• The Microequities Deep Value Fund has a 5 year track record investing in ASX listed equities.  The Fund is a fundamental, research-driven Fund investing in equities with a market cap below $250m. The Fund uses a value philosophy based on the view that microcaps are often under-researched and under-valued.CIO Carlos Gil has over 15 years financial market experience across a broad range of equities.
• The Fund has delivered very strong performance since inception with a 29.63% annualised return compared to the ASX 200 Index
  Accum return of 14.32%. Volatility has been somewhat higher than the Index at 14.97% (ASX 200 Accum 12.59%) however the
  Sharpe ratio at 1.58 (0.84) reflects the high incremental returns for taking on the extra volatility/risk.
• The Fund does not short, use derivatives or borrow i.e., it is long  only and is concentrated; usually with 15 to 20 companies across
  industrial sectors. Resource stocks are avoided.

Australian Fund Monitors

ATTACHED FILESMicroequities Deep Value Microcap Fund AFM Fund Review June 2014 (pdf format)

Recently the news has been dominated by horrors and disasters in the Ukraine and Gaza, and an emerging global health threat from the Ebola virus in West Africa, none of which are necessarily relevant to Financial Markets or "Hedge Clippings", except we have been surprised at the lack of market volatility resulting from them. Maybe the markets have become hardened or become immune to the daily dose of visual horror we are presented with, or maybe they just won't affect the bottom line enough to matter.

Earnings are a different matter, particularly when the majority of experts have been talking of an over-priced market for some months, with investors also seemingly immune from the warnings. At first call that would seem to have changed overnight with the start of reporting season, as we suspected it might, with significant falls all round, with the exception of Abu Dhabi (+0.99%) and Dubai (+1.99%).

As a the time of writing the Australian market, although generally judged to not be as overvalued as the US, is down around 1.5%, having just completed its second best month for the past year. Timing is everything, and most fund managers will have closed July's books thankful to have booked a positive return, and at least happy they have another 30 days of the month to manage August's performance.

You will note we're not falling into the trap of predicting if this is an overdue correction, and therefore a buying opportunity, or the start of a more serious sell off as Tapering finishes tapering, and rates begin to rise. Ask me in a month or two's time and I should be able to give you a better idea!

On other fronts it's been thankfully quiet in Canberra, while David Murray's Financial System Inquiry has announced a series of upcoming public forums in four capital cities (not quite sure why Adelaide and Hobart missed out, Canberra I do understand) open for anyone to attend, to hear about the Inquiry, ask questions of the Committee, and raise issues for examination by the Inquiry. Those interested can register online or download two summaries of the FSI Interim Report from our library, one from Deloitte, and one from Ernst & Young.

Final round submissions to the Inquiry close on 26^th August.

Prism Select and OLIVIA123

Closer to home, this week Australian Fund Monitors released two exiting new products, Prism Select and OLIVIA123.

Prism Select is an information only site which provides details on a small group of funds from our database, with significantly greater depth of information than available on AFM. However, using OLIVIA the significant factor is that investors have the ability to apply for each fund online, which makes completing lengthy and confusing paper based forms a thing of the past.

OLIVIA stand for "On Line Investor Verification & Interactive Applications". That's a mouthful, so OLIVIA seemed much easier.  In fact we believe OLIVIA makes applying for a managed fund as easy as One, Two, Three.

There's no cost to investors, but they'll save time and effort, and OLIVIA includes an online AML and KYC module to confirm their identity in real time. We can't be sure, but we believe OLIVIA is not only a first of its kind in Australia, but also the world.

Should you have any questions please visit the site, or contact us for further details.

Specific results received this week include the following PERFORMANCE and NEWS UPDATES:

The Cor Capital Fund returned 7.82% for the 12 months to 30 June 2014 with a volatility of 5.85% and the one month return is 0.76%.

Laminar Credit Opportunities Fund returned 1.09% during June and 12.20% over the previous 12 months as compared to the RBA cash rate over that time of 2.54%.

Performance for the KIS Asia Long Short Fund was 0.95% during June and 11.89% for the previous 12 months with a low volatility of 2.69%.

