NEWS
Fund Review: Bennelong Alpha 200 Fund May 2014
27 Jun 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Bennelong Alpha Fund for May 2014. The Fund has a track record of six months and therefore performance is not robust.
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27 Jun 2014 - Fund Review: Bennelong Alpha 200 Fund May 2014
By: Australian Fund Monitors
Bennelong Alpha 200 Fund AFM Fund Review May 2014 (pdf format)
BENNELONG ALPHA 200 FUND
We would like to highlight the following aspects of the Fund;
- The Bennelong Alpha 200 Fund is a new fund with a 6 month track record. The Fund is broadly modelled on the strategy used for Bennelong's original Equity Long Short Fund which uses a market neutral "pairs trading" approach to invest in Top 100 stocks, and which has been managed by Richard Fish since the inception of BLESM in 2002.
- The Alpha 200 Fund however primarily invests within the top 200 by market capitalisation, using a similar "pairs trading" approach while remaining broadly market neutral on a cost basis.
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The Fund will hold 70 - 90 stocks comprising 35 to 45 pairs,although it can hold up to 100 stocks and 50 pairs. Each pair contains one
long and one short position each of which is thoroughly researched and,where possible, from the same market sector. The pair positions are dollar neutral at cost, limited in terms of sector exposure, and give theportfolio a target beta of zero over time.
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In addition to Richard Fish, the team is composed of Sam Shepherd who joined BLESM from Credit Suisse, where he ran the Melbourne institutional equities desk. Shepherd's 20 year experience also covers JP Morgan and Norwich Investment Management. Tim Hall recently joined BLSEM as a specialist mid and small-cap portfolio manager to work on the expanded universe of the 200 Alpha Fund. The team is supported by experienced investment analyst, Sam Taylor.
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Sean Webster
Research and Database Manager
Bennelong Alpha 200 Fund AFM Fund Review May 2014 (pdf format)
Avenir Value Fund
26 Jun 2014 - Australian Fund Monitors
Avenir Value Fund returned 1.41% during May with an annual performance recording 31.12% with a volatility of 6.32%.
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26 Jun 2014 - Avenir Value Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will invest in securities where Avenir believes the company is simply mis-priced and deeply undervalued and offers significant potential for revaluation. The Fund will also invest in companies that are subject to specific corporate events such as mergers, acquisitions, restructurings, recapitalisations, spin-offs, demergers, management change, distressed situations, and other sharply delineated corporate events. The Fund will also selectively invest in short positions in companies where Avenir believes the company is significantly overvalued or where the company's business model is broken or structurally challenged. |
| Manager Comments | Notable were the Sharpe ratio of 3.97 (Index 1.49) and the Up and Down Capture ratios of 0.75 and -1.63 respectively. The Fund's top ten holdings were 53% of NAV with top fifteen holdings 66%. In terms of geographical exposure the US was 33%, Western Europe 12% with cash at 20%. |
| More Information | » View detailed profile of this fund |
Supervised High Yield Fund
25 Jun 2014 - Australian Fund Monitors
Supervised High Yield Fund returned 0.61% during May bringing annual performance to a solid 7.75% with a volatility of 0.73%.
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25 Jun 2014 - Supervised High Yield Fund
By: Australian Fund Monitors
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| Fund Overview | The fund will invest in all forms of marketable floating and fixed income debt securities, such as asset backed debt securities, residential mortgage backed securities, corporate debt, regional and sovereign debt securities, debt/equity hybrid securities, equities and currencies. All these investments will be either listed or traded in a market where prices can be independently verified. The fund may also invest in interest rate swaps, options over authorised investments and exchange traded futures contracts. All these will be either listed or traded in a market where they can be independently valued. |
| Manager Comments | Since inception annualised return is 11.01% with a volatility is 2.20%. The Sharpe ratio 3.18 and the Fund has 98% positive months. |
| More Information | » View detailed profile of this fund |
Cor Capital Fund
24 Jun 2014 - Australian Fund Monitors
Cor Capital Fund returned -0.26% during May and 3.14% for the previous 12 months.
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24 Jun 2014 - Cor Capital Fund
By: Australian Fund Monitors
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| Fund Overview | The Cor Capital Fund is a Multi- Asset Fund which combines a pre-determined strategic asset allocation with active but systemised rebalancing to generate returns and manage volatility whilst maintaining transparency and liquidity. The Fund strategy is not reliant on accurate market predictions, forecasts or timing for success. Returns are generated in a number of ways; 1) by maintaining sufficiently large positions in a diverse group of asset classes, 2) via the 'volatility harvesting' consequences of active rebalancing, and 3) from the offsetting behaviour of certain asset classes under specific conditions. The combined portfolio is expected to exhibit relatively low volatility and low turnover. In the interests of avoiding complexity, maintaining liquidity, and minimising reliance on third parties, the Fund strategy does not employ gearing, derivatives or short-selling. |
| Manager Comments | The total return since inception in August 2012 was 8.7 percent or 4.7 percent per annum. Calendar year to date total return is 2.15%. During May bonds were the best performer in the portfolio (+1.33%) followed by equities (+0.70%). Gold in Australian dollar terms fell 3.27 percent which pushed the overall return for the month into the red. In line with the Fund strategy of rebalancing the portfolio away from popular assets to those that are 'unloved', the Manager has reduced the investment in equities and increased the Fund's holding in gold bullion after a breach of weighting limits at the end of May. |
| More Information | » View detailed profile of this fund |
Allard Investment Fund
24 Jun 2014 - Australian Fund Monitors
Allard Investment Fund had a strong May returning 2.60% with the annual return coming in at 5.05%.
