Say or think what you like about him, but it's pretty obvious Donald Trump doesn't believe in the softly, softly approach! So the bold announcement to reduce US corporate tax rates to 20% certainly fits his style. Of course what remains to be seen is his ability to deliver, and if he manages to do so, what will be the flow on effects on both the US, and then the global economy.

Given this was a Trump announcement there was of course more rhetoric than detail, and the answer to the first question lies in the ability to deliver politically. We will leave the judgement on his political ability to others and take just a quick look his ability to deliver economically:

We're assuming Trump's working on the premise that a corporate tax rate of 20% will "make America great again" by incentivising US companies to invest in America, and subsequently to hire American workers, leading to growth. As a result he's hoping the circle will be complete, and the budget will balance. However that's not a fait accompli, and the question will be how's he going to pay for it?

From a market perspective the risk lies not in the potential that the equity market doesn't like Trump's lower corporate taxes, but that the bond market doesn't. Bond markets have a nasty habit of upsetting equity markets, so it's worth keeping a close eye out for higher than expected interest rates.

Domestically in Australia Trump's move has put our antiquated, overly complicated and damaging taxation and political position into stark relief. The current government aims to reduce the corporate tax rate to 25% over 10 years, and isn't even assured of getting that past the cross benches in the Senate.

As Hedge Clippings has banged on about for as long as we can remember (which isn't that long these days) Australia's taxation system is a dud thanks to successive governments of both political persuasions which have failed to grasp the nettle, preferring to dilly dally around the edges, and adding complication onto complication.

Where's Donald when we need him - or on second thoughts, let's not go there!

Markets are once again focusing on the potential for a rate rise after Janet Yellen's comments flagging a US tightening later in the year, with 12 out of 16 of the Fed's members expecting a rise by December. However it should be remembered that rate rises have been on the cards for some years now, but each time the expectations have not been met with actions, with markets, hooked on QE, unable to accept the effects of withdrawal. This time it may be a little different as there does seem to be a gradual robustness in the US economy - with the accent on gradual, and robust being a relative term.

Coupled with those comments from the US, the Reserve Bank governor also came out with the seemingly obvious statement that interest rates in Australia were unlikely to fall from here, while also issuing a caveat that rate rises when (and it is when, not if) they occur are going to bite hard on those who have extended themselves to borrow for Australia's housing market.

Meanwhile Australian equity markets continue to go nowhere, which can't be pleasing the passive index following funds - or their investors. YTD in 2017 to the end of August the ASX200 has risen just 3.88% on an accumulation basis, compared with the S&P500 which is up around 12%. Actively managed equity funds have fared slightly better on average, up 4.98% year-to-date to the end of August, although as we always point out, averages can cover a multitude of individual performances, both good and bad. Whilst almost exactly 50% of funds in AFM's database have outperformed the ASX200 (and therefore by definition 50% have underperformed) almost 25% have posted year-to-date performances of 10% or more, with the best performing fund up 30% year-to-date.

Finally a matter closer to home: Today's report on CNBC that fine wine has provided the best luxury asset price growth (+ 25%) over the past 12 months. In the same report jewellery has been a poor investment by comparison, only rising 4%, while coloured diamonds (which luckily she has never quite understood the attraction of) have not appreciated at all. Possibly connected with the increase in wine prices was the statistic that Chinese ceramics had fallen by 12% over the past 12 months.

Hedge Clippings is sad to admit that fine and collectible wines do not feature in the domestic cellar as a result of impatience, and rarely on the wine list of any establishment we visit as a result of the disparity between the budget and the bill. However we will be happy to avoid future purchases of jewellery and coloured diamonds on the basis that they're no better as an investment than the ASX200!

A tale of two sucess stories

Company reporting season is coming to a close, happily for some, not so happily for others. As noted in last week's Hedge Clippings it is, or can be the "moment of truth" for many companies, and therefore for their investors. Fund managers have had their head's buried in the results for the past month or so and will no doubt be looking forward to the end of it and a return to normality - until the next time.

