Fund Review: Bennelong Long Short Equity Fund December 2016

27 Jan 2017 - Australian Fund Monitors

December 2016 Fund Review is now available on Bennelong Long Short Equity Fund which has an annualised return of 16.14% p.a.

MHOR Australian Small Cap Fund

26 Jan 2017 - Australian Fund Monitors

MHOR Australian Small Cap Fund rose 5.14%, outperforming the ASX Small Ordinaries Index which returned 3.61%, by 1.53%.

26 Jan 2017 - MHOR Australian Small Cap Fund

By: Australian Fund Monitors

Report Date	23 January 2017
Manager	MHOR Asset Management
Fund Name	MHOR Australian Small Cap Fund
Strategy	Equity Long
Latest Return Date	December 2016
Latest Return	5.14%
Latest 6 Months
Latest 12 Months
Latest 24 Months
Annualised Since Inception	6.31%
Inception Date	01 August 2016
FUM (millions)	AU$19.5
Fund Overview	The MHOR Australian Small Cap Fund aims to outperform the S&P/ASX Small Ordinaries Accumulation Index over a rolling 5-year period after fees and expenses. The portfolio is made up of 25-75 stocks listed on the ASX or NZX. The fund may also invest in stocks to be listed within the next 12 months. The portfolio is constructed to achieve an aggregate exposure that delivers a growth profile that is materially above that of the broader market. The fund may hold between 0% - 50% of its assets in cash. MHOR looks for investment that exhibit the following set of characteristics: -Opportunity - to take advantage of growth and positive alignment with industry themes and trends. -Quality business - competitively advantaged product or service offering. -Financial flexibility - appropriately resourced to capture its opportunity. -Management - with the vision and capability to bring it all together. -Fundamentally undervalued. MHOR also considers labour standards, environmental, social and ethical considerations when making investment decisions but only to the extent that these factors impact the assessment of risk or return. There is a high level of risk associated with this fund, therefore the minimum suggested investment timeframe is 3-5 years.
Manager Comments	MHOR Australian Small Cap Fund rose 5.14% in December, outperforming the ASX Small Ordinaries Index which returned +3.61%, by 1.53%. Since inception in August 2016, the Fund has outperformed the market by 5.10%, returning an absolute +2.59% compared to the benchmark which is down -2.51%. The Fund entered December 2016, with 34 stocks (including 1 unlisted) and just 1.4% as cash, in aims to take advantage of the post-Trump rally. In December, the Fund changed course, with the later part spent preparing the Fund for the upcoming earnings season, steadily de-risking the portfolio into market strength and raising cash. At month end, the Fund had 33 stocks and cash increased to 11.2%. The Fund's largest positive contributions came from Spirit Telecom (ST1), Robo 3D (RBO) and Nextdc (NXT). The only major detractor for the month was Ellex Medical Lasers (ELX). The portfolio continues to have growth bias and has considerable exposure to smaller 'undiscovered' stocks as the team believes these have attractive growth opportunities. Click below to learn more about the Fund.
More Information	Fund Profile Manager's Report

Pengana PanAgora Absolute Return Global Equities Fund

25 Jan 2017 - Australian Fund Monitors

Pengana PanAgora Absolute Return Global Equities Fund lost -1.38% in December, to take the latest 6 months to 6.74%. The Fund has a low systematic risk (beta) to the ASX 200 and the MSCI World Indices of 0.07 and 0.08 respectively.