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24 Jun 2014 - Allard Investment Fund
By: Australian Fund Monitors
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| Manager Comments | At the end of May the asset breakdown of the portfolio stood at 76.9% invested in equities and 23.1% held in cash and fixed income. In terms of geographical disposition the major holdings are HK/China 41.9%, Singapore 13.1% and S Korea 8.7%. Industry exposures are Financial Services 18.6% and Conglomerates 13.1%. The top five holdings are 41.5% of the portfolio. |
| More Information | » View detailed profile of this fund |
KIS Asia Long Short Fund
23 Jun 2014 - Australian Fund Monitors
KIS Asia Long Short Fund returned 0.21% during May and 11.23% for the year ended May 2014.
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23 Jun 2014 - KIS Asia Long Short Fund
By: Australian Fund Monitors
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| 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 | There is an old stock market adage of "sell in May and go away". Academic studies have found that there is some degree of seasonality over this period but this is skewed by some extreme movements such as the collapse of LTCM in 1998 and the October 1987 stock market crash. This May, equity markets were generally higher with the MSCI world index +1.6%, the US Markets were a notable outperformer with the S&P500 +2.1% and the NASDAQ composite +3.1%. One notable weak area was the price of Iron Ore which continued to fall in May as it has for the year so far. This is obviously detrimental to Australia as Iron Ore represents circa 20% of Australia's exports. This may lend itself to a softening bias from the RBA, especially if the Australian budget leads to slower growth as well. Anecdotally we have recently noticed that Australian assets, such as the Australian dollar itself and Australian equity index futures, seem to 'catch a bid' during US market hours but this fades in Australian market hours. This would seem to indicate a more positive external view of Australia. That is also seen in the M&A events announced this month with more than 80% of the buying coming from offshore entities. |
| More Information | » View detailed profile of this fund |
Laminar Credit Opportunities Fund
23 Jun 2014 - Australian Fund Monitors
Laminar Credit Opportunities Fund returned 0.62% during May and a sound 11.78% for the prior twelve months.
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23 Jun 2014 - Laminar Credit Opportunities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund may also invest in derivatives for hedging purposes. The portfolio of the Fund comprises primarily Investment Grade holding of 75% of the Fund's assets. Benchmark allocations are Australasia 50% to 100%, North America 0% to 50% and Europe 0% to 50%. Currency hedging may take place depending on benefits to the Fund. |
| Manager Comments | Month-end exposures were RMBS 64%, Listed Securities 4%, Corporate 16% and Short Dated Loans 13%. Cash holdings 3% were of NAV. While risk assets have experienced a steady grind higher this year, the interest rates market has shifted around. Yields on US 10yr treasuries hit a recent high of 3% in January. They since rallied to 2.44% and recently sold off to 2.6%. While this market has not been overly volatile, it has caused some anxiety with fixed income fund managers with an interest rate exposure. |
| More Information | » View detailed profile of this fund |
Insync Global Titans Fund
20 Jun 2014 - Australian Fund Monitors
Insync Global Titans Fund took advantage of stronger equity markets and returned 1.70% during May with the annual return 12.50%
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20 Jun 2014 - Insync Global Titans Fund
By: Australian Fund Monitors
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| Manager Comments | Since inception the Fund has delivered 10.14% pa with a volatility of 8.43%. Key positive contributors for the month came from our holdings in Reckitt Benckiser, Zimmer, Directv, Express Scripts and Discover. The main negative contributors were Coach, Safran and Wyndham. 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. |
| More Information | » View detailed profile of this fund |
Auscap Long Short Australian Equities Fund
19 Jun 2014 - Australian Fund Monitors
Auscap Long Short Australian Equities Fund returned a 3.82%, a sound return in choppy market, with the full year return 55.82%.
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19 Jun 2014 - Auscap Long Short Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund focuses on fundamental long and short investments. The Fund may utilise a multi-strategy approach if short term opportunities to increase returns, hedge the portfolio, protect capital or minimise volatility are found. The Fund is a high conviction fund and the combined portfolio will typically have 25-45 positions, investing primarily in stocks in the ASX200. The Fund may be net long, short or neutral depending on the strategies employed at the time. The Fund may hold cash so that it is in a position to take advantage of market volatility and compelling investment opportunities as and when they arise. The Fund may be geared up to 200% gross long or short and up to 150% net long or short. |
| Manager Comments | The Sharpe ratio was notable at 5.50 and the Fund has no negative months in the year to May. Up and Down capture ratios were 1.55 and -1.98 respectively. Average gross capital employed by the Fund was 117.4% long and 43.5% short. Average net exposure over the month was +74.0%. At the end of the month the Fund had 35 long positions and 10 short positions. The Manager's Newsletter is entitled Avoiding The Double Whammy �" Why We Prefer Value To Growth' and is available on the AFM website. |
| More Information | » View detailed profile of this fund |
Aurora Fortitude Absolute Return Fund
18 Jun 2014 - Australian Fund Monitors
Aurora Fortitude Absolute Return Fund returned 0.19% during May for an annual return of 5.34% with a volatility of 1.00%.
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18 Jun 2014 - 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 | Since inception in March 2005 the Fund has returned 7.94% (Index 7.65%) with a volatility of 2.70% (Index 13.98%). The Sharpe ratio over this time was 1.19 compared to 0.27. Aurora Oil and Gas was the stand-out in the Merger & Acquisition strategy (+0.145%) with yield (+0.196%) again the best performing strategy for the month. The Protective Option Overlay was again a draw-down on performance (-0.30%). The lack of volatility in global markets has been a major discussion point in the financial press with the continuation of easy monetary policy and low interest rates being seen as the major factors contributing to this ongoing phenomenon. One of the benefits of the option strategy is that it allows us to trade some riskier positions in larger size, and this was reflected in more positive returns in our Long/Short Portfolio (+0.13%). |
| More Information | » View detailed profile of this fund |
