Laminar Credit Opportunities Fund

16 May 2014 - Australian Fund Monitors

Laminar Credit Opportunities Fund returned 1.03% during April and 11.81% for the year, strong returns in a low interest rate environment.

Morphic Global Opportunities Fund

15 May 2014 - Australian Fund Monitors

Morphic Global Opportunities Fund returned 0.75% in April, slightly under-performing it's benchmark (MSCI ACWI in $A) and recorded 25.08% over the previous 12 months with notable Sharpe and Sortino ratios.

15 May 2014 - Morphic Global Opportunities Fund

By: Australian Fund Monitors

Report Date	14 May 2014
Manager	Morphic Asset Management
Fund Name	Morphic Global Opportunities Fund
Strategy	Equity Long/Short
Latest Return Date	April 2014
Latest Return	0.75%
Latest 6 Months	4.93%
Latest 12 Months	25.08%
Latest 24 Months
Annualised Since Inception	26.44%
Inception Date	02 August 2012
FUM (millions)	AU$46
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 returned 0.75% in April, slightly under-performing it's benchmark (MSCI ACWI in $A) and recorded 25.08% over the previous 12 months with high Sharpe (1.81) and Sortino (5.09) ratios. At month-end Fund exposures were 101% net, 153% gross with a VaR of 1.17%. The Fund's largest (gross) exposure was US Banks at 17.8%. The Performance Report comments 'April proved to be another month of consolidation for global markets, with volatility in most asset classes diminishing, especially currencies. Market momentum also saw preferences rotate from higher quality growth companies, to cheaper, lower quality names. The Fund's biggest win came from its overweight exposure to the global automotive industry, focussed mostly on two Canadian components makers, Linamar and Magna, although US car dealer Asbury also made a contribution. The view at Morphic has long been that car parts makers are better businesses than branded car assemblers. The former's steady re-rating compared to car firms seems to be confirming this view, although how much more mileage remains in the trade is less clear. The Fund closed the month still fully invested, with limited regional biases other than the overweight India versus other emerging markets. The Fund substantially cut its interest rate hedges during the month and in early May closed these out completely. The continuing rise of the Australian dollar was partially offset by the Fund having hedging over part of its US Dollar exposure.'
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Bennelong Kardinia Absolute Return Fund

14 May 2014 - Australian Fund Monitors

Bennelong Kardinia Absolute Return Fund recorded a return of -0.63% during April with the 12 month result 7.53% and a volatility of 3.70%.

14 May 2014 - Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	13 May 2014
Manager	Kardinia Capital, a Bennelong Funds Management boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	April 2014
Latest Return	-0.63%
Latest 6 Months	2.02%
Latest 12 Months	7.53%
Latest 24 Months	22.42%
Annualised Since Inception	13.33%
Inception Date	01 May 2006
FUM (millions)	AU$139
Fund Overview	The Bennelong Kardinia Absolute Return Fund is an Australian domiciled equity long/short fund investing in ASX listed securities. The Fund uses some exchange traded call options and there is limited use of SPI futures contracts to hedge overall market risk. 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. There is a slight bias to large cap stocks in 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.
Manager Comments	Bennelong Kardinia Absolute Return Fund recorded a return of -0.63% during April with the 12 month result 7.53% and a volatility of 3.70%. Fund exposures at month-end were 56% long and 20% Short with a net exposure of 36%, down from the previous month. The Monthly Performance Update notes that within the portfolio 'Share Price Index Futures (hedging longs), Henderson Group, Donaco and Seek were all significant detractors from performance. A short in Coca-Cola Amatil (which had a profit warning), and longs in Challenger and Oil Search were the largest positive contributors.'
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Optimal Australia Absolute Trust

13 May 2014 - Australian Fund Monitors

Optimal Australia Absolute Trust returned 0.57% in a choppy market with annual returns of 4.62% and a volatility of 1.6%.

