Pengana Absolute Return Asia Pacific Fund

24 Aug 2015 - Australian Fund Monitors

The Pengana Absolute Return Asia Pacific finished -0.8% for the month of July, compared to the HFR Event Driven Index which closed -1.7%.

24 Aug 2015 - Pengana Absolute Return Asia Pacific Fund

By: Australian Fund Monitors

Report Date	19 August 2015
Manager	Pengana Capital
Fund Name	Pengana Absolute Return Asia Pacific Fund
Strategy	Equity Long/Short
Latest Return Date	July 2015
Latest Return	-0.80%
Latest 6 Months	2.72%
Latest 12 Months	6.87%
Latest 24 Months	15.45%
Annualised Since Inception	10.63%
Inception Date	01 September 2010
FUM (millions)	AU$88.71
Fund Overview	The Pengana Absolute Return Asia Pacific Fund employs an event-driven investment strategy that seeks to exploit the mispricing of securities of companies involved in corporate transactions within the Asian (including Japan, Australia and New Zealand) region. Event driven strategies involve investing in opportunities created by significant transactional events, such as mergers and acquisitions, earnings surprises, capital management initiatives, capital structure arbitrage and index changes, among others. The Fund believes that significant corporate events can often create inefficiency in a company's share price which the Fund then seeks to exploit. The Fund aims to generate consistently positive returns which have a low correlation to the Asian stock markets. The objective is to generate 10-20% pa with a standard deviation of 6-10%. 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 Pengana Absolute Return Asia Pacific finished -0.8% for the month of July, compared to the HFR Event Driven Index which closed -1.7%. Asia Pacific markets also fell -2.9%,with the Shanghai Composite falling -14.4% and the Hang Seng China Enterprises Index (HSCEI) -14.3%. Since inception, the Fund has an annualised return of 10.63% p.a., and has achieved this with lower volatility of 5.84% (AFM Asia Pacific Index 11.85%), to give notable Sharpe and Sortino Ratios of 1.19 and 2.80 respectively. The deleveraging in China had a significant impact on the onshore equity markets which resulted in contagion into the region requiring state backed intervention in China to support prices. The Fund navigated the volatility by increasing short exposure to hedge their M&A positions exposed to China risk. The Fund ended the month with average net and gross exposure of 11% and 205% respectively. It was the Stubs and Index Futures strategies that contributed positively. However, the Capital Management Corp. and M&A strategies were the largest detractors. The country exposure as percentage (%) of NAV was most in Japan (60.8%), followed by Hong Kong/China (35.3%). Click below to read the complete Fund Manager's Report.
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QATO Capital Market Neutral Long/Short Fund

21 Aug 2015 - Australian Fund Monitors

QATO Capital Market Neutral Long/Short Fund decreased 2.26% in July. The Fund's performance of 30.20%, over the latest 12 months has been strong.

21 Aug 2015 - QATO Capital Market Neutral Long/Short Fund

By: Australian Fund Monitors

Report Date	18 August 2015
Manager	QATO Capital
Fund Name	QATO Capital Market Neutral Long/Short Fund
Strategy	Equity Market Neutral
Latest Return Date	July 2015
Latest Return	-2.26%
Latest 6 Months	-4.99%
Latest 12 Months	30.20%
Latest 24 Months
Annualised Since Inception	30.20%
Inception Date	01 August 2014
FUM (millions)	AU$48
Fund Overview	QATO Capital's Market Neutral Long/Short Fund is managed via an objective, consistent and replicable process utilising 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 and price. The fund targets a net market exposure of 0% to hedge broader market risks through 30 S&P/ASX-100 positions (15 long and 15 short equally weighted positions). The turnover is generally averaged around 30% of the total portfolio each month. The process is entirely systematic - stock selection and risk management are all employed in a rules based approach. The Market Neutral Long/Short Fund employs no financial leverage, no derivatives and no financial products to imitate leverage. The Investment Manager's three principal investment goals for the Fund are: 1. Market neutral long/short portfolio management with little correlation to equity markets; 2. Over a 3-5 year period, seeking to target annualised volatility of 15% per annum and annualised returns of 15-30% per annum above the Benchmark; Sharpe Ratio 1.0-2.0 and a negative beta to ASX listed equities; and 3. To provide investors with a co-investment opportunity alongside the founding members' investments in the Investment Manager's strategy.
Manager Comments	QATO Capital Market Neutral Long/Short Fund decreased 2.26% in July. The Fund's performance of 30.20%, over the latest 12 months has been strong. Since inception (August 2014), the Fund has out-performed the ASX200 Accumulation Index, resulting in notable Sharpe and Sortino ratios of 1.93 (Index 0.31) and 4.53 (Index 0.37) respectively. In July, the Fund's benchmark, S&P/ASX-100 bounced back after a weak month in June, predominately driven by a strong beta rally in lower quality/higher beta companies. This proved challenging for the Fund's investment style, in particular the Fund's short positions. The long book however performed strongly as the Q-Score process selected a number of large outperformers to the S&P/ASX-100 Index. Click below to read the latest Fund Manager's commentary.
More Information	Fund Profile Manager's Report

Fund Review: Bennelong Long Short Equity Fund July 2015

21 Aug 2015 - Australian Fund Monitors

Fund Review available for Bennelong Long Short Equity Fund which has over 13 years track record and annualised returns of 17.97%.

