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Fund Review: Optimal Australia Absolute Trust November 2015
16 Dec 2015 - Australian Fund Monitors
Read the latest Fund Review on Optimal Australian Absolute Trust Fund.
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16 Dec 2015 - Fund Review: Optimal Australia Absolute Trust November 2015
By: Australian Fund Monitors
OPTIMAL AUSTRALIA ABSOLUTE TRUST
AFM have released the most recently updated Fund Review on the Optimal Australia Absolute Trust.
We would like to highlight the following aspects of the Fund;
- Optimal Australia is a specialist Australian equity investment manager and the Fund has a long/short equity strategy typically with a low but variable net market exposure comprising 40 to 65 stocks broadly selected from within the ASX200.
- The investment team comprising George Colman, Peter Whiting supported by Stephen Nicholls and Justin Hay have over 100 years combined experience in equity markets.
- In November, the Fund returned 1.0%. The Fund's approach to risk is shown by the Sharpe ratio of 1.51 (Index 0.16), Sortino ratio of 3.41 (Index 0.11), both of which are well above the ASX 200 Accumulation Index and has recorded 80% positive months.
For further details on the Fund, please do not hesitate to contact us.
Optimal Australia Absolute Trust AFM Fund Review November 2015 NWQ Fiduciary Fund
16 Dec 2015 - Australian Fund Monitors
NWQ Fiduciary Fund returned +0.66% for the month of November, to take latest 12 month return to 14.18%.
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16 Dec 2015 - NWQ Fiduciary Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | The Fund's Beta managers, utilised a range of long/short equity strategies, outperforming the market and delivering a positive return of 0.25%. The Fund's Alpha managers also outperformed, contributing +0.51% to the portfolio return. The Fund's portfolio has an overweight allocation to the Alpha, market neutral strategies, as the NWQ view is that there is potential for market volatility in the coming months. Click below to read the latest Fund's Report. |
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Pengana Absolute Return Asia Pacific Fund
16 Dec 2015 - Australian Fund Monitors
The Pengana Absolute Return Asia Pacific Fund rose 1.31% for the month, outperforming the HFR Event Driven Index which closed down -1.9%, by 3.21%.
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16 Dec 2015 - Pengana Absolute Return Asia Pacific Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will usually hold 40 to 80 positions and will be well diversified across the various event strategies. In keeping with the absolute return focus the Manager will eliminate market risk where appropriate by hedging market and foreign currency risks. Since inception the Fund has averaged a net equity market exposure of ~10%. Sizing of an investment position will depend on the expected risk adjusted returns while taking account the liquidity and volatility of the stock. In addition, the maximum potential loss on any one position should be greater than 0.5% of the NAV and the position should not exceed 30% participation of stressed volume assuming a $200m NAV. Other criteria considered are ability to hedge and the availability of pair candidates as well as the average bid-ask size. For M&A strategies average long position is 3 to 5.5% and average short position 2 to 5%. |
| Manager Comments | The MSCI inclusion of Chinese US listed ADRs was a key event for the Fund during the month. The M&A sub-strategy contributed 0.58% of Fund performance as a number of deals in the portfolio reached maturity or completion. Main contributors were Youku Tudou (YOKU US), Jingwei Textile (350 HK), Mindray Medical (MR US), Veda Group (VED AU) and Affinity Education (AFJ AU). Capital Structure and Capital Management strategies also contributed positively to the Fund's performance. Biggest negative contributor came from the Stubs strategy. The Fund's average gross and net exposures were 186.3% and 3.2% respectively. Click below to read the latest Fund Manager's Report. |
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Fund Review: Bennelong Long Short Equity Fund November 2015
15 Dec 2015 - Australian Fund Monitors
November Fund Review now available on Bennelong Long Short Equity Fund which has over 13 years track record & annualised return of 18.18% p.a.
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15 Dec 2015 - Fund Review: Bennelong Long Short Equity Fund November 2015
By: Australian Fund Monitors
BENNELONG LONG SHORT EQUITY FUND
Attached is our most recently updated Fund Review on the Bennelong Long Short Equity Fund.
- The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large cap stocks from the ASX/S&P100 Index, with over thirteen year track record and annualised returns of 18.18%.
- The consistent returns across the investment history indicates the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market. The Fund's Sharpe Ratio and Sortino Ratio are 1.11 (Index 0.29) and 1.91 (Index 0.30) respectively.
For further details on the Fund, please do not hesitate to contact us.
Jamieson Coote Bonds Active Fund
14 Dec 2015 - Australian Fund Monitors
Jamieson Coote Bonds Active Fund declined 0.60% in November, outperforming the market by 0.33%.