25 Jan 2017 - Pengana PanAgora Absolute Return Global Equities Fund

By: Australian Fund Monitors

Report Date	24 January 2017
Manager	Pengana Capital
Fund Name	Pengana PanAgora Absolute Return Global Equities Fund
Strategy	Equity Long/Short
Latest Return Date	December 2016
Latest Return	-1.38%
Latest 6 Months	6.74%
Latest 12 Months	-4.10%
Latest 24 Months	11.34%
Annualised Since Inception	10.54%
Inception Date	09 December 2015
FUM (millions)	AU$115
Fund Overview	The Pengana PanAgora Absolute Return Global Equities Fund is managed by PanAgora Asset Management (PanAgora), Inc. based in Boston. PanAgora is a well-known leader in quantitative investment strategies, managing over AU$52b across a range of strategies for institutional investors worldwide. The relationship between Pengana and PanAgora has enabled the US based manager to bring their innovative research and intellectual capital capabilities to the Australian retail market. PanAgora believes the best way to find opportunities in the global markets is to combine fundamental analysis with robust quantitative techniques in order to filter the investment universe and select the investments. The Fund invests primarily in listed equity securities from a global universe of developed markets and a select group of emerging market countries. The Fund's objective is to seek absolute returns by identifying and exploiting multiple inefficiencies that may exist in global equity markets. These inefficiencies are primarily exploited through the use of a long/short equity strategy which aims to construct a portfolio that is generally neutral to market movements. As such the performance of the investment strategy is largely independent of the market's performance. The Fund seeks to achieve its objective by using a diversified set of strategies that have low correlation to one another. In addition, because many of these strategies are designed to generate profit under different market conditions, their combination is expected to result in more stable returns over time than any individual strategy in and of itself.
Manager Comments	Pengana PanAgora Absolute Return Global Equities Fund lost -1.38% in December, to take the latest 6 months to 6.74%. The Fund has a low systematic risk (beta) to the ASX 200 and the MSCI World Indices of 0.07 and 0.08 respectively. The December return was largely driven by the US and International long-term models, which contributed -0.78% and -0.48% respectively. The intermediate strategies outperformed modestly, resulting in a total contribution of +0.04% (both the US merger arbitrage and the US share class arbitration trades performed strongly). The short-term arbitrage strategies detracted -0.17%. The underperformance of the sleeve was almost exclusively caused by levered ETF trades.
More Information	Fund Profile Manager's Report

Bennelong Twenty20 Australian Equities Fund

25 Jan 2017 - Australian Fund Monitors

Bennelong Twenty20 Australian Equities Fund returned +2.62% in December to take the latest 6 months return to 8.42%.

25 Jan 2017 - Bennelong Twenty20 Australian Equities Fund

By: Australian Fund Monitors

Report Date	20 January 2017
Manager	Bennelong Australian Equity Partners (BAEP), a Bennelong boutique
Fund Name	Bennelong Twenty20 Australian Equities Fund
Strategy	Equity Long
Latest Return Date	December 2016
Latest Return	2.62%
Latest 6 Months	8.42%
Latest 12 Months	7.42%
Latest 24 Months	19.23%
Annualised Since Inception	10.11%
Inception Date	02 December 2015
FUM (millions)	AU$0.88
Fund Overview	The Fund aims to outperform the return of the S&P/ASX 300 Accumulation Index by 2% per annum after fees on a rolling three-year basis by combining indexed positions in the S&P/ASX 20 stocks with an actively managed exposure in primarily Australian stocks that are outside the S&P/ASX 20. The Fund is managed as one portfolio but comprises and combines two separately managed exposures: 1. An investment in the top 20 stocks of the markets, which the Fund achieves by taking an indexed position in the S&P/ASX 20 Index; and 2. An investment in the stocks beyond the S&P/ASX 20 Index. This exposure is managed on an active basis using a fundamental core approach. The Fund may also invest in securities expected to be listed on the ASX, securities listed or expected to be listed on other exchanges where such securities relate to ASX-listed securities.Derivative instruments may be used to replicate underlying positions and hedge market and company specific risks. The companies within the portfolio are primarily selected from, but not limited to, the S&P/ASX 300 Accumulation Index. The Fund typically holds between 40-55 stocks and thus is considered to be highly concentrated. This means that investors should expect to see high short-term volatility. The Fund seeks to achieve growth over the long-term, therefore the minimum suggested investment timeframe is 5 years.
Manager Comments	Bennelong Twenty20 Australian Equities Fund returned +2.62% in December, underperforming the S&P/ASX 300 Accumulation Index which rose 4.34%. For the year, the Fund returned +7.42%, against the market's return of +11.79%. Most of the Fund's performance versus the market can be explained at the stock level. The largest contributors to the year's performance were Fortescue Metals Group, Newcrest, Vocus Communications and Flight Centre. The main detractors included TPG Telecom, Domino's Pizza Enterprises, South32 and Fisher & Paykel Healthcare. Throughout the year, the Fund trimmed or sold out of a number of high PE names, but maintained positions in companies in which the company fundamentals justified doing so. The investment team remains confident that these fundamentals will dictate returns over the long-term and therefore comfortable with the Fund's holdings. In more general terms, the Fund benefitted from an underweight position in bond proxies, such as REITs, Infrastructure, and Utilities stocks. On the other hand, the Fund's performance was hindered by an overweight exposure to the Healthcare sector, specifically through positions in Ramsay Health Care and Fisher & Paykel Healthcare, and from its exposure to the Retail sector, where a number of names held underperformed.
More Information	Fund Profile Manager's Report AFM Research Reports

King Tide NZ/Australian Long/Short Equity Fund

24 Jan 2017 - Australian Fund Monitors

King Tide NZ/Australian Long/Short Equity Fund returned -0.64% in December and +19.17% over the latest 24 months.

