Quay Global Real Estate Fund

21 Apr 2017 - Australian Fund Monitors

Quay Global Real Estate Fund returned -0.13% for the month of March 2017.

21 Apr 2017 - Quay Global Real Estate Fund

By: Australian Fund Monitors

Report Date	19 April 2017
Manager	Quay Global Investors
Fund Name	Quay Global Real Estate Fund
Strategy	Real Estate
Latest Return Date	March 2017
Latest Return	-0.13%
Latest 6 Months	-0.88%
Latest 12 Months	2.73%
Latest 24 Months	8.57%
Annualised Since Inception	14.79%
Inception Date	31 July 2014
FUM (millions)	AU$6.5
Fund Overview	Quay is a boutique investment management business established in 2013 with a focus on preserving and creating wealth for investors through investments in real estate securities. Quay uses a dual manager approach to the investment and portfolio management decision making process. This involves both Principals collaborating to determine significant portfolio investments and positions. The Fund will invest in a number of global listed real estate companies, groups or funds. The investment strategy is to make investments in real estate securities at a price that will deliver a real, after inflation, total return of 5% per annum (before costs and fees), inclusive of distributions over a longer-term period. The Investment Strategy is indifferent to the constraints of any index benchmarks and is relatively concentrated in its number of investments. The Fund is expected to own between 20 and 40 securities, and from time to time up to 20% of the portfolio maybe invested in cash. The Fund is $A un-hedged.
Manager Comments	Quay Global Real Estate Fund returned -0.13% for the month of March 2017. Stock performance (-0.8%) was largely offset by the benefit of the Fund's exposure to foreign currencies (+0.7%). The portfolio increased its exposure to Europe during the month, allocating to the Spanish REIT Hispania, which become the biggest contributor to the Fund's total return. Hansteen (UK) also performed well for the month. Among the laggards were Life Storage (US) and Apartment Investment Co (US). The Fund also did well relative to global real estate indices by avoiding the large US Mall owners/managers, with Simon Property Group and General Growth Properties both significantly underperforming the broader market. Multifamily/apartments (17.4%), Storage (12.3%) and Industrial (11.9%) were the most heavily weighted sectors in the portfolio. The Fund holds continues to hold around 10% in cash as the investment team looks for better entry prices or new opportunities.
More Information	Fund Profile Manager's Report

Pengana Global Small Companies Fund

20 Apr 2017 - Australian Fund Monitors

Pengana Global Small Companies Fund returned +2.9% in March, outperforming the MSCI AC World SMID Cap Index, which returned 1.8%, by 1.1%.

20 Apr 2017 - Pengana Global Small Companies Fund

By: Australian Fund Monitors

Report Date	19 April 2017
Manager	Pengana Capital
Fund Name	Pengana Global Small Companies Fund
Strategy	Global Diversified
Latest Return Date	March 2017
Latest Return	2.90%
Latest 6 Months	9.13%
Latest 12 Months	18.08%
Latest 24 Months	14.16%
Annualised Since Inception	6.85%
Inception Date	01 April 2015
FUM (millions)	AU$4.881
Fund Overview	The Pengana Global Small Companies Fund provides exposure to a diversified portfolio of predominantly listed global small and mid-cap companies. Its investment objective is to obtain returns greater than the MSCI All Country World Index SMID Cap unhedged in AUD index over rolling 3 year periods after fees. Pengana Capital Limited ('Pengana') is the Responsible Entity of the Fund and has appointed Lizard as the investment manager for the Fund which is responsible for making investment decisions in relation to the Fund. The Fund is managed by Founder & CIO Leah Zell, and Portfolio Managers Jon Moog and David Li. The Lizard investment team have over 50 years combined investment experience in global small cap investing. Leah Zell has over 30 years of experience and is a recognized expert in international investing in the international small-cap category. The Fund's investment team uses a value-oriented investment approach to small and mid-cap global equities that seeks to identify and invest in quality businesses that create significant value but are mispriced, overlooked or out-of-favour. The investment manager believes that unique opportunities exist due to limited available research, corporate actions or unfavourable investor perception. The portfolio construction process aims to develop portfolios that incorporate the best investment ideas from the investment manager's research while allowing for liquidity constraints and perceived risk. The Fund's investment manager will not typically hedge currency exposures, however during periods of currency extremes, some currency hedging may be employed. Derivatives may be used to achieve long or short exposures, reduce risk and reduce transaction costs. Derivatives will not be used for the purposes of leverage and the Fund's net exposure will never be short.
Manager Comments	Pengana Global Small Companies Fund returned +2.9% in March, outperforming the MSCI AC World SMID Cap Index, which returned 1.8%, by 1.1%. The top five holdings for the Fund included boohoo.com Plc, IWG Plc, Softcat Plc, TOTVS S.A., and Wizz Air Holdings Plc. At month-end, the top 10 holdings accounted for 32.5% of the Fund's assets, with no single name representing more than 4.5% of the Fund. Cash decreased from the prior month's 17.4% to 16%. The positions that were acquired in the last 6 months had the most significant contribution to the March performance. Currency also had a positive impact on the performance of both, the Fund (+0.8%) and the Index (+0.6%), as the AUD depreciated against most other major currencies. The worst performer for the month was PRA Group Inc., which reported lackluster results and as the company continues to work through several issues. The investment team continues to ignore the market 'noise' and remains focused on the fundamental factors that drive long-term value: buying great companies at cheap prices.
More Information	Fund Profile Manager's Report

