News
Totus Alpha Fund
12 Apr 2017 - Australian Fund Monitors
Totus Alpha Fund rose 2.2% in March, to take the latest 24 months return to +19.14%.
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12 Apr 2017 - Totus Alpha Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | The top contributors for the month were the long positions in Shriro +0.86% and Vita Group +0.48%, and a short position in Quintus +0.64%. However, the short positions in Spotless -0.39%, Woodside -0.32% and G8 Education -0.30%, detracted from the performance. At 31 March, the Fund had a net exposure of 37.8% and a gross exposure of 219.1%. The Fund held 105 positions (45 long and 60 short). |
| More Information |
Paragon Australian Long Short Fund
12 Apr 2017 - Australian Fund Monitors
The Paragon Australian Long Short Fund returned -1.6% for the month of March and +9.186% for the latest 24 months.
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12 Apr 2017 - Paragon Australian Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | 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. |
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Allard Investment Fund
11 Apr 2017 - Australian Fund Monitors
The Allard Investment Fund (AIF) increased 3.27% during the month of March 2017 and is up 21.0% for the latest 12 months.
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11 Apr 2017 - Allard Investment Fund
By: Australian Fund Monitors
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| Fund Overview | Allard's investment approach has remained consistent throughout their history: That is to invest prudently but proactively in well-managed businesses that achieve superior returns on capital in industries with long-term growth potential. The Manager uses both broad top-down guidance and detailed bottom-up analysis to identify suitable markets, industries and companies. Although long only investors, a critical factor in their strategy and performance is the ability to hold cash when they cannot find companies that meet their criteria or are at a sufficient discount to their valuations. |
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Bennelong Long Short Equity Fund
10 Apr 2017 - Australian Fund Monitors
Bennelong Long Short Equity Fund was up slightly for March, returning +0.29%, taking the latest 24 months return to 20.38%.
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10 Apr 2017 - Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| Fund Overview | In a typical environment the Fund will hold around 70 stocks comprising 35 pairs. Each pair contains one long and one short position each of which will have been thoroughly researched and are selected from the same market sector. Whilst in an ideal environment each stock's position will make a positive return, it is the relative performance of the pair that is important. As a result the Fund can make positive returns when each stock moves in the same direction provided the long position outperforms the short one in relative terms. However, if neither side of the trade is profitable, strict controls are required to ensure losses are limited. The Fund uses no derivatives and has no currency exposure. The Fund has no hard stop loss limits, instead relying on the small average position size per stock (1.5%) and per pair (3%) to limit exposure. Where practical pairs are always held within the same sector to limit cross sector risk, and positions can be held for months or years. The Bennelong Market Neutral Fund, with same strategy and liquidity is available for retail investors. |
| Manager Comments | The standout pair for the month was ILuka / Downer with both positions contributing positively. The TPG Telecom / Telstra and Challenger / AMP pairs also contributed positively for the month. Elsewhere pair performance was balanced with little change. The Fund's performance for the most recent quarter was up +7.43%, dominated by company fundamental performance in 2017. The portfolio benefited from both numerous upgrades to the long portfolio and downgrades to the short portfolio, and had few losers. |
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King Tide NZ/Australian Long/Short Equity Fund
5 Apr 2017 - Australian Fund Monitors
King Tide NZ/Australian Long/Short Equity Fund returned -1.72% for the month of February, taking the annualised return since inception to 8.75% p.a.
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5 Apr 2017 - King Tide NZ/Australian Long/Short Equity Fund
By: Australian Fund Monitors
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| Fund Overview | The fund seeks to outperform the market with less volatility than the market by allocating capital to a select group of eight to sixteen funds whose investment mandates allow them to use short selling of equities and equity indices, to use derivatives to manage risk, to use leverage and to hold large amounts of cash. In-depth proprietary research is used to select and monitor fund managers with particular emphasis on their ability to manage equity market risk through stock selection, short selling and the use of derivatives and cash. |
| Manager Comments | It was the managers with large cap exposure and more diversified portfolios such as Wavestone and L1 that performed well for the month, with returns of 2.35% and 2.23% respectively. However, some of the Fund's small cap specialists such as PIE Funds found the month tough, with their Growth Fund and Emerging Companies Fund falling -5.98% and -4.30%. Managers investing in resource sector, such as Paragon and Regal Atlantic also fell -4.99% and -5.12% respectively. At the end of February, King Tide added a new fund, the Sandon Capital Activist Fund, bringing a different style of investing - an activist strategy, to the Fund's portfolio. |
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Fund Review: Insync Global Titans Fund February 2017
4 Apr 2017 - Australian Fund Monitors
Latest Fund Review on Insync Global Titans Fund is now available.
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4 Apr 2017 - Fund Review: Insync Global Titans Fund February 2017
By: Australian Fund Monitors
AFM Fund Review - February 2017 (pdf format)
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans Fund.
