NEWS
Affluence Investment Fund
21 Oct 2016 - Australian Fund Monitors
Affluence Investment Fund rose 0.59% in September to take the annualised performance since inception to 10.95% p.a.
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21 Oct 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 | Of the Fund's 25 unlisted fund investments, 16 provided positive returns. The Affluence LIC Fund was the biggest positive contributor to performance, with other strong results from the Cromwell Direct Property Fund, the Microequities Deep Value Microcap Fund, and the Smallco Broadcap Fund. The largest detractors were the Totus Capital Alpha Fund and the Auscap Long Short Australian Equities Fund. In September, the Fund invested into two new funds, the KIS Capital Asia Long Short Fund and the Heathley Direct Medical Fund No.1. The unlisted funds represented 60% of the portfolio. The Fund's exposure to 23 listed investment companies and 5 other listed entities, represented 24% of the portfolio. The rest of the balance (16%) was held in cash. Click below to read the latest Fund Manager's report. |
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KIS Asia Long Short Fund
21 Oct 2016 - Australian Fund Monitors
KIS Asia Long Short Fund rose 1.45% in September taking the return for the most recent 12 months to 16.55% versus the AFM Asia Pacific ex-Japan Index of 2.95% over the same period.
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21 Oct 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 return was driven largely by long positions in Cardinal Resources Ltd (CDV.AX) 0.76 and in SJM Holdings Ltd (0880.HK) 0.23% and a short position in the ASX 200 (.AXJO) 0.24%. Detractors for the month included long positions in XREF Ltd (XF1.AX) -0.15%, AviChina Industry and Technology Co Ltd (2357.HK) -0.11% and Xinyi Solar Holdings Ltd (0968.HK) -0.11%. Click below to read the latest monthly Fund Report. |
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NWQ Fiduciary Fund
20 Oct 2016 - Australian Fund Monitors
NWQ Fiduciary Fund returned +0.16% in September and +13.69% over the latest 24-months.
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20 Oct 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 Beta managers attributed -0.02% for the month, as intra-month volatility made market positioning difficult. At month-end, selective rebalancing was implemented within the Beta strategy, which NWQ expects will provide further return diversification within the strategy. The Alpha managers were better positioned throughout the month and attributed +0.26%. The Fund continues to remain overweight to the Alpha or market neutral strategies to protect again future equity and bond market volatility. Click below to read the latest Fund's Report. |
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Touchstone Index Unaware Fund
20 Oct 2016 - Australian Fund Monitors
Touchstone Index Unaware Fund rose 0.47% in September to take latest 6-months return to 8.26%.
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20 Oct 2016 - Touchstone Index Unaware Fund
By: Australian Fund Monitors
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| Fund Overview | The portfolio is constructed using Touchstone's Quality-At-a-Reasonable-Price ('QARP') investment process. QARP is a fundamental bottom-up process, however, it also incorporates a top-down risk management framework designed to successfully manage the portfolio during varying market conditions and economic cycles. The Touchstone Fund is concentrated, typically holding between 15-20 stocks. No individual stock will ever make up more than 10% of the portfolio at any one time. The Investment Manager may temporarily exceed the exposure limits of the Fund occasionally, particularly during periods of market volatility, to allow for holdings in excess of this 10% limit where the increase in value of the underlying security is due to market movement. The Fund may also hold between 0-50% of the portfolio in cash. The Fund has a high level of associated risk, therefore, the minimum suggested investment time-frame is 5 years. |
| Manager Comments | The main detractors over the month and quarter were investments in the Insurance sector, specifically the holding in QBE. The Fund's holdings in select 'yield sensitive' companies such as Telstra, Goodman Group, and Charter Hall were also weaker over the month and quarter. The investment team believes that the Fund is well-positioned in light of extended financial asset valuations in general and given the heightened geopolitical and economic uncertainty going forward. Click below to read in more detail. |
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Fund Review Pengana Absolute Return Asia Pacific Fund September 2016
19 Oct 2016 - Australian Fund Monitors
Latest Fund Review is now available on Pengana Absolute Return Asia Pacific Fund, which has over 7 years of positive track record and an annualised return of 8.96% p.a.
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19 Oct 2016 - Fund Review Pengana Absolute Return Asia Pacific Fund September 2016
By: Australian Fund Monitors
AFM Fund Review - September 2016 (pdf format)
PENGANA ABSOLUTE RETURN ASIA PACIFIC FUND
Attached is our most recently updated Fund Review on the Pengana Absolute Return Asia Pacific Fund.
- The Pengana Absolute Return Asia Pacific Fund ("PARAP") was established in 2008 by portfolio managers Antonio Meroni and Vikas Kumra. The Fund is a feeder fund into a Cayman Islands AUD share class fund.
- The Fund invests both long and short in Asia Pacific equities, including in Australian and New Zealand, after a stock specific "event" has either occurred or been announced and the portfolio aims to be uncorrelated to the underlying equity markets. A combination of the Manager's experience, thorough research and continuous back- testing identify the most attractive of these events.
- Risk controls include limits on individual positions as well as gross and net exposure. Limits are in place for option exposure and cash borrowing, with stop loss limits on individual positions. Overall the manager is looking to derive returns from the event strategies as opposed to any currency or market exposures.