Fund Review: APN Asian REIT Fund March 2017

20 Apr 2017 - Australian Fund Monitors

March Fund Review is now available on APN Asian REIT Fund, a property securities fund, investing primarily in the Asian REITS.

Cyan C3G Fund

19 Apr 2017 - Australian Fund Monitors

Cyan C3G Fund gained 1.2% in March, to take the Fund's one year return to 21.22%.

19 Apr 2017 - Cyan C3G Fund

By: Australian Fund Monitors

Report Date	16 April 2017
Manager	Cyan Investment Management
Fund Name	Cyan C3G Fund
Strategy	Equity Long
Latest Return Date	March 2017
Latest Return	1.20%
Latest 6 Months	-2.45%
Latest 12 Months	21.22%
Latest 24 Months	54.99%
Annualised Since Inception	25.80%
Inception Date	24 July 2014
FUM (millions)	AU$12
Fund Overview	The Cyan C3G Fund operates as a wholesale unregistered managed investment scheme under a unit trust structure. The Fund primarily invests in ASX listed companies outside the ASX 100 and typically holds between 15-35 stocks. Cyan C3G Fund is based on the investment philosophy which can be defined as a comprehensive, clear and considered process focused on delivering growth. These are identified through stringent filter criteria and a rigorous research process. The Manager uses a proprietary stock filter in order to eliminate a large proportion of investments due to both internal characteristics (such as gearing levels or cash flow) and external characteristics (such as exposure to commodity prices or customer concentration). Typically, the Fund looks for businesses that are one or more of: a) under researched, b) fundamentally undervalued, c) have a catalyst for re-rating. The Manager seeks to achieve this investment outcome by actively managing a portfolio of Australian listed securities. When the opportunity to invest in suitable securities cannot be found, the manager may reduce the level of equities exposure and accumulate a defensive cash position. Whilst it is the company's intention, there is no guarantee that any distributions or returns will be declared, or that if declared, the amount of any returns will remain constant or increase over time. The Fund does not invest in derivatives and does not use debt to leverage the Fund's performance. However, companies in which the Fund invests may be leveraged.
Manager Comments	Cyan C3G Fund gained 1.2% in March, to take the Fund's one year return to 21.22%. Since inception, the Fund has an annualised return of 25.8% p.a, against the S&P/ASX200 Accumulation Index's +6.4% p.a. The Fund didn't have much in the way of either outlying positive or negative performers over March. There were some small rises experienced from the Fund's core holdings, which included Capitol Health (CAJ), PSC Insurance (PSI), and Skydive the Beach (SKB). The only disappointing performance came from a domestic credit provider Money3 (MNY), which fell 13%. The Fund continues to be conservatively positioned with the cash weighting occasionally reaching 50%. However, the investment team believes that there have been a number of positive signs that the rotation of interest has returned to the small cap sector and thereby creating new investment opportunities for the Fund.
More Information	Fund Profile Manager's Report

Bennelong Kardinia Absolute Return Fund

19 Apr 2017 - Australian Fund Monitors

Bennelong Kardinia Absolute Return Fund rose 1.04% in March, taking the annualised return since inception to 11.09% p.a.