Aurora Fortitude Absolute Return Fund

20 Aug 2015 - Australian Fund Monitors

The Aurora Fortitude Absolute Return Fund returned +0.50% for the month of July 2015.

20 Aug 2015 - Aurora Fortitude Absolute Return Fund

By: Australian Fund Monitors

Report Date	17 August 2015
Manager	Aurora Funds Management
Fund Name	Aurora Fortitude Absolute Return Fund
Strategy	Equity Market Neutral
Latest Return Date	July 2015
Latest Return	0.50%
Latest 6 Months	2.65%
Latest 12 Months	2.17%
Latest 24 Months	5.69%
Annualised Since Inception	7.22%
Inception Date	15 March 2005
FUM (millions)	AU$87
Fund Overview	Aurora Fortitude Absolute Return Fund is a multi-strategy market neutral fund specialising in ASX listed equities and derivatives. The core philosophy is the management of risk through a long volatility overlay incorporating listed equity and index derivatives. The multi-strategy approach includes M&A, Yield, Convergence and Long/Short strategies. The portfolio managers adopt an aggressive approach to managing downside risk whilst positioning the portfolio to benefit from positive alpha. The Fund aims to produce positive returns irrespective of the direction of the share market. For each investment the manager considers the risk, the timeline of that risk occurring and then the potential return. Low transaction costs and liquidity are other important factors in the success and implementation of the strategies.
Manager Comments	The Aurora Fortitude Absolute Return Fund returned +0.50% for the month of July 2015. The Fund's annual performance, since inception has been 7.22% p.a, which it has achieved with very low volatility of 2.64% (ASX 200 Accumulation Index 13.85%). The Fund has notable Sharpe and Sortino ratios of 1.07 (Index 0.29) and 2.12 (Index 0.30) respectively. It was the Yield (+0.27%), Convergence (+0.14%)and Long/Short (+0.11%) trading strategies that provided biggest positive contribution to the portfolio. The Options strategy (-0.07%) initially benefited from continued volatility across miners and banks. Volatility fell dramatically in the second half of the month with the Australian VIX falling -27% to 14.5 by the end of the month. This was an attractive level and the Fund added to volatility positions and increased exposure to this strategy at month end. Click below to read more on the Fund's performance.
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Fund Review: Morphic Global Opportunities Fund July 2015

19 Aug 2015 - Australian Fund Monitors

Read the July Fund Review for Morphic Global Opportunities Fund.

Optimal Australia Absolute Trust

19 Aug 2015 - Australian Fund Monitors

Optimal Australia Absolute Trust reported a net return of +0.31 in July.

19 Aug 2015 - Optimal Australia Absolute Trust

By: Australian Fund Monitors

Report Date	14 August 2015
Manager	Optimal Fund Management Australia
Fund Name	Optimal Australia Absolute Trust
Strategy	Equity Long/Short
Latest Return Date	July 2015
Latest Return	0.30%
Latest 6 Months	4.13%
Latest 12 Months	0.06%
Latest 24 Months	6.44%
Annualised Since Inception	8.76%
Inception Date	15 September 2008
FUM (millions)	AU$100
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	Optimal Australia Absolute Trust reported a net return of +0.31 in July. The Fund's annualised return since inception was 8.76% p.a. (Index 6.10% p.a.), which has been achieved with a notably low volatility of 3.69% p.a. (Index 14.34% p.a). The Fund's long positions rose broadly in-line with the market - key performers included a number of financials (AMP, NAB, SUN and WFD) and general industrial. However the short positions were the largest detractors in such a strong market, which proved expensive as a means of heding portfolio risk. The Fund gross exposure was 121.1% and net exposure 2.1%. Click below to read the latest Fund Manager's commentary on the Fund and market outlook.
More Information	Fund Profile Manager's Report AFM Research Reports

Bennelong Kardinia Absolute Return Fund

18 Aug 2015 - Australian Fund Monitors

The Bennelong Kardinia Absolute Return Fund rose 2.2% in July, to bring the annualised performance since inception to 12.84% (ASX200 Accumulation Index 5.37%).

