NEWS
NWQ Fiduciary Fund
21 Nov 2016 - Australian Fund Monitors
NWQ Fiduciary Fund returned -2.26% in October and +11.97% over the latest 24-months.
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21 Nov 2016 - NWQ Fiduciary Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund aims to produce returns, after management fees and expenses of between 8% to 11% p.a. over rolling five-year periods. Furthermore, the Fund aims to achieve these returns with volatility that is a fraction of the Australian equity market, in order to smooth returns for investors. |
| Manager Comments | The Fund's negative performance was mainly due to the macro and political factors that fuelled market uncertainty. The portfolio's Beta managers, utilizing a range of long/short equity strategies, attributed -0.74% for the month. Alpha managers were also down for the month, attributing -1.45%. The Fund is currently invested in nine Australian-domiciled investment managers - five equity market neutral and four equity beta-correlated strategies, complemented by a modest cash allocation. Throughout the month, selective rebalancing was implemented within the Beta strategy and the cash allocation was increased to provide optionality around this rebalancing. NWQ continues to expect destructive equity and bond market volatility and therefore the portfolio remains overweight to the Alpha or market neutral strategies. Click below to read the latest Fund's Report. |
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Pengana Absolute Return Asia Pacific Fund
21 Nov 2016 - Australian Fund Monitors
The Pengana Absolute Return Asia Pacific Fund rose 0.43% in October, compared to MSCI ACWI Asia Pacific markets which returned -0.49%.
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21 Nov 2016 - Pengana Absolute Return Asia Pacific Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will usually hold 40 to 80 positions and will be well diversified across the various event strategies. In keeping with the absolute return focus the Manager will eliminate market risk where appropriate by hedging market and foreign currency risks. Since inception the Fund has averaged a net equity market exposure of ~10%. Sizing of an investment position will depend on the expected risk adjusted returns while taking account the liquidity and volatility of the stock. In addition, the maximum potential loss on any one position should be greater than 0.5% of the NAV and the position should not exceed 30% participation of stressed volume assuming a $200m NAV. Other criteria considered are ability to hedge and the availability of pair candidates as well as the average bid-ask size. For M&A strategies average long position is 3 to 5.5% and average short position 2 to 5%. |
| Manager Comments | A number of strategies contributed positively, for the month. The stub strategy was the largest contributor (+0.45%) to Fund performance, bringing the YTD contribution from the strategy to 3.9%. The Fund maintains a healthy gross exposure to this strategy of 25% of NAV. The M&A sub-strategy also contributed positively (+0.24%) to the Fund, with the most notable development being in Vitaco (VIT AU) where the offeror received key regulatory approvals which de-risked the transaction and the spread tightened. The Fund's existing position in Coca-Cola West (2579 JT) also benefited from a reported capital tie-up with Kirin (2503 JT). The Fund continued to develop the credit sub-strategy, which focuses on Convertible Bonds and the arbitrage opportunities they create and has reduced the exposure to M&A. For the month, the Fund averaged a gross and net exposure of 198.9% and 15.3% respectively. Click below to read the latest Fund Manager's Report. |
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Affluence Investment Fund
18 Nov 2016 - Australian Fund Monitors
Affluence Investment Fund returned -0.41% in October to take the annualised performance since inception to 10.22% p.a.
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18 Nov 2016 - Affluence Investment Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund does not invest directly into any asset class, rather, it invests in investment managers which satisfy Affluence Funds Management's investment criteria; its investment philosophy is based on a formula developed by CEO/Portfolio Manager Daryl Wilson since the start of his career in 1999. The Fund targets total returns of at least 5% above inflation over rolling 3 year periods with volatility of returns less than 50% of the ASX200 Index. The Fund also aims to provide investors with a distribution yield of at least 5% p.a. Finally, the Fund aims to outperform the Australian stock market (S&P/ASX 200 Accumulation Index) by at least 5% in any year in which that index delivers a negative return. To ensure appropriate diversity of managers and limit the potential for conflicts of interest, no more than 20% of the Fund will be invested with any one manager. Affluence seeks to achieve the Funds' investment objective by choosing attractively priced investments overseen by quality managers. The Fund uses a number of processes to identify potential investments including quantitative screens for investments which meet historical performance, volatility and other criteria. They also use a number of external researchers and information sources to assist in this process. |
| Manager Comments | It was a mixed month for the underlying managers. Of the Fund's 25 unlisted fund investments, only 9 provided positive returns. The Wentworth Williamson Fund, Lanyon Australian Value Fund and the Affluence LIC Fund were the biggest positive contributors to performance. The largest detractors were the long/short funds and the gold/commodities funds. At the end of October, the 24 unlisted funds represented 59% of the portfolio. The Affluence LIC fund and 5 other listed entities, represented 26% of the portfolio, while the remaining balance of 15% was held in cash. Click below to read the latest Fund Manager's report. |
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APN Asian REIT Fund
17 Nov 2016 - Australian Fund Monitors
APN Asian REIT Fund returned -3.28% in October, outperforming the Bloomberg Asia REIT Index which returned -3.65%, by 0.37%.