As listed companies a number of managers have played a dual role, not only studying the results of others, but having to report the results of their own funds management businesses, including two of the largest, Magellan and Platinum, whose Managing Director and founder, Kerr Neilson provided some insights into the way he's thinking, and in so doing reflecting perhaps on competitor Magellan at the same time.

It is worth noting that while both are highly successful operations, and have been particularly successful at attracting investors, there are some significant differences between the two. Following a stellar career as a fund manager with BT, Neilson left and founded Platinum in the early to mid-90's before listing the management company on the ASX in 2013, and has approximately $22 billion in funds under management investing globally across a range of long-short funds, regions and sectors. Performance has been excellent over the long term, although both performance and FUM suffered in the GFC, but has recovered strongly since.

Magellan, headed up by ex-investment banker Hamish Douglass launched Magellan in 2007, just ahead of the GFC, and also listed the management company in 2013.  In another of Australia's financial services success stories, Magellan has amassed $50 billion in FUM from local and global investors. Interestingly over time, albeit that Platinum has a significantly longer track record, the performance of each manager's flagship funds are similar, although they vary from year to year.

Back to Neilson's comments made with the release of Platinum's results: Acknowledging the reason some investors might have recently shorted Platinum, he was keen to point out that as the funds' investment performance had been strong over the past year, performance fees would add significantly to the bottom line. Equally FUM has recovered from the dip in 2008/2009, and even though management fees across the sector are under pressure, he is not keen to join the "race to the bottom".

Magellan's performance fee income has been under pressure recently, (as has its share price) and management fees are also reducing, although both managers, with $22 and $50 billion in FUM, have a significant annuity income stream - provided, as Neilson pointed out, performance is maintained to ensure existing investors remain, and new investors invest.

The major difference in approach, as Neilson was keen to point out, even if not naming Magellan, was the approach or focus in staffing in their respective investment and sales & marketing operations, where Magellan has built a significant distribution machine. At the end of the day it is difficult to criticise either given the successful business each has created.

Platinum also referred to the current active vs passive management debate, and while acknowledging the funds flow into the latter, suggesting that the key to active management is to pick the right active manager.

Hedge Clippings would agree, and argue that we have been beating that particular drum for over a decade.

Reporting season - An opportunity or a threat?

George Colman from ARCO Investment Management (formerly called Optimal Australia) probably summed up reporting season best by referring to it as "the moment of truth".  Although the fund had negotiated it well so far, he expected the full season unlikely to be so easy.

Midway into reporting season 2018 and it would seem that Telstra has grabbed the most headlines in the media, and occupied the minds of investors more than most, although whether positively or negatively would depend on their position - long or short.

While many long term retail investors are understandably keen to hold onto their Telstra shares for the (shrinking) dividend, and others may buy it based on its yield, no one could complain the decision to reduce the dividend wasn't well flagged to the market. A payout ratio of 100% was unlikely to be maintained, and Telstra Chairman John Mullen did indicate in a recent interview that if nothing else the issue was one the board was looking at. For the many fund managers who were short the stock it will no doubt be a "told you so" situation, but it does indicate the dangers that investors face as companies delight or disappoint the market.

Particularly so long/short managers who are taking multiple bets, some long, some short, or just to not hold a position in a stock. Not only do they need to get their call correct, there's no guarantee the market will always react to good news positively, or alternately to bad news negatively. Add this to a normally concentrated portfolio, and full year reporting does indeed risk becoming a moment of truth, and not an easy one at that. For those on their game the moment can make them, for those that aren't it can take a while to catch up.

While on the subject of catching up, past mistakes and a lack of judgement regarding issues such as Storm Financial, CommInsure and AUSTRAC all culminated in the board of the CBA taking it one step further for embattled CEO Ian Narev this week, flagging his departure by next July. Any sooner would have smacked of panic and given insufficient time to find a replacement, but following legal action from AUSTRAC, pending investigations from ASIC, and almost unprecedented negative comments from the RBA's Governor Dr Philip Lowe, there was only going to be one outcome for the Kiwi born CEO.

