Cor Capital Fund

13 Nov 2014 - Australian Fund Monitors

Cor Capital Fund returned -0.13% during October bringing the annual return to 1.72% with a volatility of 3.43%.

13 Nov 2014 - Cor Capital Fund

By: Australian Fund Monitors

Report Date	12 November 2014
Manager	Cor Capital Pty Ltd
Fund Name	Cor Capital Fund
Strategy	Multi Strategy
Latest Return Date	October 2014
Latest Return	-0.13%
Latest 6 Months	0.44%
Latest 12 Months	1.72%
Latest 24 Months	4.91%
Annualised Since Inception	4.10%
Inception Date	08 August 2012
FUM (millions)	AU$22
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	Cor Capital Fund returned -0.13% during October bringing the annual return to 1.72% with a volatility of 3.43%. Equities continued to be volatile, with the ASX200 Accum Index making up most of September's fall (+4.43%). Strong bond (+0.97%) and equities (+2.2%) performance within the Fund portfolio was offset by a weaker gold bullion price (-3.56%). The recent increase in volatility has not been sufficient to cause a breach in any of the Fund's defined asset class limits and so there were no changes during the last month.
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Optimal Australia Absolute Trust

12 Nov 2014 - Australian Fund Monitors

Optimal Australia Absolute Trust returned -0.71% in October with annual returns at 5.42%, with a volatility of 2.08%.

12 Nov 2014 - Optimal Australia Absolute Trust

By: Australian Fund Monitors

Report Date	11 November 2014
Manager	Optimal Fund Management Australia
Fund Name	Optimal Australia Absolute Trust
Strategy	Equity Long/Short
Latest Return Date	October 2014
Latest Return	-0.71%
Latest 6 Months	3.08%
Latest 12 Months	5.42%
Latest 24 Months	8.29%
Annualised Since Inception	9.86%
Inception Date	15 September 2008
FUM (millions)	AU$120
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 returned -0.71% in October with annual returns at 5.42% (ASX 200 Accum 6.39%), with a volatility of 2.08% (Index 10.33%) and a Sharpe ratio of 1.37. The Fund had a gross exposure of 94.2% and a net exposure of -0.3% at month-end. The Fund recorded 83% positive months over the last year and a maximum draw-down of -0.71% as compared to the Index at 5.38%. Not only did the market post a solid rebound, but the stocks leading that recovery were exactly the same group of yield-based so-called 'defensive' industrials and financials which so dominate index construction. The stats here are instructive: the ASX 20 stock index now represents 68% of the ASX 200 index, compared with 55% just prior to the 2007 market peak. Banks are now 31% of the ASX 200 index, and the financials overall represent 47% ― an all-time high. So: investors in the Australian stock market are assuming concentration risk of unprecedented proportions, and this skew in index concentration typically occurs at market extremes.
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Bennelong Alpha 200 Fund

11 Nov 2014 - Australian Fund Monitors

Bennelong Alpha 200 Fund returned -2.49% during October with a net exposure of 1.2%.

11 Nov 2014 - Bennelong Alpha 200 Fund

By: Australian Fund Monitors

Report Date	10 November 2014
Manager	Bennelong Long Short Equity Management, a Bennelong Funds Management boutique
Fund Name	Bennelong Alpha 200 Fund
Strategy	Equity Market Neutral
Latest Return Date	October 2014
Latest Return	-2.49%
Latest 6 Months	-3.79%
Latest 12 Months
Latest 24 Months
Annualised Since Inception	-3.06%
Inception Date	02 December 2013
FUM (millions)	AU$26.9
Fund Overview	The Fund aims to achieve consistent absolute returns regardless of market conditions by applying fundamental research to identify pairs of securities that are over and undervalued. The investment strategy seeks to limit the portfolio exposure to market risk by utilising a dollar neutral long/short strategy with the tactical capability to take long or short net exposure up to 20% of gross assets. Excess returns are generated by 'bottom up' fundamental company research. 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	Bennelong Alpha 200 Fund returned -2.49% during October with a net exposure of 1.2% with longs at 50.6% and shorts 49.4% with the FUnd geared at 2.4 times at month-end. The fund had a very disappointing month in October. Our long book contributed positively but was overwhelmed by the negative contribution from the short book. At the sector level Consumer Discretionary and Financials dragged on performance, with iProperty /Trade Me and Cedar Woods / Stockland the main culprits. The three best performing pairs (Kathmandu / The Reject Shop & Pacific Brands, Carsales / Automotive Holdings, CSL / Primary Healthcare) all benefited from being on the right side of AGM comments. There was no common theme to our poor performing pairs.
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Morphic Global Opportunities Fund

10 Nov 2014 - Australian Fund Monitors

Morphic Global Opportunities Fund returned 1.12% during October bringing the annual return to 15.62% with a volatility of 8.62%.

Monash Absolute Investment Fund

7 Nov 2014 - Australian Fund Monitors

Monash Absolute Investment Fund returned -0.3% in October with 12 month performance at 4.83% with a volatility of 8.02%.

