Commenting on the results, the manager noted that the question now facing equity markets is whether the current rally is the start of a more sustainable rally, stating that the key will be a continual improvement in economic data to build on the recent positive figures, in particular, news on consumer spending and the growth in leading emerging markets will be most important. The general improvement in credit market sentiment, a pick up in the flow of credit to the private sector and the very strong investor appetite for recent equity placements are, in the manager's opinion, positive developments for risk assets.

1 year return: +4.7%. Annual (Oct.2005): +8.1%

RTM was established in October 2005 and returned 6.57% in 2008.

In spite of outperforming its benchmark (the UBS Global 50/50 Infrastructure and Utility Index) over the past 12 months, the manager failed to make any headway over the past quarter when it returned +4.97% vs. the Index which rose 10.5%. On June 4th the manager moved to 100% cash to commence a strategic review of both strategy and option overlay as it sought to enhance option premium income, and ensure that it is able to capture opportunities in the sector.

1 year return: +4.97%. Annual (Dec.2007): -1.21%

The Trust's manager, Talon Infrastructure Pty Ltd noted that risk appetite returned during the past quarter although it looked a little tired after the strong rally from March lows. The manager's outlook is currently cautious given the market's recent strong bounce, noting that the global economy remains highly leveraged which ultimately must be reduced.

The trust paid a distribution of $0.33 for the six months to June, taking the twelve month distribution of $0.90 for a yield of 9.72%. Meanwhile the trust's assets remain fully invested in cash as it finalises the strategic review.

The manager noted that with the exception of Relative Value, most strategies struggled as markets generally lacked direction in June, with trading characterised by choppy price movements. The month also saw an uncharacteristically high level of correlation between the fund's longer-term directional trading with those trades generated via shorter term signals.

1 year return: +30.17%. Annual (Oct.1996): +18.73%

The manager also noted that key volatility indices were lower to flat, with risk barometers like the VIX falling to lows not seen since Lehman Brother's collapse last September. Those systems that were active returned losses as a result of the late month ranges in currency and equity markets.

Argus' trading style is based on the systematic application of a group of non-correlated systems to a broad range of more than 75 global futures markets. The fund's manager, Steven Biggs, has a track record dating back to 1996, and commenced trading client's funds in June 2005, returning a compound annual return of over 17% since that time. FUM is US$23m.

Arnott made the most of their gains in June from short term trading, with share class arbitrage and volatility components of the fund flat for the month. Regionally Japan was the strongest contributor with 70% of profits, followed by Australia with Hong Kong/China slightly detracting from performance.

1 year return: +0.97%. Annual (Nov.2005): +9.25%

Looking ahead the manager expects profits to continue to come from trading and shorter term fundamental ideas in the second half, particularly from Japan and Asia, and notes it has hired four traders in the last nine months with the aim of capturing opportunities across the region.

Arnott's Long/Short Opportunities Fund was established in November 2005 and has maintained positive annual returns every year since then, including in 2008. The fund's investment universe is primarily pan Asian and employs a three stage process: fundamental research; event screens and finally a derivative based trading methodology incorporating risk/reward analysis for position entry and exit. The firm's total FUM was US$479 as of the end of June.

Three new Funds have commenced reporting this month, two focused on Asian Equities, the third on Global Macro trading strategies.

Pegasus Absolute Returns Fund

Pegasus uses fundamental and technical research to establish arbitrage and spread positions in physical and derivatives markets. The portfolio is managed by Andrew Lythgo who was formerly with Bankers Trust Australia and also a private trader (local) on the floor of the Sydney Futures Exchange. Pegasus's management include Russell Johnson, managing director of Sonray Capital Markets and Tony O'Grady formerly General Manager of NAB custodian services.

Kima Capital Pan Asian Long/ Short Fund

Kima is a multi-strategy Asian Long /Short Fund managed by Justin Klintberg. The Fund is targeting 15% returns with low volatility using Arbitrage, Event Driven and IPO/ Secondary Block strategies. The management team includes Michael Gallagher, formerly head of equities at RMB Australia and Nishant Narayanaswamy formerly with ANZ Investment Bank. Prior to starting Kima Capital, Justin spent 7 years with Marble Bar Asset Management managing Long / Short equities strategies.

