NEWS
Totus Alpha Fund
26 Feb 2015 - Australian Fund Monitors
Totus Alpha Fund had a strong positive return in January with 4.60% compare to the ASX200 Accumulation 3.28%.
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26 Feb 2015 - Totus Alpha Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is a long/short investment fund principally investing in listed entities, commodities, futures and options in Australia and internationally. The Fund is not a market neutral fund and accordingly may switch between net long positions and net short positions. The Fund may use short sales and derivatives. Gearing may be used to enhance returns and the Fund may be geared in excess of 100% of the Fund's Net Asset Value. There is a limit to net exposure of 150%. |
| Manager Comments | The Aussie market was less impressive when viewed in context of a 5% slump in the $A over the month, the market was actually down in $US terms. The fund continues to tilt the portfolio towards large cap stocks, yield, scarce growth and US$ exposure. We are remain generally short the commodity space. The Aussie market is up 14% since mid-December and as such we are running a relatively low net exposure (23%). Top contributors to performance in January were our long positions in Macquarie +0.71% (Financial Services), Intueri +0.67% (Scarce Growth) and Telstra +0.67% (Sustainable Yield). Biggest detractors from performance were our short positions in LNG Limited -1.23% (Promoter) and Northern Star -0.53% (Gold), whilst our long position in S&P Futures cost -1.30%. Currency wars have continued into February with our own RBA 'unexpectedly' cutting interest rates and aggressively talking down the $A. |
| More Information | » View detailed profile of this fund |
Fund Review: Optimal Australia Absolute Trust January 2015
25 Feb 2015 - Australian Fund Monitors
AFM's updated Fund Review for January shows Optimal Australian Absolute Trust Fund had low annual volatility of 3.68% compare to the ASX200 Accumulation Index with 14.47%. CPD Points available.
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25 Feb 2015 - Fund Review: Optimal Australia Absolute Trust January 2015
By: Australian Fund Monitors
OPTIMAL AUSTRALIA ABSOLUTE TRUST
AFM have released the most recently updated Fund Review on the Optimal Australia Absolute Trust.
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;
- Optimal Australia is a specialist Australian equity investment manager and the Fund has a long/short equity strategy typically with a low but variable net market exposure comprising 40 to 65 stocks broadly selected from within the ASX200.
- The investment team comprising George Colman, Peter Whiting supported by Stephen Nicholls and Justin Hay have over 100 years combined experience in equity markets.
- The Fund's approach to risk is shown by the Sharpe ratio of 1.36, Sortino ratio of 3.02, both of which are well above the ASX 200 Accumulation Index and has recorded 81% positive months.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Bennelong Long Short Equity Fund
25 Feb 2015 - Australian Fund Monitors
The Bennelong Long Short Equity Fund returned 2.66% in January and has returned 17.37% annually since inception.
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25 Feb 2015 - Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| Fund Overview | In a typical environment the Fund will hold around 70 stocks comprising 35 pairs. Each pair contains one long and one short position each of which will have been thoroughly researched and are selected from the same market sector. Whilst in an ideal environment each stock's position will make a positive return, it is the relative performance of the pair that is important. As a result the Fund can make positive returns when each stock moves in the same direction provided the long position outperforms the short one in relative terms. However, if neither side of the trade is profitable, strict controls are required to ensure losses are limited. The Fund uses no derivatives and has no currency exposure. The Fund has no hard stop loss limits, instead relying on the small average position size per stock (1.5%) and per pair (3%) to limit exposure. Where practical pairs are always held within the same sector to limit cross sector risk, and positions can be held for months or years. |
| Manager Comments | The Fund's performance in January was contributed by being long Resmed / short Ansell. Specifically, Resmed's 2Q earnings result in late January highlighted a strong revenue performance across all geographies and validated traction in the recent launch of a suite of new products. Also helping performance was long Henderson's / short AMP, while long Caltex / short Metcash again was a top contributor following last month's respective profit upgrade / downgrade announcements. Negative contributors for the month came from long Beach Energy / short AGL Energy largely owing to the fall in oil price, as well as long QBE / short Suncorp despite limited news flow. |
| More Information | » View detailed profile of this fund |
Fund Review: Morphic Global Opportunities Fund January 2015
24 Feb 2015 - Australian Fund Monitors
Morphic Global Opportunities Fund returned 4.42% in January ahead of the Global Equity Index of 3.27%.
