News
Monash Absolute Investment Fund
8 May 2014 - Australian Fund Monitors
Monash Absolute Investment Fund returned -1.3% in a volatile equity market. The Fund's 12 month record is strong at 24.77% with a vol of 9.11%.
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8 May 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 | The Fund had a net exposure of 76% at month-end with gross exposure 88%. Since inception VaR is 1.20%. The Manager's Month End Note discusses stock specific holdings and is available on the AFM website under the Monash Investors profile. |
| More Information | » View detailed profile of this fund |
Fund Review: Supervised High Yield Fund March 2014
8 May 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Supervised High Yield Fund for March 2014. The Fund is characterised by positive returns and very low risk. Since inception (April 2009) the Fund has returned 11.16% pa with a volatility of 2.22%
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8 May 2014 - Fund Review: Supervised High Yield Fund March 2014
By: Australian Fund Monitors
Fund Review: Supervised High Yield Fund March 2014 (pdf format)
SUPERVISED HIGH YIELD FUND
We would like to highlight the following aspects of the Fund;
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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.
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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.
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SHYF is an Alternative Income fund which invests in Global and Australian debt markets, with all foreign currency receivables hedged back to Australian dollars.
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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.
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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 isavoided.
- Annualised return since inception is 11.16% with a very low standardised standard deviation of 2.22%. Other risk statistics are impressive and shows the Funds risk philosophy; over 98% of monthly performances have been positive, the Fund's largest drawdown is -0.12% and the Sharpe ratio 3.19.
Sean Webster
Research and Database Manager
Fund Review: Supervised High Yield Fund March 2014 (pdf format)
Fund Review: Aurora Fortitude Absolute Return March 2014
7 May 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Aurora Fortitude Absolute Return Fund for March 2014. The Fund is characterised by absolute returns and very low risk. Since inception (March 2005) the Fund has returned 8.07% pa with a volatility of 2.71%
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7 May 2014 - Fund Review: Aurora Fortitude Absolute Return March 2014
By: Australian Fund Monitors
AURORA FORTITUDE ABSOLUTE RETURN FUND
We would like to highlight the following aspects of the Fund;
- The Aurora Fortitude Absolute Return Fund (AFARF) has a 8 year track record investing in ASX listed equities. A Market Neutral overlay is used across a multi strategy approach which allows for flexible asset allocation to maximise returns and minimise risk under a variety of market conditions and cycles.CIO John Corr has over 20 years financial market experience with a strong focus on risk.
- Significant use of low risk "long" derivatives and option overlays has provided positive returns with low volatility during periods of market dislocation. Annualised return since inception is 8.07% with a very low standardised standard deviation of 2.71%. Other risk statistics are impressive and shows the Funds risk philosophy; over 88% of monthly performances have been positive with no losing months in 2008, the Fund's largest drawdown is -2.09% and the Sharpe ratio 1.22.
- ASX listed Aurora Funds Limited was established on the merger of three existing fund management businesses, managing approx. $480m on behalf of more than 2,500 retail and wholesale investors.
Sean Webster
Research and Database Manager
Fund Review: Morphic Global Opportunities Fund March 2014
6 May 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Morphic Global Opportunities Fund for March 2014 has been released. The fund returned -2.63% during the month for an annual return to 27.63%.
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6 May 2014 - Fund Review: Morphic Global Opportunities Fund March 2014
By: Australian Fund Monitors
MORPHIC GLOBAL OPPORTUNITIES FUND
AFM has updated the Fund Review on the Morphic Global Opportunities Fund.
Key points include:
- The Fund is a global equity long/short manager with a long bias and a macro-economic overlay. The mandate allows the Fund to short sell, use derivatives and invest in assets such as commodities & currencies.
- Portfolio construction is stock selection agnostic with a bias to value based and momentum strategies. Risk management is a primary consideration in portfolio construction and the strong emphasis on risk is evidenced by the Fund's since inception annualised standard deviation of 9.67% (10.16% ASX 200 Accum Index), maximum drawdown of 4.93% (6.72% Index) and downside deviation of 3.11 (5.36 Index).
- The Fund had a net exposure of 103% and a gross exposure of 171% at March month-end with a VAR of 1.20%.
- Morphic's philosophy is that only funds with flexible investment and hedging strategies will be able to deliver acceptable, steady, real, absolute returns over the investment cycle.
- The Fund is an early stage, boutique, Sydney-based fund established in 2012 with experienced CIO's, and an investment team of 6 including a risk manager.
- The Board has a majority of independent members with significant risk and investment experience.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research Manager
Fund Review: Insync Global Titans Fund March 2014
5 May 2014 - Australian Fund Monitors
AFM's updated Fund Review for Insync Global Titans Fund for March 2014 shows the Fund delivering an annualised return of 10.36% and annualised standard deviation of 8.53% (since inception in October 2009) with sound risk-reward statistics.
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5 May 2014 - Fund Review: Insync Global Titans Fund March 2014
By: Australian Fund Monitors
Insync Global Titans Fund AFM Review - March 2014 (pdf format)
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans Fund.
We would like to highlight the following:
- The Global Titans Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- The Fund's unit price increased by -3.00% in March. Key positive contributors for the month came from our holdings in BNY Mellon, British American Tobacco, Baxter and Oracle. The main negative contributors were DirecTV, Reckitt Benckiser, BSkyB and GlaxoSmithKline. The strengthening in the Australian dollar against the major currencies during the month was also a negative contributor. The Fund continues to have no foreign currency hedging in place.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research Manager
Insync Global Titans Fund AFM Review - March 2014 (pdf format)
Fund Review: Bennelong Kardinia Absolute Return Fund March 2014
2 May 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Bennelong Kardinia Absolute Return Fund for March 2014. The Fund is characterised by steady returns and very low risk. The Fund returned 0.87% during March and since inception (May 2006) the Fund has...
