News
Pengana Absolute Return Asia Pacific Fund
23 Apr 2015 - Australian Fund Monitors
Pengana Absolute Return Asia Pacific Fund returned 0.42% in March, bringing the annualised return since inception to 10.93%.
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23 Apr 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 | In comparison the HFR Event Driven Index closed +0.40%, the Asia Pacific markets were flat, whilst Asia Pacific markets ex Japan, posted a small detraction of -0.5%. The Fund maintained average net and gross exposure of 14.3% and 246% respectively. The relaxation on cross border shopping for H shares saw a considerable re-risk on deeply discounted H shares, driving significant intra-month volatility in Hong Kong. Over 46% of the Fund's monthly gross exposure by strategy was in M&A followed by Capital management at 25.1%. Whereas the country exposure as percentage (%) of NAV was most in Hong Kong/China with gross of 86.1% and Australia with gross of 34.5%. Read the latest Fund Manager's Commentary on the AFM website. |
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Aurora Fortitude Absolute Return Fund
23 Apr 2015 - Australian Fund Monitors
Aurora Fortitude Absolute Return Fund rose 0.55% in March to bring annual performance since inception to 7.32%.
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23 Apr 2015 - Aurora Fortitude Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | All portfolio strategies were positive with the Option Strategy (0.42%) as the biggest contributor for the month. The impact of lower iron ore prices saw a significant fall in Fortescue Metals (FMG.ASX) and this was a major contributor. Conversely, the rallies in Macquarie Group (MQG.ASX) and all the major commercial banks (ANZ.ASX, CBA.ASX, NAB.ASX & WBC.ASX) also saw positive contributions. The Fund Manager anticipate further large moves within the resources sector. The other strategies provided small positive contributions for towards the month's performance. Read the latest Fund Manager Report on the AFM website. |
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Totus Alpha Fund
22 Apr 2015 - Australian Fund Monitors
Totus Alpha Fund had a strong performance in March of 5.50% compared to the ASX200 Accumulation Index of -0.09%.
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22 Apr 2015 - 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 | At the end of March, the fund had a net exposure of 21.70% and a gross exposure of 279.90%. The fund is diversified across a number investment themes and geographies with 123 positions (55 long and 68 short) at the end of March. The average market cap of stocks in the portfolio is $20.15 billion. Top contributors were the long positions in 1-Page +1.9% (Online) and Altium +0.61% (Online). The short position in G8 Education added +0.83% (Promoter). Biggest detractors were the short positions in Ardent -0.25% (Earnings Risk) and in long position in Greencross -0.26% (Scarce Growth). Read the latest Fund Manager's Report now available on the AFM website. |
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Morphic Global Opportunities Fund
22 Apr 2015 - Australian Fund Monitors
Morphic Global Opportunities Fund rose 1.61% in March as its benchmark (MSCI AC World Total Return in AUD) rose 0.87%, resulting in out-performance of 0.74%
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22 Apr 2015 - Morphic Global Opportunities Fund
By: Australian Fund Monitors
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| Manager Comments | The strong absolute Fund returns in March owed mostly to the weakness of the Australian dollar, with global markets down 1.5% in US dollar terms. Among global markets, China did best, with Japan and Germany among the few others to post gains on a constant currency basis. The Fund's overweight to these countries, and its underweight to most other emerging markets, as well as Australia and North America, accounted for most of its geographical outperformance. The main detractors were Canara (one of our Indian Banks), and Japanese electrical engineering firm Kyudenko. Both positions have been cut. Active macro-hedges in rates and currencies also made modest contributions and helped limit volatility. The Fund closed the month fully invested, with the main features being overweight positions in China and India, Japan and Europe. The Fund has a small short position in the Australian dollar and initiated a long position in New Zealand short term rates to protect against interest rate and macroeconomic risks Read the latest Fund Manager's Report on the AFM website. |
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Fund Review: Monash Absolute Investment Fund March 2015
21 Apr 2015 - Australian Fund Monitors
Read the latest Fund Review with statistics since inception on Monash Absolute Investment Fund. CPD Points also available.
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21 Apr 2015 - Fund Review: Monash Absolute Investment Fund March 2015
By: Australian Fund Monitors
MONASH ABSOLUTE INVESTMENT FUND
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
We would like to highlight the following aspects of the Fund:
- The Fund is a research driven, active equity long/short strategy investing in listed ASX companies.
- The Fund seeks to identify opportunities in the share market to make positive returns (long and short) irrespective of market conditions. It is style agnostic, as compelling investment opportunities exist across all investment styles from time to time. The Fund places a high priority on capital preservation, and has an absolute return focus in accepting market risk.