7 Nov 2014 - Monash Absolute Investment Fund

By: Australian Fund Monitors

Report Date	06 November 2014
Manager	Monash Investors Pty Limited
Fund Name	Monash Absolute Investment Fund
Strategy	Equity Long/Short
Latest Return Date	October 2014
Latest Return	-0.30%
Latest 6 Months	-0.93%
Latest 12 Months	4.83%
Latest 24 Months	43.93%
Annualised Since Inception	17.84%
Inception Date	30 May 2012
FUM (millions)	AU$45
Fund Overview	The Monash Absolute Investment Fund is a long/short equity fund, with a home bias to investing in Australia. It invests in shares as a source of specific opportunity, not to go up and down with the market. 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 -0.3% in October with 12 month performance at 4.83% with a volatility of 8.02%. It was a volatile month with the market initially selling off and the Fund took action to preserve the Fund's capital. As a result it lagged the market as it recovered, which ended up costing the portfolio about 1%. The negative return was not due to any bad news associated with the Fund's stocks. The portfolio was very active during October, as we closed/opened Event Driven opportunities and added to some of the Outlook Driven stocks in weakness. The most significant trade of the month was exiting Greencross, one of our Outlook Driven stocks, which had gone up 104% over the 20 months that we owned it.
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Fund Review: Nanuk Global Alpha Fund AFM Fund Review September 2014

6 Nov 2014 - Australian Fund Monitors

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...

Microequities Deep Value Microcap Fund

5 Nov 2014 - Australian Fund Monitors

Microequities Deep Value Microcap Fund returned 1.66% during October as equity markets rebounded, with 12 month performance at 16.37% and a volatility of 7.41%.

5 Nov 2014 - Microequities Deep Value Microcap Fund

By: Australian Fund Monitors

Report Date	04 November 2014
Manager	Microequities
Fund Name	Microequities Deep Value Microcap Fund
Strategy	Equity Long
Latest Return Date	October 2014
Latest Return	1.66%
Latest 6 Months	4.68%
Latest 12 Months	16.37%
Latest 24 Months	59.69%
Annualised Since Inception	28.49%
Inception Date	06 March 2009
FUM (millions)	AU$51.7
Fund Overview	The Microequities Deep Value Microcap Fund, launched in March 2009, is an open-ended unregistered Managed Investment Scheme designed for the Australian wholesale market. 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	Microequities Deep Value Microcap Fund returned 1.66% during October as equity markets rebounded, with 12 month performance at 16.37% and volatility of 7.41%. Since inception (March 2009) performance is sound at 28.49% pa as compared to the ASX 200 Accum Index at 13.51% pa. Up and Down Capture ratios over the same time are 1.13 and 0.26 respectively. After almost six years of what was originally viewed as a radical policy the US Federal Reserve announced last month that it would end its final purchase of bonds. The program of quantitative easing rapidly expanded the Fed's balance sheet. In macroeconomic management, isolating the causality of policy measures is never a conclusive exercise. Objectively however we can safely say the quantitative easing program certainly contributed positively to steering the US economy back to life from the precipice of the GFC. Inflation has remained low, the currency has not lost its allure as the world's most sought after legal tender and unemployment (albeit slowly) has declined to acceptable levels. Despite the end of quantitative easing, the monetary policy of the Fed remains extraordinarily accommodative.
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Fund Review: Bennelong Long Short Fund AFM Fund Review September 2014

4 Nov 2014 - Australian Fund Monitors

The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large cap stocks from the ASX/S&P100 Index, with a twelve year track record and annualised net returns of 17.49% pa.CPD Points are...

Fund Review: Totus Alpha Fund Sept 2014

3 Nov 2014 - Australian Fund Monitors

Totus Alpha Fund returned 1.02% for September and 30.88% over the last 12 months, read the latest Fund Review with statistics since inception. CPD Points also available.

3 Nov 2014 - Fund Review: Totus Alpha Fund Sept 2014

By: Australian Fund Monitors

TOTUS ALPHA FUND

Attached is our most recently updated Fund Review on the 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;

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.
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.
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.
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

ATTACHED FILES

Totus Alpha Fund AFM Review Sept 2014 (pdf format)

Allard Investment Fund

3 Nov 2014 - Australian Fund Monitors

Allard Investment Fund returned 3.20% in September, ahead of the benchmark MSCI Asia Pacific ex Japan (A$) at -1.0%, with the annual return 12.96%.

Fund Monitors Pty Ltd

News

13 Nov 2014 - Cor Capital Fund

12 Nov 2014 - Optimal Australia Absolute Trust

11 Nov 2014 - Bennelong Alpha 200 Fund

10 Nov 2014 - Morphic Global Opportunities Fund

7 Nov 2014 - Monash Absolute Investment Fund

6 Nov 2014 - Fund Review: Nanuk Global Alpha Fund AFM Fund Review September 2014

5 Nov 2014 - Microequities Deep Value Microcap Fund

4 Nov 2014 - Fund Review: Bennelong Long Short Fund AFM Fund Review September 2014

3 Nov 2014 - Fund Review: Totus Alpha Fund Sept 2014

3 Nov 2014 - Allard Investment Fund

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