24 Jan 2017 - King Tide NZ/Australian Long/Short Equity Fund

By: Australian Fund Monitors

Report Date	23 January 2017
Manager	King Tide Asset Management
Fund Name	King Tide NZ/Australian Long/Short Equity Fund
Strategy	Equity Long/Short
Latest Return Date	December 2016
Latest Return	-0.64%
Latest 6 Months	-3.16%
Latest 12 Months	-5.67%
Latest 24 Months	19.17%
Annualised Since Inception	11.37%
Inception Date	31 December 2011
FUM (millions)	AU$19.5
Fund Overview	The fund aims to provide investors with a diversified, active exposure to New Zealand and Australian equity markets by allocating capital to a select group of managers domiciled in these markets whose investment mandates allow both long and short equity investment. 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	King Tide NZ/Australian Long/Short Equity Fund returned -0.64% in December and +19.17% over the latest 24 months. In comparison, the Fund's benchmark (90% ASX All Ords/10% NZX50) rose 3.77% in December. Since inception, the Fund has an annualised return of 11.37% p.a. The Fund's underlying manager returns in December ranged between +4% and -10%. Eight of the King Tide's fifteen funds made money in December, with Auscap which rose 4%, being the best performing fund. L1, the fund's latest addition was up 2.2% and diversified across 86 different positions and was 62% net long as of December 31. However, LHC was hit by two very large downgrades in two of core its positions; Sirtex and Mayne Pharma which fell 50% and 16% respectively, resulting in a -9.7% fall in the fund. Paragon, Wavestone, Monash, Smallco and Wilson all rose less than 1%, while Bennelong Long/Short, from which the Fund has now fully redeemed, fell -3.2%. The Listed Investment Company (LIC) 8EC's share price was down -0.5% despite their underlying portfolio gaining 2%. The two PIE funds (NZ based funds) were weaker but performed better than the sector once again in 2016. The Fund is considering a couple of funds and plans on adding one new underlying manager on February 1, bringing the total to 16.
More Information	Fund Profile Manager's Report

Fund Review Pengana Absolute Return Asia Pacific Fund December 2016

24 Jan 2017 - Australian Fund Monitors

Latest Fund Review is now available on Pengana Absolute Return Asia Pacific Fund, which has an annualised return of 8.56% p.a.

Fund Review: Optimal Australia Absolute Trust December 2016

23 Jan 2017 - Australian Fund Monitors

Read the latest Fund Review on Optimal Australian Absolute Trust.

QATO Capital Market Neutral Long/Short Fund

23 Jan 2017 - Australian Fund Monitors

Qato Capital Market Neutral Long/Short Fund returned +0.70% for the month of December.

23 Jan 2017 - QATO Capital Market Neutral Long/Short Fund

By: Australian Fund Monitors

Report Date	19 January 2017
Manager	QATO Capital
Fund Name	QATO Capital Market Neutral Long/Short Fund
Strategy	Equity Market Neutral
Latest Return Date	December 2016
Latest Return	0.70%
Latest 6 Months	4.02%
Latest 12 Months	-11.27%
Latest 24 Months	-12.80%
Annualised Since Inception	4.93%
Inception Date	01 August 2014
FUM (millions)	AU$180
Fund Overview	QATO's Market Neutral Long/Short strategy is managed via an objective, consistent and replicable process utilising Qato Capital's 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 & price. The strategy is designed to produce returns uncorrelated to major global equity markets. Moreover, the strategy is designed to produce strong positive returns in times of market distress/volatility, whilst also performing well in normal market conditions. The Fund seeks to preserve capital and maximise absolute returns through active and constant risk management, targeting monthly a net market exposure of 0% to hedge broader market risks with up to 50 S&P/ASX-100 positions (up to 25 long positions & 25 short positions). Historically, the strategy has been uncorrelated to traditional asset classes with a negative beta to equity markets. Qato Capital's process is entirely systematic - stock selection and risk management are all employed in a rules based approach. Positions in Qato's long-portfolio and short-portfolio are rotated monthly dependent upon their Q-Score ranking. The strategy employs no financial leverage/gearing to purchase securities, no derivatives and no financial products to imitate leverage.
Manager Comments	Qato Capital Market Neutral Long/Short Fund returned +0.70% for the month of December, to take latest 6 months to 4.02%. At a portfolio level, the long book was benefited from the December's rally. Ansell (ANN) was Qato's best performing long, returning +10.14% in December. Harvey Norman (HVN) rallied as the company enjoyed stronger than normal sales since July 2016, partly due to the demise of Dick Smith, returning +8.39%. REIT's also had a strong December, with Qato holding long positions in Goodman Group (GMG), Scentre Group (SCG) and Stockland (SGP), finishing December up +6.74%, +9.43%, +5.77% respectively. Qato's Q-Score picked up the three worst performing stocks of December for its short book; Sirtex (SRX), Blackmores (BKL) and Vocus (VOC) and positively benefitted from the falling prices.
More Information	Fund Profile AFM Research Reports

NWQ Fiduciary Fund

20 Jan 2017 - Australian Fund Monitors

NWQ Fiduciary Fund returned -0.86% in December.

