Auscap Long Short Australian Equities Fund

23 Dec 2013 - Australian Fund Monitors

Auscap Long Short Australian Equities Fund returned 2.86% in November when the local equity market was weak returning -1.31%. Twelve month performance was 50.05%.

23 Dec 2013 - Auscap Long Short Australian Equities Fund

By: Australian Fund Monitors

Report Date	18 December 2013
Manager	Auscap Asset Management
Fund Name	Auscap Long Short Australian Equities Fund
Strategy	Equity Long/Short
Latest Return Date	November 2013
Latest Return	2.86%
Latest 6 Months	35.78%
Latest 12 Months	50.05%
Latest 24 Months
Annualised Since Inception	50.05%
Inception Date	01 December 2012
FUM (millions)	AU$10
Fund Overview	The Auscap Long Short Australian Equities Fund aims to generate strong absolute returns in excess of the RBA Cash Rate, with low correlation to equity markets. The Fund focuses on fundamental long and short investments. The Fund may utilise a multi-strategy approach if short term opportunities to increase returns, hedge the portfolio, protect capital or minimise volatility are found. The Fund is a high conviction fund and the combined portfolio will typically have 25-45 positions, investing primarily in stocks in the ASX200. The Fund may be net long, short or neutral depending on the strategies employed at the time. The Fund may hold cash so that it is in a position to take advantage of market volatility and compelling investment opportunities as and when they arise. The Fund may be geared up to 200% gross long or short and up to 150% net long or short.
Manager Comments	Auscap Long Short Australian Equities Fund returned 2.86% in November when the local equity market was weak returning -1.31%. Twelve month performance was notable at 50.05% with a volatility of 12.39% (11.51% Index)and a down capture ratio of -0.84. The Fund had an average gross capital employed of 131.5% long and 13.8% short for a gross total of 145.3%. The Manager comments 'While we do not make forecasts, we do try to draw sensible conclusions about the economy and the stock-market in which we are a participant. It seems highly unlikely that the market will repeat or better last year's performance next year. The market has been assisted by a number of things during 2013, including the re-rating of equities as sentiment turned more positive and the rates of return offered by alternative assets declined.'
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Fund Review: Morphic Global Opportunities Fund

19 Dec 2013 - Australian Fund Monitors

Morphic Global Opportunities Fund returned 5.48% in November and 41.50% for the previous twelve months with a volatility of 9.06% p.a.

Cor Capital Fund

18 Dec 2013 - Australian Fund Monitors

Cor Capital Fund returned -0.90% during November, a weak month for equity markets which returned -1.31% (S&P/ASX 200 Accumulation Index).

18 Dec 2013 - Cor Capital Fund

By: Australian Fund Monitors

Report Date	17 December 2013
Manager	Cor Capital Pty Ltd
Fund Name	Cor Capital Fund
Strategy	Multi Strategy
Latest Return Date	November 2013
Latest Return	-0.90%
Latest 6 Months	1.19%
Latest 12 Months	2.05%
Latest 24 Months
Annualised Since Inception	4.95%
Inception Date	08 August 2012
FUM (millions)	AU$18
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 -0.90% during November, a weak month for equity markets which returned -1.31% (S&P/ASX 200 Accumulation Index). The Manager comments 'During November the Fund's cash holdings made the largest positive contribution to performance (+0.08%) with equities (-0.26%) and precious metals (-0.64%) making negative contributions to the overall return.' The Manager also notes that market volatility appears to be increasing again and the Fund's active re-balancing and broad asset allocation should allow it to capitalise while maintaining downside protection. Downside protection without the use of derivatives, gearing or short-selling necessitates an acceptance of some month-to-month volatility. The Manager expects the investment strategy to deliver medium-term stability regardless of financial market conditions given the Fund's asset allocation.
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Bennelong Long Short Equity Fund

18 Dec 2013 - Australian Fund Monitors

Bennelong Long Short Equity Fund returned -1.80% during November and 20.32% for the previous twelve months.

