - Fund Review: Insync Global Titans Fund
By: Australian Fund Monitors
Insync Global Titans Fund AFM Review - January 2014 (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.
- The Fund's unit price decreased by 0.9% in January, compared to the equity benchmark's decline of 1.5%. The main positive contributions for the month came from our holdings in Comcast, BSkyB and TE Connectivity. The main negative contributors were BAT, Coach and Sanofi. The Fund, currently having no foreign exchange hedging in place, benefitted from a slight depreciation of the Australian dollar in January. The Fund has no direct emerging market exposure.
- 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 - January 2014 (pdf format)
Monash Absolute Investment Fund
6 Mar 2014 - Australian Fund Monitors
Monash Absolute Investment Fund has a sound February returning 2.60% with the twelve month return 24.51% (ASX 200 Acc 10.56%).
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6 Mar 2014 - Monash Absolute Investment Fund
By: Australian Fund Monitors
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| Fund Overview | The fund seeks to identify opportunities in the share market to make positive returns (long and short) irrespective of market conditions. It is style agnostic, as compelling investment opportunities exist across all investment styles from time to time. The Fund places a high priority on capital preservation, and has an absolute return focus in accepting market risk. |
| Manager Comments | The Fund's gross exposure at month-end was 99% and net exposure 88%. Beta is 0.5. The Manager notes 'Most companies reported their half yearly results in February. We were pleased with the progress of all our companies as they reported in line with or slightly better than our expectations. Despite the market rising this month, the share prices of 4 of our outlook stocks decreased, and the share prices of 2 were flat, which held our return back somewhat. Our experience in the past has been that this often leads to solid performance in future months.' |
| More Information | » View detailed profile of this fund |
Fund Review: Morphic Global Opportunities Fund
5 Mar 2014 - Australian Fund Monitors
Morphic Global Opportunities Fund returned -1.66% in January and 34.52% for the previous twelve months with a volatility of 10.04% p.a.
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5 Mar 2014 - Fund Review: Morphic Global Opportunities Fund
By: Australian Fund Monitors
Fund Review: Morphic Global Opportunities Fund (pdf format)
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 9.05% (10.29% ASX 200 Accum Index), maximum drawdown of 1.66% (6.72% Index) and downside deviation of 2.20 (5.65 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
Fund Review: Morphic Global Opportunities Fund (pdf format)
Fund Review: Optimal Australia Absolute Trust
5 Mar 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Optimal Australia Absolute Trust for January 2014 has been released. The fund is characterised by very low risk with an annualised standard deviation 3.57% (Index 15.06%)and a Sharpe Ratio since inception of 1.73.
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5 Mar 2014 - Fund Review: Optimal Australia Absolute Trust
By: Australian Fund Monitors
Fund Review: Optimal Australia Absolute Trust (pdf format)
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 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 5.05 since inception, as compared to the Index numbers of 0.13 and 0.08.
- 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
Fund Review: Optimal Australia Absolute Trust (pdf format)
Intelligent Investor Value Fund
4 Mar 2014 - Australian Fund Monitors
Intelligent Investor Value Fund managed the poor equity market of January with a return of 1.05% (Index -3.03%). For the year the Fund recorded a very strong 37.69% (Index 10.98%).
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4 Mar 2014 - Intelligent Investor Value Fund
By: Australian Fund Monitors
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| More Information | » View detailed profile of this fund |