20 Jan 2017 - NWQ Fiduciary Fund

By: Australian Fund Monitors

Report Date	18 January 2017
Manager	NWQ Capital Management Pty Ltd
Fund Name	NWQ Fiduciary Fund
Strategy	Multi Strategy
Latest Return Date	December 2016
Latest Return	-0.86%
Latest 6 Months	-4.17%
Latest 12 Months	-7.04%
Latest 24 Months	8.93%
Annualised Since Inception	5.95%
Inception Date	18 January 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 -0.86% in December. Since inception in May 2013, the Fund has an annualised return of 5.95% p.a., achieved with a volatility of 5.09%. The portfolio's Beta managers, utilising a range of long/short equity strategies, attributed +0.20% for the month, underperforming the domestic equity market. Alpha managers were down for the month, attributing -0.98%. The Fund encompasses allocations to nine underlying Australian-domiciled investment managers - five equity market neutral and four equity beta-correlated strategies, complemented by a modest cash allocation (9.5%). It remains the view of NWQ that there exists the further potential for destructive equity and bond market volatility in the coming months. Therefore, the portfolio continues to remain overweight to the Alpha or market neutral strategies.
More Information	Fund Profile Manager's Report

Bennelong Long Short Equity Fund

20 Jan 2017 - Australian Fund Monitors

Bennelong Long Short Equity Fund returned -3.23% in December and +19.22% for the latest 24-months.

20 Jan 2017 - Bennelong Long Short Equity Fund

By: Australian Fund Monitors

Report Date	11 January 2017
Manager	Bennelong Long Short Equity Management, a Bennelong boutique
Fund Name	Bennelong Long Short Equity Fund
Strategy	Equity Market Neutral
Latest Return Date	December 2016
Latest Return	-3.23%
Latest 6 Months	-12.21%
Latest 12 Months	-13.07%
Latest 24 Months	19.22%
Annualised Since Inception	16.14%
Inception Date	01 January 2003
FUM (millions)	AU$377.8
Fund Overview	Bennelong Long Short Equity Management applies a qualitative stock selection process to construct a diversified portfolio of paired securities based on relative value. The Bennelong Long Short Equity Management strategy invests primarily in the S&P/ASX 100 and is dollar neutral at cost. 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	Bennelong Long Short Equity Fund returned -3.23% in December and +19.22% for the latest 24-months. The long term performance since inception remains strong with annual returns of 16.14% p.a. (ASX 200 Accumulation Index 7.97% p.a.) with a volatility of 12.14% (Index 12.93%). In December, the Fund made several stocks and weightings changes in line with the investment team's assessment of risk and reward. However, on the whole, the Fund maintained its core stocks/strategies as the team continues to see them delivering positive performance in the future. The top 3 spreads for the month came from the following pairs; Long Oil Search/Short Santos, Long Qantas/Short Flight Centre and Long CSL/Short Sonic Health. The bottom 3 spreads came from long Ramsay Health/Short Primary Healthscope, Long Star Entertainment/Short Metcash/Woolworths and Long Resmed/Short Ansell.
More Information	Fund Profile Manager's Report AFM Research Reports

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27 Jan 2017 - Fund Review: Bennelong Long Short Equity Fund December 2016

26 Jan 2017 - MHOR Australian Small Cap Fund

25 Jan 2017 - Pengana PanAgora Absolute Return Global Equities Fund

25 Jan 2017 - Bennelong Twenty20 Australian Equities Fund

24 Jan 2017 - King Tide NZ/Australian Long/Short Equity Fund

24 Jan 2017 - Fund Review Pengana Absolute Return Asia Pacific Fund December 2016

23 Jan 2017 - Fund Review: Optimal Australia Absolute Trust December 2016

OPTIMAL AUSTRALIA ABSOLUTE TRUST

23 Jan 2017 - QATO Capital Market Neutral Long/Short Fund

20 Jan 2017 - NWQ Fiduciary Fund

20 Jan 2017 - Bennelong Long Short Equity Fund

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