SGH ICE February Performance Report

28 Mar 2013 - Australian Fund Monitors

The SGH ICE fund records performance of 1.17% over February 2013 and 32.67% over the prior twelve months well ahead of the ASX Small Cap Industrial Index of 19.42%.

K2 Asian Fund

27 Mar 2013 - Australian Fund Monitors

The K2 Asian Fund delivers 2.11% during February and 18.33% over the preceding 12 months.

27 Mar 2013 - K2 Asian Fund

By: Australian Fund Monitors

Report Date	25 March 2013
Manager	K2 Asset Management
Fund Name	K2 Asian Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	February 2013
Latest Return	2.11%
Latest 6 Months	25.50%
Latest 12 Months	18.33%
Latest 24 Months	3.74%
Annualised Since Inception	10.95%
Inception Date	01 September 1999
FUM (millions)	AU$101.8
Fund Overview	The investment team does not use a single approach to stock picking, rather, each investment manager brings their own investment style and methodology to the portfolio. Key variables of earnings, valuation and management are examined to determine whether securities are over or undervalued. The investment team's ability to pick major investment themes, or 'catalysts', in a timely manner is a key competitive advantage. The stock selection process is based on the investment manager's own primary research, direct contact with companies and subscriptions to independent research houses. The Fund actively manages currency exposure with the aim of using hedging to reduce the risk of currency movement and protect stock returns. The level of hedging will depend on K2's expectation of future currency exchange rate movements.
Manager Comments	The K2 Asian Fund delivered 2.11% during February and 18.33% over the preceding 12 months. The K2 Asia Absolute Return Fund returned 2.11% for the month of February. The MSCI Asia Pacific ex. Japan (AUD) returned 2.82% (+1.49% in local currency). February delivered another solid return led by The Philippines (+7.8%), Indonesia(+7.7%) and Australia (+5.2%). Eroding the quality of the region’s move was the performance of the Hong-listed China H-Shares which, at their low fell 8.5%, before partially recovering to end down 5.7%. After a near 35% run over the previous 5 months, sellers focused on China’s re-acceleration and the fear of policy tightening measures owing to high credit growth and a strong property market. Over February the Fund’s net exposure ranged between 95-100%. Despite solid equity market returns over the past six months, expectations of continued fund inflows into global equity markets and the region in particular, coupled with still modest valuations and progressive upgrades to earnings forecasts all continue to underpin the Fund's rationale for a high exposure. Net inflows into emerging market equity funds have been some of the strongest in almost a decade and have been well spread across a number of markets. The Fund will continue to run high exposure while positive momentum prevails in economic growth and earnings and while valuations sit at healthy discounts to long term averages, all elements which are compelling underweight investors to progressively redirect capital into Asia, notably China. With regards to China the Fund is holding a high weighting so long as the upward momentum in earnings forecasts is supported by favorable economic momentum. Concern over possible policy tightening has some credence given the high levels of new credit finding its way into the economy and given the propensity of excessive new credit to find its way into speculative activities. This is the key domestic issue to monitor. The hedge against the Fund’s USD-linked exposure remains in place. While the hedge neutralizes currency movements in those markets in which it is employed, in February the overall strength in the currencies the fund invests in resulted in a net positive contribution from currency.
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Platypus Australian Equity Fund February 2013

26 Mar 2013 - Australian Fund Monitors

The Platypus Australian Equity Fund records a return of 3.1% over February and 18.74% over the previous 12 months.

