AARIA ROUND TABLE 2014

Tuesday 9 September 2014 in Brisbane

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 9 September, from 12pm to 4.30pm, in Brisbane 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 Brisbane will be on Tuesday 9 December 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.

ATTACHED FILESARRIA Round Table (pdf format)

Hedge Clippings has endured a challenging (or should that be frustrating) week. As usual the first frustration came out of the ongoing two-step being danced in Canberra, where the government proudly announced it had delivered on at least one election promise, that of repealing the mining tax.

Of course it can only do anything at present with the approval of Clive Palmer and his PUP colleagues in the Senate, and in this case it seemed as if the trade off was the deferral for 7 years of any increase in the Superannuation Guarantee Levy or SGL. At the present time the SGL is 9.5% of every employees' wages or salary, and is levied as a tax on the employer, not the employee.

While there are plenty of arguments as to the rights and wrongs of the SGL and how it is levied, who should pay, and the cost of superannuation tax benefits to the federal budget, it is hard to argue about the logic of a system designed to cover the retirement benefits of all workers, given that one of the major expenditure items in the Federal budget is the cost of the aged pension.

It is also widely accepted by most (although possibly not the Federal Treasurer) that even after 40 years of the SGL at 9.5%, the retirement benefit for most employees will be insufficient to cover their income needs in retirement, particularly given ever extending life expectancies. Figures published in an article on news.com.au today indicate the average 50 year old male currently earning $79,700 can expect to receive an income of $27,600 when he turns 70 in 20 years' time.

Hardly enough one would have thought, and therefore any encouragement (whether it be using carrot or stick) should be applauded rather than the current government's policy of deferring or reducing even this meagre ration.

Maybe one of the reasons that Treasurer Hockey doesn't seem to think this is important is that the same article indicates that when he leaves Federal Parliament he will be in line for a pension of at least $270,000 a year.

Who says the age of entitlement is over? None other than the Treasurer of course!

The other challenge or frustration this week was altogether different, and altogether more enjoyable, having attended yet another Bob Dylan concert (my fifth or sixth from memory, but the ones I was at in the late 60's are for some strange reason rather vague). Bob is one of my favourite artists, sadly not one of the world's greatest communicators. Having said that, this was one of his best performances I had seen, with his rendition of his classic "Blowin' in the Wind" for his final number perfect for current times, just as it was way back in 1963.

Specific results received this week include the following PERFORMANCE UPDATES:

The Auscap Long Short Australian Equities Fund returned 2.95% during July and 43.54% for the prior twelve months with a volatility of 6.30%.

Returning 24.47% for the year ended July 2014, the Avenir Value Fund returned -1.12% during July.

Pengana Absolute Return Asia Pacific Australian Fund returned 1.18% during July and 8.03% for last 12 months with a volatility of 2.88%.

With a volatility of 8.95% the Nanuk Global Alpha Fund returned -1.26% in July and 17.01% for the prior 12 months.

The Supervised High Yield Fund returned 0.77% during July and 7.17% over the previous 12 months with a very low volatility of 0.72.

AFM are now accredited by the Financial Planning Association of Australia to issue CPD points for FUND REVIEWS.
This week's updated reviews include:

Aurora Fortitude Absolute Return Fund

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 charge for this service.

UPCOMING EVENTS:

Tuesday 9 September in Brisbane , from 12pm to 4.30pm - ARRIA is hosting a further round table discussion, providing a valuable opportunity to meet with like-minded advisers. Free to Financial Advisors.

Tuesday 16 September in Sydney AIMA Australia's Hedge Fund Forum - and event by the Industry for the industry featuring quality Australian and international speakers.

15-17 October Grace Hotel, Sydney - Investment Performance Measurement, Attribution & Risk Management Forum will have leading experts sharing up-to-date, cutting edge ideas and insight on frontiers of recent developments in performance measurement.

21-22 October in Sydney Post-Retirement Australia 2014 conference. Comprehensive two day forum for high profile cross industry participants to provide updates, insights and ongoing discussion into the key issues central to achieving optimal financial outcomes.

Friday 24 October in Sydney Financial and Media Markets Charity Regatta Day out of Middle Harbour Yacht Club. Promises to be a fantastic day.

5-6 November, Grace Hotel, Sydney. Alternative Investments Conference - Investigating the rise of non-traditional high yield and low risk investment products, strategies and allocation in an era of prolonged volatility and low returns.