The Forager Australian Shares Fund returned -0.15% during June and 17.72% over the year-ended June 2014 with a volatility of 11.48%..

Pengana Absolute Return Asia Pacific Australian Fund returned 1.04% during June and 7.93% for the  prior 12 months with a low volatility of 2.86%.

FUND REVIEWS released this week include:

Morphic Global Opportunities Fund and also Microequities Deep Value Microcap Fund

FUTURE EVENTS:

Tuesday 12th August 2014, from 12pm to 4.30pm - ARRIA is hosting a round table discussion in Sydney, providing a valuable opportunity to meet with like-minded advisers.

Wednesday 13 - Wednesday 20 August: Financial System Inquiry - Public Forums to be held in Perth, Melbourne, Brisbane and Sydney. Click here to see dates in your capital city.

Thursday 14th August in Sydney: AIMA Australia Education Forum. 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.

14-15 August in Sydney: Alternative Investments Conference - Investigating the rise and rise of non-traditional high yield and low risk investment products, strategies and allocation in an era of prolonged volatility and low returns.

If you would like your Event listed in our calendar, please contact us.

On that note, I hope you have a safe and happy weekend.

Best wishes,

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.

ALTERNATIVE INVESTMENTS CONFERENCE

14-15 August 2014 at the Grace Hotel, Sydney

Investigating the rise and rise of non-traditional high yield and low risk investment products, strategies and allocation in an era of prolonged volatility and low returns.  Conference topics include:

• Global Economic Trends and Future Outlook
• Asset Allocation portfolio strategies
• Institutional Investors perspectives on alternative investment
• A retail perspective in allocating to alternatives
• Partnership alignment and manager selection
• Regulatory, compliance and reporting requirements
• Hedge fund investment options and opportunities
• Investment timing indexes
• Alternative fixed interest as a ?better source of risk premium?
• Strategic allocation of commodities
• Infrastructure asset portfolio design and global opportunity
• The rise and rise of Impact Investing
• Understanding the True Scope of Private Equity Investing
• Tapping into the world of Niche Alternatives

Dates: 14^th-15^th August 2014
Time: 8:30am - 5:30pm
Location: Grace Hotel, Sydney

Click here to view the Agenda and for more information on the event.

To register for the conference please download the brochure and fax the form to us or you can email us on [email protected] or give us a call:

Registrations Manager
IBR Conferences Pty Ltd
Tel: +61 (0) 2 9896 0776 | Fax: +61 (0) 2 9896 0796 | [email protected] | http://www.ibrc.com.au

In this Switzer TV interview on Monday 28 July 2014, Chris discusses:

• 6-12 month performance of Australian hedge funds.

• New product release - Prism Select portal.

• Prism Select has launched with comprehensive information and performance on a range of 14 boutique funds, enabling investors to compare and research each one, while also providing a new online application tool that revolutionises the currently confusing and time consuming paper based process of applying for managed funds.

• Prism Select also provides access to each fund's offer documents and application forms through OLIVIA123, an online application service developed by AFM which provides a customised and interactive application form for each fund, reducing the time and frustration often experienced by investors when completing paper based application forms, and cutting the errors and omissions which often delay the processing of their applications.

• OLIVIA123 consists of three modules - Data Collection, Identity Verification (AML&KYC), and Online Execution - assisting fund managers and their administrators by reducing the time and costs of processing paper based applications, including compliance with new anti-money laundering legislation.

• OLIVIA123's online, interactive system is estimated to cut the time taken to complete and process a paper based application by up to 70 per cent.

Click here to view the TV Interview.

Chris Gosselin has been in the financial markets since 1986, initially in equities broking in Sydney and Melbourne prior to focussing on information distribution. He has been in the hedge fund sector since 2003, and established Australian Fund Monitors in 2006. Australian Fund Monitors provides a range of research services including due diligence, analytics and fund rankings, servicing both local and offshore investors. 

MORPHIC GLOBAL OPPORTUNITIES FUND

ATTACHED FILESMorphic Global Opportunities AFM Monthly Review June 2014 (pdf format)