26 Mar 2013 - Platypus Australian Equity Fund February 2013

By: Australian Fund Monitors

Report Date	24 March 2013
Manager	Platypus Asset Management
Fund Name	Platypus Australian Equity Fund
Strategy	Equity Long
Latest Return Date	February 2013
Latest Return	3.10%
Latest 6 Months	19.25%
Latest 12 Months	18.74%
Latest 24 Months	12.04%
Annualised Since Inception	13.32%
Inception Date	01 December 1998
FUM (millions)	AU$1124
Fund Overview	The investment style is growth with a small-cap bias. Index weightings are largely ignored, which typically creates a high tracking error portfolio. Although its investment philosophy has not changed since inception, the manager has gradually concentrated the portfolio over time. Typically, the portfolio consists of 25 to 35 stocks, with approximately 50% of the investment in relatively large and liquid companies. Investment strategies are undertaken with complete independence and while external resources are utilised as part of the process, investment decisions are generated internally. Areas such as percentage down from cost, weighting percentages, increases relative to time and company downgrades are covered by strict sell guidelines.
Manager Comments	The Platypus Australian Equity Fund recorded a return of 3.1% over February and 18.74% over the previous 12 months. In terms of negative impacts on the portfolio the manager notes that Western Areas was a drag on relative performance as the nickel price remained depressed. While not owning National Australia Bank, was a notable drag on the month’s alpha, nil positions in other large cap names like Newcrest Mining, Telstra and Rio Tinto contributed to February’s performance. Amongst the stocks owned, CSL was the biggest contributor to performance followed by Codan, a new addition to the portfolio. While the fund's under-performance was driven mainly by stocks not in the portfolio, Industrials and Financials sectors were the other notable drags on performance.On the positive side, Consumer Discretionary, Information Technology and a nil weighting in Telecommunication Services added to relative performance during February. New positions in the month included Amcor, Acrux, Woodside, Realestate.com, Codan and JB Hi-Fi. Caltex was sold, monetizing a profitable trade, Aurizon (nee QR National) was also sold after they delivered earnings below expectations as was TWE after their 2013 guidance was underwhelming relative to our expectations. The balance of the month’s trading activity involved topping up in stocks such as Blackthorn Resources, Fortescue Metals Group and Sirtex Medical, funded from selling down positions in BHP, Oil Search, Westpac, Ramsay Healthcare, Resmed, News Corp and Flight Centre. In terms of valuation, the market is neither cheap nor expensive. If the manager's moderately bullish stance on the earnings upgrade cycle is correct, we would expect the market to remain at around present valuations. While cognizant of the fact that after strong price returns, the likelihood of a short term pullback increases, for longer term investors the manager's view is that on balance, Australian equities represent value at these levels and as a domestic investor, you are still being paid to hold equities.
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Denning Pryce Equity Income Fund

25 Mar 2013 - Australian Fund Monitors

The Zurich Denning Pryce Equity Income Fund records performance of 3.61% for February 2013 and 19.84% for the previous 12 months.

25 Mar 2013 - Denning Pryce Equity Income Fund

By: Australian Fund Monitors

Report Date	21 March 2013
Manager	Denning Pryce
Fund Name	Denning Pryce Equity Income Fund
Strategy	Equity Income
Latest Return Date	February 2013
Latest Return	3.61%
Latest 6 Months	15.95%
Latest 12 Months	19.84%
Latest 24 Months	16.11%
Annualised Since Inception	6.61%
Inception Date	18 May 2006
FUM (millions)	AU$88
Fund Overview	The Fund aims to generate income of 10% per annum in all market conditions with around half the risk exposure of the ASX 50 Leaders Index. The investment strategy is based on holding a blue chip portfolio and actively managing covered call option positions. Net exposure to the Australian share market will generally be maintained between 40% and 75% of Fund assets.
Manager Comments	The Zurich Denning Pryce Equity Income Fund recorded performance of 3.61% for February 2013 and 19.84% for the previous 12 months. Australian equities rose strongly during February as markets continued their momentum for most of the month. Locally the economy continues to grind lower, although the Australian equity market was one of the best performing markets globally as investors digested a fairly positive reporting season which seemed to beat or meet consensus expectations. The Fund is particularly defensively placed at present with early half the portfolio option-covered and contract prices are ‘in-the-money’. Additionally, the major bank shares portfolio has been restructured to provide cover against a market pull-back and to maintain our exposure to dividends and franking credits in May and June. Woolworths and Wesfarmers have seen exposures fall as these stocks rallied strongly. The Fund has written call options in Santos and Woodside Petroleum, to generate attractive premium. Meanwhile, the Fund has positions in BHP and Rio Tinto to reduce portfolio risks in the event of commodity weakness. Pricing of Index call options bounced and allowed for some profit taking. In the put options, there is not too much interest in significant portfolio protection as sentiment is confident, buoyed by low interest rates and market momentum. Over the last 12 months has provided an (estimated) yield of 11.34% including franking credits, with a volatility of just under 80% of that of the S&P/ASX 50 volatility.
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Prime Value Growth Fund

22 Mar 2013 - Australian Fund Monitors

The Prime Value Fund records a return of 5.3% during February and 14.53% during the preceding 12 months.

