Fund Review: Morphic Global Opportunities Fund February 2015

25 Mar 2015 - Australian Fund Monitors

Read the latest Fund Review for Morphic Global Opportunities Fund, which rose 3.08% in February & get CPD points.

Pengana Absolute Return Asia Pacific Fund

24 Mar 2015 - Australian Fund Monitors

Pengana Absolute Return Asia Pacific Fund returned 0.70% in February, bringing the annualised return since inception to 11.01%.

24 Mar 2015 - Pengana Absolute Return Asia Pacific Fund

By: Australian Fund Monitors

Report Date	19 March 2015
Manager	Pengana Capital
Fund Name	Pengana Absolute Return Asia Pacific Fund
Strategy	Event Driven
Latest Return Date	February 2015
Latest Return	0.70%
Latest 6 Months	4.14%
Latest 12 Months	5.42%
Latest 24 Months	17.41%
Annualised Since Inception	11.01%
Inception Date	01 September 2010
FUM (millions)	AU$77.8
Fund Overview	The Pengana Asia Special Events (Onshore) 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. The Fund seeks to profit from trading securities which are primarily subject to corporate events or from trading-related securities which the Investment Manager believes are mispriced by the market. The Fund invests in securities that are listed on Asian stock markets and other markets where related securities may be listed and in securities which are listed on markets outside of Asia where more than 70% (by assets or earnings) of the underlying business originates from an Asian country. 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%
Manager Comments	Pengana Absolute Return Asia Pacific Fund returned 0.70% in February, bringing the annualised return since inception to 11.01%. The Fund has achieved this with an annual volatility of 5.73%. The Sharpe and Sortino ratio for the Fund were 1.26 and 3.53 respectively. In comparison the Asia Pacific Index rose 4.11% in February and has an annualised performance since inception of 5.53% In comparison the HFR Event Driven Index which closed +2.7%. Fund gross exposure averaged 243% reflecting the Fund's increased optimism over event-driven opportunities across Asia, while net averaged 16%. Outbound M&A by Japanese companies is the trending theme in Asia event space and the Fund continues to expect Japanese companies displaying appetite for acquisitions which are ROE accretive due to cheap financing. Over 48% of the Fund's monthly gross exposure by strategy was in M&A followed by Capital management at 21.3%.
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Bennelong Long Short Equity Fund

23 Mar 2015 - Australian Fund Monitors

The Bennelong Long Short Equity Fund performance in February was flat (0.05%) following a 3-month gain of 8.85%.

23 Mar 2015 - Bennelong Long Short Equity Fund

By: Australian Fund Monitors

Report Date	18 March 2015
Manager	Bennelong Long Short Equity Management, a Bennelong Funds Management boutique
Fund Name	Bennelong Long Short Equity Fund
Strategy	Equity Market Neutral
Latest Return Date	February 2015
Latest Return	0.05%
Latest 6 Months	0.46%
Latest 12 Months	-4.21%
Latest 24 Months	17.23%
Annualised Since Inception	17.25%
Inception Date	01 January 2003
FUM (millions)	AU$383.3
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.
Manager Comments	The Bennelong Long Short Equity Fund performance in February was flat (0.05%) following a 3-month gain of 8.85%. Long term performance remains sound with since inception (Jan 2003) returns at 17.25% pa (Index 8.82%) and a volatility of 11.84% (Index 12.92%). The Fund's February performance was due sound pair positioning, with strong positive contributions from long QBE Insurance / short Suncorp Group, long Ramsay Healthcare / short Primary Healthcare and a long position in Whitehaven Coal. However offsetting these gains was the Fund's long Brambles/short Toll Holdings position, which detracted -2.1% of return. The Fund long exposure was 51.8% and short exposure 48.2%.
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Cor Capital Fund

20 Mar 2015 - Australian Fund Monitors

The Cor Capital Fund returned 0.56% during February, above the Index return of 0.19%, with an annual return since inception of 6.36% (Index 2.71%).

