News
Pengana Absolute Return Asia Pacific Fund
22 May 2015 - Australian Fund Monitors
Pengana Absolute Return Asia Pacific Fund had a strong performance of 3.87% for the month of April, bringing the annualised return since inception to 11.43%.
Read more...
22 May 2015 - Pengana Absolute Return Asia Pacific Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 +0.50%. The month saw significant volatility in China/ Hong Kong (H Shares) after CSRC allowed Chinese mutual funds to access Hong Kong markets which significantly impacted holding company discounts and A/H spreads. Performance was diversified across the M&A, Capital Management and Stubs sub strategies. The Fund used this opportunity to reduce their gross exposure and overall net to 210% and 15.70% respectively. Forty percent of the Fund's monthly gross exposure by strategy was in M&A followed by Capital management at 24.80%. Whereas the country exposure as percentage (%) of NAV was most in Hong Kong/China with gross of 75.50% and Japan of 36.80%. Click below to read the complete Fund Manager's Report |
| More Information |
Allard Investment Fund
22 May 2015 - Australian Fund Monitors
Allard Investment Fund increased 1.50% during the month of April, to bring the Fund's last twelve month performance to 27.08%.
Read more...
22 May 2015 - Allard Investment Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | |
| Manager Comments | The Fund portfolio was invested 75% in equities and 25% in cash and fixed income. There has been little change since the prior month, in terms of the industry and geographic breakdown of the portfolio. The Fund continues to be most exposed to Financial Services at 18.30%, Conglomerates at 10.90% and Telco's at 11.10%. The geographic breakdown was Hong Kong / China at 43.00%, Singapore 10.90% and Korea 9.70%. The top 5 holdings had 42.00% concentration of the portfolio and 16.50% in the next 5 holdings. Click below to review the latest Fund Manager's Report. |
| More Information |
Fund Review: Bennelong Kardinia Absolute Return Fund April 2015
21 May 2015 - Australian Fund Monitors
Latest Fund Review now available on Bennelong Kardinia Absolute Return Fund, which has over nine years of positive track record.
Read more...
21 May 2015 - Fund Review: Bennelong Kardinia Absolute Return Fund April 2015
By: Australian Fund Monitors
BENNELONG KARDINIA ABSOLUTE RETURN FUND
Attached is our most recently updated Fund Review. You are also able to view the Fund's Profile.
- The Fund is long biased, research driven, active equity long/short strategy investing in listed ASX companies with an nine year track record.
- The Fund has significantly outperformed the ASX200 Accumulation Index since its inception in April 2006 and also has significantly lower risk KPI's. The Bennelong Kardinia Absolute Return Fund fell 0.59% in April and has volatility of 7.33% pa, compared to the ASX200 Accumulation's 14.19%.
- The Fund also has a strong focus on capital protection in negative markets. Portfolio Managers Mark Burgess and Kristiaan Rehder have significant market experience, while the Bennelong Group provide infrastructure, operational, compliance and distribution capabilities.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research Manager
Fund Review: Optimal Australia Absolute Trust April 2015
20 May 2015 - Australian Fund Monitors
Read the latest Fund Review on Optimal Australian Absolute Trust Fund, which reported a positive 1.96% in April.
Read more...
20 May 2015 - Fund Review: Optimal Australia Absolute Trust April 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.
- The Fund's approach to risk is shown by the Sharpe ratio of 1.41, Sortino ratio of 3.17, 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.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Fund Review: Monash Absolute Investment Fund April 2015
19 May 2015 - Australian Fund Monitors
Read the latest Fund Review with statistics since inception on Monash Absolute Investment Fund.
Read more...
19 May 2015 - Fund Review: Monash Absolute Investment Fund April 2015
By: Australian Fund Monitors
Monash Absolute Investment Fund Review April 2015 (pdf format)
MONASH ABSOLUTE INVESTMENT FUND
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 Fund Review April 2015 (pdf format)
Bennelong Long Short Equity Fund
18 May 2015 - Australian Fund Monitors
The Bennelong Long Short Equity Fund performance in April was flat (0.03%).
Read more...
18 May 2015 - Bennelong Long Short Equity Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 number of profitable pairs exceeded the number of losing pairs; 17 positive, 14 negative. Long Caltex / Short Metcash was a top 3 pair. Both sides of the trade contributed positively despite Caltex absorbing the impact of the majority shareholder, Chevron, selling its 50% shareholding. Notwithstanding weakness in the Financials sector, key positive contributors to the portfolio were Long QBE / Short Suncorp benefiting from weakness in domestically focussed general insurers and Long Challenger / Short ANZ benefitting from weakness in banks. Within the negative pairs, our Long Resmed / Short Ansell position was key following a quarterly result from Resmed which the market took negatively. The Fund Manager continues to be apprehensive about the equity market valuation. Click below to read the complete Fund Monthly commentary. |
| More Information |
Bennelong Kardinia Absolute Return Fund
14 May 2015 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund fell 0.59% in April to bring the Fund's annual performance since inception to 13.08% compared to the ASX200 Accumulation benchmark's 5.61%.
