NEWS
Bennelong Kardinia Absolute Return Fund
15 Jan 2016 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose 1.74%, for the month of December.
Read more...
15 Jan 2016 - Bennelong Kardinia Absolute Return Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The Fund's discretionary investment strategy commences with a macro view of the economy and direction to establish the portfolio's desired market exposure. Following this detailed sector and company research is gathered from knowledge of the individual stocks in the Fund's universe, with widespread use of broker research. Company visits, presentations and discussions with management at CEO and CFO level are used wherever possible to assess management quality across a range of criteria. Detailed analysis of company valuations using financial statements and forecasts, particularly focusing on free cash flow, is conducted. Technical analysis is used to validate the Manager's fundamental research and valuations and to manage market timing. A significant portion of the Fund's overall performance can be attributed to the attention and importance given to the macro economic outlook and the ability and willingness to adjust the Fund's market risk. |
| Manager Comments | Long positions in Blackmores, BWX and Aristocrat were the major positive contributors to performance, whilst long positions in Temple and Webster and Surfstitch were the largest detractors. Net equity market exposure was actively managed throughout the month with a month-end net of 65.2% (68.1% long and 2.8% short). Click below to read the December 2015 Fund Report. |
| More Information |
Optimal Australia Absolute Trust
14 Jan 2016 - Australian Fund Monitors
Optimal Australia Absolute Trust recorded net return of -0.1% to bring the year 2015 to +8.05%.
Read more...
14 Jan 2016 - Optimal Australia Absolute Trust
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 Fund's shorts produced negative attribution of 0.9% for the month. The long positions had positive attribution of 0.8%. The rally in the Australian market from mid-December allowed the Fund to realise some long investments at attractive prices and to increase short position. As a result, the Fund came into 2016 with net short exposure at 11% of NAV. This risk setting has served the fund well against January's initial carnage, but our lack of beta exposure was a heavy drag on performance in December Click below to read the latest Fund Monthly Report. |
| More Information |
The Paragon Fund
13 Jan 2016 - Australian Fund Monitors
The Paragon Fund returned 0.3% for the month of December, to take latest 12 month return to 16.44%.
Read more...
13 Jan 2016 - The Paragon Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 | Key positive contributors for December included Longs in the Lithium holdings (Orocobre & General Mining), Mayne Pharma and APN Outdoor, offset by declines in Oil Search, Reward Minerals and a short position in Wesfarmers. At the end of the month the Fund had 34 long positions and 13 short positions. Click below to read the latest monthly report |
| More Information |
Bennelong Long Short Equity Fund
12 Jan 2016 - Australian Fund Monitors
Bennelong Long Short Equity Fund rose 6.22% in December, to bring latest 12-month return to 37.14%.
Read more...
12 Jan 2016 - Bennelong Long Short Equity Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 | Strongest contribution came from two of the Fund's pairs in the Healthcare Sector, driven by short positions in Primary Healthcare and Sonic Healthcare. On the negative side, the Fund's position in two energy-related pairs were impacted by continued volatility in the oil price and associated share prices. Overall, performance across the portfolio featured positive contributions from 21 pairs while 10 pairs were a loss. Fund activity in December involved some relatively minor weightings adjustments across the gaming, consumer discretionary, and financials sectors. Click below to read the Fund Manager's commentary and future market outlook. |
| More Information |
Meme Australian Share Fund
11 Jan 2016 - Australian Fund Monitors
For the month of December, the Meme Australian Share Fund gained 4.40% compared to the ASX200 Accumulation Index's return of 2.73%, an outperformance of 1.67%.
Read more...
11 Jan 2016 - Meme Australian Share Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The Fund's investment strategy seeks to identify low-risk entry opportunities and then build positions in these stocks. Once established in the portfolio, individual stock holdings are maintained for as long as their long-term upward trend remains intact and while they continue to make positive contributions to portfolio growth. Positions are reduced and ultimately closed out as their trends become exhausted or as their relative long-term performance against the broad market weakens. The Fund believes that longer time frame investments also provide a number of advantages. The effect of false signals and 'noise' which attend shorter term time frames is mitigated by only attending to signals which are confirmed by our longer term assessments. Also, the Fund gains exposure to the more expansive price trends which can last for months and years, allowing dividends and distributions received during this time to further enhance portfolio returns. |
| Manager Comments | The positive contributors to the fund's performance were HUB24 (HUB, +1.12%), Structural Monitors (SMN, +1.01%), Blackmores (BKL, +0.73%) and Nagambie Resources (NAG, +0.54%). The largest negative contributions were by Norwood Systems (NOR, -0.62%), Promedicus (PME, -0.40%) and Lynas Corporation (LYC, -0.27%). The total number of portfolio stocks decreased from the previous month's 101 to 96, with almost 53% of the portfolio value comprising stocks held in multiple tranches. Portfolio cash sits at less than 1%. During the month, the Fund's exposure to the Financials, Materials, Consumer Discretionary and Consumer Staples sectors increased, with exposure to other sectors remained relatively stable. Click below to read the latest Fund Manager's commentary on the Fund. |
| More Information |
Fund Review: Supervised High Yield Fund November 2015
29 Dec 2015 - Australian Fund Monitors
Fund review on Supervised High Yield Fund, a fixed income fund, is now available.