We would like to highlight the following:
- The Fund's unit price returned +2.1% for the month of February. The performance was driven by positive contributions from the holdings in Unilever, Heineken, Visa, Medtronic and eBay. The main negative contributors were Zimmer Holdings, Microsoft Corp and Comcast.
- The Global Titans Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - February 2017 (pdf format)
4D Global Infrastructure Fund
31 Mar 2017 - Australian Fund Monitors
4D Global Infrastructure Fund recorded a net gain of 3.97% for the month of February, outperforming its benchmark (OECD G7 Inflation Index + 5.5%) of 0.34%, by 3.63%.
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31 Mar 2017 - 4D Global Infrastructure Fund
By: Australian Fund Monitors
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| Fund Overview | The fund will be managed as a single portfolio of listed global infrastructure securities including regulated utilities in gas, electricity and water, transport infrastructure such as airports, ports, road and rail as well as communication assets such as the towers and satellite sectors. The portfolio is intended to have exposure to both developed and emerging market opportunities, with country risk assessed internally before any investment is considered. The maximum absolute position of an individual stock is 7% of the fund. |
| Manager Comments | The biggest contributor to performance came from a UK based satellite operator Inmarsat, which was up 17% for the month. The Fund also saw strong performance from its Brazilian names that leveraged to the rapidly declining Brazilian Selic rate, such as the Brazilian toll road operators CCR and Ecorodovias, rail operator Rumo and utility operators who can capitalise on lower interest rates to expand their portfolios. The weakest performer for February was Mexican tower operator Telesites, down 5.5% on the back of slightly weaker than expected FY numbers reported in the last week of February. |
| More Information |
Insync Global Titans Fund
30 Mar 2017 - Australian Fund Monitors
Insync Global Titans Fund increased 2.1% in February, outperforming the MSCI All Country World ex-Australia Net Total Return Index ($A), which returned 1.5%, by +0.6%.
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30 Mar 2017 - Insync Global Titans Fund
By: Australian Fund Monitors
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| Fund Overview | Insync employs four simple screens to narrow the universe of over 40,000 listed companies globally to a focus group of high quality companies that it believes have the potential to consistently grow their profits and dividends. These screens are size of the company, balance sheet performance, valuation and dividend quality. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio of typically 15-30 stocks. The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, derivatives (for example futures, options and swaps), currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled investment vehicles. At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio. |
| Manager Comments | The performance was driven by positive contributions from the holdings in Unilever, Heineken, Visa, Medtronic and eBay. The main negative contributors were Zimmer Holdings, Microsoft Corp and Comcast. 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. Over 50% of the Fund is currently protected using a put protection strategy. |
| More Information |
KIS Asia Long Short Fund
28 Mar 2017 - Australian Fund Monitors
KIS Asia Long Short Fund rose 0.24% in February, taking the return for the most recent 12 months to 15.06%.
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28 Mar 2017 - 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 | The month's performance was driven largely by long positions in Cardinal Resources Ltd (CDV.AX) 0.48%, eCobalt Solutions Inc (ECS.TO) 0.46% and Plymouth Minerals Ltd (PLH.AX) 0.21%. However, detractors for the month, included the long positions in Altium Ltd (ALU.AX) -0.29%, Primary Health Care Ltd (PRY.AX) -0.22% and CapitaLand Limited (CATL.SI) -0.20%. |
| More Information |
Fund Review Pengana Absolute Return Asia Pacific Fund February 2017
27 Mar 2017 - Australian Fund Monitors
Latest Fund Review is now available on Pengana Absolute Return Asia Pacific Fund, which has an annualised return of 8.49% p.a.
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27 Mar 2017 - Fund Review Pengana Absolute Return Asia Pacific Fund February 2017
By: Australian Fund Monitors
AFM Fund Review - February 2017 (pdf format)
PENGANA ABSOLUTE RETURN ASIA PACIFIC FUND
Attached is our most recently updated Fund Review on the Pengana Absolute Return Asia Pacific Fund.
- The Pengana Absolute Return Asia Pacific Fund ("PARAP") was established in 2008 by portfolio managers Antonio Meroni and Vikas Kumra. The Fund is a feeder fund into a Cayman Islands AUD share class fund.
- The Fund invests both long and short in Asia Pacific equities, including in Australian and New Zealand, after a stock specific "event" has either occurred or been announced and the portfolio aims to be uncorrelated to the underlying equity markets. A combination of the Manager's experience, thorough research and continuous back- testing identify the most attractive of these events.
- Risk controls include limits on individual positions as well as gross and net exposure. Limits are in place for option exposure and cash borrowing, with stop loss limits on individual positions. Overall the manager is looking to derive returns from the event strategies as opposed to any currency or market exposures.
- Since inception, the Fund has an annualised return of 8.49% p.a., compared to the MSCI ACWI Asia Pacific Price Index's return of 3.68% p.a.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - February 2017 (pdf format)
