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.

20 Oct 2015 - APN Asian REIT Fund

By: Australian Fund Monitors

Report Date	15 October 2015
Manager	APN Funds Management Limited
Fund Name	APN Asian REIT Fund
Strategy	Equity Long
Latest Return Date	September 2015
Latest Return	1.64%
Latest 6 Months	-2.72%
Latest 12 Months	16.35%
Latest 24 Months	33.08%
Annualised Since Inception	17.74%
Inception Date	19 July 2011
FUM (millions)	AU$4.14
Fund Overview	The APN Asian REIT Fund (Fund) is a property securities fund that invests in a quality portfolio of Asian REITs, listed on the securities exchanges of the Asian Region (including, but not limited to, Hong Kong, Singapore, Malaysia, Japan and New Zealand, but excluding Australia), as well as cash and fixed interest investments. 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	APN Asian REIT Fund rose 1.64% in September. Since inception, the Fund has an annualised return of 17.74% p.a., with a volatility of 9.15% p.a. The Fund has notable Sharpe and Sortino ratios of 1.51 and 2.89 respectively. 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	Fund Profile Manager's Report AFM Research Reports

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%.

19 Oct 2015 - Morphic Global Opportunities Fund

By: Australian Fund Monitors

Report Date	15 October 2015
Manager	Morphic Asset Management
Fund Name	Morphic Global Opportunities Fund
Strategy	Equity Long/Short
Latest Return Date	September 2015
Latest Return	-2.98%
Latest 6 Months	-0.34%
Latest 12 Months	19.04%
Latest 24 Months	40.38%
Annualised Since Inception	23.59%
Inception Date	02 August 2012
FUM (millions)	AU$122
Fund Overview	The Fund will primarily consist of Global listed shares, and will generally have at least 50% of its net assets invested in these. It may also have short positions in shares that the Manager believes are over-valued, and likely to fall in price, as well as long and short positions in index futures and other derivatives, fixed interest instruments, commodities, credit instruments and currencies.
Manager Comments	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%. Since inception, the Fund is up 23.59%, annualised and net of all fees, against the benchmark returns 23.34%. 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.
More Information	Fund Profile Manager's Report AFM Research Reports

Hedge Clippings

16 Oct 2015 - Australian Fund Monitors

Cayman Funds on the front pages, and an unforseen rate rise.

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%.

16 Oct 2015 - Totus Alpha Fund

By: Australian Fund Monitors

Report Date	15 October 2015
Manager	Totus Capital
Fund Name	Totus Alpha Fund
Strategy	Equity Long/Short
Latest Return Date	September 2015
Latest Return	6.15%
Latest 6 Months	22.30%
Latest 12 Months	40.89%
Latest 24 Months	84.40%
Annualised Since Inception	30.40%
Inception Date	01 April 2012
FUM (millions)	AU$35
Fund Overview	The Totus Alpha Fund aims to maximise returns for investors through fundamental industry and company research and active portfolio management. The investment strategy is based on identifying medium to long term structural investment themes and seek absolute returns by investing in securities that have concentrated exposure to those themes. 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	Totus Alpha Fund rose 6.15% net of fees in September to bring the latest 12 months return to 40.89%. The Fund's annualised performance increased to 30.40% p.a, with a volatility of 14.19% p.a., to give notable Sharpe and Sortino ratios of 1.77 (Index 0.55) and 5.02 (Index 0.72) respectively. This annualised performance has been delivered with a beta of -0.0289 and correlation of -0.0249 to the ASX300 Accumulation Index. 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	Fund Profile Manager's Report AFM Research Reports

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%.

16 Oct 2015 - Aurora Fortitude Absolute Return Fund

By: Australian Fund Monitors

Report Date	15 October 2015
Manager	Aurora Funds Management
Fund Name	Aurora Fortitude Absolute Return Fund
Strategy	Equity Market Neutral
Latest Return Date	September 2015
Latest Return	0.59%
Latest 6 Months	3.39%
Latest 12 Months	4.02%
Latest 24 Months	7.08%
Annualised Since Inception	7.30%
Inception Date	15 March 2005
FUM (millions)	AU$88
Fund Overview	Aurora Fortitude Absolute Return Fund is a multi-strategy market neutral fund specialising in ASX listed equities and derivatives. The core philosophy is the management of risk through a long volatility overlay incorporating listed equity and index derivatives. The multi-strategy approach includes M&A, Yield, Convergence and Long/Short strategies. The portfolio managers adopt an aggressive approach to managing downside risk whilst positioning the portfolio to benefit from positive alpha. 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	Aurora Fortitude Absolute Return Fund returned +0.59%, to outperform the ASX200 Accumulation Index by 3.55%. Since inception, the Fund's annualised performance has been 7.30% p.a, which it has achieved with very low volatility of 2.64%. In comparison, the ASX 200 Accumulation Index returned 6.38%, with volatility of 14.02%. The Fund has notable Sharpe and Sortino ratios of 1.11 (Index 0.21) and 2.23 (Index 0.18) respectively. 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.
More Information	Fund Profile Manager's Report AFM Research Reports

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.

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%.