Hedge Clippings assumed that radio host Alan Jones' suggestion today that Narev would be well qualified to take over the CEO's position of the equally inept Wallabies' management was a joke, but on reviewing the article and video it appears not.

Maybe he would indeed be perfect, but would anyone notice a difference?

A glance in the rear view mirror...

Every so often Hedge Clippings likes to track through our prior meanderings. There are a number of reasons for this - not wanting to repeat oneself too often and thus become tedious is one, or regurgitate last week's views and be considered forgetful, or worse, being another. However now and again we like to check that our weekly gibber is not overly gibberish, and that what we might have written in the past remains relevant.

Of course, if one of our past editions was shown to be completely incorrect we might not highlight the fact. However, in this case we looked at a "Hedge Clippings" from early June when we mentioned, amongst other things, the possibility that North Korea might overstep the mark.

Far be it from us to try to predict who will win the chest beating exercise between North Korea's presidential nutter, Kim Jong-un and his US counterpart, Donald Trump, but it would seem that neither is renowned for stepping back from a fight, even if in Kim's case it is one that numerically only one side can win, while everyone else also loses. However it has finally jolted markets and the VIX out of their low interest rate stupor. Kim cares not a jot for world opinion, and based on his previous rhetoric, Trump not a lot more. However, we would agree with Trump that a line has to be drawn in the sand somewhere, and as previous US administrations have failed to do so, we are reminded of the old saying that "people behave the way they're allowed to".

In the same edition we also commented on the seeming malaise in Australian politics, and this week's decision (or abdication of one) to resolve the same sex marriage question by holding a non binding, non-compulsory, postal opinion poll seems to personify the issue. Without wanting to enter the debate on either side, the process seems to be symptomatic of the current disconnect between business confidence and household sentiment.

Business confidence is high as a result of low interest rates, low inflation, low wages growth,little in the way of labour shortages, and the use of technology to reduce costs. The other side of the coin is that consumer sentiment is low due to high housing costs, low wages growth, uncertain employment prospects, and looming high utility bills. However we suspect that's not all that is troubling the average household. There would seem to be a lack of clear national direction, which is also affecting the widespread optimism that was apparent when Tony Abbott was removed as PM, and could it be a reflection of the fact  - or perception - that in reality he's still there pulling strings?

Finally, while on the subject of malaise, a word on corporate governance at the big end of town in a week where it was announced that in the US since the start of the GFC 10 years ago, financial institutions have paid fines totaling US$150 billion for the various misdeeds of management. More correctly the shareholders of those financial institutions have presumably paid the $150 billion in fines. Full marks therefore to the board of the CBA for at least slapping the wrist of a few senior executives. However, in reality, and as one who has spent some considerable time and effort to keep up to date with the AUSTRAC Anti Money Laundering (AML) provisions, those responsible at CBA must have either been asleep on the job, or incompetent, (or both) to have permitted such extensive and long running cash deposits to have occurred right under their noses.

Some disconcerting statistics...

Equity markets fluctuate on a daily basis, and as a result investors can become very, if not short sighted, at least short term in their outlook. Fund managers on the other hand need to have both a short and longer term vision: Short term to make sure that their monthly performance, upon which the investor judges them, encourages inflows, and longer term to ensure that they are at least investing in the right direction.

In many ways at both Hedge Clippings and Australian Fund Monitors we are part of the problem, reporting as we do on each fund's monthly performance. As such we can be accused of adding to the short termism, although we would argue that we are also focused significantly on the longer term, and particularly longer term risks. This ties in with the regulator's requirement, where investors are warned that investment in a managed fund (unlike a share on the ASX which can be traded daily) should be looked at over a 3 to 5 year time frame.

So where are we going with all this? Well, yesterday Hedge Clippings went to a seminar which featured a presentation from the Hon. Bernie Ripoll, talking about the influence of technology in general, but also financial services, and on financial advice in particular. He also touched on one of our favourite subjects, namely the accelerating change in demographics, but more of that in moment.

