NEWS
14 Aug 2014 - The Paragon Fund
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| Fund Overview | Paragon accepts that markets are not always efficient in pricing information into securities and that no one investment style works in every stage of the investment cycle. Subsequently Paragon adopts a top down thematic led approach to identify companies exhibiting sustainable or improving returns on capital driven by volume growth, pricing power and competitive advantages. Paragon utilises both quantitative analysis to provide probability weighted high/low/base case valuations and qualitative analysis in assessing management, the business model and likely direction of returns. Paragon will allocate assets to each investment opportunity based on a risk/reward profile. Positions have defined investment parameters and risk limits, which are then monitored on an ongoing basis. |
| Manager Comments | Volatility was 13.36% as compared to the Index at 8.23%. The Sortino ratio was 7.97 (Index 3.27) with the Up and Down Capture ratios 1.47 and -1.16. Key drivers of the Paragon Fund performance for July included strong returns from our resource investments in Liquefied Natural Gas, Triton Minerals, Orocobre Ltd and OZ Minerals. Industrial firms Crown Resorts and G8 Education also had strong months. At the end of June the fund had 25 long positions and 4 short positions. |
| More Information | » View detailed profile of this fund |
14 Aug 2014 - Bennelong Kardinia Absolute Return Fund
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| 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 | Since inception (May 2006) performance is sound with a return of 13.24% (ASX 200 Accum 5.33%) and a volatility of 7.61% (Index 14.32%). The Sharpe ratio over that time is 1.1 (Index 0.13). The net equity market exposure of the Fund (including derivatives) was increased to 60.1% (82.4% long and 22.3% short). Long positions in Crown, Challenger and BHP were the major positive contributors. Short positions in Webjet and Price Index Futures contracts (hedging longs), as well as a long position in Ansell,were the largest detractors. |
| More Information | » View detailed profile of this fund |
14 Aug 2014 - Fund Review: Monash Absolute Investment Fund July 2014
MONASH ABSOLUTE INVESTMENT FUND
Attached is our most recently updated Fund Review. You are also able to view the Fund's Profile
- The Fund is a research driven, active equity long/short strategy investing in listed ASX companies.
- The Fund seeks to identify opportunities in the share market to make positive returns (long and short) irrespective of market conditions. It is style agnostic, as compelling investment opportunities exist across all investment styles from time to time. The Fund places a high priority on capital preservation, and has an absolute return focus in accepting market risk.
Monash Absolute Investment Fund Review July (pdf format)
14 Aug 2014 - AIMA Australia Education Forum
AIMA Australia Education Forum
Presented by: AIMA Australia
Thursday 14th August 2014 from 12:15 - 2:00pm, Sydney, NSW
Topic
The next AIMA Australia education forum will be held on Thursday 14th August. The forum will discuss regulatory, tax and other issues, as well as current observations and insights associated with a range of hedge fund investment products, including Australian unit trusts, Cayman funds, UCITS and listed investment companies.
It is a "must attend" event for hedge fund managers reviewing their current products or considering development of new products.
Date and Time
Thursday 14th August, a light lunch will be available from 12.15 - 12.45pm, with the forum to commence at 12.45pm and finish before 2pm. Please note that food and drink cannot be taken into the theatre, so please arrive early if you wish to eat.
Speakers
Nikki Bentley, Partner, Henry Davis York
Nikki has extensive experience advising fund managers, product issuers and service providers on all aspects of their businesses. She specialises in business establishment and structuring, product development, Australian financial services licences, funds management business acquisitions, wholesale and retail product disclosure, distribution and compliance.
With more than a decade's funds management experience in private practice, government and as an in-house lawyer, Nikki's practice spans the range of funds management products, advising on alternative investment products, Australian and international equities trusts, property trusts, debentures and cash management trusts.
Nikki recently advised on the establishment and offering of capital guaranteed offshore alternate investment vehicles to Australian and New Zealand retail investments raising in excess of AUD$1.4 billion; the formation of an Australian subsidiary of a large UK financial services group and advising a group of institutional investors on range of structures that would allow them to access private equity and illiquid investments costs effectively.
She is the Honorary Legal Counsel and Chair of the Regulatory Committee for the Australian branch of the Alternative Investment Management Association (AIMA) and is a member of the Investment and Financial Services Council (FSC) Regulatory Issues and Product Rationalisation working groups.
Nikki is recognised as a leading lawyer in the areas of Financial Services Regulation and Investment Funds by Chambers Asia Pacific 2014, 2013 and 2012. She has also been listed as an expert in Funds Management in Best Lawyers since 2013.