15 Oct 2015 - QATO Capital Market Neutral Long/Short Fund

By: Australian Fund Monitors

Report Date	13 October 2015
Manager	QATO Capital
Fund Name	QATO Capital Market Neutral Long/Short Fund
Strategy	Equity Market Neutral
Latest Return Date	September 2015
Latest Return	4.25%
Latest 6 Months	-4.29%
Latest 12 Months	19.79%
Latest 24 Months
Annualised Since Inception	27.46%
Inception Date	01 August 2014
FUM (millions)	AU$49
Fund Overview	QATO Capital's Market Neutral Long/Short Fund is managed via an objective, consistent and replicable process utilising proprietary 'Q-Score' methodology. The Q-score process is fundamentally based, evaluating improving and deteriorating fundamentals within each business from a variety of financial metrics such as valuation, growth, risk, quality, earnings and price. 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	QATO Capital Market Neutral Long/Short Fund rose 4.25% in September, to significantly outperform the S&P/ASX 100 Price Index, by 7.91%. Since inception, the Fund has returned 27.46% p.a. compared to the Index -9.18% p.a during the same time-frame. The Fund's return has been achieved with lower volatility than the Index, to give notable Sharpe and Sortino ratios of 1.79 and 4.08 respectively. 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	Fund Profile Manager's Report AFM Research Reports

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%.

14 Oct 2015 - The Paragon Fund

By: Australian Fund Monitors

Report Date	13 October 2015
Manager	Paragon Funds Management
Fund Name	The Paragon Fund
Strategy	Equity Long/Short
Latest Return Date	September 2015
Latest Return	1.60%
Latest 6 Months	1.10%
Latest 12 Months	3.70%
Latest 24 Months	37.95%
Annualised Since Inception	17.54%
Inception Date	28 February 2013
FUM (millions)	AU$31.5
Fund Overview	The Paragon Fund is a concentrated long/short Australian equities product that is fundamentally driven with a focus on the industrial and resource sectors. Paragon's own research process and active portfolio management is overlaid with risk management and an overarching focus on capital preservation. 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	The Paragon Fund rose 1.60% after fees for the month of September 2015, to outperform the ASX200 Accumulation Index by 4.56%. Since inception in February 2013, the Fund has a cumulative return of +51.80% vs. the Index's +10.49%. The Fund has a notable Sharpe and Sortino ratios of 1.24 (Index 0.18) and 2.48 (Index 0.16) respectively. 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.
More Information	Fund Profile Manager's Report

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.

Meme Australian Share Fund

13 Oct 2015 - Australian Fund Monitors

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.

13 Oct 2015 - Meme Australian Share Fund

By: Australian Fund Monitors

Report Date	09 October 2015
Manager	Meme Capital Management Pty Ltd
Fund Name	Meme Australian Share Fund
Strategy	Equity Long
Latest Return Date	September 2015
Latest Return	4.93%
Latest 6 Months	-2.01%
Latest 12 Months	18.00%
Latest 24 Months	31.70%
Annualised Since Inception	14.25%
Inception Date	01 July 2013
FUM (millions)	AU$2
Fund Overview	The Meme Australian Share Fund uses a robust and back-tested quantitative trend-following strategy to identify investment opportunities expected to provide both positive price appreciation and relative price outperformance over the medium to long term. The Fund invests on a long-only basis and does not use derivatives. Meme's investment philosophy is logically derived from addressing our prime investment objectives of creating and preserving wealth. The philosophy therefore comprises elements which separately address investment returns and investment risks while at the same time respecting the interplay between them. The Fund's investment strategy seeks to identify low-risk entry opportunities and then build positions in these stocks. Once established in the portfolio, individual stock holdings are maintained for as long as their long-term upward trend remains intact and while they continue to make positive contributions to portfolio growth. Positions are reduced and ultimately closed out as their trends become exhausted or as their relative long-term performance against the broad market weakens. The Fund believes that longer time frame investments also provide a number of advantages. The effect of false signals and 'noise' which attend shorter term time frames is mitigated by only attending to signals which are confirmed by our longer term assessments. Also, the Fund gains exposure to the more expansive price trends which can last for months and years, allowing dividends and distributions received during this time to further enhance portfolio returns.
Manager Comments	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. Since inception, the Fund has an annualised return of 14.25% p.a (Index 6.79% p.a.) with notable Sharpe and Sortino Ratios of 0.97 and 1.46 respectively. The number of portfolio stocks increased from 67 to 82 and portfolio cash decrease from over 23% to less than 1% such that at month end the portfolio is fully invested. Relatively to the All Ordinaries Index, the portfolio held significantly higher allocations in Consumer Discretionary, Energy, Consumer Staples and Information Technology and lower allocations in Financials, Property, Telecommunications and Utilities.The top 10 holdings accounted for over 29% of the portfolio. Click below to read the latest Fund Manager's commentary on the Fund.
More Information	Fund Profile Manager's Report AFM Research Reports

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20 Oct 2015 - APN Asian REIT Fund

19 Oct 2015 - Morphic Global Opportunities Fund

16 Oct 2015 - Hedge Clippings

16 Oct 2015 - Totus Alpha Fund

16 Oct 2015 - Aurora Fortitude Absolute Return Fund

16 Oct 2015 - Fund Review: Bennelong Kardinia Absolute Return Fund September 2015

15 Oct 2015 - QATO Capital Market Neutral Long/Short Fund

14 Oct 2015 - The Paragon Fund

14 Oct 2015 - Fund Review: Jamieson Coote Bonds Active Fund September 2015

13 Oct 2015 - Meme Australian Share Fund

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