Read more...
14 May 2015 - Bennelong Kardinia Absolute Return Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 reduced during the month to 39.80% (70.40% long and 30.60% short). ResMed's poorly received quarterly results were a major detractor from the Fund's performance, along with Ramsay Health Care and Westpac. Share Price Index Futures contracts (hedging market exposure), Surfstitch and Transurban were the largest positive contributors. Click below to read the latest Fund Manager's Report. |
| More Information |
Optimal Australia Absolute Trust
13 May 2015 - Australian Fund Monitors
Optimal Australia Absolute Trust reported a net positive return in April of 1.96%, compared to the ASX200 Accumulation Index of -1.70%.
Read more...
13 May 2015 - Optimal Australia Absolute Trust
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 100.30% and net exposure of -0.1%. The Fund's stock selection performed strongly in April, with positive attribution on both the fund's long (+0.5%) and short (+1.5%) positions, in an appreciably weaker and more volatile equity market. Their long position in Fairfax and shorts in the banks both did well. The Fund's stock returns were otherwise quite diversified, with no single theme or sector dominating overall performance. Click below to read the latest Fund Manager's review of the Fund and the Market. |
| More Information |
Monash Absolute Investment Fund
12 May 2015 - Australian Fund Monitors
Monash Absolute Investment Fund had a flat April (0.0%), while the Australian equity market had its second consecutive negative month (-1.70%).
Read more...
12 May 2015 - Monash Absolute Investment Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | 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. The Manager's experience across value, growth and discounted cash flow styles allows them to use a comprehensive approach to investment decisions that applies all three. They also have the patience to seek out only compelling opportunities, rather than settling for relative value. The portfolio is somewhat concentrated, looking to diversify across industries and themes, rather than by trying to stay near an index. The portfolio may at times have a large amount of cash or other protection. However once investments are made turnover may be relatively high in order to lock in gains and avoid losses. |
| Manager Comments | The Manager's month-end exposure was net 71%, gross 95%,VAR 1.0%, with a beta of 0.49 for the portfolio. The Fund's short positions generally assisted in April, which was offset by larger portfolio positions that fell despite no news. Some of the highs for the month came from strong gains in VMoto (VMT) and from Energy Action (EAX). However Next DC (NXT) and Netcomm Wireless (NTC) were negative contributors to the Fund's performance. Click the link below to the rest of the Fund Manager's Report. |
| More Information |
Fund Review: Supervised High Yield Fund March 2015
11 May 2015 - Australian Fund Monitors
Fund review on Supervised High Yield Fund, a fixed income fund, is now available. Also get CPD Points for reading the review.
Read more...
11 May 2015 - Fund Review: Supervised High Yield Fund March 2015
By: Australian Fund Monitors
SUPERVISED HIGH YIELD 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 Supervised High Yield Fund (SHYF) has a 5 year track record investing in fixed interest investments. The Investment strategy aims to deliver returns with zero correlation to equity markets by investing in debt securities with minimal default probability and offering a premium return above the risk free rate.
- The Fund is managed by Philip Carden whose experience in debt and capital markets spans 32 years, including time with JB Were's Capel Court Securities and Macquarie Bank, where he was the Executive Director responsible for the Debt Markets Division.
- SHYF is an Alternative Income fund which invests in Global and Australian debt markets, with all foreign currency receivables hedged back to Australian dollars.
- The Fund utilises a top down analysis of the economic environment and market to screen and identify debt market opportunities which it believes offer low risk with high yield. The next stage is the development of a risk matrix and investment strategy, following which detailed research is undertaken on specific investment opportunities which meet the pre-defined criteria established in the investment strategy.
- Prior to approving an investment for the Fund each potential investment is subject to two stress tests. The first of these is for credit and default risk, in which the investment is stress-tested to ensure that in a worst case economic environment it can repay 100% of its principal and interest obligations case scenario for the asset by examining the highest margin over the risk rate that the investment has previously experienced in a crisis situation. Any decline in value under the stress test that exceeds 10% of the Fund's value is avoided The second test examines market risk. In this case Carden looks at the worst case scenario for the asset by examining the highest margin over the risk rate that the investment has previously experienced in a crisis situation. Any decline in value under the stress test that exceeds 10% of the Fund's value is avoided.
Research and Database Manager
Australian Fund Monitors