Allan Mortel, Director, Taxation, Moore Stephens
Allan has over 15 years? experience providing tax advice on a wide range of corporate tax, international tax, Goods and Services Tax (GST) and Fringe Benefits Tax (FBT) matters to privately owned businesses, multinationals and listed companies.
He is an industry expert in the financial services and not-for-profit sectors, writing articles on tax issues and making submissions on taxation reform for both these sectors. He has also presented the annual tax updates at the Property Funds Association (PFA) Research and Compliance Roadshows and the Hedge Fund Operations Forums in Sydney.
Allan is the Chairman of the Moore Stephens Australia Tax Group and a member of the Moore Stephens Australia Asian Markets Group.
Host
UBS AG, Theatre, Level 4 Chifley Tower, 2 Chifley Square, Sydney
(please note - entrance is via the Bent Street lifts, not the main foyer)
RSVP deadline
Tuesday 12th August. There is a limit of two attendees per organisation.
If you would like to attend this education event, please click here to register. If you have any specific regulatory issues you would like Nikki to cover if time allows, please include them in the box provided on the registration form.
13 Aug 2014 - Fund Review: Supervised High Yield Fund June 2014
We would like to highlight the following aspects of the Fund:
- The Supervised High Yield Fund (SHYF) has a 5 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 32 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 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.
Research and Database Manager
Australian Fund Monitors
Supervised High Yield Fund Review June 2014 (pdf format)
11 Aug 2014 - Bennelong Alpha 200 Fund
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| Fund Overview | The core investment strategy of the Fund consists of the active selection of a series of paired long/short investments in Australian listed equities based upon the Investment Manager's fundamental research. The strategy seeks to capture stock Alpha whilst limiting portfolio exposure to market risk by adopting a dollar neutral portfolio market exposure position with the tactical capability to take net exposure of up to +/- 20% of gross assets. Stock selection is based on fundamental analysis to derive a view of a pair of individual stocks. The Investment Manager is style neutral in determining the stock's positioning. This primary 'pairs' strategy may be enhanced by other complementary strategies, including event driven, security and takeover arbitrage, thematic and momentum trading. The paired stock positions comprise long and short correlated securities that are in most cases simultaneously opened. A portfolio of approximately 30-100 stocks will be selected and actively managed in 15-50 pairs to comprise the core minimum (60%) of the Gross Asset Value. Up to a maximum of 40% of the portfolio's Gross Asset Value may be invested in uncorrelated securities and/or uncovered (long and/or short) positions. These 'satellite' positions are intended to enhance returns and to balance overall portfolio risk. In this regard, the Investment Manager recognises that it is not always possible to achieve a suitable paired profile within the S&P/ASX 200, and that a high conviction long or short stock idea might not always have a suitable pair. |
| Manager Comments | The Fund's best pairs the shorts, as well as the longs, all contributed positively to performance during the month, which is pleasing given the strength of the market. Unfortunately, with the exception of Breville, all the stocks in the bottom spreads contributed negatively �" with the result being marginally positive fund performance for the month. Looking slightly further ahead, the prospect of higher US interest rates as growth recovers further will tend to dominate investor positioning. |
| More Information | » View detailed profile of this fund |
11 Aug 2014 - Fund Review: Alpha Beta Asian Fund AFM Fund Review June 2014
ALPHA BETA ASIAN FUND
AFM has updated the Fund Review on the Alpha Beta Asian Fund.
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
Key points include:
- The Fund The Alpha Beta Asian Fund invests in Asian listed equity markets with a focus on liquid companies in Australia, Japan, Hong Kong, Indonesia, Philippines and Thailand. The Fund uses a systematic approach to evaluate macroeconomic, company fundamental and price data, all of which are evaluated through a series of quantitative models.
- Sydney based Alpha Beta Capital was established by Andrew Barry and Ken Lewis in May 2012. Both Barry and Lewis have significant qualifications and international experience in funds management, including working together at Coronation International, a global multi-strategy hedge fund group in London.
- The Strategy relies on a number of core beliefs: Firstly that a well designed systematic investment process, operating within a multi-strategy framework will be able to extract consistent returns, on average, with low volatility. Secondly, by utilising holding periods substantially shorter than the industry-norm, profit opportunities consistently arise. Finally, a strategy that holds a large number of small positions versus a small number of concentrated positions, will remove much of the emotional angst of trading, and the investment process becomes repeatable.
- In keeping with the Manager's overall systematic approach the Risk Management includes real time monitoring of positions and market exposure, and is combined into a proprietary and automated system called PARMS (Portfolio and Risk Management System). PARMS is a centralised and integrated system which provides full functionality including stress testing.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research Manager
Alpha Beta Asian Fund June 2014 (pdf format)
11 Aug 2014 - ARRIA Round Table - Sydney
AARIA ROUND TABLE 2014
12 August 2014 in Sydney
We operate in the area of "real returns" and are eager to help our network of IFA's that operate outside the traditional static buy and hold methodology. This has led me to meeting the Association of Real Return Investment Advisers (ARRIA).