20 Mar 2015 - Cor Capital Fund

By: Australian Fund Monitors

Report Date	16 March 2015
Manager	Cor Capital Pty Ltd
Fund Name	Cor Capital Fund
Strategy	Multi Strategy
Latest Return Date	February 2015
Latest Return	0.56%
Latest 6 Months	5.87%
Latest 12 Months	6.68%
Latest 24 Months	9.63%
Annualised Since Inception	6.36%
Inception Date	08 August 2012
FUM (millions)	AU$23
Fund Overview	The Manager seeks to generate stable absolute returns over the medium term, regardless of prevailing economic or financial market conditions. The Cor Capital Fund is a Multi- Asset Fund which combines a pre-determined strategic asset allocation with active but systemised rebalancing to generate returns and manage volatility whilst maintaining transparency and liquidity. The Fund strategy is not reliant on accurate market predictions, forecasts or timing for success. Returns are generated in a number of ways; 1) by maintaining sufficiently large positions in a diverse group of asset classes, 2) via the 'volatility harvesting' consequences of active rebalancing, and 3) from the offsetting behaviour of certain asset classes under specific conditions. The combined portfolio is expected to exhibit relatively low volatility and low turnover. In the interests of avoiding complexity, maintaining liquidity, and minimising reliance on third parties, the Fund strategy does not employ gearing, derivatives or short-selling.
Manager Comments	The Cor Capital Fund returned 0.56% in February, above the Index return of 0.19%, and with return since inception of 6.36% (Index 2.71%). The Fund's rebalancing away from gold and into equities at the end of January proved timely with the precious metal subsequently falling in price by 5 percent and equities surging nearly 7 percent. The Manager continued to capitalise on this increased volatility in February when asset class limits were again breached but in the opposite direction to January. The Fund's equities position was trimmed by 6% at the end of February and the proceeds were largely moved back to gold.
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Morphic Global Opportunities Fund

19 Mar 2015 - Australian Fund Monitors

Morphic Global Opportunities Fund recorded a return of 3.08% in February, bringing the Fund's performance over the prior twelve months to 25.66%.

19 Mar 2015 - Morphic Global Opportunities Fund

By: Australian Fund Monitors

Report Date	16 March 2015
Manager	Morphic Asset Management
Fund Name	Morphic Global Opportunities Fund
Strategy	Equity Long/Short
Latest Return Date	February 2015
Latest Return	3.08%
Latest 6 Months	21.31%
Latest 12 Months	25.66%
Latest 24 Months	66.33%
Annualised Since Inception	29.01%
Inception Date	02 August 2012
FUM (millions)	AU$101
Fund Overview	The Fund will primarily consist of Global listed shares, and will generally have at least 50% of its net assets invested in these. It may also have short positions in shares that the Manager believes are over-valued, and likely to fall in price, as well as long and short positions in index futures and other derivatives, fixed interest instruments, commodities, credit instruments and currencies.
Manager Comments	Morphic Global Opportunities Fund recorded a return of 3.08% in February, bringing the Fund's performance over the prior twelve months to 25.66%. Since inception the Fund's annualised return per annum was 29.01, compared to the Global Equity Index of 29.47%. The strong market in February came despite a small recovery in the Australian dollar, with global markets up 5.6% in US dollar terms. On a regional basis, Japan did best, with Europe and US in line with world markets, and emerging markets were weak. Gains came steadily over the period despite high anxiety mid-month about a Greek exit from the Eurozone. Stock selection rather than asset allocation accounted for most of the Fund's underperformance, with hedging costs associated with preparing to protect the Fund from the adverse effects of a failure in the Greek negotiations for an extension of its bailout adding only marginally The Fund closed the month fully invested, with the main features being overweight positions in China and India against the rest of the emerging market complex, and an overweight position in Japan and Europe against the US. Greece related hedges have been removed post month end. The Fund slightly cut its underweight position in the Australian dollar during the month.
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Optimal Australia Absolute Trust

18 Mar 2015 - Australian Fund Monitors

Optimal Australia Absolute Trust reported a flat net return in February (-0.08%), bringing annualised returns since inception to 8.65% p.a. with a volatility of 3.67% p.a.

18 Mar 2015 - Optimal Australia Absolute Trust

By: Australian Fund Monitors

Report Date	11 March 2015
Manager	Optimal Fund Management Australia
Fund Name	Optimal Australia Absolute Trust
Strategy	Equity Long/Short
Latest Return Date	February 2015
Latest Return	-0.08%
Latest 6 Months	-4.04%
Latest 12 Months	-0.41%
Latest 24 Months	2.77%
Annualised Since Inception	8.65%
Inception Date	15 September 2008
FUM (millions)	AU$110
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 flat net return in February (-0.08%), bringing annualised returns since inception to 8.65% (ASX200 Accumulation Index 6.92% with a volatility of 3.67% p.a (Index 14.59%). The Fund had a gross exposure of 82.30% and net exposure of -15.80%. The Fund's long positions did a very solid job, with portfolio attribution of 2.94% on average long exposure of 33% of Fund NAV (a return of over 9% if grossed-up to 100% long exposure), but this good work was offset by losses on our shorts and derivative hedge positions.
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Fund Review: Monash Absolute Investment Fund February 2015

17 Mar 2015 - Australian Fund Monitors

Read the latest Fund Review with statistics since inception on Monash Absolute Investment Fund. CPD Points also available.