18 Dec 2013 - Bennelong Long Short Equity Fund

By: Australian Fund Monitors

Report Date	17 December 2013
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	November 2013
Latest Return	-1.80%
Latest 6 Months	7.97%
Latest 12 Months	20.32%
Latest 24 Months	34.49%
Annualised Since Inception	20.82%
Inception Date	01 January 2003
FUM (millions)	AU$326
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.
Manager Comments	Bennelong Long Short Equity Fund returned -1.80% during November and 20.32% for the previous twelve months with a below market volatility of 9.36% p.a. (S&P/ASX 200 Accumulation Index 11.51%). The Fund's long-term performance remains strong with a since inception (Jan 2003) annual return of 20.82% as compared to the Index of 10.08% p.a with a slightly below Index volatility. The Fund's maximum draw-down is notable at -12.22% as compared to the Index value of -47.19% as is the Fund's Sharpe ratio at 1.25 as compared to 0.43 (Index). Fund performance was weak as several stock specific issues affected returns. The portfolio was impacted primarily by a profit warning on one of the long positions, an earnings miss by another long and a re-rating by the market of some our short exposures in consumer discretionary and healthcare. The Fund did not make any major portfolio adjustments during November. Negative returns in the long book were not fully offset by short position positive returns. The Financials sector returns were profitable in long and short positions whilst consumer discretionary positions were loss making in longs and shorts.
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Aurora Fortitude Absolute Return Fund

17 Dec 2013 - Australian Fund Monitors

Aurora Fortitude Absolute Return Fund continues to deliver low risk returns recording 0.52% during November and 6.80% for the last 12 months with a volatility of 1.67%.

17 Dec 2013 - Aurora Fortitude Absolute Return Fund

By: Australian Fund Monitors

Report Date	16 December 2013
Manager	Aurora Funds Management
Fund Name	Aurora Fortitude Absolute Return Fund
Strategy	Equity Market Neutral
Latest Return Date	November 2013
Latest Return	0.52%
Latest 6 Months	3.14%
Latest 12 Months	6.80%
Latest 24 Months	11.67%
Annualised Since Inception	8.15%
Inception Date	15 February 2005
FUM (millions)	AU$133.6
Fund Overview	Aurora Fortitude Absolute Return Fund is a multi-strategy market neutral fund specialising in ASX listed equities and derivatives. The core philosophy is the management of risk through a long volatility overlay incorporating listed equity and index derivatives. The multi-strategy approach includes M&A, Yield, Convergence and Long/Short strategies. The portfolio managers adopt an aggressive approach to managing downside risk whilst positioning the portfolio to benefit from positive alpha. The Fund aims to produce positive returns irrespective of the direction of the share market. For each investment the manager considers the risk, the timeline of that risk occurring and then the potential return. Low transaction costs and liquidity are other important factors in the success and implementation of the strategies.
Manager Comments	Aurora Fortitude Absolute Return Fund continues to deliver low risk returns recording 0.52% during November and 6.80% for the last 12 months with a volatility of 1.67%. The Fund has a Sharpe ratio of 2.33 and a maximum draw-down of 0.19% over the last twelve months as compared to the S&P/ASX 200 Accumulation Index draw-down of 6.72%. The Manager comments that 'Two very important market fundamentals were reinforced during the month: a) The market does not always go up and the timing of declines is difficult to predict; and b) Each Merger and Acquisition deal is unique and should be priced on the risks inherent in each deal.' Despite the GNC loss, Mergers and Acquisitions contributed +0.24% to the Fund's performance for the month. Positive contributions came from the Trust Company scheme of arrangement with Perpetual after the scheme was approved by shareholders and similarly Clough Resources. The Options portfolio contributed +0.15% of performance on the back of a small increase in volatility. Positions in over-sold industrial companies provided opportunities through significant short term share price rallies.
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Optimal Australia Absolute Trust

16 Dec 2013 - Australian Fund Monitors

Optimal Australia Absolute Trust returned -0.52 during November bringing annualised returns since inception (Sept 2008) to 10.45% p.a. with a volatility of 3.62% p.a.

