NEWS
Optimal Australia Absolute Trust
13 Sep 2016 - Australian Fund Monitors
The Optimal Australia Absolute Trust recorded a flat net return in August in a weaker market, with the ASX 200 Index down 2.3%.
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13 Sep 2016 - 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 | A key influence on the Fund's performance during the month was the earnings reporting season. Some of the out-of-favour stocks (e.g. Woolworths) at or close to an earnings inflection point, and with low risk of disappointment, worked out well for the fund. In hedging portfolio risk, the Fund selectively short-sold some outperforming and high-multiple defensives, where the risk of an earnings miss was high, e.g. Realestate. At month-end, the Fund had gross exposure of 94% and net short exposure of 22%. The Fund continues to maintain a defensive focus. Click below to read the latest Fund monthly report. |
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Fund Review: Bennelong Long Short Equity Fund August 2016
12 Sep 2016 - Australian Fund Monitors
August Fund Review is now available on Bennelong Long Short Equity Fund which has an annualised return of 17.21% p.a.
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12 Sep 2016 - Fund Review: Bennelong Long Short Equity Fund August 2016
By: Australian Fund Monitors
AFM Fund Review - August 2016 (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 large-caps from the ASX/S&P100 Index, with over fourteen-year track record and annualised returns of 17.21%.
- The consistent returns across the investment history indicate the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market. The Fund's Sharpe Ratio and Sortino Ratio are 1.03 (Index 0.31) and 1.72 (Index 0.34) respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - August 2016 (pdf format)
Pengana Global Small Companies Fund
12 Sep 2016 - Australian Fund Monitors
Pengana Global Small Companies Fund rose 3.3% in August 2016, compared to a 1.3% return for the MSCI AC World SMID Cap Index.
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12 Sep 2016 - Pengana Global Small Companies Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is managed by Founder & CIO Leah Zell, and Portfolio Managers Jon Moog and David Li. The Lizard investment team have over 50 years combined investment experience in global small cap investing. Leah Zell has over 30 years of experience and is a recognized expert in international investing in the international small-cap category. The Fund's investment team uses a value-oriented investment approach to small and mid-cap global equities that seeks to identify and invest in quality businesses that create significant value but are mispriced, overlooked or out-of-favour. The investment manager believes that unique opportunities exist due to limited available research, corporate actions or unfavourable investor perception. The portfolio construction process aims to develop portfolios that incorporate the best investment ideas from the investment manager's research while allowing for liquidity constraints and perceived risk. The Fund's investment manager will not typically hedge currency exposures, however during periods of currency extremes, some currency hedging may be employed. Derivatives may be used to achieve long or short exposures, reduce risk and reduce transaction costs. Derivatives will not be used for the purposes of leverage and the Fund's net exposure will never be short. |
| Manager Comments | The top positive contributors for the month were NetScout Systems Inc, Boohoo.com, Ubiquiti Networks, Hostelworld Group Plc, and China Lodging Group Ltd. However, Liberty Global Plc LiLAC Group, A UK IT Services company, Spirit Airlines Inc, Pico Far East Holdings Limited, and Moleskine SpA detracted from the performance. The Fund exited two positions during the month while adding to some of their current holdings. At month-end, the Fund's top 10 holdings accounted for 37.2% of the Fund's assets, with no single name representing more than 5% of the Fund. Cash represented 6.7% of the Fund. Click below to read the latest Fund Manager's report. |
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The Paragon Fund
9 Sep 2016 - Australian Fund Monitors
The Paragon Fund returned -7.80% after fees for the month of August, to take latest 12-months return to 29.98%.
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9 Sep 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 | Many of the Fund's strong performers corrected in August arising from general profit taking plus some stock specific events. These included Galaxy Resources, Blackham, Aconex, Orocobre, and Mayne Pharma, accounting for half the negative return for the month. All five of these stocks have been significant contributors to the Fund's strong long-term performance and therefore the view on these companies has not changed. At the end of the month, the Fund had 27 long positions and 12 short positions, with a net exposure of 69.1%. The Fund held 30.9% of the portfolio as cash. Click below to read the latest monthly report. |
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Totus Alpha Fund
9 Sep 2016 - Australian Fund Monitors
Totus Alpha Fund rose 2.58% for the month of August, outperforming the ASX 200 Accumulation Index which returned -1.55%, by 4.13%.
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9 Sep 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 | At month-end, the fund had a net exposure of 36.7% and a gross exposure of 275.4%. The fund held 114 positions (57 long and 57 short) that were diversified across multiple investment themes. Top contributors were a short position in Estia Health and long positions in Altium and Shriro. Biggest detractors were long positions in McMillan Shakespeare, CSL, and Northern Star. Click below to read the latest Fund's Monthly Report. |
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Bennelong Long Short Equity Fund
8 Sep 2016 - Australian Fund Monitors
Bennelong Long Short Equity Fund returned -5.90% in August and +9.56% for the latest 12-months.
