NEWS
Totus Alpha Fund
19 Aug 2014 - Australian Fund Monitors
Totus Alpha Fund returned 3.55% during July with an annual return of 37.86% and a volatility of 15.62%.
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19 Aug 2014 - 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 Up and Down Capture ratios were 1.44 and -0.5 respectively and the Sharpe ratio 2.00 over the previous twelve months. The Fund's performance has been impacted by the re-emergence of private equity and corporate interest in a number of under-performing businesses (of the type we generally look to short) as well as a general rotation out of many quality businesses that had performed well for us into "laggards" such as gold mining shares and domestics cyclicals which we have tended to avoid (or short). Top contributors to performance in July were long our positions in Healthscope +2.53% (ageing population), Intueri Education +0.79% (scarce growth) and Flight Centre +0.76% (scarce growth). |
| More Information | » View detailed profile of this fund |
Fund Review: Bennelong Kardinia Absolute Return Fund July 2014
19 Aug 2014 - Australian Fund Monitors
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.
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19 Aug 2014 - Fund Review: Bennelong Kardinia Absolute Return Fund July 2014
By: Australian Fund Monitors
Bennelong Kardinia Fund Review July (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.
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.
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 -0.66% in June 2014, taking returns for the year to 7.28% (ASX 200 Accum 17.43%). Annualised returns since inception are 13.24% as compared to the Index at 4.23% and with a lower volatility of 7.65% pa as compared to 14.33% pa. Fund exposures at month-end were 57.0% long and 19.4% short with a net exposure of 37.6%, up from the previous month.
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 Fund Review July (pdf format)
Forager Australian Shares Fund
18 Aug 2014 - Australian Fund Monitors
Forager Australian Shares Fund recorded an out-performance of the Index 2.30% (Fund 6.70%) during July and returned 13.73% for the previous 12 months.
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18 Aug 2014 - Forager Australian Shares Fund
By: Australian Fund Monitors
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| Manager Comments | Since inception (October 2009) the Fund has out-performed the ASX 200 Accum index with a return of 13.98% (Index 8.77%) with Sharpe and Sortino ratios of 0.78 and 1.34 above that of the Index. While positive contributors included portfolio mainstays GBST, Hansen and RNY Property Trust, the most significant contribution came from a new addition to the portfolio " civil and mining company Brierty. Those gains were partly offset by declines in Infigen Energy and Hughes Drilling. There is now approximately 17% of the fund invested in a collection of businesses either directly or partially exposed to mining services. The sector remains under intense pressure, and a couple of these investments have been a significant drag on performance over the past 12 months. The Fund's monthly report is available on the AFM website under the Fund's profile. |
| More Information | » View detailed profile of this fund |
Fund Review: Microequities Deep Value Microcap Fund July 2014
18 Aug 2014 - Australian Fund Monitors
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.
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18 Aug 2014 - Fund Review: Microequities Deep Value Microcap Fund July 2014
By: Australian Fund Monitors
Microequities Deep Value Microcap Fund Review July (pdf format)
MICROEQUITIES DEEP VALUE FUND
Attached is our most recently updated Fund Review on the Microequities Deep Value 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 Microequities Deep Value Fund has a 5 year track record investing in ASX listed equities. The Fund is a fundamental, research-driven Fund investing in equities with a market cap below $250m. The Fund uses a value philosophy based on the view that microcaps are often under-researched and under-valued.CIO Carlos Gil has over 15 years financial market experience across a broad range of equities.
- The Fund does not short, use derivatives or borrow i.e., it is long only and is concentrated; usually with 15 to 20 companies across industrial sectors.
- Resource stocks are avoided.
If you have any questions in relation to the Fund Review or the CPD points, please do not hesitate to contact us.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Microequities Deep Value Microcap Fund Review July (pdf format)
Optimal Australia Absolute Trust
15 Aug 2014 - Australian Fund Monitors
Optimal Australia Absolute Trust returned 1.03% during July and 6.37% for the previous twelve months with a standard deviation of 1.69%.
