Fund Review: Morphic Global Opportunities Fund August 2014

8 Oct 2014 - Australian Fund Monitors

August Fund Review shows performance at 1.28% for the Morphic Global Opportunities Fund. CPD Points available.

Fund Review: Aurora Fortitude Absolute Return Fund August 2014

8 Oct 2014 - Australian Fund Monitors

Latest fund review now available for the Aurora Fortitude Absolute Return Fund, which has one of the most risk averse Key Performance Statistics of any fund in AFM's database. CPD Points available.

Supervised High Yield Fund

7 Oct 2014 - Australian Fund Monitors

Supervised High Yield Fund returned 0.54% during August and 6.95% for the year (RBA Cash Rate ave 2.5%) with a volatility of 0.70%.

Nanuk Global Alpha Fund

7 Oct 2014 - Australian Fund Monitors

Nanuk Global Alpha Fund returned 0.52% during August and 16.39% for the prior year with a volatility of 8.98%.

7 Oct 2014 - Nanuk Global Alpha Fund

By: Australian Fund Monitors

Report Date	03 October 2014
Manager	Nanuk Asset Management Pty Ltd
Fund Name	Nanuk Global Alpha Fund
Strategy	Equity Long/Short
Latest Return Date	August 2014
Latest Return	0.52%
Latest 6 Months	-2.76%
Latest 12 Months	16.39%
Latest 24 Months	29.68%
Annualised Since Inception	4.94%
Inception Date	01 June 2011
FUM (millions)	US$46
Fund Overview	Nanuk's strategy is based on increased economic development, the limitations of conventional energy sources and proliferating energy security issues that are leading to long-term structural shifts in the way energy is generated, managed and consumed. Similar pressures are causing changing landscapes for food, water and environmental management. These developments present a range of innovative and compelling investment opportunities. In 2013 Nanuk started to expand the focus of the fund away from just energy and include other industries related to the overarching theme of environmental sustainability, specifically water, waste, recycling, pollution control and agriculture. Nanuk is now investing across a universe in excess of 600 stocks and an aggregate market capitalisation over US$2 trillion. This was a logical move because, while the industries themselves are different, their characteristics and long term drivers are very similar. Nanuk has identified a large, diverse global universe of companies positively exposed to these shifts. Nanuk combines deep fundamental research into these companies with detailed analysis of technological development, policy direction and related economics within each of the relevant sectors to identify profitable trends and opportunities suitable for inclusion in the Fund. Nanuk's principal strategy is to invest, long and short, in securities that are mis-priced on an absolute or relative basis. The Fund aims to achieve long term capital appreciation while reducing volatility of returns and risk of capital loss through appropriate hedging and risk management strategies.
Manager Comments	Nanuk Global Alpha Fund returned 0.52% during August and 16.39% for the prior year with a volatility of 8.98%. The Fund was 43% long and 39% short at month-end with 83 positions and the top 5 long positions comprising 12 % of the portfolio. The Fund was up 0.5% with the long book contributing positively and the short book flat for the month. The major contributors to performance were long positions in US listed Chinese solar companies Canadian Solar and JinkoSolar, and Taiwanese LED stock Lextar Electronics, all positions that the Fund has held for most of this year in anticipation of improving financial performance in the second half of the year.
More Information	» View detailed profile of this fund

Fund Review: Supervised High Yield Fund August 2014

6 Oct 2014 - Australian Fund Monitors

Supervised High Yield Fund returned 0.54% in August.
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.

6 Oct 2014 - Fund Review: Supervised High Yield Fund August 2014

By: Australian Fund Monitors

SUPERVISED HIGH YIELD FUND

Attached is AFM's updated Fund Review on the 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.