QIC Asia Pacific Market Neutral Fund

QIC's Asia Pacific Market Neutral Fund uses a quantitative systematic investment process to select a diversified portfolio of Asian equities. The Fund has a mandate to select stocks from a very broad universe across the entire Asia Pacific region. The investment team includes Michiel Swaak, formerly a Founding member and Associate Director of Macquarie's MQ Asset Management , Joe Cole and Tim Sharp. The Fund has been seeded through QIC with AUD$20 million.

Macquarie noted a number of positive developments over the past two months, including the removal of short selling restrictions in all markets except Korean financial stocks, a decline in share price volatility as investors became more comfortable, and an increase of inflows into equity markets. The manager also noted that a JP Morgan research paper dated 6th July was entitled "Good times ahead for Quant Strategies."

1 year return: -3.53%. Annual (Oct.2005): +10.46%

MQ's Asian quantitative L/S fund was established in October 2005 and has a total of US$155m in FUM following significant redemptions in 2008 which saw FUM fall from over US$800m. The fund's return in 2008 was -8.93%, following returns of +20% in the previous two years.

The manager noted caution regarding the outlook for the world's economies, and this view is reflected in their exposure to equities in general. The manager also noted concerns surrounding the sustainability of the stimulus-infused Chinese economy, which combined with a further deterioration in Global economic trade saw commodity markets weaken.

1 year return: +19.17%. Annual (Feb.2006): +17.2%

Apeiron's positioning at month's end was long USD/JPY, Wheat, Gold and Natural Gas, and short the S&P500 and SPI200.

Apeiron utilises strategies in futures and foreign exchange markets and generate forecasts within a discretionary based framework while managing risk with a quantitative capital allocation model. The manager defines investment themes within a fundamental economic framework, and within these themes looks to identify markets that are over or under valued.

These strategies have returned Apeiron's investors an annualised return of 17.20% since inception in February 2006, with a monthly win/loss ratio of 68%.

Referring to the fact that the ASX accumulation index rose 3.93% in June, the manager noted that their performance had been adversely affected by large positions in RIO Tinto (rights issue) and Nufarm (profit downgrade). On the positive side positions in Atlas Iron and JB Hi-Fi made positive contributions.

1 year return: +0.92%. Annual (May.2006): +15.5%

Net market exposure was relatively steady at 54%, 64% long and 10% short.

Herschel's Australian equity long short fund has approximately $15m in FUM, and has an annualised return since inception in May 2006 of 15.5%.

St Helens' June performance produced positive returns from both longs (+ 5.10%) and shorts (+0.40%), with the best performing sectors being Materials (+ 2.70%), Financials (+ 1.20%) and Telcos (+ 1.00%).

Ailsa: 1 year return: +28.36%. Annual (Jan.2002): +13.11%

Arran: 1 year return: +27.8%. Annual (Aug.2004): +9.69%

Commenting on the performance, the manager said that in June and into July markets were dominated by the approaching US reporting season, where they believe that much of the bad news is already factored in, and thus should see markets moving cautiously higher. They also noted that economic data in June continued to show signs of improvement, with consumer sentiment rising 12.7% higher (now up 18% on pcp), the second largest monthly rise on record, and new motor vehicle sales rising and building approvals exceeding market expectations.

St Helens was established in January 2002, initially managing a local Australian fund and managed accounts, before establishing the Arran offshore fund in the Caymans in August 2004. Total St Helens group FUM is approximately $100m with an annualised return since inception of +12.77%.

June proved to be a very difficult month for Bennelong's Australian long/short equity fund due mainly to their defensive positioning which is premised on a cautious macro view. In addition, the manager experienced a large draw down on two of their positions in the volatile materials sector. The manager noted concerns that some of the main current drivers of domestic demand (the wealth effect associated with firm residential property values and raw material exports to China as it builds stockpiles) are not sustainable and have been overplayed by the market.

1 year return: +4.94%. Annual (Feb.2002): +20.30%

Bennelong was established in February 2002 and has a compound annual return since inception of 20.30%, including a positive return of 11.95% in 2008. The manager has recently seen a return of capital inflows, following Fund of Fund liquidity based redemptions in 2008, and FUM currently stands at A$60m.