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14 Dec 2015 - Jamieson Coote Bonds Active Fund
By: Australian Fund Monitors
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| Fund Overview | JCBAF seeks to establish a mid to long term core portfolio using both domestic and global macroeconomic analysis. This is overlaid with a number of valuation indicators and international market intelligence from a global network of market moving investors, including central bankers and hedge funds, to construct an optimal indexed portfolio allocation at any given time. The Fund recognises short term oscillations driven by technical factors and supply dynamics create opportunities within short term pricing cycles, which can generate significant alpha when managed within a risk adjusted framework. The Fund aims to outperform its index using duration and curve management at appropriate times in the pricing cycle whilst retaining a core long. The JCB Active Fund gives direct access to the management team whilst providing portfolio balance with increased capital stability and a fixed income streams with both income and principle repayment secured by the Australian or State Governments. |
| Manager Comments | The significant repricing of RBA expectations by the market caused the term structure to bear flatten over the month. The Fund was cautious on outright valuations coming into year end and therefore reduced its duration exposures. The re pricing of the RBA and the huge employment report, suggesting boom like employment conditions in Australia did not help the Fund performance. However, the Fund investment team there is nothing boom like about Australia's economic growth outlook and hence adding front end duration exposure was fundamentally justified into 2016. Click below to read the Fund's monthly performance and Fund Managers market outlook. |
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Bennelong Kardinia Absolute Return Fund
11 Dec 2015 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund rose 1.16%, outperforming the ASX200 Accumulation Index, which fell 0.68%, by 1.84%.
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11 Dec 2015 - Bennelong Kardinia Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | BWX, Bellamy's, Surfstitch and Ramsay were the largest contributors to performance whilst Australian Careers Network, Vitaco and James Hardie were the largest detractors. Net equity market exposure (including derivatives) at month end sat at 53.6% (61.8% long and 8.2% short) Click below to read the November 2015 Fund Report. |
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Morphic Global Opportunities Fund
10 Dec 2015 - Australian Fund Monitors
Morphic Global Opportunities Fund returned -1.35% in November, outperforming its benchmark (MSCI AC World Total Return in Australian Dollars), which fell 2.35%, by 1.00%.
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10 Dec 2015 - Morphic Global Opportunities Fund
By: Australian Fund Monitors
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| Manager Comments | The largest stock contributor was Open House, a Tokyo based property developer, which reported earnings significantly above market expectations and raised guidance for 2016. Gains were also made from opportunities in European bank recapitalizations and government disposals of banks they were forced to take over in the GFC. The Fund's short position in Aberdeen Asset Management proved to be profitable as the company reported poor flows for their funds and rising costs, which saw the stock fall 8% over the month. Large gains in the basket of high quality US regional banks, were substantially eroded by the long Wells Fargo position. Underperformance also came from German copper smelter Aurubis and their holdings in US healthcare. The Fund began December fully invested. Fund positioning is generally neutral in regard to sectors and countries. Click below to read more. |
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The Paragon Fund
10 Dec 2015 - Australian Fund Monitors
The Paragon Fund rose 2.60% for the month of November, outperforming the ASX200 Accumulation Index by 3.28%
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10 Dec 2015 - The Paragon 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. |
| Manager Comments | Key positive contributors for November included Longs in NetComm Wireless, Mayne Pharma, and APN Outdoor. At the end of the month the Fund had 34 long positions and 16 short positions. Majority of the Fund's net industry exposure was in the Industrial sector at 54%, followed by Financial sectors, 13.9%. Over one-fifth of the portfolio was held in cash (23.1%). Click below to read the latest monthly report, highlighting two stocks; Mayne Pharma and Netcomm Wireless that the Fund Manager believes will provide long term growth. |
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Optimal Australia Absolute Trust
9 Dec 2015 - Australian Fund Monitors
Optimal Australia Absolute Trust returned +1.0%, and outperformed the the ASX200 Accumulation Index's by +1.68%.
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9 Dec 2015 - Optimal Australia Absolute Trust
By: Australian Fund Monitors
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| Fund Overview | 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 Fund held average gross at 110% of NAV, with net short exposure averaging 7% of NAV, avoiding the negative drag from another weak market, and recorded gains on both sides of the ledger. The Fund's long positions strongly outperformed the market, with attribution of +0.8% on average long exposure of 50% of NAV. Key contributors again included some recovery situations in retail (Myer, Metcash, Super Retail Group), Financials (banks and Perpetual), and some bottom-fishing in the energy and commodity groups. The Fund's short positions served as a useful hedge, with attribution of +0.6% % on average short (stock) exposure of 36% of NAV. Click below to read the latest Fund Monthly Report. |
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Bennelong Long Short Equity Fund
7 Dec 2015 - Australian Fund Monitors
Bennelong Long Short Equity Fund rose 0.65% in November, to bring latest 12-month return to 32.76%.
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7 Dec 2015 - 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 Fund performance featured an event split of winning and losing pairs. The two strongest contributors to performance were pairs in Energy and Healthcare driven by short positions in Santos and Primary Health Care. On the negative side, the Fund's position in a building materials pair detracted from performance as the long side (James Hardie) disappointed. Portfolio positioning over the month featured several modest adjustments to portfolio weightings, as well as the introduction of a new position in the healthcare sector. Click below to read the Fund Manager's commentary and future market outlook. |
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