The Group has been established as a not-for-profit entity run by advisers for advisers. ARRIA is an initiative based on feedback and insights from advisers regarding the challenges that they face in using Real Return investment strategies, which they believe are able to deliver tangible solutions to meet their client's objectives.
ARRIA is hosting a round table discussion on Tuesday 12th August, from 12pm to 4.30pm, in Sydney and offers a valuable opportunity to meet with likeminded advisers. The agenda for the round table is as follows:
Round Table 1: Agenda
- What are the implications of developing Real Return outcomes for PI and the regulators?
- Panel discussion - which alternative "strategies" work when?
- Panel discussion - what are the new investment opportunities, "access" methods (e.g. LICs), strategies, asset classes and investment flavours?
- Tool time
- Open Forum
Click here to register for the Round Table event, or if you would like more information please contact:
Philip Reid | General Manager
Association of Real Return Investment Advisers Limited (ARRIA)
ABN 82 99 168 267 623
GPO Box 5025, Sydney NSW 2001
T 0411-828 097 E [email protected]
The next Round Table event to be held in Sydney will be on Tuesday 11 November 2014.
As an association ARRIA aims to:
- assist in setting and maintaining a higher level of professional standards for all Real Return Investment Advisers and all relevant Stakeholders in the real return investment industry.
- create an environment where all Real Return Investment Advisers and all relevant Stakeholders can network in appropriate forums to advance the exchange of information, best-practice and compliance issues;
- create an environment where all Real Return Investment Advisers and all relevant Stakeholders can leverage industry resources;
- assist with the gathering and dissemination of resources in order to help facilitate:
- the collation and provision of information of interest or relevance;
- the development and / or access of appropriate tools;
- access to and sourcing of relevant and appropriate expertise;
- liaise and co-ordinate communications with government, regulatory bodies, other relevant industry associations and general service providers in the real return investment industry;
- whether undertaken with or without other participants; to promote, organise, conduct and/or participate in meetings, lectures, seminars, study groups, conferences, education, training and counselling courses for the purposes of increasing and advancing the knowledge and understanding of all facets and issues affecting or related to Real Return Investment Advisers and all relevant Stakeholders in the real return investment industry;
The operations of ARRIA are overseen by a Board, under the direction of the associations' corporate constitution and guidance of the directors. Both Directors and the Board are elected by the members on a rotation policy.
ARRIA Round Table (pdf format)
10 Aug 2014 - Financial System Inquiry
Financial System Inquiry - Public Forum
Presented by: The Committee of the Financial System Inquiry
The Committee of the Financial System Inquiry invites members of the public to attend a Public Forum to discuss the Inquiry.
The Chair of the Inquiry, Mr David Murray AO will attend each forum with members of the Committee. The forums are open for anyone to attend and provide an opportunity for members of the public to hear about the Inquiry, ask questions of the Committee, and raise issues for examination by the Inquiry.
Forums will be held in Perth, Melbourne, Brisbane and Sydney during August, with venues to be advised shortly.
Interested persons can register online.
Dates
- Perth: Wednesday 13 August, 6pm - 8pm - venue tba
- Melbourne: Thursday 14 August, 6pm - 8pm - venue tba
- Brisbane: Tuesday 19 August, 6pm - 8pm - venue tba
- Sydney: Wednesday 20 August, 6pm- 8pm - venue tba
If you would like to attend this education event, please click here to register.
10 Aug 2014 - Continuing Professional Development
Continuing Professional Development
AFM have been accredited by the Financial Planning Association of Australia to issue CPD points.
What you need to do:
Read the most recent Fund Review for any of our research clients, and then answer 5 straightforward questions, these are presented in multiple choice format. An 80% or more success score will provide 0.5 CPD points, with a certificate provided as proof of completion. There is no cost for this service.
Reading the review and answering the questions will take approximately 10 minutes to complete.
Certified Financial Planner (CFP) professional members are required to keep up to date with industry knowledge to maintain their professional proficiency and status. This continuing professional development translates to CPD points which are to be maintained and recorded over a three year period (triennium). The current triennium runs from 1 July 2012 - 30 June 2015. CFP professionals must achieve a total of 120 CPD points during each three year period. The breakdown of these points needs to be as follows:
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at least 50% accredited,
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50% non-accredited
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including 3 ethics points.
CFP professionals must accumulate a minimum 35 points each year.
