NEWS
Fund Review: Alpha Beta Asian Fund AFM Fund Review June 2014
11 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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11 Aug 2014 - Fund Review: Alpha Beta Asian Fund AFM Fund Review June 2014
By: Australian Fund Monitors
Alpha Beta Asian Fund June 2014 (pdf format)
ALPHA BETA ASIAN FUND
AFM has updated the Fund Review on the Alpha Beta Asian 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 The Alpha Beta Asian Fund invests in Asian listed equity markets with a focus on liquid companies in Australia, Japan, Hong Kong, Indonesia, Philippines and Thailand. The Fund uses a systematic approach to evaluate macroeconomic, company fundamental and price data, all of which are evaluated through a series of quantitative models.
- Sydney based Alpha Beta Capital was established by Andrew Barry and Ken Lewis in May 2012. Both Barry and Lewis have significant qualifications and international experience in funds management, including working together at Coronation International, a global multi-strategy hedge fund group in London.
- The Strategy relies on a number of core beliefs: Firstly that a well designed systematic investment process, operating within a multi-strategy framework will be able to extract consistent returns, on average, with low volatility. Secondly, by utilising holding periods substantially shorter than the industry-norm, profit opportunities consistently arise. Finally, a strategy that holds a large number of small positions versus a small number of concentrated positions, will remove much of the emotional angst of trading, and the investment process becomes repeatable.
- In keeping with the Manager's overall systematic approach the Risk Management includes real time monitoring of positions and market exposure, and is combined into a proprietary and automated system called PARMS (Portfolio and Risk Management System). PARMS is a centralised and integrated system which provides full functionality including stress testing.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research Manager
Alpha Beta Asian Fund June 2014 (pdf format)
Fund Review: Insync Global Titans Fund June 2014
8 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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8 Aug 2014 - Fund Review: Insync Global Titans Fund June 2014
By: Australian Fund Monitors
Insync Global Titans Fund June 2014 (pdf format)
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans 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:
- Global markets continued to record moderate gains over the month of June. Despite Q1 US real GDP estimates being revised down to -2.9% year on year, the US S&P 500 Index recorded its 6th straight quarterly gain supported by the Fed?s commitment to maintaining low interest rates despite signs of higher inflation. The news in Europe was less than rosy as markets slid on deflation concerns, thus far not taking much comfort in the ECB?s fresh round of measures to encourage bank lending.
- The Global Titans Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research Manager
Australian Fund Monitors
Insync Global Titans Fund June 2014 (pdf format)
Monash Absolute Investment Fund
7 Aug 2014 - Australian Fund Monitors
Monash Absolute Investment Fund returned 3.20% during July and 20.24% over the prior year with a volatility of 8.62% in line with the Index.
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7 Aug 2014 - Monash Absolute Investment Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | The Manager's month-end exposure was net 81% and gross 82% and the VAR 1.1%. The Month-End Note discusses Fund holdings and is available on the AFM website. |
| More Information | » View detailed profile of this fund |
Fund Review: Aurora Fortitude Absolute Return Fund June 2014
6 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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6 Aug 2014 - Fund Review: Aurora Fortitude Absolute Return Fund June 2014
By: Australian Fund Monitors
ARARF Fund Review June 2014 (pdf format)
AURORA FORTITUDE ABSOLUTE RETURN 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 Aurora Fortitude Absolute Return Fund (AFARF) has a 8 year track record investing in ASX listed equities. A Market Neutral overlay is used across a multi strategy approach which allows for flexible asset allocation to maximise returns and minimise risk under a variety of market conditions and cycles.CIO John Corr has over 20 years financial market experience with a strong focus on risk.
- Significant use of low risk "long" derivatives and option overlays has provided positive returns with low volatility during periods of market dislocation. Risk statistics are impressive and shows the Funds risk philosophy; over 88% of monthly performances have been positive with no losing months in 2008, the Fund's largest drawdown is -2.09% and the Sharpe ratio 1.16.
