News
Alpha Beta Asian Fund
20 Oct 2014 - Australian Fund Monitors
Alpha Beta Asian Fund returned -0.70% during September, a weak month for global equity markets, and with the annual return 7.07% and a volatility of 3.99%.
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20 Oct 2014 - Alpha Beta Asian Fund
By: Australian Fund Monitors
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| Fund Overview | The investment objective of the Fund is to produce positive annual returns without excessive risk. This is achieved through the use of a quantitative approach to invest both long and short in large cap companies listed on Asian stock exchanges. The Fund may also use index futures to manage risk. Stock prices and company fundamental data are decomposed into directional and mean reverting components. Each of Alpha Beta's models are based on either of these known behaviours with capital management built into each model. The benefit of a quantitative approach is that it is both repeatable and unemotional, and allows a different source of returns to be extracted from a very noisy market environment. |
| Manager Comments | The Sharpe and Sortino ratios were 1.12 and 2.20 respectively over the last year. The since inception (June 2012) correlation to the MSCI Asia Pacific Index was 0.20 and the beta 0.11. At month-end the had a gross exposure of 164% and a net exposure of 17% across 375 positions. |
| More Information | » View detailed profile of this fund |
Bennelong Kardinia Absolute Return Fund
17 Oct 2014 - Australian Fund Monitors
Bennelong Kardinia Absolute Return Fund returned -0.31% during September, while ASX 200 Acc stocks fell 5.38%, bringing annual performance to 5.29% with volatility at 4.32%.
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17 Oct 2014 - 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 | Since inception (May 2006) returns are 13.00% pa as compared to the Index at 4.61% pa with a volatility of 7.55% (index 14.32%). Sharpe and Sortino ratios over that time are 1.08 and 2.08 respectively. Net equity market exposure (including derivatives) was progressively decreased to 21.7% (47.6% long and 25.8% short) at month-end. Short positions in Share Price Index Futures contracts (hedging market risk), AGL Energy and Metcash were the largest positive contributors, whilst long positions in Oil Search, Challenger and Crown Resorts were the largest detractors from performance. |
| More Information | » View detailed profile of this fund |
Fund Review: Microequities Deep Value Microcap Fund September 2014
17 Oct 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Microequities Fund for September 2014. The Fund is characterised by above index returns and sound Sharpe and Sortino ratios. The Fund returned -0.66% during June and since inception (March 2009) the Fund...
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17 Oct 2014 - Fund Review: Microequities Deep Value Microcap Fund September 2014
By: Australian Fund Monitors
Microequities Deep Value Fund AFM Report Sept 2014 (pdf format)
MICROEQUITIES DEEP VALUE FUND
Attached is our most recently updated Fund Review on the Microequities Deep Value 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 Microequities Deep Value Fund has a 5 year track record investing in ASX listed equities. The Fund is a fundamental, research-driven Fund investing in equities with a market cap below $250m. The Fund uses a value philosophy based on the view that microcaps are often under-researched and under-valued.CIO Carlos Gil has over 15 years financial market experience across a broad range of equities.
- The Fund does not short, use derivatives or borrow i.e., it is long only and is concentrated; usually with 15 to 20 companies across industrial sectors.
- Resource stocks are avoided.
If you have any questions in relation to the Fund Review or the CPD points, please do not hesitate to contact us.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Microequities Deep Value Fund AFM Report Sept 2014 (pdf format)
Fund Review: Optimal Australia Absolute Trust Sept 2014
16 Oct 2014 - Australian Fund Monitors
AFM's updated Fund Review for September was positive in a negative month for equities and the Fund has a very low annual volatility of 1.71%. CPD Points available.
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16 Oct 2014 - Fund Review: Optimal Australia Absolute Trust Sept 2014
By: Australian Fund Monitors
OPTIMAL AUSTRALIA ABSOLUTE TRUST
AFM have released the most recently updated Fund Review on the Optimal Australia Absolute Trust.
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:
- 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 Fund's approach to risk si shown by the Sharpe ratio of 1.80, Sortino ratio of 5.29, both of which are well above the ASX 200 Acc Index, and volatility of 3.41%. The Fund has also recorded 85% positive months.
- The investment team comprising George Colman, Peter Whiting supported by Stephen Nicholls and Justin Hay have over 100 years combined experience in equity markets.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Microequities Deep Value Microcap Fund
16 Oct 2014 - Australian Fund Monitors
In a weak month for domestic equities the Microequities Fund returned -2.59% bringing 12 month performance to 16.31% with volatility of 7.40%.