When talking about technology, Bernie reminded his audience that it is 10 years since launch of the iPhone, at which time Steve Jobs said that there were three essential pieces of technology which he used frequently, namely his mobile phone, computer, and music player. With the release of the iPhone he only need one piece. This is not to promote Apple or the iPhone, but it is amazing how rapidly technology advances, and keep advancing. How could we contemplate our lives without one now - which with camera now included, makes four essential devices?

As far as financial services are concerned, technology has been slow to keep up with other industries or service sectors. Thanks to the dangers of money laundering and terrorism, purchasing a financial product has until recently ( excuse a small plug here for our Olivia123 online application system here) remained firmly in the pen and paper bucket. However one of the big advances, and buzzwords in financial services, at the current time is Robo Advice.

According to recent research by Investment Trends, 62% of financial advisers apparently believe that Robo Advice will not affect them. We beg to differ. Technology will increasingly affect every aspect of our lives, and financial services and advice will not be immune from change. It might not be pure push button, algorithmic, robo advice, but financial services, like all industries or sectors, will be revolutionised by technology, either resulting in better decisions, or driving down the cost.

As mentioned earlier, Bernie also brought up some interesting statistics on demographics and the ageing population. Whilst happy to criticise the current government (not surprisingly given his political persuasion) the reality is that governments of both parties have dropped the ball, lost the plot, call it what you will, when it comes to providing for the long term financial future of both individuals and the nation. They are not structuring superannuation, which in its original form was designed to reduce the drain on the public purse caused by people retiring and drawing a pension, for the long-term

Consider these uncomfortable statistics (especially if you still expect to be around for some time to come): According to Bernie's research:

• In 1975 there were 7.3 working people (PAYE taxpayers) in Australia for every person over the age of 65 (and therefore presumably eligible for a pension).
• As of 2017 this has dropped to 4.5 working people for every person over the age of 65.
• Fast forward to 2055, and it is estimated that there will be only 2.7 Australians working for every person over the age of 65.

The taxation burden on those 2.7 people will obviously be enormous, particularly if they are not encouraged to become self-supporting in their retirement in the meantime. We would argue that they shouldn't be encouraged to become self-supporting, wherever possible they should be forced to become self-supporting. Restricting the amount of money that Australian workers can put into their retirement simply to balance the short term budget doesn't make sense in the long-term,.

While talking about superannuation and demographics, a couple of other scary statistics:

• By 2055 is estimated there will be twice as many people over the age of 65 than there are today.
• There will be four times as many people over the age of 85 than there are today.
• By 2035 it is estimated there will be $9.5 trillion in superannuation, even though this will be insufficient to keep the majority of people in the manner to which they would like to be accustomed.

RBA puts the cat amongst the pigeons - and then tries to retrieve it.

Most news was pretty normal this week. The Greens lost another couple of senators as they tried to get their act together; The Donald continued his war of words with everyone (possibly with the exception of Mr Putin); and Tony Abbott continued to break his promise of no wrecking and no sniping.

However a couple of things put a rocket up the Aussie dollar, taking it towards the US$0.80 mark when most analysts were probably feeling comfortable that any currency risk was on the downside. Firstly Janet Yellen made some soothing remarks about the potential for rate rises in the US, which had the effect of softening the Greenback. And then the RBA decided to announce that the neutral rate for Australian interest rates should be 3.5%, which, given the current historically low rate of 1.5%, gave the markets a serious case of the jitters.

So much so that Deputy Governor of the RBA, Guy Debelle slipped a retraction, or explanation, into his speech to the CEDA Mid-Year Economic Update in Adelaide today, saying "no significance should be read into the fact that the neutral rate was discussed" and that "at most meetings the Board allocates some time to discussing a policy relevant issue in more detail, and on this occasion it was the neutral rate".

Hedge Clippings' guess is that henceforth the RBA will think twice before announcing all  the "policy relevant issues" they discuss at their meetings.