18 Aug 2015 - Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	14 August 2015
Manager	Kardinia Capital, a Bennelong Funds Management boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	July 2015
Latest Return	2.20%
Latest 6 Months	3.67%
Latest 12 Months	9.57%
Latest 24 Months	17.27%
Annualised Since Inception	12.84%
Inception Date	01 May 2006
FUM (millions)	AU$221.8
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	The Bennelong Kardinia Absolute Return Fund rose 2.2% in July, to bring the annualised performance since inception to 12.84% (ASX200 Accumulation Index 5.37%). The Fund has achieved this return with lower volatility (7.29%) than the Index (14.18%) to give notable Sharpe and Sortino ratio 1.13 (Index 0.11) and 2.16 (Index 0.06) respectively. The Fund's net equity market exposure (including derivatives) of the Fund was progressively increased post the Greek resolution and Chinese support measures to 55.7% (87.1% long and 31.4% short). Westpac, Ramsay Health Care, CSL and Aristocrat were the largest positive contributors, whilst Share Price Futures (hedging long exposures), Costa, Isentia and BHP Billiton were the largest detractors. Click below to read the June 2015 Fund Report.
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Fund Review: Monash Absolute Investment Fund July 2015

17 Aug 2015 - Australian Fund Monitors

Read the latest Fund Review with statistics since inception on Monash Absolute Investment Fund.

Allard Investment Fund

17 Aug 2015 - Australian Fund Monitors

The Allard Investment Fund's (AIF), net of all fees, increased 2.70% during the month of July 2015 (MSCI Asia Pacific ex Japan A$ +0.3%).

17 Aug 2015 - Allard Investment Fund

By: Australian Fund Monitors

Report Date	10 August 2015
Manager	Allard Partners Australia Pty Limited
Fund Name	Allard Investment Fund
Strategy	Equity Long
Latest Return Date	July 2015
Latest Return	2.70%
Latest 6 Months	2.73%
Latest 12 Months	19.85%
Latest 24 Months	29.23%
Annualised Since Inception	9.81%
Inception Date	01 July 2003
FUM (millions)	AU$134
Fund Overview	Allard Partners is an absolute return, long only security investor with a single mission to provide its clients with a net compound rate of return on their capital of 15% per annum over the long term. With offices in Hong Kong, India and Australia, Allard invests in quoted companies in the Asia Pacific region. Allard's investment approach has remained consistent throughout their history. That is to invest prudently but proactively in well-managed businesses that achieve superior returns on capital in industries with long-term growth potential. The Manager uses both broad top-down guidance and detailed bottom-up analysis to identify suitable markets, industries and companies. As long only investors, a critical factor in their performance has been their preparedness to hold cash when they cannot find companies that meet their criteria or are at a sufficient discount to their valuations.
Manager Comments	The Allard Investment Fund's (AIF), net of all fees, increased 2.70% during the month of July 2015 (MSCI Asia Pacific ex Japan A$ +0.3%), to bring the Fund's latest 12 month performance to 19.85% with a volatility of 7.88%. For the month of July, the Fund's portfolio was invested 77.7% in equities and 22.3% in cash and fixed income. The Fund continues to have most exposed to the Financial Services industry at 18.2%, Conglomerates at 10.7% and Telco's at 10.1%. The portfolio's geographic exposure was in Hong Kong / China at 43.2%, Singapore 10.7% and Korea 9.4%. The top 5 holdings had 39.7% concentration of the portfolio and 17.5% in the next 5 holdings. Click below to review the latest Fund Manager's Report.
More Information	Fund Profile Manager's Report

Morphic Global Opportunities Fund

14 Aug 2015 - Australian Fund Monitors

Morphic Global Opportunities Fund rose 5.13% in July as its benchmark (MSCI AC World Total Return in Australian Dollars) rose 5.57%, resulting in under-performance of 0.44%.

Fund Monitors Pty Ltd

News

24 Aug 2015 - Pengana Absolute Return Asia Pacific Fund

21 Aug 2015 - QATO Capital Market Neutral Long/Short Fund

21 Aug 2015 - Fund Review: Bennelong Long Short Equity Fund July 2015

20 Aug 2015 - Aurora Fortitude Absolute Return Fund

19 Aug 2015 - Fund Review: Morphic Global Opportunities Fund July 2015

19 Aug 2015 - Optimal Australia Absolute Trust

18 Aug 2015 - Bennelong Kardinia Absolute Return Fund

17 Aug 2015 - Fund Review: Monash Absolute Investment Fund July 2015

MONASH ABSOLUTE INVESTMENT FUND

17 Aug 2015 - Allard Investment Fund

14 Aug 2015 - Morphic Global Opportunities Fund

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