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16 Oct 2014 - Microequities Deep Value Microcap Fund
By: Australian Fund Monitors
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| Fund Overview | The objective of the Fund is to identify undervalued Microcap companies, invest in them and, through a medium to long term commitment, attempt to deliver superior investment returns. The Fund invests primarily in ASX listed Microcap companies, which at the time of initial investment are generally below a market capitalisation of A$250 million. The Fund may also invest in companies with a higher market capitalisation, but these will be limited to no more than 20% of the assets of the Fund. At times the Fund may invest in pre-IPO securities that are due to be listed on the ASX within 3-6 months, and have lodged a prospectus with ASIC. These investments will also be limited to no more than 10% of the assets of the Fund. The Fund will be limited to investing no more than 20% of the Fund's assets in any one security or company. The Fund will make investments with a medium to long term time horizon of between 3-5+ years. The Fund will not speculate in derivatives. It will be permitted to hold other securities that are directly associated with a particular investment such as options granted with a specific company issue etc. The Fund will not engage in short selling or stock lending. The Fund will not hold financial debt of any kind. |
| Manager Comments | Since inception (March 2009) performance is 29.60% pa (Index 13.51%) and a Sharpe ratio of 1.53. The Manager's monthly report comments on their approach to market timing. Our approach to market timing is rather simple, we don't have an approach to market timing. We don't take market timing into consideration. This might sound like a recalcitrant or flippant approach to those that are unacquainted with our investment process. But it is a position based on an understanding that proficient market timing expertise is analogous to a broken watch telling you the correct time, it only happens once a day and the reliability and causality of the correctness has nothing to do with accuracy or reliability of the time piece. Our portfolio of business partnerships in either of our open ended funds are not a microcosm of the Australian equity market, they are not a proxy for the Australian economy nor the world economy. They are an array of special profitable businesses that we believe have long term growth pathways managed by competent management teams that carry out their office in the shareholders best interest. |
| More Information | » View detailed profile of this fund |
Morphic Global Opportunities Fund
15 Oct 2014 - Australian Fund Monitors
Morphic Global Opportunities Fund returned 3.20% in September and 17.93% for the prior 12 months with a volatility of 8.39%.
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15 Oct 2014 - Morphic Global Opportunities Fund
By: Australian Fund Monitors
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| Manager Comments | The Fund's main win again came from its oldest thematic holding - the Japanese drugstore chain basket. The long positions in national store chain Welcia and regional player Kusuri no Aoki were increased, but Sundrug and a short position in Sugi were closed. A short position in a highly priced regional player and the long position in national chain Tsuruha were maintained. The other main stock contributor was Japanese automotive manufacturer Mitsubishi Motors. The Fund remains positioned for a continuing bull market, though somewhat more tentatively than in recent months. Nevertheless the Fund remains close to fully invested. For the equity bull market that began in 2009 to end now, before the first rate increase in the cycle, with a backdrop of good economic data and earnings, would be to believe that "this time is different" - and whilst the Manager is always open these possibilities, it is not our base case for now. All assets remain unhedged to the Australian Dollar. |
| More Information | » View detailed profile of this fund |
Monash Absolute Investment Fund
14 Oct 2014 - Australian Fund Monitors
Monash Absolute Investment Fund returned -4.30% during September, a very weak month for domestic equities, which fell 5.4%. The Fund's annual return was 8.27%.
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14 Oct 2014 - Monash Absolute Investment Fund
By: Australian Fund Monitors
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| 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 | Monash Absolute Investment Fund returned -4.0% during September, a very weak month for domestic equities, which fell 5.4%. The Fund's annual return was 8.27% (ASX 200 Accum 5.93%). Volatility was 8.32% as compared to 10.17% for the Index. The negative return was not due to any bad news associated with our stocks, nor due to exposure to sectors perceived to be stretched, such as high yield financials and resources. It was primarily because our market exposure was relatively high in a falling market. While the market has had a decent recovery over the last couple of years, it has not been pushed by investor euphoria. We do not see the market as being particularly expensive. Before this month, it was merely on the expensive side of fair and now it is around fair value. |
| More Information | » View detailed profile of this fund |
Optimal Australia Absolute Trust
10 Oct 2014 - Australian Fund Monitors
Optimal Australia Absolute Trust returned 0.64% during September, a very difficult month in which the ASX 200 fell -5.38%, with the 12 month return at 6.51%.