22 Mar 2013 - Prime Value Growth Fund

By: Australian Fund Monitors

Report Date	20 March 2013
Manager	Prime Value
Fund Name	Prime Value Growth Fund
Strategy	Equity Long
Latest Return Date	January 2013
Latest Return	5.30%
Latest 6 Months	15.33%
Latest 12 Months	14.53%
Latest 24 Months	10.53%
Annualised Since Inception	14.06%
Inception Date	10 April 1998
FUM (millions)	AU$210.8
Fund Overview	The PVGF aims to provide superior medium to long-term capital growth, with some income, by managing a portfolio of predominantly Australian equities listed on any recognised Australian stock exchange.
Manager Comments	The Prime Value Fund recorded a return of 5.3% during February and 14.53% during the preceding 12 months. The Australian equity market continued its strong start, with the benchmark S&P/ASX 300 Accumulation index rising a further 5.3% during February. Global equity markets also rose, but stumbled mid-month due to an inconclusive result in Italian elections (and increasing support of anti-austerity parties) as well as fears the US “easy” monetary policy would be scaled back. US budget issues (avoiding automatic spending cuts which would reduce growth) also weighed on investor sentiment. Economic data in the US and China was neutral to positive. Domestically, the focus was on the reporting season. In general, the results season was viewed as positive as the number of positive surprises outnumbered negative. However price action was subdued. Cost reduction and margin expansion were some of the key themes of the season. The Fund also performed well during February, rising by 5.4% and outperforming the benchmark. Stock selection was positive, again across most sectors. The biggest positive contributors to performance were REA Group (up 29.8%), National Australia Bank (up 10.4%) and Westpac (up 9.7%). The companies which detracted from performance were Monadelphous (down 6.6%), BHP Billiton (down 1.1%) and Newcrest (down 3.2%). The fund's preferred sectors are Consumer Staples, Energy and selected quality mining services companies with an underweight in non-bank Financials. 88.6% of stock held were in the top 100 and the largest holdings were ANZ, BHP Monadelphous, Wesfarmers and Westpac.
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K2 Australian Absolute Return Fund

21 Mar 2013 - Australian Fund Monitors

The K2 Australian Fund delivers a returns of 4.47% during February 2013 and 20.28% over the previous year.

21 Mar 2013 - K2 Australian Absolute Return Fund

By: Australian Fund Monitors

Report Date	19 March 2013
Manager	K2 Asset Management
Fund Name	K2 Australian Fund
Strategy	Equity Long/Short
Latest Return Date	February 2013
Latest Return	4.47%
Latest 6 Months	18.04%
Latest 12 Months	20.28%
Latest 24 Months	9.36%
Annualised Since Inception	12.98%
Inception Date	01 October 1999
FUM (millions)	AU$403.6
Fund Overview	- The Fund invests in listed equities in Australia and New Zealand. It may invest in other investments as permitted by the Fund's constitution. - The Fund is managed 'opportunistically'. Investments are made throughout Australia and New Zealand across sectors that the investment team believes will add greatest value. - Typically the Fund will hold between 50 and 70 listed equities. - If deemed appropriate, the Fund may be 100% invested in cash. - To implement the Fund's Long/Short investment strategy, K2 is able to use leverage or gear the Fund. However, the net invested position of the Fund shall not exceed the Net Asset Value (NAV) of the Fund.
Manager Comments	The K2 Australian Fund delivered 4.47% during February 2013 and 20.28% over the previous year. The manager notes that the All Ordinaries Accumulation Index pushed higher for the 9th consecutive month, gaining +5.18%. Domestically, the RBA left cash rates unchanged at 3.00% and noted that the current outlook for inflation “would afford scope to ease policy further, should that be necessary to support demand.” While the RBA acknowledged domestic activity will fall well short of their expectations, positive global developments in recent months has caused a ‘wait and see approach’ from the Board. Consequently expectations for further rate cuts have been pushed out. For six consecutive months the manager has maintained net exposure over 90%. Now that the All Ordinaries Accumulation Index is within 5% of its all-time high the question is “…is it time to prune back exposure?”. Given that the current strength in the Australian equity market has been delivered without any meaningful earning momentum there is a need to assess whether profits are at a cyclical low and about to commence an upward trend. The manager's view is that the economy will now surprise on the upside and hence we have seen the low point in the profit cycle. In addition, revenue growth will outstrip cost growth and DPS growth will outstrip EPS growth. It is this growing dividend income stream that will lure retail investors out of term deposits. Overlaying this is the fact that the average term deposit for less than 6 months is now below 3.30% whereas the average yield of the top 20 listed stocks is over 4%, and therefore it is likely that equities will re-emerge in most retail investment portfolio’s this year. The portfolio had it's largest contributions from Bank of Queensland Ltd, ANZ Banking, Flight Centre and National Australia Bank with the smallest contributions from Aurizon Holdings, BHP Billiton, Miclyn Express Offshore and Panaust. Largest holdings were National Australia Bank at 8.6%, BHP Billiton 8.4%, RIO Tinto 6.3%, Flight Centre 6.1% and ANZ Banking 5.7%. The fund was 97% invested at month-end.
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Insync Global Titans Fund