This week's Now For Something Completely Different and in keeping with our musical theme... I imagine it would be surprising to be shopping for groceries and find yourself in what might appear to be a scene from an opera, or Shopera as some might say. Well, I thought it was from an opera, but it's not. If anyone else is interested, the history of the song is here.

Best wishes for a happy and healthy weekend,

Chris
CEO, AUSTRALIAN FUND MONITORS

Connect with me on LinkedIn Twitter Facebook

Australian Fund Monitors are helping to raise awareness to support research into prevention and cure for cerebral palsy.  For more information visit www.cpresearch.org.au or contact me by email.

2014 Financial and Media Markets Charity Regatta

Sydney - Friday 24 October 2014

The Hedge Fund Association, is pleased to be a supporting the ASX Thomson Reuters Charity Foundation 2014 Financial and Media Markets Charity Regatta, out of Middle Harbour Yacht Club, New South Wales. It will be a fantastic day, with lots of fun to be had by all. Full details of the Regatta can be found here.

The Foundation organises an annual charity sailing regatta. Up to 60 class one, two and three yachts are expected to take part. There is also a 150 person VIP spectator boat to follow the race with guests enjoying a superb lunch. A prize giving reception, BBQ and beach party is held at Middle Harbour Yacht Club after the race.

We would like to encourage yacht owners to donate the use of their yacht, with skipper and one or two experienced crew for the day. The Charity Foundation will source a ?sponsor and guest crew? for each yacht which will contribute towards the fundraising. Sponsors in cash and in kind are also needed for the BBQ, Sailing Shirts, Caps, BBQ, Beach Band, Drinks and Signage.

Program of the Day - 10am registration for 1pm race start

Enquiries regarding the Regatta can be directed to David Brocklehurst.

To enquire further about HFA membership please contact Adriana Kostov, Australian Regional Director, HFA

ATTACHED FILES2014 Charity Regatta (pdf format)

• The Aurora Fortitude Absolute Return Fund  (AFARF) has a 8 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 88% of monthly performances have been positive with no losing months in 2008, the Fund's largest drawdown is -2.09% and the Sharpe ratio 1.16.
• 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.

ATTACHED FILESAFARF Fund Review July 2014 (pdf format)

POST- RETIREMENT AUSTRALIA 2014 CONFERENCE

21st-22nd October, 2014, Grace Hotel, Sydney

Comprehensive and timely two day forum for high profile cross industry participants to provide updates, insights and ongoing discussion into the key issues central to achieving optimal financial outcomes for Australia's rapidly growing retiree sector.

(A "must attend" event, in a time of government belt tightening, regulatory reform and persistent global economic and market volatility)

Over two jam packed days delegates will be privy to a comprehensive range of topics including the political, regulatory, economic and social landscape and factors shaping the future of the post-retirement sector to in-depth examination of the funds accumulation, transition and post-retirement phases, to innovative retirement product options and asset allocation, risk considerations, optimising tax efficiencies, improved advice and data administration developments.

THE CONFERENCE WILL COVER:

• Political and regulatory factors driving the financial future for Australian baby boomers as they migrate across into retirement
• What Australia can learn from the northern hemisphere's approach to the ageing population dilemma
• Accumulating wealth for Super members to maximise retirement funds - Trustee perspectives
• Transitioning into retirement - examines the big questions and decisions to be made to pave the way forward for a comfortable retirement
• Engaging default members for better financial outcomes in retirement
• The increasing importance of sound and reliable advice
• Insights, trends and developments in Super and retirement funds administration
• Innovative retirement products and de-cumulated funds allocation strategies
• Working through the technical and operational complexities of new product implementation
• What?s happening in the SMSF sector post retirement?
• Increasing tax efficiency for retirees
• Future outlook - what will be the ultimate measure of success for retiree sector income, satisfaction and security?

Dates: 21st-22nd October 2014
Time: 8:30am - 5:30pm
Location: Grace Hotel, Sydney

Event AGENDA and booking form can be found here.

 

Bought to you by IBR Conferences. For further information call +612 9896 0776 or email Jay.

 

ATTACHED FILESiPARM Australia 2014 (pdf format)

ALPHA BETA ASIAN FUND

ATTACHED FILESAlpha Beta Asian Fund July 2014 (pdf format)