- ASX listed Aurora Funds Limited was established on the merger of three existing fund management businesses, managing approx. $230m on behalf of more than 2,500 retail and wholesale investors.
Sean Webster
Research and Database Manager
Australian Fund Monitors
ARARF Fund Review June 2014 (pdf format)
Microequities Deep Value Microcap Fund
5 Aug 2014 - Australian Fund Monitors
Microequities Deep Value Microcap Fund recorded a notable monthly out-performance with a return of 5.94% during July and 34.46% for the previous twelve months.
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5 Aug 2014 - Microequities Deep Value Microcap Fund
By: Australian Fund Monitors
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| Fund Overview | The objective of the Fund is to identify undervalued Microcap companies, invest in them and, through a medium to long term commitment, attempt to deliver superior investment returns. The Fund invests primarily in ASX listed Microcap companies, which at the time of initial investment are generally below a market capitalisation of A$250 million. The Fund may also invest in companies with a higher market capitalisation, but these will be limited to no more than 20% of the assets of the Fund. At times the Fund may invest in pre-IPO securities that are due to be listed on the ASX within 3-6 months, and have lodged a prospectus with ASIC. These investments will also be limited to no more than 10% of the assets of the Fund. The Fund will be limited to investing no more than 20% of the Fund's assets in any one security or company. The Fund will make investments with a medium to long term time horizon of between 3-5+ years. The Fund will not speculate in derivatives. It will be permitted to hold other securities that are directly associated with a particular investment such as options granted with a specific company issue etc. The Fund will not engage in short selling or stock lending. The Fund will not hold financial debt of any kind. |
| Manager Comments | Two months ago we alluded to the particular anomalies that have contributed to the US negative GDP number for the 1st quarter of 2014. We expected the second quarter number to be much more representative of the underlying strength of the US economic resurgence. That prognosis was affirmed earlier during the week when the US reported second quarter GDP growth of 4%, with firmer labor market conditions and solid consumer spending underpinning the growth rate. The outlook for the second half remains positive as the drivers for consumer confidence should contribute to a more appeasing environment for the US consumer to spend. |
| More Information | » View detailed profile of this fund |
Fund Review: Optimal Australia Absolute Trust June 2014
4 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.
Read more...
4 Aug 2014 - Fund Review: Optimal Australia Absolute Trust June 2014
By: Australian Fund Monitors
Optimal Australia Absolute Trust - June 2014 (pdf format)
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:
- 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 Fund returned 0.63% in June with an annual return of 5.66%.
- The Fund's low risk profile is shown by 84% of monthly performances to date being positive with the largest drawdown of -1.38%.
- The Fund's Sharpe Ratio is 1.79 and Sortino ratio of 5.25 compared to the ASX200 Accumulation Index.
- The investment team comprising George Colman, Peter Whiting supported by Stephen Nicholls and Justin Hay have over 100 years combined experience in equity markets.
For further details on the Fund, please do not hesitate to contact us.
Research and Database Manager
Australian Fund Monitors
Optimal Australia Absolute Trust - June 2014 (pdf format)
Fund Review: Microequities Deep Value Microcap Fund May 2014
1 Aug 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Microequities Deep Value Microcap Fund for May 2014. The Fund is characterised by strong returns (29.82% pa since inception) albeit with higher volatility (15.09%) than the ASX 200 Accum Index.
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1 Aug 2014 - Fund Review: Microequities Deep Value Microcap Fund May 2014
By: Australian Fund Monitors
MICROEQUITIES DEEP VALUE FUND
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.
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The Fund has delivered very strong performance since inception with a 29.63% annualised return compared to the ASX 200 IndexAccum return of 14.32%. Volatility has been somewhat higher than the Index at 14.97% (ASX 200 Accum 12.59%) however theSharpe ratio at 1.58 (0.84) reflects the high incremental returns for taking on the extra volatility/risk.
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The Fund does not short, use derivatives or borrow i.e., it is long only and is concentrated; usually with 15 to 20 companies acrossindustrial sectors. Resource stocks are avoided.