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24 Feb 2015 - Fund Review: Morphic Global Opportunities Fund January 2015
By: Australian Fund Monitors
MORPHIC GLOBAL OPPORTUNITIES FUND
Attached is our most recently updated Fund Review on the Morphic Global Opportunities 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.
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.
- 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
Australian Fund Monitors
Avenir Capital Value Fund
23 Feb 2015 - Australian Fund Monitors
Avenir Capital Value Fund returned -0.13% during January 2015 with annual performance of 14.95% and volatility of 11.00% since inception.
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23 Feb 2015 - Avenir Capital Value Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will invest in securities where Avenir believes the company is simply mis-priced and deeply undervalued and offers significant potential for revaluation. The Fund will also invest in companies that are subject to specific corporate events such as mergers, acquisitions, restructurings, recapitalisations, spin-offs, demergers, management change, distressed situations, and other sharply delineated corporate events. The Fund will also selectively invest in short positions in companies where Avenir believes the company is significantly overvalued or where the company's business model is broken or structurally challenged. |
| Manager Comments | The Fund's Sharpe and Sortino ratio are 1.04 (Index 0.75) and 1.73 (Index 1.06) respectively. At month-end the Fund's geographic exposure was US 45%, W. Europe 15% Asia 16% Australia 1%, Other 7% with cash at 14%. |
| More Information | » View detailed profile of this fund |
Bennelong Kardinia Absolute Return Fund
20 Feb 2015 - Australian Fund Monitors
Bennelong Kardinia Absolute Return Fund returned 1.44% during January, bringing performance since inception to 13.16% (ASX 200 Acc 5.19%) with volatility at 7.41% (Index 14.21%).
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20 Feb 2015 - Bennelong Kardinia Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund's discretionary investment strategy commences with a macro view of the economy and direction to establish the portfolio's desired market exposure. Following this detailed sector and company research is gathered from knowledge of the individual stocks in the Fund's universe, with widespread use of broker research. Company visits, presentations and discussions with management at CEO and CFO level are used wherever possible to assess management quality across a range of criteria. Detailed analysis of company valuations using financial statements and forecasts, particularly focusing on free cash flow, is conducted. Technical analysis is used to validate the Manager's fundamental research and valuations and to manage market timing. A significant portion of the Fund's overall performance can be attributed to the attention and importance given to the macro economic outlook and the ability and willingness to adjust the Fund's market risk. |
| Manager Comments | Long positions in Telstra, ResMed,Transurban and National Australia Bank were all significant positive contributors whilst Share Price Index Futures contracts (hedging long positions), Twenty-First Century Fox warrants, Amcor and Ardent Leisure were the main detractors from performance. Net equity market exposure (including derivatives) was reduced slightly to 62.1% (88.9% long and 26.8% short). |
| More Information | » View detailed profile of this fund |
Aurora Fortitude Absolute Return Fund
19 Feb 2015 - Australian Fund Monitors
Aurora Fortitude Absolute Return Fund returned -0.04% in January, bringing the fund's annual return per annum to 7.31% with a volatility of 2.70%.
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19 Feb 2015 - Aurora Fortitude Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | Performance was impacted by Stonewall Resources which was marked down during December and then came out of a trading halt at the end of January. The options portfolio produced some good returns but was offset by losses again in long/short and in particular, Stonewall. We have continued to reduce the number of positions in the Long/Short part of the portfolio as a result of the recent losses in this part of the portfolio. |
| More Information | » View detailed profile of this fund |
Cor Capital Fund
18 Feb 2015 - Australian Fund Monitors
The Cor Capital Fund returned +4.0% during January and 8.57% over the previous 12 months with a volatility of 4.94%. The return since inception in August 2012 was 6.34% per annum with a volatility of 5.62%.