16 Dec 2013 - Optimal Australia Absolute Trust

By: Australian Fund Monitors

Report Date	16 December 2013
Manager	Optimal Fund Management Australia
Fund Name	Optimal Australia Absolute Trust
Strategy	Equity Long/Short
Latest Return Date	November 2013
Latest Return	-0.52%
Latest 6 Months	0.54%
Latest 12 Months	1.61%
Latest 24 Months	5.44%
Annualised Since Inception	10.45%
Inception Date	15 September 2008
FUM (millions)	AU$154
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 -0.52 during November bringing the twelve month performance to 1.61% and annualised returns since inception (Sept 2008) to 10.45% p.a. with a volatility of 3.62% p.a. The Fund's net risk exposure was 4.0% while gross exposure was 67.2%. Long investments returned -0.58% while short investments returned 0.04%. The Manager notes 'that the nature of leadership in the Australian equity market is starting to change....in an encouraging manner. The 'great rotation' out of bonds into equities appears largely done. The blind chase for equity yield, irrespective of the payout ratio, earnings valuation or quality of that yield, seems less frenetic. While the effects of financial repression continue to ripple through all asset markets, local equity investors seem slightly more discriminating. Single day post-downgrade price collapses of 26% (Worley Parsons) and 22% (QBE) remind us that stocks can be dangerous to hold at any time. The massive flood of corporate equity issuance (much of it from Private Equity vendors) has led to some real indigestion: of the 13 IPO deals so far this quarter, five (39%) are now trading underwater.'
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Insync Global Titans Fund

13 Dec 2013 - Australian Fund Monitors

Insync Global Titans Fund returned 4.4% during November and twelve month return of 23.47% with low volatility of 6.67% p.a.

Fund Review: BlackRock Multi Opportunity Fund

12 Dec 2013 - Australian Fund Monitors

AFM's updated Fund Review for the BlackRock Multi Opportunity Fund for October. The current strategy has returned 8.74% pa since inception (July 2004) and had only three negative months since May 2010.

Monash Absolute Investment Fund

11 Dec 2013 - Australian Fund Monitors

Monash Absolute Investment Fund returned -0.58% in November and 35.0% over the last year with a Sharpe Ratio of 3.49.

Bennelong Kardinia Absolute Return Fund

10 Dec 2013 - Australian Fund Monitors

Bennelong Kardinia Absolute Return Fund returned 0.15% during November and 14.73% for the previous 12 months with a volatility of 2.83%.

10 Dec 2013 - Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	09 December 2013
Manager	Kardinia Capital, a Bennelong Funds Management boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	November 2013
Latest Return	0.15%
Latest 6 Months	5.15%
Latest 12 Months	14.73%
Latest 24 Months	28.70%
Annualised Since Inception	14.10%
Inception Date	01 May 2006
FUM (millions)	AU$122.2
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 30 to 40 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 returned 0.15% during November and 14.73% for the previous 12 months as compared to the S&P/ASX 200 Index return of 23.18% but with a volatility of 2.83% as compared to 11.51% for the Index. Since inception in May 2006 the Fund has delivered 14.10% p.a. (4.69% Index) with a volatility of 7.78% (14.70% Index). Short positions in Westpac and Westfield and long positions in Henderson and Macquarie were the largest positive contributors to performance, whilst long positions in Sirius and Carsales were the largest detractors. The Fund's net equity market exposure decreased to 56.9% (86.6% long and 29.7% short).
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Fund Monitors Pty Ltd

News

23 Dec 2013 - Auscap Long Short Australian Equities Fund

19 Dec 2013 - Fund Review: Morphic Global Opportunities Fund

18 Dec 2013 - Cor Capital Fund

18 Dec 2013 - Bennelong Long Short Equity Fund

17 Dec 2013 - Aurora Fortitude Absolute Return Fund

16 Dec 2013 - Optimal Australia Absolute Trust

13 Dec 2013 - Insync Global Titans Fund

12 Dec 2013 - Fund Review: BlackRock Multi Opportunity Fund

11 Dec 2013 - Monash Absolute Investment Fund

10 Dec 2013 - Bennelong Kardinia Absolute Return Fund

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