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8 Sep 2016 - Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| Fund Overview | In a typical environment the Fund will hold around 70 stocks comprising 35 pairs. Each pair contains one long and one short position each of which will have been thoroughly researched and are selected from the same market sector. Whilst in an ideal environment each stock's position will make a positive return, it is the relative performance of the pair that is important. As a result the Fund can make positive returns when each stock moves in the same direction provided the long position outperforms the short one in relative terms. However, if neither side of the trade is profitable, strict controls are required to ensure losses are limited. The Fund uses no derivatives and has no currency exposure. The Fund has no hard stop loss limits, instead relying on the small average position size per stock (1.5%) and per pair (3%) to limit exposure. Where practical pairs are always held within the same sector to limit cross sector risk, and positions can be held for months or years. The Bennelong Market Neutral Fund, with same strategy and liquidity is available for retail investors. |
| Manager Comments | The Fund's the long book performed slightly better than the market, but it was the short book that delivered the losses for the month. Both, the three best pairs and the three worst pairs came from the short book. The top three spreads for the month were long Macquarie / short IOOF, long Beach Energy / short AGL Energy and long Henderson / short AMP. The bottom three spreads for the month were long Resmed / short Ansell, long Iluka / short Downer and long Aristocrat / short Tabcorp. Click below to read the Fund Manager's commentary and market outlook. |
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Fund Review: Insync Global Titans Fund July 2016
7 Sep 2016 - Australian Fund Monitors
Latest Fund Review on Insync Global Titans Fund is now available.
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7 Sep 2016 - Fund Review: Insync Global Titans Fund July 2016
By: Australian Fund Monitors
AFM Fund Review - July 2016 (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 Fund's unit price increased by 0.2% in July. The performance was driven by positive contributions from our holdings in eBay, Microsoft, S&P Global and Zimmer. The main negative contributors were Roche, McDonald's Corp, BAT and Reckitt Benckiser.
- 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.
AFM Fund Review - July 2016 (pdf format)
Insync Global Titans Fund
1 Sep 2016 - Australian Fund Monitors
The Insync Global Titans Fund returned +0.2%, compared to the MSCI All Country World ex-Australia Net Total Return Index in $A, which returned 2.1%.
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1 Sep 2016 - Insync Global Titans Fund
By: Australian Fund Monitors
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| Fund Overview | Insync employs four simple screens to narrow the universe of over 40,000 listed companies globally to a focus group of high quality companies that it believes have the potential to consistently grow their profits and dividends. These screens are size of the company, balance sheet performance, valuation and dividend quality. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio of typically 15-30 stocks. The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, derivatives (for example futures, options and swaps), currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled investment vehicles. At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio. |
| Manager Comments | The performance was driven by positive contributions from the holdings in eBay, Microsoft, S&P Global and Zimmer. The main negative contributors were Roche, McDonald's Corp, BAT and Reckitt Benckiser. The Fund continues to hedge back most of the exposure to the GBP back to Australian dollars. This was put in place prior to the Brexit vote. Click below to read the latest Fund Manager Report. |
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Fund Review: Supervised Global Income Fund July 2016
30 Aug 2016 - Australian Fund Monitors
Fund review on Supervised Global Income Fund, a fixed income fund, is now available.
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30 Aug 2016 - Fund Review: Supervised Global Income Fund July 2016
By: Australian Fund Monitors
AFM Fund Review - July 2016 (pdf format)
SUPERVISED GLOBAL INCOME FUND
Attached is AFM's updated Fund Review on the Supervised Global Income Fund (SGIF).
We would like to highlight the following aspects of the Fund:
- The Supervised Global Income Fund (previously Supervised High Yield Fund) has a 6-year track record investing in fixed interest investments. The Investment strategy aims to deliver returns with zero correlation to equity markets by investing in debt securities with minimal default probability and offering a premium return above the risk-free rate.
- The Fund is managed by Philip Carden whose experience in debt and capital markets spans over 33 years, including time with JB Were's Capel Court Securities and Macquarie Bank, where he was the Executive Director responsible for the Debt Markets Division.
- SHYF is an Alternative Income fund which invests in Global and Australian debt markets, with all foreign currency receivables hedged back to Australian dollars.
- The Fund utilises a top-down analysis of the economic environment and market to screen and identifies debt market opportunities which it believes offer low risk with high yield. The next stage is the development of a risk matrix and investment strategy, following which detailed research is undertaken on specific investment opportunities which meet the pre-defined criteria established in the investment strategy.
- Prior to approving an investment for the Fund, each potential investment is subject to two stress tests. The first of these is of credit and default risk, in which the investment is stress-tested to ensure that in a worst case economic environment it can repay 100% of its principal and interest obligations case scenario for the asset by examining the highest margin over the risk rate that the investment has previously experienced in a crisis situation. Any decline in value under the stress test that exceeds 10% of the Fund's value is avoided The second test examines market risk. In this case, Carden looks at the worst case scenario for the asset by examining the highest margin over the risk rate that the investment has previously experienced in a crisis situation. Any decline in value under the stress test that exceeds 10% of the Fund's value is avoided.
AFM Fund Review - July 2016 (pdf format)
Fund Review: Jamieson Coote Bonds Active Fund July 2016
29 Aug 2016 - Australian Fund Monitors
July Fund Review is now available on Jamieson Coote Bonds Active Fund, a long-only macroeconomic investment fund.
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29 Aug 2016 - Fund Review: Jamieson Coote Bonds Active Fund July 2016
By: Australian Fund Monitors
AFM Fund Review - July 2016 (pdf format)
Jamieson Coote Bonds Active Fund
Attached is our most recently updated Fund Review on the Jamieson Coote Bonds Active Fund
We would like to highlight the following aspects of the Fund;
- Jamieson Coote Bonds is a Melbourne-based Boutique Manager launched in December 2014.
- The Founders, Charles Jamieson and Angus Coote bring over 30 years of international experience dealing with central banks, hedge funds and real money managers.
- The Jamieson Coote Active Bond Fund is a long-only macroeconomic investment fund, investing in Australian Dollar denominated bonds backed by AAA and AA+ rated Government, Semi (State) Government and Supranational agencies.
- The Fund Objective is to out-perform the Bloomberg Australian Government Bond Index through active management in a sound risk-managed framework and usually holds around 20 bond securities of varying maturities.
AFM Fund Review - July 2016 (pdf format)