19 Apr 2017 - Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	16 April 2017
Manager	Kardinia Capital, A Bennelong boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	March 2017
Latest Return	1.04%
Latest 6 Months	0.60%
Latest 12 Months	3.97%
Latest 24 Months	3.61%
Annualised Since Inception	11.09%
Inception Date	01 May 2006
FUM (millions)	AU$337.1
Fund Overview	The Fund consists of a concentrated long/short portfolio typically comprising 20 to 50 ASX300 listed stocks, generally with a long bias aligned to the overall market direction. On average since inception the Fund's exposure has averaged 40% net long. There is a slight bias to large cap stocks on the long side of the portfolio, although in a rising market the portfolio will tend to hold smaller caps, including resource stocks, more frequently. On the short side, the portfolio is particularly concentrated, with stock selection limited by both liquidity and the difficulty of borrowing stock in smaller cap companies. Short positions are only taken when there is a high conviction view on the specific stock. The Fund uses derivatives in a limited way, mainly selling short dated covered call options to generate additional income. These typically have less than 30 days to expiry, and are usually 5% to 10% out of the money. ASX SPI futures and index put options can be used to hedge the portfolio's overall net position. The Fund's discretionary investment strategy commences with a macro view of the economy and direction to establish the portfolio's desired market exposure. Following this detailed sector and company research is gathered from knowledge of the individual stocks in the Fund's universe, with widespread use of broker research. Company visits, presentations and discussions with management at CEO and CFO level are used wherever possible to assess management quality across a range of criteria. Detailed analysis of company valuations using financial statements and forecasts, particularly focusing on free cash flow, is conducted. Technical analysis is used to validate the Manager's fundamental research and valuations and to manage market timing. A significant portion of the Fund's overall performance can be attributed to the attention and importance given to the macro economic outlook and the ability and willingness to adjust the Fund's market risk.
Manager Comments	Bennelong Kardinia Absolute Return Fund rose 1.04% in March. Since inception in May 2006, the Fund has an annualised performance of 11.09% p.a, compared to the ASX 200 Accumulation Index's 5.59% p.a. The Fund's performance has been achieved with lower volatility of 7.14%, than that of the Index's 13.95%, to give notable Sharpe and Sortino ratio of 0.99 (Index 0.19) and 1.80 (Index 0.16) respectively. For the month, AGL Energy (+36bp) was the largest contributor to performance. The Banks (NAB, ANZ, CBA, WBC) and Aristocrat Leisure were also solid contributors to performance (combined +98 basis points). The key negative contributors included a short position in Spotless Group (-23bp) and a short position in SPI Futures (-19bp). Resources (RIO, MIN, BHP, MGX) also detracted (combined -42bp). Net equity market exposure increased from 53.9% to 69.9% (73.1% long and 3.2% short).
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Fund Review: Optimal Australia Absolute Trust March 2017

18 Apr 2017 - Australian Fund Monitors

Read the latest Fund Review on Optimal Australian Absolute Trust.

APN AREIT Fund

18 Apr 2017 - Australian Fund Monitors

APN AREIT Fund returned +0.2% for the month of March, to take the latest 24 months return to 19.24%.