20 Mar 2013 - Australian Fund Monitors

The Insync Global Titans Fund returns 1.7% during February 2013 and 21.1% for the year ended February.

20 Mar 2013 - Insync Global Titans Fund

By: Australian Fund Monitors

Report Date	17 March 2013
Manager	Insync Fund Managers
Fund Name	Insync Global Titans Fund
Strategy	Equity Long
Latest Return Date	February 2013
Latest Return	1.70%
Latest 6 Months	6.70%
Latest 12 Months	21.08%
Latest 24 Months	31.57%
Annualised Since Inception	7.83%
Inception Date	07 October 2009
FUM (millions)	AU$6.8
Fund Overview	Insync's investment strategy is driven by fundamentals combined with active risk management. Insync's aim is to invest in high quality, large cap global companies at attractive prices. Insync looks for companies that can consistently pay rising dividends and earn high returns on invested capital. Insync aims to provide investors with long term capital growth and some income. The Global Titans Fund is a concentrated portfolio of large cap global companies with downside protection.
Manager Comments	The Insync Global Titans Fund recorded 1.7% during February 2013 and 21.1% over the previous 12 months well above the equity benchmark return of 16.5%. The manager comments that equity markets were buoyant in February driven by liquidity generated by global central banks. Also assisting sentiment were signs of an improving US economy and comments by US Fed chairman Bernanke that the benefits of QE outweighed the costs. In Europe an inconclusive Italian election with a strong anti-austerity protest vote was a reminder that the European debt issue is still far from resolved. The fund's performance was broadly based with the largest contributions from Wyndham, Roche and Reckitt Benckiser. Negative contributions came from Coach, SAP and Oracle. With buoyant equity markets and very low levels of volatility Insync took the opportunity to increase the level of the fund's protection to reduce the impact of any correction. Key fund holdings were Nestle S.A, McDonald's, Accenture, Richemont and SAP AG. Average market capitalisation of stocks in the portfolio was $A92.9bn with a weighted forecast dividend yield of 2.68% and PE ratio of 15.1 times. The fund was not hedged back into $A.
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Morphic Global Opportunities Fund

19 Mar 2013 - Australian Fund Monitors

The Morphic Global Opportunities Fund records a return of 0.9% during February 2013 and 10.76% over the last 6 months.