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17 Nov 2016 - APN Asian REIT Fund
By: Australian Fund Monitors
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| Fund Overview | Pete Morrissey and Corrine Ng are the Portfolio Managers of the Fund. Morrissey has over 15 years financial markets experience and joined APN in 2006. Previously, he worked at Lonsec and also managed an internationally focused private investment fund as well as spending several years as an analyst in the UK for Nomura, amongst others. He has also completed Masters level academic research papers on both commercial real estate cycles and global property cycles. Ng also has a strong background in property and REITs in Australia, Asia and the North American markets. Prior to joining APN, Ng worked for Aviva Investors (Senior Investment Analyst, North America Real Estate Securities Team) and Goldman Sachs & Co (Vice President, Goldman Sachs Asset Management Real Estate Securities Team) in New York. The Fund aims to deliver a competitive yield with lower risk than the market. The underlying stocks are selected based on a highly disciplined investment approach that focuses on the fundamentals and number of valuation approaches. The universe is expected to be dynamic as new IPO's, other corporate actions take place and / or corporate governance improvements at country or REIT level bring new stocks into focus. The Fund focuses on passive rental earnings derived from well managed Asian REITs listed in mature capital markets and will not invest in infrastructure, property development companies or stocks with a 'loose association with property'. The Fund provides access to a wide spread of property-based revenue streams that are specifically analysed, selected and weighted with the aim of delivering strong and sustainable income returns. The Fund is an unhedged product. The Fund is suited to medium to long term investors seeking a relatively high income and some capital growth over the long term. |
| Manager Comments | In the month of October, the portfolio had significant exposure to Japan (40.9%) and Singapore (31.2%). The majority (64.3%) of the Fund was invested in Retail REITs (37.8%) and Office REITs (26.5%). The top five holdings were Gip J-REIT, Japan Retail Fund Investment, Ascendas Real Estate Inv Trust, Keppel Dc REIT and Link REIT, which made over 20% of the portfolio with 3 of the holdings above 4% each. Click below to read the latest Fund's performance report. |
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Fund Review: Bennelong Kardinia Absolute Return Fund October 2016
17 Nov 2016 - Australian Fund Monitors
Latest Fund Review is now available on Bennelong Kardinia Absolute Return Fund, which has over 10 years of positive track record.
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17 Nov 2016 - Fund Review: Bennelong Kardinia Absolute Return Fund October 2016
By: Australian Fund Monitors
AFM Fund Review - October 2016 (pdf format)
BENNELONG KARDINIA ABSOLUTE RETURN FUND
Attached is our most recently updated Fund Review. You are also able to view the Fund's Profile.
- The Fund is long biased, research driven, active equity long/short strategy investing in listed ASX companies with a nine-year track record.
- The Fund has significantly outperformed the ASX200 Accumulation Index since its inception in May 2006 and also has significantly lower risk KPIs. The Fund has an annualised return of 11.29% p.a. with a volatility of 7.26%, compared to the ASX200 Accumulation's return of 4.63% p.a. with a volatility of 14.11%.
- 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 Bennelong Funds Management provide infrastructure, operational, compliance and distribution capabilities.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - October 2016 (pdf format)
KIS Asia Long Short Fund
17 Nov 2016 - Australian Fund Monitors
KIS Asia Long Short Fund returned +0.02% in October, taking the return for the most recent 12 months to 13.73%. In comparison, over the last 12 months, the S&P/ASX 200 Accumulation Index returned +5.78%, the MSCI Asia Pacific Ex-Japan...
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17 Nov 2016 - KIS Asia Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Whilst the Fund's primary strategy is focused on long/short equities, the ability to retain discretionary powers to allocate across a number of other investment strategies is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage, special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.). The Fund's geographic focus is Asia excluding Japan, but including Australia). The Fund may invest outside of this region to the extent that: 1. The investment decision is driven from the Asian region or; 2. The exposure is intended to mitigate risk or enhance return from factors external to the Asian region. |
| Manager Comments | The Fund's result was driven largely by short positions in Ramsay Health Care Ltd (RHC.AX) 0.20%, Isentia Group Ltd (ISD.AX) 0.20% and ComfortDelGro Corp Ltd (CMDG.SI) 0.16%. Detractors for the month included long positions in Ainsworth Game Technology Ltd (AGI.AX) -0.22%, Altium Ltd (ALU.AX) -0.19% and Freelancer Ltd (FLN.AX) -0.17%. Click below to read the latest monthly Fund Report. |
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Cyan C3G Fund
16 Nov 2016 - Australian Fund Monitors
Cyan C3G Fund fell 2.1% in October, outperforming the Small Industrials Accumulation Index which returned -5.3%.
