The Pengana Emerging Companies Fund gained +4.4% in May, and has now recovered +25% from its lowest points in early March.

1 yr return: -30.10%. Annual (Oct 2007): -27.03%

Although the Fund has struggled over the past 12 months, the last six months have proven to be far more positive (+13.2%). The Fund remained invested chiefly in quality stocks with stable balance sheets while economic conditions continue to be uncertain, although it has invested in some cyclical stocks. The ongoing shortage of investors in the small cap sector also continues to provide opportunities for the Fund.

Quant Asset Management's (QAM) Asian Equities Fund was up an impressive +12.44% in May, the third consecutive month the Fund has posted a solid gain after heavy losses in January and February.

1 yr return: -19.79%. Annual (Apr 2004): +16.16%

The Fund, which ended March most heavily invested in South Korea, Japan and Hong Kong, continued to enjoy the rallies in the equity markets of these countries during the month. The return of the Fund since inception now stands at +116.8%.

The Blue Sky World Fund reported a gain of +11.17% in May, and is now +28.14% for 2009.

1 yr return: +28.99%. Annual (Jan 2006): +28.25%

This strong result comes after the Fund posted a small loss of -3.96% for 2008. The Fund's total return since inception now stands at +129.11%.

Although short index futures strategies posted a significant loss for May (-3.54%), positive performance in all other strategies, particularly Asia Pacific equities with +8.67%, more than offset this loss.

The Allard Growth Fund was up +12.8% in May, consolidating its April return of +11%.

1 yr return: -12.90%. Annual (Jan 1996): +12.35%

The Fund, an equity long only fund investing in Asia, benefited from another month of strong performances in Asian markets. Key drivers included India's largest bank announcing a 22.3% increase in profits and Korea's leading provider of general and personal insurance reporting a profit increase of 25.6% year-on-year. The cash holdings of the Fund increased slightly to 20.5% as the Fund took profits for a number of holdings after recent price rises.

The total net return for the Fund since inception now stands at +376.9%.

The Bennelong Long Short Equity Fund lost -1.24% in May driven by the defensive positioning of the Fund, although it maintained a positive YTD return of +15.68%.

1 yr return: +21.33%. Annual (Jan 2003): +24.86%

Portfolio activity was low again during May, as the manager remained skeptical about economic conditions and outlook. The top spread for the month was long Riverside Mining with against short Fortescue Metals, while the bottom spread was long Billabong versus short David Jones.

The Attunga Enviro Opportunities Fund was flat in May, gaining +0.02%, due mainly to the delay to the CPRS and poor spot prices.

1 yr return: +1.2%. Annual (Jul 2006): +39.94%

In early May the Federal Government announced that their Carbon Pollution Reduction Scheme (CPRS) would be delayed for 12 months, which caused electricity prices to move steeply downward as the cost of carbon was removed. Poor spot prices overall also saw all electricity prices decline, as a result Calendar 2011 contracts fell from around $60 to $50. Attunga believes prices may have further to fall if the upcoming cold weather fails to support higher spot market outcomes. Beyond that however there is scope for higher prices as supply issues in some areas of Australia may increase prices and volatility next summer.

The Austral Equity Fund recorded another month of small positive returns, up +1.24% in May, as it begins to increase its equity exposure.

1 yr return: +7.45%. Annual (Aug 1997): +13.28%

At month end the Fund still held a significant cash position (32.8%), however during the month the Fund moderately increased its equity exposure (5.6% in M&A and 8.8% in long positions at month end) as signs emerge of decreasing volatility in global markets.

The MM&E Capital Takeover Target Fund posted a gain of +3.82% in May, outperforming its benchmark the ASX 300 Index.

1 yr return: -19.23%. Annual (Aug 2005): +7.13%

Individual stock selections were the main contributor to this outperformance. Caltex, benefiting from expected consolidation of the Australian petrol market, IAG and Tower, whose premium incomes are rising due to the recent string of extreme weather events, and APN News & Media, on the back of a recent capital raising, were the standout performers. Asciano also made a positive contribution, as the Fund sold its position for a second profit given the ongoing uncertainty regarding its asset disposal program.

Both Commodity Strategies funds recorded impressive gains in May, the Long/Short Programme up +11.21%, and the Long Only Programme up +10.54%.

1 yr return (Long/Short): +4.78%. Annual (Oct 2007): +24.51%
1 yr return (Long Only): +1.93%. Annual (Dec 1999): +12.47%

Energy commodities were the key contributor to overall performance for both funds. In particular, RBOB gasoline, crude oil and heating oil performed strongly. The only negative performance came from strategies in aluminium, natural gas, cocoa and cotton, with the largest individual negative return being less than -0.5%. Both results are subject to final confirmation from the Funds' administrator.

The cumulative return now stands at +694.2% for the Long/Short Programme, and +203.18% for the Long Only Programme.

The MQ Special Events Fund, managed by Macquarie, gained a record +9.23% in May, the seventh consecutive month the Fund has posted a positive return.

1 yr return: +10.64%. Annualised (Sept 2003): +10.78%

The best performing strategies included capital raisings (+4.2%) and targeted buy-write (+3.3%). The glut of attractively-priced equity issues in Australia and New Zealand underpinned performance, particularly while credit markets remained expensive. Investments in the materials, energy, gold and financial sectors in the Fund's targeted buy-write strategy also provided solid returns.