Bennelong Kardinia Absolute Return Fund

16 Mar 2015 - Australian Fund Monitors

In February, Bennelong Kardinia Absolute Return Fund returned 1.90% bringing the Fund's annual performance since inception to 13.26% compared to the ASX200 Accumulation benchmark of 5.93%.

16 Mar 2015 - Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	10 March 2015
Manager	Kardinia Capital, a Bennelong Funds Management boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	February 2015
Latest Return	1.90%
Latest 6 Months	7.10%
Latest 12 Months	8.77%
Latest 24 Months	19.94%
Annualised Since Inception	13.26%
Inception Date	01 May 2006
FUM (millions)	AU$174.9
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	In February, Bennelong Kardinia Absolute Return Fund returned 1.90% bringing the Fund's annual performance since inception to 13.26% versus the ASX200 Accumulation Index of 5.93%. The Fund's volatility of 7.38% is half that of the ASX200 Accumulation volatility 14.30%. Since inception of May 2006, the Fund's Sharpe and Sortino ratio were 1.15 (Index 0.18) and 2.22 (Index 0.14) respectively. The net equity market exposure of the Fund (including derivatives) was decreased to 40.80% (81.80% long and 41.0% short). Ramsay Health Care, SurfStitch,Bank of Queensland and APA were all significant contributors to performance, whilst Share Price Index Futures (hedging long positions), a long position in Genworth and a short position in ASX were the major detractors.
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Fund Review: Alpha Beta Asian Fund Review January 2015

13 Mar 2015 - Australian Fund Monitors

January Fund Review for Alpha Beta Asian Fund, an Asian Quantitative Fund, is now available. Get CPD Points for reading the review.

13 Mar 2015 - Fund Review: Alpha Beta Asian Fund Review January 2015

By: Australian Fund Monitors

ALPHA BETA ASIAN FUND

AFM has updated the Fund Review on the Alpha Beta Asian 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.

Key points include:

The Fund The Alpha Beta Asian Fund invests in Asian listed equity markets with a focus on liquid companies in Australia, Japan, Hong Kong, Indonesia, Philippines and Thailand. The Fund uses a systematic approach to evaluate macroeconomic, company fundamental and price data, all of which are evaluated through a series of quantitative models.
Sydney based Alpha Beta Capital was established by Andrew Barry and Ken Lewis in May 2012. Both Barry and Lewis have significant qualifications and international experience in funds management, including working together at Coronation International, a global multi-strategy hedge fund group in London.
The Strategy relies on a number of core beliefs: Firstly that a well designed systematic investment process, operating within a multi-strategy framework will be able to extract consistent returns, on average, with low volatility. Secondly, by utilising holding periods substantially shorter than the industry-norm, profit opportunities consistently arise. Finally, a strategy that holds a large number of small positions versus a small number of concentrated positions, will remove much of the emotional angst of trading, and the investment process becomes repeatable.
In keeping with the Manager's overall systematic approach the Risk Management includes real time monitoring of positions and market exposure, and is combined into a proprietary and automated system called PARMS (Portfolio and Risk Management System). PARMS is a centralised and integrated system which provides full functionality including stress testing.

For further details on the Fund, please do not hesitate to contact us.

Sean Webster
Research Manager

ATTACHED FILES

Alpha Beta Asian Fund AFM Fund report Jan 2015 (pdf format)

Fund Review: Insync Global Titans Fund January 2015

12 Mar 2015 - Australian Fund Monitors

The Fund's unit price in January increased by 1.3%. Read January Fund Review and get CPD points.

Fund Monitors Pty Ltd

News

25 Mar 2015 - Fund Review: Morphic Global Opportunities Fund February 2015

24 Mar 2015 - Pengana Absolute Return Asia Pacific Fund

23 Mar 2015 - Bennelong Long Short Equity Fund

20 Mar 2015 - Cor Capital Fund

19 Mar 2015 - Morphic Global Opportunities Fund

18 Mar 2015 - Optimal Australia Absolute Trust

17 Mar 2015 - Fund Review: Monash Absolute Investment Fund February 2015

16 Mar 2015 - Bennelong Kardinia Absolute Return Fund

13 Mar 2015 - Fund Review: Alpha Beta Asian Fund Review January 2015

12 Mar 2015 - Fund Review: Insync Global Titans Fund January 2015

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