NEWS
Fund Review: Aurora Fortitude Absolute Return Fund September 2015
20 Oct 2015 - Australian Fund Monitors
Latest fund review now available on the Aurora Fortitude Absolute Return Fund, which has one of the most risk averse Key Performance Statistics of any fund in AFM's database.
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20 Oct 2015 - Fund Review: Aurora Fortitude Absolute Return Fund September 2015
By: Australian Fund Monitors
AURORA FORTITUDE ABSOLUTE RETURN FUND
We would like to highlight the following aspects of the Fund;
- The Aurora Fortitude Absolute Return Fund (AFARF) has a 10 year track record investing in ASX listed equities. A Market Neutral overlay is used across a multi strategy approach which allows for flexible asset allocation to maximise returns and minimise risk under a variety of market conditions and cycles.CIO John Corr has over 20 years financial market experience with a strong focus on risk.
- Significant use of low risk "long" derivatives and option overlays has provided positive returns with low volatility during periods of market dislocation. Risk statistics are impressive and shows the Funds risk philosophy; over 86% of monthly performances have been positive with no losing months in 2008, the Fund's largest drawdown is -2.09% and the Sharpe ratio 1.11.
- ASX listed Aurora Funds Limited was established on the merger of three existing fund management businesses, managing approx. $230m on behalf of more than 2,500 retail and wholesale investors.
APN Asian REIT Fund
20 Oct 2015 - Australian Fund Monitors
APN Asian REIT Fund rose 1.64% in September. Since inception, the Fund has an annualised return of 17.74% p.a.
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20 Oct 2015 - 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 | The Fund's portfolio was geographically allocated in multiple Asian countries, with 38.3% in Japan and 30.2% in Singapore. Majority of the underlying property sector allocation was in the Retail REITs sector 37.5%, followed by Office REITs sector 27.6%. Top 5 Asian REIT holdings were in Croesus Retail Trust, Keppel Dc REIT, N, Capitaland Retail China Trust, Kenedix Office Investment Co and Soilbuild Business Space REIT. Click below to read the latest Fund's September commentary. |
| More Information |
Morphic Global Opportunities Fund
19 Oct 2015 - Australian Fund Monitors
Morphic Global Opportunities Fund fell 2.98% in September, underperforming its benchmark (MSCI AC World Total Return in Australian Dollars), which fell 2.70%, by 0.28%.
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19 Oct 2015 - Morphic Global Opportunities Fund
By: Australian Fund Monitors
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| Manager Comments | September's main disappointment was one of the Fund's largest remaining long term holdings: Hospital Corp of America (HCA). Losses on HCA more than accounted for the September under-performance. A positive contributor came from a new Japanese retail long-short position, comprising fast growing dispensing pharmacy chain, Nihon Chouzai together with Tsuruha, Japan's largest drug store chain, funded by a short position in combined drugstore and pharmacy operator Sugi, which the Fund believes to be overpriced. For the month, the Fund had over 42% of their equity exposure in the North American region and over 20% in the Financials Sector. Click below to read the Fund Manager's monthly report and their September outlook of the market. |
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Hedge Clippings
16 Oct 2015 - Australian Fund Monitors
Cayman Funds on the front pages, and an unforseen rate rise.
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16 Oct 2015 - Hedge Clippings
By: Australian Fund Monitors
Cayman Funds on the front pages, and an unforseen rate rise
This week hedge funds made the front pages in Australia as the opposition tried to embarrass the newly appointed PM Malcolm Turnbull over his investments there. As usual they didn't let the facts get in the way of a good story, and as it turned out it backfired on them as most who understand the industry thought it would.
The reality is that the "tax free" status of the Cayman's is to all intents and purposes the same as the tax free status of Australian unit trusts. Where they differ significantly is that Australian trusts have to distribute their earnings annually, whereas their Cayman counterparts can accumulate earnings until redeemed. In other respects unit holders, or in the case of the Cayman vehicles, shareholders, are responsible for paying tax in their own jurisdiction a the applicable rate.
As a result of that, and withholding tax, Australian unit trusts aren't that attractive to offshore investors which is why local managers wanting to attract them need to establish an offshore, normally Cayman, vehicle.
Simple enough even for the opposition to understand, as the PM was able to explain to them!
Meanwhile Westpac raised variable interest rates on mortgages this week in a surprise decision given the general view that official rates in Australia are likely to remain flat or possibly fall over the coming months. I guess that is covered by the adage of expect the unexpected!
Specific results received this week include the following PERFORMANCE UPDATES:
Bennelong Long Short Equity Fund rose 5.71% in September to outperform the ASX200 Accumulation Index by 8.67%.
Totus Alpha Fund rose 6.15% net of fees in September to bring the latest 12 months return to 40.89%.
The Meme Australian Share Fund gained 4.93% compared to the ASX200 Accumulation Index's fall of 2.96%, an outperformace of 7.89% for the month of September.
The Paragon Fund rose 1.60% after fees for the month of September 2015, to bring annualised performance since inception to 17.54% p.a.