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18 Feb 2015 - 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 | These results were achieved without the use of derivatives, gearing or short-selling. The Fund's expected return is 5% above the rate of inflation before fees. Following a surge in the gold price (+22% over the last quarter) relative to the other assets in the Fund, that position represented over 28% of the portfolio with cash falling to 23.46%. These weightings exceed the defined limits and so the Fund will be rebalanced at the start of February. |
| More Information | » View detailed profile of this fund |
Optimal Australia Absolute Trust
17 Feb 2015 - Australian Fund Monitors
Optimal Australia Absolute Trust returned -1.88% in January, bringing performance since inception to 8.78% (ASX200 Accum Index 5.91%) and volatility of 3.68% (Index 14.47%).
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17 Feb 2015 - Optimal Australia Absolute Trust
By: Australian Fund Monitors
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| Fund Overview | 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 | The valuation gap between (loosely generalised) financial repression/low interest rate winners and cyclical losers has continued to blow out. Any stock with 'defensive yield' characteristics continues to be re-rated to valuations that are indefensible on any non-yield metric; yet no price is low enough for materials and cyclicals in view of earnings risk. Our longs, which include a small exposure to the latter category, lost 0.60% in NAV terms. Our shorts, which do feature 'indefensible valuation yield' as a common factor weight, were roiled by a further collapse in bond yields, losing 0.68%/NAV. Our index futures position compounded hedge costs. The big macro events of January and early February seemed similarly supportive of further yield-seeking investment strategies. Both the ECB quantitative easing program and locally the RBA cut 0.25% in cash rate down to record low 2.25% had intended effect of driving yields down further. So we watch and wait for further opportunities on this thematic, having tightened our risk management disciplines around this trade. |
| More Information | » View detailed profile of this fund |
Fund Review: Bennelong Alpha 200 Fund Jan 2015
16 Feb 2015 - Australian Fund Monitors
The Alpha 200 Fund primarily invests within the top 200 by market capitalisation, using a similar "pairs trading" approach while remaining broadly market neutral on a cost basis. The Fund returned 2.18% in January and 4.13% since inception.
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16 Feb 2015 - Fund Review: Bennelong Alpha 200 Fund Jan 2015
By: Australian Fund Monitors
BENNELONG ALPHA 200 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:
- The Bennelong Alpha 200 Fund is a new fund opened in December 2013. The Fund is broadly modelled on the strategy used for Bennelong's original Equity Long Short Fund which uses a market neutral "pairs trading" approach to invest in Top 100 stocks, and which has been managed by Richard Fish since the inception of BLSEM in 2002.
- The Alpha 200 Fund however primarily invests within the top 200 by market capitalisation, using a similar "pairs trading" approach while remaining broadly market neutral on a cost basis.
- The Fund will hold 70 - 90 stocks comprising 35 to 45 pairs,although it can hold up to 100 stocks and 50 pairs. Each pair contains one long and one short position each of which is thoroughly researched and,where possible, from the same market sector. The pair positions are dollar neutral at cost, limited in terms of sector exposure, and give theportfolio a target beta of zero over time.
- In addition to Richard Fish, the team is composed of Sam Shepherd who joined BLESM from Credit Suisse, where he ran the Melbourne institutional equities desk. Shepherd's 20 year experience also covers JP Morgan and Norwich Investment Management. Tim Hall recently joined BLSEM as a specialist mid and small-cap portfolio manager to work on the expanded universe of the 200 Alpha Fund. The team is supported by experienced investment analyst, Sam Taylor.
If you have any questions in relation to the Fund Review, please do not hesitate to contact us.
Sean Webster
Research and Database Manager
Australian Fund Monitors