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2 May 2014 - Fund Review: Bennelong Kardinia Absolute Return Fund March 2014
By: Australian Fund Monitors
Bennelong Kardinia AFM Fund Review March 2014 (pdf format)
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 eight year track record.
Bennelong's Kardinia Long/Short equity fund returned 0.87% in March 2014, taking returns for the year to 7.73% (ASX 200 Accum 13.46%). Annualised returns since inception are 13.57% as compared to the Index at 4.87% and with a lower volatility of 7.70% pa as compared to 14.53% pa. At month-end the Fund's net exposure was 48%, with long exposure 81.1% and short exposures 33%.
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
Bennelong Kardinia AFM Fund Review March 2014 (pdf format)
Cor Capital Fund
1 May 2014 - Australian Fund Monitors
Cor Capital Fund returned -1.34% during March and 2.24% for the prior 12 months.
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1 May 2014 - Cor Capital Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | During the quarter the Fund was up 1.9% and more than half of that return (+0.96%) was attributable to gold which was up 3.7% in Australian dollar terms. Cash (+0.20%), fixed interest (+0.33%) and equities (+0.41%) were all positive contributors across the quarter. With regard to the price of gold bullion, while events in the Ukraine may have pushed speculative money towards the precious metal over the last quarter the Fund's significant strategic exposure is much more about monetary distortion and eventual currency depreciation than any shorter term geopolitical tension. Volatility between the asset classes has been low and there were no re-balancing adjustments triggered throughout the quarter. |
| More Information | » View detailed profile of this fund |
KIS Asia Long Short Fund
30 Apr 2014 - Australian Fund Monitors
KIS Asia Long Short Fund returned 0.70% during March and 16.17% (ASX 200 Acc 13.46%) over the previous 12 months with an annualised vol of 2.67%(Index 11.03%).
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30 Apr 2014 - KIS Asia Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Whilst the Fund's primary strategy is focused on long/short equities, the ability to retain discretionary powers to allocate funds across a number of other investment strategies is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage, special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.). The Fund's geographic focus is Asia (ex Japan incl. Australia). The Fund may invest outside of this region to the extent that: • The investment decision is driven from the Asian region or • The exposure is intended to mitigate risk or enhance return from factors external to the Asian region. |
| Manager Comments | The Fund's low risk characteristics since inception (October 2009) are notable with an annualised vol of 5.58% as compared to 12.08% (Index), 80% positive months, maximum draw-down of 2.69% (15.13% Index) and a down capture ratio of -0.88. The Sharpe ratio is 2.30 over the same time frame. The Manager's market comment noted that 'Some 'growth darlings' in the NASDAQ suffered some extreme falls: Netflix lost 21%, Facebook 12% and Google 8%. These appear to be big numbers until phrased in terms of the number of months of recent gains that were lost: 5 months' of gains lost, 3 months and 4 months respectively. Some research seen recently highlighted that coming into 2014 the median of the most expensive top decile of stocks in the US had a Price/Book [PB] ratio of 9.4 the highest since 1926. Looking at eight other points (1929, 1937, 1946, 1961, 1968, 1973, 1990 and 2000) when markets peaked and had extreme distribution of valuations, the top decile of P/B lost an average of 30% over the following 18 months. We are a couple of months post the peak and have fallen 10%.' |
| More Information | » View detailed profile of this fund |
Laminar Credit Opportunities Fund
30 Apr 2014 - Australian Fund Monitors
Laminar Credit Opportunities Fund delivered 0.62% during March and 11.52% for the year with a low vol of 2.72%.
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30 Apr 2014 - Laminar Credit Opportunities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund may also invest in derivatives for hedging purposes. The portfolio of the Fund comprises primarily Investment Grade holding of 75% of the Fund's assets. Benchmark allocations are Australasia 50% to 100%, North America 0% to 50% and Europe 0% to 50%. Currency hedging may take place depending on benefits to the Fund. |
| Manager Comments | Since inception (October 2009) the Fund has recorded an annualised return of 21.62%, 92% positive months and, in line with fixed interest assets, a maximum draw-down of -1.23% as compared to the equity ASX 200 Accum Index maximum draw-down of -15.13%. The monthly Update notes that portfolio composition of the Fund has remained relatively unchanged for the month. Short dated loans have increased from around 10% at the end of February to 14% at the end of March. RMBS were 68% of the portfolio at month-end. |
| More Information | » View detailed profile of this fund |
Intelligent Investor Value Fund
29 Apr 2014 - Australian Fund Monitors
Intelligent Investor Value Fund recorded -1.28% during March and a strong 24.63% over the previous twelve months as compared to the ASX 200 Accum return of 13.46%.
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29 Apr 2014 - Intelligent Investor Value Fund
By: Australian Fund Monitors
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| Manager Comments | The Sharpe (0.78) and Sortino (1.33; Index 0.50) ratios, also since inception, are sound, however the Fund has an above average volatility at 13.27% (Index 12.17%) and a maximum draw-down of 16.05% as compared to the Index at 15.13%. The Manager's Quarterly Report entitled 'Ducks, Decoupling and Desiderata' covers investing, macro issues and the Fund's shares. The Report is available on the AFM website under the Fund's Profile. |
| More Information | » View detailed profile of this fund |