The simple fact is that the prospect of a 200 basis point rise in the official rate from the current level of 1.5% would have more than dampened the "animal spirits" that the Deputy Governor also referred to in his speech as one of the major drivers of economic growth, and therefore RBA's views on monetary policy. It might have solved the current property price problem, but would have created a property crisis of its own in its place.

For those with little to do on a Friday evening, there is a link to the speech here, and it actually makes interesting reading if you enjoy that kind of thing. Assuming it was written well ahead of time, we would imagine that the two sentences regarding the "neutral rate" were probably a late edit, or an addition following the market's reaction.

Sell in May and go away?  Maybe, or take a lead from a hedge fund.

The old adage relating to avoiding the equity market in May looked as if it was true - and good advice if taken at the start of the month, possibly less so by the end, by which time the ASX200 accumulation index had fallen 2.75% as a number of clouds were threatening on the horizon.

Meanwhile the average fund on the Fund Monitors database had gained 0.79%, outperforming the local index by over 3.5% clearly indicating their defensive nature, and no doubt bringing a smile to the faces of their investors, and a sense of relief to the managers themselves after the tough times of the past 12 months or so.

Tough for most, although not for all, but with equity valuations being bolstered to record levels by a combination of Trump, complacency and most importantly by record low interest rates and the TINA (There Is No Alternative) effect it has not been the easiest of times for active managers who have been reluctant to hold stocks at unrealistic, or at least unheard of levels.

Locally there has been some recovery, reportedly supported by pre-end of FY and legislative changes resulting in asset allocations from the SMSF sector, but the market, both here and overseas, remains prone to shocks as outlined in last week's Hedge Clippings, including varying political fortunes. On that note it was interesting to see that in the first round of the French elections, voter turnout was less than 50%.

That may be an indication of voter apathy, but it also reinforces the danger of changes in government being decided by minorities who choose, or can be bothered to vote under a voluntary system. As opposed to Australia's compulsory system where it seems minorities are destined to rule the day!

See below for a selection of positive returns for May, or visit AFM the website.

PERFORMANCE NEWS

APN Asian REIT Fund rose 3.37% for the month of May, outperforming the Bloomberg Asia REIT Index which returned +3.14%, by 0.23%. The Fund has an annualised return since inception of 14.7% p.

Cyan C3G Fund posted a small 0.2% gain in May, outperforming the S&P/ASX 200 Accumulation Index's return of -2.75%. Since inception, the Fund's has an annualised return of  25.03% p.a.

NWQ Fiduciary Fund returned +0.81% in May and has returned +5.82% p.a. since its inception in May 2013.

Optimal Australia Absolute Trust reported a net return of +0.17% in May 2017, to take the annualised return since inception to 8.02% p.a.

Totus Alpha Fund rose 1.01%, outperforming the ASX 300 Accumulation Index which was down 2.7% for the month of May. Since inception, the Fund's has an annualised return of 19.7% p.a.

FUND REVIEWS: Bennelong Long Short Equity Fund;

And, on that note, have a great weekend. 

Regards,

Chris
CEO, AUSTRALIAN FUND MONITORS

Connect with me on LinkedIn Twitter Facebook

Australian Fund Monitors are helping to raise awareness to support research into prevention and cure for cerebral palsy. For more information visit www.cpresearch.org.au or contact me by email.

There's nothing to worry about, is there?

Today's AFR's article "Gurus nervous it's 2008 all over again" provides a fair warning.

Valuations are at all time highs. The VIX is at all time lows. What is there to worry about?

• Trump might be impeached.
• May may (and more likely will) lose the unlosable UK election as we pre-empted in last week's Hedge Clippings.
• The Middle East is a mess. OK, so that's been the case for the best part of 70, 100, or 2,000 years depending on your point of view and which side you are, or were, on.
• North Korea's only a rocket or two away from overstepping the mark.

And Australia, in spite of recording record growth - at least from a longevity perspective - is a political, economic, taxation and legislative mess because neither side of politics are prepared to compromise for the long-term benefit of the country, and neither can govern without the support of a tiny minority. And they call that democracy.