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16 Nov 2016 - Cyan C3G Fund
By: Australian Fund Monitors
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| Fund Overview | Cyan C3G Fund is based on the investment philosophy which can be defined as a comprehensive, clear and considered process focused on delivering growth. These are identified through stringent filter criteria and a rigorous research process. The Manager uses a proprietary stock filter in order to eliminate a large proportion of investments due to both internal characteristics (such as gearing levels or cash flow) and external characteristics (such as exposure to commodity prices or customer concentration). Typically, the Fund looks for businesses that are one or more of: a) under researched, b) fundamentally undervalued, c) have a catalyst for re-rating. The Manager seeks to achieve this investment outcome by actively managing a portfolio of Australian listed securities. When the opportunity to invest in suitable securities cannot be found, the manager may reduce the level of equities exposure and accumulate a defensive cash position. Whilst it is the company's intention, there is no guarantee that any distributions or returns will be declared, or that if declared, the amount of any returns will remain constant or increase over time. The Fund does not invest in derivatives and does not use debt to leverage the Fund's performance. However, companies in which the Fund invests may be leveraged. |
| Manager Comments | The investments in Praemium (PPS), Opus Group (OPG), Speedcast (SDA) and PSC Insurance (PSI) delivered positive returns for the month. However, within the portfolio of 25 investments, the majority experienced some price weakness. The biggest detractor for the month was Vita Group (VTG) -18%; a company that had previously been a strong performer for the Fund. Other underperformers included Freelancer (FLN), Bellamy's (BAL) and Afterpay (AFY). Throughout the recent market volatility, the Fund deployed a small portion of their high cash balance to opportunistically increase positions in some of their preferred companies on share price weakness. The Fund continues to look for new investment opportunities that they consider to be at the right price. Click below to read the latest Fund Manager's Report. |
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The Paragon Fund
16 Nov 2016 - Australian Fund Monitors
The Paragon Fund returned -9.0% for the month of October.
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16 Nov 2016 - The Paragon Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | October's underperformance was driven by many of the Fund's holdings performing poorly for the month across sectors and market cap spectrum. Main contributors to the negative result in October were declines in Mayne Pharma, Netcomm Wireless, Aconex, Link Administration Holdings, Smartgroup and our gold holdings. At the end of the month, the Fund had 26 long positions and 11 short positions. Click below to read the latest monthly report. |
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Fund Review: Optimal Australia Absolute Trust October 2016
15 Nov 2016 - Australian Fund Monitors
Read the latest Fund Review on Optimal Australian Absolute Trust.
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15 Nov 2016 - Fund Review: Optimal Australia Absolute Trust October 2016
By: Australian Fund Monitors
AFM Fund Review - October 2016 (pdf format)
OPTIMAL AUSTRALIA ABSOLUTE TRUST
AFM have released the most recently updated Fund Review on the Optimal Australia Absolute Trust.
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.
- In October, the Fund rose 0.35%, to take annualised return since inception to 8.56% p.a. The Fund's approach to risk is shown by the Sharpe ratio of 1.37 (Index 0.19), Sortino ratio of 2.88 (Index 0.16), both of which are well above the ASX 200 Accumulation Index and has recorded 80% positive months.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - October 2016 (pdf format)
Totus Alpha Fund
15 Nov 2016 - Australian Fund Monitors
Totus Alpha Fund fell 7.1% in October, the ASX 300 Accumulation Index was down 2.2% for the month.
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15 Nov 2016 - 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. 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 | One of the longest investment themes over the past few years has been the declining interest rates, which the Fund has benefited from, through their holdings of dividend paying and growth companies. However, the investment team believes this trend of declining yields may be coming to an end, since the Trump victory. The Fund, therefore, has pulled back its gross exposure, largely exited their long positions in the infrastructure and REIT space and greatly reduced their short positions in resources. The Fund has selectively added to cyclical, financial and US$ exposures while shorting overpriced yield proxies and de-rating growth stocks. Top contributors in October were a long position in Shriro +0.68% and short positions in Estia +0.65% and Coca-Cola Amatil +0.28%. Biggest detractors were long positions in Smartgroup -2.23%, Bapcor -1.60% and Altium -0.81%. Click below to read the latest Fund's Monthly Report. |
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