Sean Webster

Research and Database Manager
Australian Fund Monitors

ATTACHED FILES

Supervised High Yield Fund Review August 2014 (pdf format)

Bennelong Long Short Equity Fund

6 Oct 2014 - Australian Fund Monitors

Bennelong Long Short Equity Fund returned -1.56% over August and -1.11% over the prior twelve months with a volatility of

6 Oct 2014 - Bennelong Long Short Equity Fund

By: Australian Fund Monitors

Report Date	03 October 2014
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	August 2014
Latest Return	-1.56%
Latest 6 Months	-4.65%
Latest 12 Months	-1.11%
Latest 24 Months	17.06%
Annualised Since Inception	17.95%
Inception Date	01 January 2003
FUM (millions)	AU$341
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	Bennelong Long Short Equity Fund returned -1.56% over August and -1.11% over the prior twelve months with a volatility of 7.97%. Since inception returns remain well above the ASX 200 Acc Index at 17.95% as compared to 8.54%. Overall our long book contribution to return was outweighed by a negative contribution from our short book. The fund experienced a strong contribution from healthcare but this was overshadowed by a larger negative contribution from financials. Other sector exposure returns largely balanced each other. Within financials, the trend to increase payout ratios and dividends with reported results was a major negative factor in two of our short positions (Suncorp +8.0% and AMP +7.1%) which re-rated substantially more than their respective paired longs (QBE +4.7% and Henderson -9.2%). Fund activity was limited for the month; we participated in two placements in existing long positions and adjusted weightings in some pairs but did not add new positions or close any existing holdings.
More Information	» View detailed profile of this fund

Fund Review: Bennelong Kardinia Absolute Return Fund August 2014

3 Oct 2014 - Australian Fund Monitors

The Bennelong Kardinia Absolute Return Fund rose
0.56% in August. Net equity market exposure (including derivatives) averaged around 55% during the month, but was reduced to 36% at month end. CPD Points are now available

Fund Review: Insync Global Titans Fund August 2014

2 Oct 2014 - Australian Fund Monitors

The Fund's unit price increased by 0.8% in August. Key positive contributors for the month came from our holdings in Express Scripts, Sanofi, Gilead Sciences, Nestle and Disney. CPD points available.

Morphic Global Opportunities Fund

2 Oct 2014 - Australian Fund Monitors

Morphic Global Opportunities Fund recorded a return of 1.28% during August and 14.57% over the previous 12 months with a volatility of 8.23%.

Allard Investment Fund

1 Oct 2014 - Australian Fund Monitors

Allard Investment Fund (Asian equity) returned 0.40% during August and 9.35% over the preceding year with a volatility of 5.46%.

1 Oct 2014 - Allard Investment Fund

By: Australian Fund Monitors

Report Date	30 September 2014
Manager	Allard Partners Australia Pty Limited
Fund Name	Allard Investment Fund
Strategy	Equity Long
Latest Return Date	August 2014
Latest Return	0.40%
Latest 6 Months	7.13%
Latest 12 Months	9.35%
Latest 24 Months	27.50%
Annualised Since Inception	8.91%
Inception Date	01 July 2003
FUM (millions)	AU$118
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	Allard Investment Fund returned 0.40% during August and 9.35% over the preceding year with a volatility of 5.46%. Since inception in July 2003 the Fund has delivered a return of 8.8% pa as compared to teh MSCI Asia Pacific (ex Japan) Index of 10.6% with around 60% of the Index volatility with Fund volatility of 7.9% as compared to 13.5%. The Fund geographical exposure was HK/China 42.9%, Singapore 12.6%, Korea 8.1% and Cash and Fixed Income holdings of 22.5%. In terms of industry breakdown the three largest sectors were Financial Services 19.3%, Conglomerates 12.6% and Telcos 8.8%.
More Information	» View detailed profile of this fund

Fund Monitors Pty Ltd

News

8 Oct 2014 - Fund Review: Morphic Global Opportunities Fund August 2014

8 Oct 2014 - Fund Review: Aurora Fortitude Absolute Return Fund August 2014

7 Oct 2014 - Supervised High Yield Fund

7 Oct 2014 - Nanuk Global Alpha Fund

6 Oct 2014 - Fund Review: Supervised High Yield Fund August 2014

6 Oct 2014 - Bennelong Long Short Equity Fund

3 Oct 2014 - Fund Review: Bennelong Kardinia Absolute Return Fund August 2014

2 Oct 2014 - Fund Review: Insync Global Titans Fund August 2014

2 Oct 2014 - Morphic Global Opportunities Fund

1 Oct 2014 - Allard Investment Fund

Funds Found

Featured Fund