QATO Capital Market Neutral Long/Short Fund rose 4.25%, to significantly outperform the S&P/ASX 100 Price Index, by 7.91%.
Aurora Fortitude Absolute Return Fund returned +0.59%, to outperform the ASX200 Accumulation Index by 3.55%.
FUND REVIEWS released this week: Optimal Australia Absolute Trust; Jamieson Coote Bonds Active Fund; Bennelong Kardinia Absolute Return Fund
Apologies to those who enjoy it, but we have nothing completely different to add this week but we hope youenjoy the week-end anyway.
Regards,
Chris
CEO,AUSTRALIAN FUND MONITORS
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Totus Alpha Fund
16 Oct 2015 - Australian Fund Monitors
Totus Alpha Fund rose 6.15% net of fees in September to bring the latest 12 months return to 40.89%.
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16 Oct 2015 - 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 -23.0% and a gross exposure of 293.2%. The Fund was diversified across a number investment themes and geographies with 131 positions (55 long and 76 short). Top contributors in September were the short positions in LNG Limited +3.11% (Promoter) and Woodside +0.98% (Energy). A long position in SmartGroup added +0.82% (Scarce Growth). Biggest detractors were the short positions in Northern Star -1.14% (Gold), Newcrest -0.75% (Gold) and Spotless -0.46% (Earnings Risk). Click below to read the latest Fund's Monthly Report. |
| More Information |
Aurora Fortitude Absolute Return Fund
16 Oct 2015 - Australian Fund Monitors
Aurora Fortitude Absolute Return Fund returned +0.59%, to outperform the ASX200 Accumulation Index by 3.55%.
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16 Oct 2015 - Aurora Fortitude Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund aims to produce positive returns irrespective of the direction of the share market. For each investment the manager considers the risk, the timeline of that risk occurring and then the potential return. Low transaction costs and liquidity are other important factors in the success and implementation of the strategies. |
| Manager Comments | In this volatile environment, it was the Yield strategy that was the biggest contributor for the month (+0.69%) with the short dated instruments all performing well. The Fund's largest position, the Primary Healthcare Bonds (PRYHA.ASX), were redeemed as expected at maturity. Options was a small positive contributor for the month (+0.11%). The Long/Short (-0.11%) and Convergence (-0.13%) positions were detractors for the month, mostly due to the tendency for positions to have a long bias. Click below to read more on the Fund's performance. |
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Fund Review: Bennelong Kardinia Absolute Return Fund September 2015
16 Oct 2015 - Australian Fund Monitors
Latest Fund Review now available on Bennelong Kardinia Absolute Return Fund, which has over 9 years of positive track record.
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16 Oct 2015 - Fund Review: Bennelong Kardinia Absolute Return Fund September 2015
By: Australian Fund Monitors
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 an 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 KPI's. The Fund has an annualised return of 12.46% p.a. with a volatility of 7.31%, compared to the ASX200 Accumulation's return of 4.04% p.a. with volatility of 14.36%.
- 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.
QATO Capital Market Neutral Long/Short Fund
15 Oct 2015 - Australian Fund Monitors
QATO Capital Market Neutral Long/Short Fund rose 4.25%, to significantly outperform the
S&P/ASX 100 Price Index, by 7.91%.
S&P/ASX 100 Price Index, by 7.91%.
Read more...
15 Oct 2015 - 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 30 S&P/ASX-100 positions (15 long and 15 short equally weighted positions). The turnover is generally averaged around 30% of the total portfolio each month. 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 | All long positions, except one, outperformed the market with five of these providing a positive return. The long book delivered a return of -0.12%. Worley, Ansell, Crown & Alumina fell -21.29%, -16.20%, -12.19% & -11.62% for the month producing strong alpha. With thirteen profitable positions, the short book delivered a solid return of +4.41% for the month. Click below to read in more detail the Fund's September Performance Report. |
| More Information |
The Paragon Fund
14 Oct 2015 - Australian Fund Monitors
The Paragon Fund rose 1.60% after fees for the month of September 2015, to outperform the ASX200 Accumulation Index by 4.56%.
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14 Oct 2015 - 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 | Key positive contributors for September included Longs in NetComm Wireless, Oil Search, Atherton and Blackham Resources, and Shorts in Origin, Alumina and Woodside. At the end of the month the Fund had 27 long positions and 18 short positions. Click below to read the latest Fund Manager's commentary. |
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Fund Review: Jamieson Coote Bonds Active Fund September 2015
14 Oct 2015 - Australian Fund Monitors
September Fund Review is now available on Jamieson Coote Bonds Active Fund, a long-only macroeconomic investment fund.
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14 Oct 2015 - Fund Review: Jamieson Coote Bonds Active Fund September 2015
By: Australian Fund Monitors
JCBAF Fund Review September 2015 (pdf format)
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-framework and usually holds around 20 bond securities of varying maturities.
JCBAF Fund Review September 2015 (pdf format)