18 Apr 2017 - APN AREIT Fund

By: Australian Fund Monitors

Report Date	16 April 2017
Manager	APN Funds Management Limited
Fund Name	APN AREIT Fund
Strategy	Real Estate
Latest Return Date	March 2017
Latest Return	0.20%
Latest 6 Months	-1.14%
Latest 12 Months	5.91%
Latest 24 Months	19.24%
Annualised Since Inception	16.55%
Inception Date	19 January 2009
FUM (millions)	AU$1234.07
Fund Overview	Established in 2009, the APN AREIT Fund is a property securities fund investing in Australian Securities Exchange ('ASX') listed Australian Real Estate Investment Trusts ('AREITs') and cash/fixed interest. The Fund does not invest in direct property. The senior management of APN FM all have significant experience in their fields. They include CEO Real Estate Securities, Michael Doble who has 25 years'experience having held various senior roles specialising in real estate valuation, consultancy and funds management. Immediately prior to joining APN in 2003 he was Head of Property at ANZ Funds Management. He is a fellow of the Australian Property Institute and FINSIA as well as holding a Bachelor of Business (Property). 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 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 suited to medium to long term investors seeking a relatively high monthly income and some capital growth over the long term.
Manager Comments	APN AREIT Fund returned +0.2% in March, to take the latest 24 months return to 19.24%. The S&P/ASX 300 Property Trust Accumulation Index also gained in March, returning +0.71%. Since inception, the Fund's long-term performance remains strong, with annualised returns of 16.55% p.a., which has been delivered with a lower volatility than that of the Index, to give notable Sharpe and Sortino of 1.07 and 1.70 respectively. For the month of March, the portfolio's property sector allocation remained mainly unchanged, with 62% in the Retail sector, followed by 20% in the Office sector. The Fund's top 5 holdings included Scentre Group, Vicinity Centres, Stockland, Charter Hall Retail REIT and Dexus Property Group, with 3 of the holdings above 10% each.
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NWQ Fiduciary Fund

18 Apr 2017 - Australian Fund Monitors

NWQ Fiduciary Fund returned +0.21% in March bringing the net performance since inception in May 2013 to +24.68%.

18 Apr 2017 - NWQ Fiduciary Fund

By: Australian Fund Monitors

Report Date	16 April 2017
Manager	NWQ Capital Management Pty Ltd
Fund Name	NWQ Fiduciary Fund
Strategy	Multi Strategy
Latest Return Date	March 2017
Latest Return	0.21%
Latest 6 Months	-3.78%
Latest 12 Months	-0.74%
Latest 24 Months	5.29%
Annualised Since Inception	5.79%
Inception Date	16 April 2017
FUM (millions)	AU$95.66
Fund Overview	The NWQ Fiduciary Fund (Fund), managed by NWQ Capital Management, is a diversified multi-manager portfolio, modelled on NWQ's Fiduciary Model Portfolio. The principal investment objective of the Fund is to produce attractive positive returns irrespective of market direction. This is achieved through active allocations to selective fund managers that employ a variety of traditional and absolute return strategies. The Fund places emphasis on managers who demonstrate a rigorous and repeatable investment process that has delivered a strong track record. The Fund aims to produce returns, after management fees and expenses of between 8% to 11% p.a. over rolling five-year periods. Furthermore, the Fund aims to achieve these returns with volatility that is a fraction of the Australian equity market, in order to smooth returns for investors.
Manager Comments	NWQ Fiduciary Fund returned +0.21% in March, to take the annualised return since inception in May 2013 to +5.79% p.a. Over the same period, the ASX 200 Accumulation Index has returned +7.95% p.a. Notably, the Fund has achieved this performance with less than half of the risk of the Australian equity market (Fund volatility of 4.95% p.a. vs. 11.97% p.a. for the Index). The performance of the Fund's underlying managers in March was mixed with six of the nine managers delivering a positive return. In a month where the market rallied strongly, the Beta managers (+0.13%) made a positive overall contribution to the Fund's performance. This was complemented by the performance of the Alpha managers, which combined to make a positive contribution (+0.16%). The Cash and Fixed Income allocation also made a small, positive contribution to performance (+0.01%). NWQ continues to believe that there exists further potential for destructive equity and bond market volatility in the coming months, and therefore, the portfolio continues to remain overweight to the Alpha or market neutral strategies.
More Information	Fund Profile Manager's Report

APN Asian REIT Fund

13 Apr 2017 - Australian Fund Monitors

APN Asian REIT Fund returned +0.57% in March, compared to the Bloomberg Asia REIT Index's return of 1.09%.