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10 Oct 2014 - 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 has a Sharpe ratio of 2.26 (Index 0.38) and Sortino of 5.08 (Index 0.48) with the Up and Down Capture ratio of 0.27 and -0.12 respectively. Interestingly, since inception, the Fund was up in 79% of months that the ASX recorded a negative return. Our long portfolio performed better than the market, with negative attribution of -2.35% on average long market exposure at 46.6% of fund NAV. Our short positions did well, with positive attribution of +3.2% on average short exposure at 59% of NAV. Our short portfolio included a number of financial and defensive yield stocks which, difficult as these positions have been to put on in the face of financial repression and the associated over-reach for coupon income, proved highly effective in hedging market risk. |
| More Information | » View detailed profile of this fund |
Bennelong Alpha 200 Fund
9 Oct 2014 - Australian Fund Monitors
Bennelong Alpha 200 Fund returned 0.56% during September, a very weak month for domestic equities with the ASX 200 Accum Index down 5.38%.
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9 Oct 2014 - Bennelong Alpha 200 Fund
By: Australian Fund Monitors
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| Fund Overview | The core investment strategy of the Fund consists of the active selection of a series of paired long/short investments in Australian listed equities based upon the Investment Manager's fundamental research. The strategy seeks to capture stock Alpha whilst limiting portfolio exposure to market risk by adopting a dollar neutral portfolio market exposure position with the tactical capability to take net exposure of up to +/- 20% of gross assets. Stock selection is based on fundamental analysis to derive a view of a pair of individual stocks. The Investment Manager is style neutral in determining the stock's positioning. This primary 'pairs' strategy may be enhanced by other complementary strategies, including event driven, security and takeover arbitrage, thematic and momentum trading. The paired stock positions comprise long and short correlated securities that are in most cases simultaneously opened. A portfolio of approximately 30-100 stocks will be selected and actively managed in 15-50 pairs to comprise the core minimum (60%) of the Gross Asset Value. Up to a maximum of 40% of the portfolio's Gross Asset Value may be invested in uncorrelated securities and/or uncovered (long and/or short) positions. These 'satellite' positions are intended to enhance returns and to balance overall portfolio risk. In this regard, the Investment Manager recognises that it is not always possible to achieve a suitable paired profile within the S&P/ASX 200, and that a high conviction long or short stock idea might not always have a suitable pair. |
| Manager Comments | At month-end the Fund was levered 2.6 times with long/short exposure at 51.6/48.4% respectively. The Fund just managed to keep its head above water due to the contribution from the short book. Among the best contributor's two stocks; Isentia and Austal, delivered good financial results towards the end of reporting season leading to upgrades and relatively strong performance in September. |
| More Information | » View detailed profile of this fund |
Fund Review: Totus Alpha Fund August 2014
8 Oct 2014 - Australian Fund Monitors
Totus Alpha Fund returned 2.02% performance for August, read the latest Fund Review with statistics since inception. CPD Points also available.
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8 Oct 2014 - Fund Review: Totus Alpha Fund August 2014
By: Australian Fund Monitors
Totus Alpha Fund AFM Report August 2014 (pdf format)
TOTUS ALPHA 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;
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Totus Capital is a Sydney based long short fund manager established in 2012 by Ben McGarry which aims to place equal emphasis on performance and capital preservation. The Fund invests mainly in Australia, but also in other developed economies, with a primary exposure to equity markets.
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The Totus Alpha Fund?s investment strategy is to identify structural themes, and then seek to drive performance by investing in securities that have concentrated exposure to those themes. Single stock short positions are used to generate alpha, frequently in under researched parts of the market such as the small and mid-cap space. Index derivatives are used to hedge the portfolio?s market risk.
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McGarry qualified as a Chartered Accountant with PWC in 1999 and has 14 years market experience, commencing his career covering European building materials and construction sectors at Morgan Stanley in London. Previous experience included analytical roles at Ausbil, a Sydney based $10bn+ long-only manager, and sell side emerging companies experience at UBS. McGarry?s emerging company research with UBS included exposure to a range of sectors including energy, materials, industrials, tech, financials, retail and telecommunications.
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The Fund has delivered an annalised return of 26.92% since inception in March 2012 as compared to 16.37% for the ASX 200 Accumulation Index. The standard deviation has been higher than the Index at 13.64% as compared to 10.47% and the Sharpe ratio is 1.62.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Totus Alpha Fund AFM Report August 2014 (pdf format)