Meanwhile some clown on the radio say's "don't worry about the threat of terrorism, you're statistically more likely to be killed by a bee sting than a lunatic with a driving licence and a knife", carefully ignoring the fact that one is accidental, the other deliberate.

Relax. Be Happy!

PERFORMANCE NEWS

Allard Investment Fund increased 1.87% during the month of May 2017 and is up 19.71% for the latest 12 months. The Fund has an annualised return since inception of 9.43% p.a.

Bennelong Long Short Equity Fund rose 2.86% for the month of May, outperforming the S&P/ASX 200 Accumulation Index, which returned -2.75%, by +5.61%. Since inception, the Fund's has an annualised return of 16.85% p.a.

Quay Global Real Estate Fund delivered a +1.8% return for the month of May 2017, outperforming the FTSE/ EPRA NAREIT Developed Index Net TR AUD Index, which returned +1.3%, by 0.5%. Since inception in July 2014, the Fund has an annualised return of 16.1% p.a.

Paragon Australian Long Short Fund gained 1.30% for the month of May, outperforming the S&P/ASX 200 Accumulation Index by +4.05%. The Fund has an annualised return since inception of 11.83% p.a.

And, on that note, have a great weekend. 

Regards,

Chris
CEO, AUSTRALIAN FUND MONITORS

Connect with me on LinkedIn Twitter Facebook

Australian Fund Monitors are helping to raise awareness to support research into prevention and cure for cerebral palsy. For more information visit www.cpresearch.org.au or contact me by email.

Curiouser and Curiouser...

This week Hedge Clippings turns to the mystery of Philip Parker and Altair Asset Management, the previously unheard of fund manager who made it to the front pages with his bold decision to hand back investors' money (actually not that much it seems - from what we can discern there was only $5 million in one fund, and $7 million in another) because he thought market valuations were unrealistic, and that the property market was due for a crash.

Our first thought was that Mr Parker is not Robinson Crusoe in his view of the markets. Plenty, if not most fund managers on AFM's radar have been concerned about stretched valuations for some time, and have been particularly concerned about the excessive multiples that Australia's banks are or were trading at. Equally, one would have to have been living on a different planet (or with Robinson Crusoe on his desert island) if you weren't aware of the fact that Australia's property prices are sky-high, as they are in many other countries of the world, including Hong Kong, Canada and the UK.

Of course there are opposing opinions as to whether this is going to lead to a property crash, or just a slowing of the price increases. The former would certainly lead to a significant fallout across the economy, and particularly affect the banks, and their share prices. The issue however is quite simply: Why would a fund manager simply hand the money back to investors given his view of the market, rather than managing their money responsibly to protect their investment?

One argument might be that Altair's funds were "long" only, and indeed two of them were, and on the latest numbers available both were fully invested with only 1% held in cash. One of them had an exposure to the major banks of 30%, and the other over 20%. Surely the responsible approach would have been for Mr Parker to write to his investors, advising them of his opinion, and giving them the option of redeeming their investment.

As it turns out, since June 29, 2012 Altair Assets Ltd has also been licensed by ASIC to operate the Parker Absolute Return Fund (ARSN 159 082 630) which, as the name suggests, is licensed to hold derivatives. There is a little clue there in the word "derivatives" as to what he might have done to protect his investors.

If Mr Parker was so concerned about equity valuations and an impending property crisis, then surely put options over the banks, or an index put over the whole market would not only have protected his investors, but could have provided them with a significant return if his doom and gloom forecast was proven to be correct.

Curiously, or not surprisingly, once the other side of the story, (namely a minor issue in the courts relating to his mother's shares which had been sold without her knowledge) came to light, Mr Parker was much keener to communicate through his solicitor, rather than through the lens of the camera and via the front pages of the financial press.

Given that the market was down sharply in May, with the worst performance since January 2016, Mr Parker may well be right in his market view, but we would have thought completely wrong in his implementation. Hedge Clippings suspects there is more to this story than meets the eye.