13 Apr 2017 - APN Asian REIT Fund

By: Australian Fund Monitors

Report Date	12 April 2017
Manager	APN Funds Management Limited
Fund Name	APN Asian REIT Fund
Strategy	Real Estate
Latest Return Date	March 2017
Latest Return	0.57%
Latest 6 Months	-5.90%
Latest 12 Months	2.61%
Latest 24 Months	3.28%
Annualised Since Inception	13.89%
Inception Date	19 July 2011
FUM (millions)	AU$10.94
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 returned +0.57% in March, compared to the Bloomberg Asia REIT Index's return of 1.09%. Since inception, the Fund has an annualised return of 13.89% p.a., with a volatility of 9.38% p.a., to give notable Sharpe and Sortino ratios of 1.16 and 2.05 respectively. The Fund's holding for March remained relatively unchanged from the prior month. The portfolio continued to have significant exposure to Japan (37.7%) and Singapore (30.7%) and over 63% invested in Retail REITs (37.1%) and Office REITs (25.9%). The top five holdings: Gip J-REIT, Ascendas Real Estate Inv Trust, Keppel Dc REIT, Japan Retail Fund Investment, and Prosperity REIT, comprised over 22% of the portfolio, with five holdings above 4% each.
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Optimal Australia Absolute Trust

13 Apr 2017 - Australian Fund Monitors

The Optimal Australia Absolute Trust rose +0.94% in March 2017, to take the annualised return since inception to 8.15% p.a.

13 Apr 2017 - Optimal Australia Absolute Trust

By: Australian Fund Monitors

Report Date	10 April 2017
Manager	Optimal Fund Management Australia
Fund Name	Optimal Australia Absolute Trust
Strategy	Equity Long/Short
Latest Return Date	March 2017
Latest Return	0.94%
Latest 6 Months	0.53%
Latest 12 Months	0.48%
Latest 24 Months	13.14%
Annualised Since Inception	8.15%
Inception Date	15 September 2008
FUM (millions)	AU$115
Fund Overview	The investment objective of the Fund is to seek to achieve above average returns in absolute terms, through investing in listed securities in Australia and New Zealand, subject to the overarching requirement of capital preservation. Investments will predominantly be in equity securities but may include fixed interest instruments, money market instruments, derivatives and foreign exchange contracts. The Fund's bias is likely to be net long under normal market conditions, with the core strategy being to construct a portfolio of listed equity securities priced at levels that do not adequately reflect their underlying value. The Fund will seek to boost returns and limit potential market downside by selective short selling of individual stocks which are priced at levels that are viewed as materially above their underlying value. The Fund will also use certain trading strategies both within its core portfolio (through rebalancing stock weights and overall market exposure in response to price movements) and in certain other situations (typically of a shorter-duration and/or opportunistic nature) with the objective of further increasing returns.
Manager Comments	The Optimal Australia Absolute Trust returned +0.94% in March 2017. Since inception, the Fund has an annualised return of 8.15% p.a. (ASX 200 Accumulation Index 6.25% p.a.), which has been achieved with relatively low volatility of 3.77% p.a. (Index 14.08% p.a). The month's performance was largely driven by the Fund's long positions. The stock shorts basically broke even and the short index futures position was a substantial drag on performance. Key contributors during the month included a number of stocks, which have been in the portfolio for some time. These included Clydesdale Bank, Henderson Group, and CSL. Woolworths also continued to drive strong returns, although the Fund has now reduced its position as the stock price approached the upper end of the Fund's fair value range.
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Fund Monitors Pty Ltd

News

21 Apr 2017 - Quay Global Real Estate Fund

20 Apr 2017 - Pengana Global Small Companies Fund

20 Apr 2017 - Fund Review: APN Asian REIT Fund March 2017

19 Apr 2017 - Cyan C3G Fund

19 Apr 2017 - Bennelong Kardinia Absolute Return Fund

18 Apr 2017 - Fund Review: Optimal Australia Absolute Trust March 2017

OPTIMAL AUSTRALIA ABSOLUTE TRUST

18 Apr 2017 - APN AREIT Fund

18 Apr 2017 - NWQ Fiduciary Fund

13 Apr 2017 - APN Asian REIT Fund

13 Apr 2017 - Optimal Australia Absolute Trust

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