Sean Webster
Research and Database Manager
Pengana Absolute Return Asia Pacific Australian Fund
1 Aug 2014 - Australian Fund Monitors
Pengana Absolute Return Asia Pacific Australian Fund returned 1.04% during June and 7.93% for the prior 12 months with a low volatility of 2.86%.
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1 Aug 2014 - Pengana Absolute Return Asia Pacific Australian Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund seeks to profit from trading securities which are primarily subject to corporate events or from trading-related securities which the Investment Manager believes are mispriced by the market. The Fund invests in securities that are listed on Asian stock markets and other markets where related securities may be listed and in securities which are listed on markets outside of Asia where more than 70% (by assets or earnings) of the underlying business originates from an Asian country. The Fund aims to generate consistently positive returns which have a low correlation to the Asian stock markets. The objective is to generate 10-20% pa with a standard deviation of 6-10% |
| Manager Comments | Since inception in October 2008 the Fund has out-performed the ASX 200 Accumulation Index with a return of 11.23% pa as compared to 7.49%. The Fund's volatility was below that of the Index at 6.04% (Index 14.11%) while the Sharpe and Sortino ratios are 1.21 and 3.00 respectively with the Fund recording 80% positive months. The Fund's gross exposures by strategy (at month-end) were M&A 46%, Capital Management 23.3%, Stubs 14.3% and Index Futures 7.1%. |
| More Information | » View detailed profile of this fund |
Forager Australian Shares Fund
31 Jul 2014 - Australian Fund Monitors
Forager Australian Shares Fund returned -0.15% during June and 17.72% over the year-ended June 2014 with a volatility of 11.48%.
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31 Jul 2014 - Forager Australian Shares Fund
By: Australian Fund Monitors
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| Manager Comments | The economic outlook in Australia, however, remains a concern. The boom in new mining investment has now clearly come to an end but, as the chart below shows, the impact on the economy has been cushioned so far by the completion of old projects. The contribution of business investment to gross domestic product (GDP), currently at record highs, is set to fall heavily. Investment from the last decade ensures Australia will export record tonnes of ore, but unlike investment and construction, the additional benefits to the wider economy are limited. So what does this mean for the portfolio? Luckily value investors do not have to play fair (the idea is pretty much to play as unfairly as possible) so the Fund can cherry pick areas it likes and avoid other ones entirely. It has been a theme for the past five years, but we are still focused on finding foreign currency exposure on the ASX. The trends highlighted above are likely to force the Australian dollar, which has appreciated 5% to US$0.943 this year, lower long term. The full text of the Fund's quarterly report is on the AFM website under the Fund's profile. |
| More Information | » View detailed profile of this fund |
KIS Asia Long Short Fund
30 Jul 2014 - Australian Fund Monitors
KIS Asia Long Short Fund returned 0.95% during June and 11.89% for the previous 12 months with a low volatility of 2.69%.
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30 Jul 2014 - KIS Asia Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Whilst the Fund's primary strategy is focused on long/short equities, the ability to retain discretionary powers to allocate across a number of other investment strategies is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage, special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.). The Fund's geographic focus is Asia excluding Japan, but including Australia). The Fund may invest outside of this region to the extent that: 1. The investment decision is driven from the Asian region or; 2. The exposure is intended to mitigate risk or enhance return from factors external to the Asian region. |
| Manager Comments | Suffice it to say we still believe that globally long dated bonds do not offer value, money on deposit is a waste of opportunity, credit spreads are too tight to reflect normal default risk and equity volatility cannot remain this low forever. These are all observations of markets that have been strongly influenced by the liquidity that has been put into markets by various central banks. These are asset classes you can easily lose money on in tightening liquidity conditions. More importantly, our view is that these assets are now so artificially priced you are unlikely to make a decent return even if central banks keep the liquidity tap on. On the subject of when will the liquidity tap be closed; as inflationary signs begin to appear in wages and consumer price indices the various central banks will be forced to reduce the flow of money. We watch carefully for a tick up in these barometers. |
| More Information | » View detailed profile of this fund |