Read more...
29 Dec 2015 - Fund Review: Supervised High Yield Fund November 2015
By: Australian Fund Monitors
Supervised High Yield Fund AFM Review November 2015 (pdf format)
SUPERVISED HIGH YIELD FUND
Attached is AFM's updated Fund Review on the Supervised High Yield Fund.
We would like to highlight the following aspects of the Fund:
- The Supervised High Yield Fund (SHYF) 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 32years, 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 identify 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 for 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.
Supervised High Yield Fund AFM Review November 2015 (pdf format)
KIS Asia Long Short Fund
28 Dec 2015 - Australian Fund Monitors
KIS Asia Long Short Fund returned -2.33% for the month of November.
Read more...
28 Dec 2015 - KIS Asia Long Short Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 | Majority of the Fund's return came from the Long Short Strategy, which generated a loss of 243bp. The month's return was driven by two positions. The Fund lost 170bp due to the long position in education service provider Vocation Ltd (VET.AX). The second position which lost money this month was the short position in Metcash Ltd/MTS.AX. The Portfolio Hedge strategy did not make a significant contribution. To read more, cLick below for Fund's Monthly performance report. |
| More Information |
Supervised High Yield Fund
25 Dec 2015 - Australian Fund Monitors
Supervised High Yield Fund produced a return of +0.04% for the month of November, to bring annualised performance since inception to 9.74% p.a.
Read more...
25 Dec 2015 - Supervised High Yield Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The fund may also invest in interest rate swaps, options over authorized investments and exchange traded futures contracts. All these will be either listed or traded in a market where they can be independently valued. Fundamental to the investment procedure is the tenet that no debt security will qualify for investment unless it can repay 100% of its principal and interest in a worst case economic scenario. |
| Manager Comments | The Funds returns in November were negatively affected by weakness in the US and Australian corporate debt market where the Fund has 26.76% of its assets. The Fund Manager believes this weakness to be a short term phenomena and that these market prices were affected more by sentiment than actual credit risk metrics. The overriding sentiment effecting market prices during November was due to the weakness in commodity prices. The Fund is confident that the investments made in the underlying assets are sound. More than half of the portfolio's composition (as a percentage of NAV) was invested in Residential Mortgage-Backed Securities (RMBS) 62.93%. The rest of the portfolio composition was in USD Corporate Loans at 22.25%, Cash at 10.31% and AUD Corporate Loans at 4.51%. Click below to view the latest Fund Manager Report. |
| More Information |
Insync Global Titans Fund
24 Dec 2015 - Australian Fund Monitors
The Insync Global Titans Fund returned -2.60% in November, compared to its benchmark MSCI All Country World ex-Australia Net Total Return Index ($A) which returned -2.40%.
Read more...
24 Dec 2015 - Insync Global Titans Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 holdings in Microsoft, eBay, McDonald's and McGraw-Hill Financial. The main negative contributors were Zimmer, Reckitt Benckiser, Time Warner and Sanofi. The Fund continues to have no foreign currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside. Click below to read the latest Fund Manager Report. |
| More Information |
Fund Review: Totus Alpha Fund November 2015
24 Dec 2015 - Australian Fund Monitors
November Fund Review with key statistics for Totus Alpha Fund is now available.
Read more...
24 Dec 2015 - Fund Review: Totus Alpha Fund November 2015
By: Australian Fund Monitors
Totus Alpha Fund AFM Fund Review November 2015 (pdf format)
TOTUS ALPHA FUND
Attached is our most recently updated Fund Review on the Totus Alpha Fund.
We would like to highlight the following aspects of the Fund;
- Totus Capital is a Sydney based long short fund manager established in 2012 by Ben McGarry which aims to place equal emphasis on performance and capital preservation. The Fund invests mainly in Australia, but also in other developed economies, with a primary exposure to equity markets.
- The Totus Alpha Fund's investment strategy is to identify structural themes, and then seek to drive performance by investing in securities that have concentrated exposure to those themes. Single stock short positions are used to generate alpha, frequently in under researched parts of the market such as the small and mid-cap space. Index derivatives are used to hedge the portfolio's market risk.
- McGarry qualified as a Chartered Accountant with PWC in 1999 and has 14 years market experience, commencing his career covering European building materials and construction sectors at Morgan Stanley in London. Previous experience included analytical roles at Ausbil, a Sydney based $10bn+ long-only manager, and sell side emerging companies experience at UBS. McGarry's emerging company research with UBS included exposure to a range of sectors including energy, materials, industrials, tech, financials, retail and telecommunications.
- The Fund has delivered an annalised return of 31.89% since inception in March 2012 as compared to 9.72% for the ASX 200 Accumulation Index. The standard deviation has been higher than the Index at 14.12% as compared to 12.20% and the Sharpe ratio is 1.86.
Totus Alpha Fund AFM Fund Review November 2015 (pdf format)