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15 Aug 2014 - 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 Sharpe and Sortino ratios were 2.22 and 4.98 respectively as compared to 1.61 and 3.27 for the ASX 200 Accumulation Index respectively. The low volatility nature of the Fund is indicated by the Up and Down Capture ratios of 0.24 and -0.12 respectively. The Fund has also achieved 85% positive months since inception in September 2008. The Trust's performance in July featured very strong returns from stock selection, although the Fund's net short exposure to a sharply rising market held back overall returns. At a stock level, the Fund's long positions performed strongly, with positive attribution of +3.4%, on long market exposure averaging 54% of NAV, or around double the overall market's gain on an equivalent exposure basis. This more than offset the cost of insuring our portfolio against downside risk. |
| More Information | » View detailed profile of this fund |
The Paragon Fund
14 Aug 2014 - Australian Fund Monitors
The Paragon Fund recorded a return of 12.50% during July (Index 4.40%) with an annual return of 43.65% (Index 16.54%).
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14 Aug 2014 - The Paragon Fund
By: Australian Fund Monitors
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| Fund Overview | Paragon accepts that markets are not always efficient in pricing information into securities and that no one investment style works in every stage of the investment cycle. Subsequently Paragon adopts a top down thematic led approach to identify companies exhibiting sustainable or improving returns on capital driven by volume growth, pricing power and competitive advantages. Paragon utilises both quantitative analysis to provide probability weighted high/low/base case valuations and qualitative analysis in assessing management, the business model and likely direction of returns. Paragon will allocate assets to each investment opportunity based on a risk/reward profile. Positions have defined investment parameters and risk limits, which are then monitored on an ongoing basis. |
| Manager Comments | Volatility was 13.36% as compared to the Index at 8.23%. The Sortino ratio was 7.97 (Index 3.27) with the Up and Down Capture ratios 1.47 and -1.16. Key drivers of the Paragon Fund performance for July included strong returns from our resource investments in Liquefied Natural Gas, Triton Minerals, Orocobre Ltd and OZ Minerals. Industrial firms Crown Resorts and G8 Education also had strong months. At the end of June the fund had 25 long positions and 4 short positions. |
| More Information | » View detailed profile of this fund |
Bennelong Kardinia Absolute Return Fund
14 Aug 2014 - Australian Fund Monitors
Bennelong Kardinia Absolute Return Fund returned 1.07% during July bringing annual performance to 7.02% with a volatility of 4.29%.
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14 Aug 2014 - 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 | Since inception (May 2006) performance is sound with a return of 13.24% (ASX 200 Accum 5.33%) and a volatility of 7.61% (Index 14.32%). The Sharpe ratio over that time is 1.1 (Index 0.13). The net equity market exposure of the Fund (including derivatives) was increased to 60.1% (82.4% long and 22.3% short). Long positions in Crown, Challenger and BHP were the major positive contributors. Short positions in Webjet and Price Index Futures contracts (hedging longs), as well as a long position in Ansell,were the largest detractors. |
| More Information | » View detailed profile of this fund |
Fund Review: Monash Absolute Investment Fund July 2014
14 Aug 2014 - Australian Fund Monitors
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.
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14 Aug 2014 - Fund Review: Monash Absolute Investment Fund July 2014
By: Australian Fund Monitors
Monash Absolute Investment Fund Review July (pdf format)
MONASH ABSOLUTE INVESTMENT FUND
Attached is our most recently updated Fund Review. You are also able to view the Fund's Profile
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:
- The Fund is a research driven, active equity long/short strategy investing in listed ASX companies.
- 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.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research Manager
Monash Absolute Investment Fund Review July (pdf format)
Fund Review: Supervised High Yield Fund June 2014
13 Aug 2014 - Australian Fund Monitors
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.
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13 Aug 2014 - Fund Review: Supervised High Yield Fund June 2014
By: Australian Fund Monitors
Supervised High Yield Fund Review June 2014 (pdf format)
SUPERVISED HIGH YIELD 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 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.
Research and Database Manager
Australian Fund Monitors
Supervised High Yield Fund Review June 2014 (pdf format)
Bennelong Alpha 200 Fund
11 Aug 2014 - Australian Fund Monitors
Bennelong Alpha 200 Fund returned 0.17% during July and 5.72% since inception in December 2013.
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11 Aug 2014 - Bennelong Alpha 200 Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | The Fund's best pairs the shorts, as well as the longs, all contributed positively to performance during the month, which is pleasing given the strength of the market. Unfortunately, with the exception of Breville, all the stocks in the bottom spreads contributed negatively " with the result being marginally positive fund performance for the month. Looking slightly further ahead, the prospect of higher US interest rates as growth recovers further will tend to dominate investor positioning. |
| More Information | » View detailed profile of this fund |