13 May 2014 - Optimal Australia Absolute Trust

By: Australian Fund Monitors

Report Date	12 May 2014
Manager	Optimal Fund Management Australia
Fund Name	Optimal Australia Absolute Trust
Strategy	Equity Long/Short
Latest Return Date	April 2014
Latest Return	0.57%
Latest 6 Months	2.27%
Latest 12 Months	4.62%
Latest 24 Months	4.83%
Annualised Since Inception	10.18%
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 0.57% in a choppy market with annual returns of 4.62% and a volatility of 1.6%. Since inception in September 2008 the Fund has delivered a return of 10.18% (Index 5.81%) with a volatility of 3.51% as compared to 14.85%. Over the same time frame the Fund has recorded 84% positive months and a Sharpe Ratio of 1.74. The Monthly Report comments on the Fund's performance 'In broad terms, the positive returns on our long positions in April more than offset the cost of hedging our overall portfolio risk, and no one theme or sector dominated our long portfolio. Minimising the cost of portfolio protection - let alone making money on shorts - was again difficult in April, in a market in which financial repression and the TINA doctrine (''there is no alternative') towards equities continue to marginalise traditional approaches to valuation. Yet there are signs that this mind-set is slowly changing, as April saw a further sell-off in highly-valued 'momentum' stocks and, late in the month, in the big banks and mining heavyweights.' In terms of Fund strategy the Manager comments 'Risk protection remains a very necessary discipline, in our view, with the market at an elevated valuation, and with price gains in most stocks having been driven overwhelmingly by multiple expansion rather than by earnings growth. In the absence of any great conviction that the market can make a strong advance in the short term, we continue to maintain low net exposure, and exited the month slightly net short equity risk.'
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Supervised High Yield Fund

12 May 2014 - Australian Fund Monitors

Supervised High Yield Fund returned 0.21% for March and 7.74% over the prior twelve months with a vol of 0.74%.

Bennelong Alpha 200 Fund

9 May 2014 - Australian Fund Monitors

Bennelong Alpha 200 Fund returned -0.57% during April in a choppy equity market. This is the Fund's fourth month of operation so no annual data is available.

9 May 2014 - Bennelong Alpha 200 Fund

By: Australian Fund Monitors

Report Date	08 May 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	April 2014
Latest Return	-0.57%
Latest 6 Months
Latest 12 Months
Latest 24 Months
Annualised Since Inception	3.90%
Inception Date	02 December 2013
FUM (millions)	AU$8.5
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 -0.57% during April in a choppy equity market. This is the Fund's fourth month of operation so no annual data is available. At month-end the Fund had an ASX 100 exposure of 52.8% and ex-ASX 100 exposure of 47.2% and Fund leverage was 2.2 times NAV. The Portfolio Performance section of the Monthly Performance Update notes 'In a reasonably strong share-market our longs failed to generate much return ending slightly positive for the month. Our short portfolio didn't cost us too much �" the end result uninspiring. The feature of all the bottom pairs was a negative contribution from the longs. During the month many stocks which have had strong momentum recently were weak. Henderson, iProperty and Seek were all affected.'
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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%.

8 May 2014 - Monash Absolute Investment Fund

By: Australian Fund Monitors

Report Date	07 May 2014
Manager	Monash Investors Pty Limited
Fund Name	Monash Absolute Investment Fund
Strategy	Equity Long/Short
Latest Return Date	April 2014
Latest Return	-1.30%
Latest 6 Months	5.78%
Latest 12 Months	24.77%
Latest 24 Months
Annualised Since Inception	23.84%
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 -1.3% in a volatile equity market. The Fund's 12 month record is strong at 24.77% (Index 10.46%) with a vol of 9.11% (10.48%). Sharpe and Sortino ratios are notable at 2.22 and 8.77 over the same time frame. 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.
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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%

8 May 2014 - Fund Review: Supervised High Yield Fund March 2014

By: Australian Fund Monitors

SUPERVISED HIGH YIELD FUND

Attached is our most recently updated Fund Review on the Supervised High Yield Fund.

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.
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

Australian Fund Monitors

ATTACHED FILES

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%

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%.

Fund Monitors Pty Ltd

News

16 May 2014 - Laminar Credit Opportunities Fund

15 May 2014 - Morphic Global Opportunities Fund

14 May 2014 - Bennelong Kardinia Absolute Return Fund

13 May 2014 - Optimal Australia Absolute Trust

12 May 2014 - Supervised High Yield Fund

9 May 2014 - Bennelong Alpha 200 Fund

8 May 2014 - Monash Absolute Investment Fund

8 May 2014 - Fund Review: Supervised High Yield Fund March 2014

7 May 2014 - Fund Review: Aurora Fortitude Absolute Return March 2014

6 May 2014 - Fund Review: Morphic Global Opportunities Fund March 2014

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