If you have any questions in relation to the Fund Review, please do not hesitate to contact us.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Monash Absolute Investment AFM Fund Report March 2015Bennelong Kardinia Absolute Return Fund
21 Apr 2015 - Australian Fund Monitors
In March, Bennelong Kardinia Absolute Return Fund returned 1.24% bringing the Fund's annual performance since inception to 13.29% compared to the ASX200 Accumulation benchmark's 5.87%.
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21 Apr 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 | The net equity market exposure of the Fund (including derivatives) was increased during the month to 57.70% (87.60% long and 29.80% short). Long positions in Resmed, TPG Telecom and Aristocrat were the largest positive contributors to performance and long positions in Bank of Queensland and Lend Lease were the largest detractors. Click below to read the latest Fund Manager's Report. |
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Optimal Australia Absolute Trust
20 Apr 2015 - Australian Fund Monitors
Optimal Australia Absolute Trust reported a net positive return in March of 0.98%, compared to the flat ASX200 Accumulation Index (-0.09%).
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20 Apr 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 had a gross exposure of 83.80% and net exposure of -7.0%. The Fund maintained net short risk settings through the month, but the Fund's return was generated entirely by their long positions, with net attribution of 1.4% on average long exposure of 36% of NAV. The long positions included a number of solid performers,as well as small positions in two stocks which were subject to takeover offers, in iiNet and PanAust. In both cases, strategic buyers appear to see value in areas that the equity market does not. Click below to read the latest Fund Manager's review of the Fund and the Market. |
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Bennelong Long Short Equity Fund
17 Apr 2015 - Australian Fund Monitors
The Bennelong Long Short Equity Fund had a strong performance in March with a return of 3.59%.
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17 Apr 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. |
| Manager Comments | The portfolio's 21 of their 31 pairs posted a profit. The Fund's strongest positive contributors were from three separate sectors: Retail (long Harvey Norman +0.1% / short Myer -23.2%), Financials (long Henderson +9.3% / short AMP -1.9%) and Gaming (long Aristocrat +13.3% / short Tabcorp +5.7%). On the negative side, the largest setback was in Healthcare (long Ramsay +1.7% / short Primary +18.6%) and in Gaming (long Crown -11.4% / short Sky City +7.5%). The Fund Manager's outlook for the equity markets is little changed since last writing that equities will likely remain well bid in the current environment of loose policy settings. However caution that risks have risen given valuation multiples are becoming demanding by historical standards and given US interest rates will likely rise sometime this year. Click below to read the complete Fund Monthly commentary. |
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Laminar Credit Opportunities Fund
16 Apr 2015 - Australian Fund Monitors
In March, the Laminar Credit Opportunities Fund returned 0.54%, bringing its annual performance since inception to 19.33%.
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16 Apr 2015 - Laminar Credit Opportunities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund may also invest in derivatives for hedging purposes. The portfolio of the Fund comprises primarily Investment Grade holding of 75% of the Fund's assets. Benchmark allocations are Australasia 50% to 100%, North America 0% to 50% and Europe 0% to 50%. Currency hedging may take place depending on benefits to the Fund. |
| Manager Comments | Notwithstanding the RBA decision not to follow their February 25bps interest rate cut in March, we believe a further reduction is forthcoming. While another interest rate cut will reduce the Fund's running yield, owing to a lower reference rate (BBSW), the corollary is likely to be a broad based 'hunt' for yield, with the exiting of term deposits into risky assets. The Fund is likely to be beneficiary of this rotation with the trading margin on its securities likely to compress, leading to a higher price. Click on the link below to read the latest Fund Manager's Report. |
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QATO Capital Market Neutral Long/Short Fund
16 Apr 2015 - Australian Fund Monitors
QATO Capital Market Neutral Long/Short Fund rose 3.12% in March bringing performance for the last 6 months to 25.16%
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16 Apr 2015 - QATO Capital Market Neutral Long/Short Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | The Fund's long and short exposures continued to generate alpha from a diverse range of sectors. The Fund average monthly long exposure was 92.80% and short exposure -84.3% to give 8.5% net monthly exposure. Alpha in long positions was generated in the telecom, transportation, financial, industrial, healthcare and gaming sectors. Whereas the alpha from short positions was generated in the gaming, mining & mining services, energy and industrial sectors. In March, the Qato Capital's Q-score process and risk management techniques systematically invested in the best performing S&P/ASX-100 position for the month and was short the worst performing position for the month. The Q-Score was also short 7 of the worst 10 performing positions in this Index. 20 of the Fund's positions were profitable for the month. Click the Manager's Report to read the complete review |
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