19 Mar 2013 - Morphic Global Opportunities Fund

By: Australian Fund Monitors

Report Date	17 March 2013
Manager	Morphic Asset Management
Fund Name	Morphic Global Opportunities Fund
Strategy	Equity Long/Short
Latest Return Date	February 2013
Latest Return	0.90%
Latest 6 Months	10.76%
Latest 12 Months
Latest 24 Months
Annualised Since Inception	29.15%
Inception Date	02 August 2012
FUM (millions)	AU$20.2
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	The Morphic Global Opportunities Fund recorded a return of 0.9% for February and 16.10% since inception. The manager notes that market tone was dominated by a resurgence in uncertainty in Europe, and for the Euro, caused by the Italian election deadlock and fears the US economic recovery might falter in the face of mandated cuts to government spending. Both issues may continue to be a factor in March, especially the Italian stalemate. Weak economies throughout Europe mean support for the anti-establishment parties, focused on ending austerity and leaving Euro is on the rise, with potentially unpredictable economic and market consequences. In terms of the fund the manager recorded losses on four Indian bank positions which offset large gains made in other markets, especially Thailand and Japan. Under-performance also came from the tilt to emerging markets over developed markets and a European bank over-weight. Gains were made on a range of Japanese holdings as well as on Manilla Water and two Hong Kong holdings. Gains were also made on some short positions in Europe and Asia. The fund reduced its net investment level over the period as it seemed strong inflows has left stocks, particularly in Europe and emerging markets over-extended. The fund remains un-hedged into $A but does have some of the fund's yen exposure hedged into $US. The fund also has a short US bonds and long German bonds position in the fixed interest portion of the portfolio.
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Platinum International Fund

18 Mar 2013 - Australian Fund Monitors

The Platinum International Fund returns 1.18% for February 2013 and 15.38% for the prior 12 months.

Aurora Fortitude Absolute Return Fund Performance February 2013

15 Mar 2013 - Australian Fund Monitors

The Aurora Fortitude Absolute Return Fund returns
0.80% for February 2013 and 4.00% for the preceding 12 months.

15 Mar 2013 - Aurora Fortitude Absolute Return Fund Performance February 2013

By: Australian Fund Monitors

Report Date	13 March 2013
Manager	Aurora Funds Management
Fund Name	Aurora Fortitude Absolute Return Fund
Strategy	Equity Market Neutral
Latest Return Date	February 2013
Latest Return	0.80%
Latest 6 Months	1.27%
Latest 12 Months	4.00%
Latest 24 Months	7.58%
Annualised Since Inception	8.14%
Inception Date	15 February 2005
FUM (millions)	AU$92
Fund Overview	Aurora Fortitude Absolute Return Fund is a multi-strategy market neutral fund specialising in ASX listed equities and derivatives. The core philosophy is the management of risk through a long volatility overlay incorporating listed equity and index derivatives. The multi-strategy approach includes M&A, Yield, Convergence and Long/Short strategies. The portfolio managers adopt an aggressive approach to managing downside risk whilst positioning the portfolio to benefit from positive alpha.
Manager Comments	In terms of market overview the manager notes that the S&P/ASX200 Accumulation Index finished February up 5.37%.The continuing bull market was driven by leading industrial corporates announcing better than expected half year profits over-reporting season, and positive leads from world markets. Examining each of the Fund's strategies the Options portfolio was the best performing strategy for the month (+0.58%). As anticipated, the historically low levels of volatility provided an opportunity to profit from an increase in volatility over reporting season. This was most pronounced in the Fund’s March Index Futures position. Also of benefit was the small net long, and long volatility overlay in all four of the the major banks. Boral was an under-performer because the stock rallied sharply while the Fund held a short bias. Under-performing for the month was the Long/Short strategy (-0.16%) despite holding mostly long positions. Atlas Iron came under pressure as a result of the declining iron ore price, a poor result and general materials weakness. A stop loss was implemented over this position. The Yield book was consistent (+0.18%), with ANZ Convertible Preference Shares performing particularly well after going ex-distribution. The Fund continued to add to short dated instruments with mid-year maturities. The Convergence as well as Mergers and Acquisition strategies were both small net contributors to returns.
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28 Mar 2013 - SGH ICE February Performance Report

27 Mar 2013 - K2 Asian Fund

26 Mar 2013 - Platypus Australian Equity Fund February 2013

25 Mar 2013 - Denning Pryce Equity Income Fund

22 Mar 2013 - Prime Value Growth Fund

21 Mar 2013 - K2 Australian Absolute Return Fund

20 Mar 2013 - Insync Global Titans Fund

19 Mar 2013 - Morphic Global Opportunities Fund

18 Mar 2013 - Platinum International Fund

15 Mar 2013 - Aurora Fortitude Absolute Return Fund Performance February 2013

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