- Since inception, the Fund has an annualised return of 8.96% p.a., compared to the MSCI ACWI Asia Pacific Price Index's return of 3.90% p.a.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - September 2016 (pdf format)
APN Asian REIT Fund
19 Oct 2016 - Australian Fund Monitors
APN Asian REIT Fund returned -0.70% in September, outperforming the Bloomberg Asia REIT Index which returned -1.53%, by 0.83%.
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19 Oct 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. The manager has offered a special 50% reduction in management fee for all existing and new investors who apply by 30 June 2016. |
| Manager Comments | In September, the portfolio continued to have large exposure to Japan at 38.3%, and Singapore at 31.3%. The majority (66.6%) of the Fund was invested in the Retail REITs (40.1%) and the Office REITs (26.5%) sectors. The top five holdings were Gip J-REIT, Japan Retail Fund Investment, Ascendas Real Estate Inv Trust, Prosperity REIT and Mapletree Greater China Comm, 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 September 2016
18 Oct 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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18 Oct 2016 - Fund Review: Bennelong Kardinia Absolute Return Fund September 2016
By: Australian Fund Monitors
AFM Fund Review - September 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 11.59% p.a. with a volatility of 7.23%, compared to the ASX200 Accumulation's return of 4.88% p.a. with a volatility of 14.14%.
- 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 - September 2016 (pdf format)
QATO Capital Market Neutral Long/Short Fund
18 Oct 2016 - Australian Fund Monitors
Qato Capital Market Neutral Long/Short Fund returned +1.23% for September, outperforming the ASX-100 by +1.21%, which returned +0.02%.
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18 Oct 2016 - QATO Capital Market Neutral Long/Short Fund
By: Australian Fund Monitors
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| Fund Overview | The fund targets a net market exposure of 0% to hedge broader market risks through long and short positions. The process is entirely systematic - stock selection and risk management are all employed in a rules based approach. The Market Neutral Long/Short Fund employs no financial leverage, no derivatives and no financial products to imitate leverage. The Investment Manager's three principal investment goals for the Fund are: 1. Market neutral long/short portfolio management with little correlation to equity markets; 2. Over a 3-5 year period, seeking to target annualised volatility of 15% per annum and annualised returns of 15-30% per annum above the Benchmark; Sharpe Ratio 1.0-2.0 and a negative beta to ASX listed equities; and 3. To provide investors with a co-investment opportunity alongside the founding members' investments in the Investment Manager's strategy. |
| Manager Comments | However, the Fund's long positions in REITS detracted performance, as the sector fell -4% in September. A short position in Ausnet fell -5.11%, with its share price reflecting a combination of deteriorating fundamentals and the short-term sell-off in higher yielding investments during September, producing alpha of +5.13% for the Fund. |
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Fund Review: Optimal Australia Absolute Trust September 2016
17 Oct 2016 - Australian Fund Monitors
Read the latest Fund Review on Optimal Australian Absolute Trust.
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17 Oct 2016 - Fund Review: Optimal Australia Absolute Trust September 2016
By: Australian Fund Monitors
AFM Fund Review - September 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 September, the Fund rose 0.56%, to take annualised return since inception to 8.60% p.a. The Fund's approach to risk is shown by the Sharpe ratio of 1.37 (Index 0.21), Sortino ratio of 2.87 (Index 0.19), both of which are well above the ASX 200 Accumulation Index and has recorded 79% positive months.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - September 2016 (pdf format)
Bennelong Twenty20 Australian Equities Fund
17 Oct 2016 - Australian Fund Monitors
Bennelong Twenty20 Australian Equities Fund returned 0.07% in September to take latest 6-months return to 9.06%
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17 Oct 2016 - Bennelong Twenty20 Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is managed as one portfolio but comprises and combines two separately managed exposures: 1. An investment in the top 20 stocks of the markets, which the Fund achieves by taking an indexed position in the S&P/ASX 20 Index; and 2. An investment in the stocks beyond the S&P/ASX 20 Index. This exposure is managed on an active basis using a fundamental core approach. The Fund may also invest in securities expected to be listed on the ASX, securities listed or expected to be listed on other exchanges where such securities relate to ASX-listed securities.Derivative instruments may be used to replicate underlying positions and hedge market and company specific risks. The companies within the portfolio are primarily selected from, but not limited to, the S&P/ASX 300 Accumulation Index. The Fund typically holds between 40-55 stocks and thus is considered to be highly concentrated. This means that investors should expect to see high short-term volatility. The Fund seeks to achieve growth over the long-term, therefore the minimum suggested investment timeframe is 5 years. |
| Manager Comments | The Fund's performance over the quarter was due to a number of portfolio's largest ex-20 positions. This included Aristocrat Leisure, hospital operator Ramsay Health Care, wine producer Treasury Wine Estates, and travel retailer Flight Centre. All these companies delivered strong full year financial results and they were received positively by the market. The Fund's active investment also benefited from its aversion to REITs and Utilities. The biggest detractor for the month was an overweight position in TPG Telecom in the active investment portfolio of the Fund. Click below to read the latest Fund Report. |
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