On a different note, there are reports that the UK election result may continue the run of political suprises of the past few years. Unless Hedge Clippings is hallucinating (again) this seems improbable based on logic, but so did Macron, Brexit, and Trump. For that reason we'll leave political comment to others more qualified, and stick to subjects we're at least supposed to understand.

PERFORMANCE NEWS

As above, early days for May performance updates, but with the market having had its worst month since Janaury 2016 it is fair to expect that most absolute return and hedge funds will significantly out-perform. In the meantime below is a selection of April's results.

Affluence Investment Fund increased 0.53% in April, resulting in a +11.18% return for the latest 12 months. Since inception, the Fund's has an  annualised return of 9.77% p.a.

APN AREIT Fund gained 2.27% for the month of April, to take the latest 24 months return to +22.79%. The Fund has an annualised return since inception of  16.69% p.a.

Bennelong Australian Equities Fund returned a positive 2.79% in April, outperforming the S&P/ASX-300 Accumulation Index which returned 0.98%, by +1.80%. Over the past 12 months, the Fund has returned +15.24%, taking the annualised return since inception to 13.82% p.a.

Bennelong Concentrated Australian Equities Fund outperformed the market (S&P/ASX 300 Accumulation Index) posting a positive return of 2.91% for the month of April 2017. Since inception in January 2009, the Fund has an annualised return of 17.96% p.a.

Bennelong Kardinia Absolute Return Fund rose 0.89% in April, taking the annualised return since inception to 11.09% p.a.

Bennelong Twenty20 Australian Equities Fund returned +1.25% for the month of April, slightly outperforming the S&P/ASX-300 Accumulation Index by +0.26%.  For the most recent 12 months, the Fund has gained 16.25%, taking the annualised return since inception to 10.5% p.a.

Cyan C3G Fund returned +1.9% in April, to take the Fund's one year return to +14.49%. Since inception, the Fund has an annualised return of +25.8% p.a, against the S&P/ASX200 Accumulation Index's +6.6% p.a. return.

Insync Global Titans Fund increased 5.2% in April, outperforming the MSCI All Country World ex-Australia Net Total Return Index ($A), which returned 3.7%, by +1.5%. The Fund has an annualised return since inception in October 2009 of 9.58% p.a.

NWQ Fiduciary Fund returned +0.25% in April and has returned +5.74% p.a. since its inception in May 2013.

Pengana Global Small Companies Fund returned +6.7% in April, outperforming the MSCI AC World SMID Cap Index, which returned 4.0%, by +2.7%. The Fund has returned a positive 24.74% over the past 12 months and +9.93% p.a. annually since inception in April 2015.

Pengana Absolute Return Asia Pacific Fund finished up 0.7% for the month of April 2017, compared to Asia Pacific markets which posted a gain of 1.3%. Since inception, the Fund has an annualised return of 8.26% p.a.

Pengana PanAgora Absolute Return Global Equities Fund returned -1.17% for the month of April. The Fund has a low systematic risk (beta) to the ASX 200 and the MSCI World Indices of 0.07 and 0.08 respectively. Since inception the Fund has an annualised return of 9.79% p.a.

Touchstone Index Unaware Fund recorded a net gain of 3.5% for the month of April, which was broadly in line with the FTSE 50/50 Infrastructure Index, which returned 3.62%. Since inception in March last year, the Fund has an annualised return of 14.34% p.a. 

FUND REVIEWS released this week: Bennelong Long Short Equity Fund; APN Asian REIT Fund; Bennelong Kardinia Absolute Return Fund; Optimal Australia Absolute Trust;  Bennelong Twenty20 Australian Equities Fund; Pengana Absolute Return Asia Pacific Fund; Insync Global Titans Fund;

And, on that note, have a great weekend. 

Regards,

Chris
CEO, AUSTRALIAN FUND MONITORS

Connect with me on LinkedIn Twitter Facebook

Australian Fund Monitors are helping to raise awareness to support research into prevention and cure for cerebral palsy. For more information visit www.cpresearch.org.au or contact me by email.