NEWS
Optimal Australia Absolute Trust
7 Jul 2014 - Australian Fund Monitors
Optimal Australia's Absolute Trust returned +0.63% in June against the ASX200 which fell -1.5% with the fund's low concentration and risk controls mitigating losses on long positions, while shorts significantly outperformed.
Read more...
7 Jul 2014 - Optimal Australia Absolute Trust
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 | Commenting on the market's negative performance in June, Optimal noted that had it not been for two single day jags of 1.6 and 1.2% respectively the overall market result for the month of June would have been considerably uglier. Optimal has previously noted the warning signs in markets, and believes they are growing rather than diminishing, citing in particular the IPO frenzy, increased M&A activity, and especially recent activity in the credit markets. Optimal sees further evidence of a collapse in sentiment first apparent around the time of the Federal Budget in May leading to more cautious consumers, and companies not investing or hiring. Meanwhile the government is retrenching and cutting expenditure, while the high A$ has further impacted competitiveness and growth. Overall, Optimal feel that a positive outcome on current growth drivers, (and on geopolitical risk) is priced into equity valuations; and a worse outcome, especially coupled with any resumption of inflationary pressure and interest rate normalisation, is very much not. |
| More Information | » View detailed profile of this fund |
Bennelong Alpha 200 Fund
7 Jul 2014 - Australian Fund Monitors
Bennelong Alpha 200 Fund returned 0.32% in a weak market (ASX 200 Accum - 1.50%).
Read more...
7 Jul 2014 - Bennelong Alpha 200 Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 | At month-end the Fund was 50.9% long and 49.1% short with month-end leverage of 2.6 times. The fund produced a slightly positive return for the month with the short portfolio generating a positive return in a weak equity market, just compensating for the negative contribution from our long portfolio. At a sector level, Industrials (primarily the Long Austal / Short Spotless pair) and Media made the largest positive contribution. The fund experienced both a positive and a negative impact from the weak consumer environment but overall Retail and Travel made the largest negative sector contributions. Three of our consumer exposed long positions and one our shorts had downgrades to their profit outlook during the month. |
| More Information | » View detailed profile of this fund |
Microequities Deep Value Microcap Fund
4 Jul 2014 - Australian Fund Monitors
In the first negative month on the ASX since January the Microequities Deep Value Fund returned 1.39% and 31.53% for the year.
Read more...
4 Jul 2014 - Microequities Deep Value Microcap Fund
By: Australian Fund Monitors
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| 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 | Since inception in March 2009 the Fund has returned 29.63%, double the ASX 200 return of 14.32% with a slightly higher volatility of 14.97% as compared to the Index volatility of 12.59%. Investors have been rewarded for the higher volatility with a Sharpe ratio of 1.59 and a Sortino ratio of 3.69. Index comparatives statistics are 0.84 and 1.27. Domestically the month has seen a stabilisation in consumer confidence following a post-budget fall. Despite the negative bent in media reporting, the Australian consumer has plenty of good reasons to open their wallets. The labor market is relatively stable, interest rates are near all time lows, property and equity markets have risen, increasing household wealth. On the liabilities side, the GFC saw households take a defensive mindset and reduce their gearing levels. There exists significant pent up demand within Australian households. |
| More Information | » View detailed profile of this fund |
Fund Review: Bennelong Long Short Fund AFM Fund Review May 2014
3 Jul 2014 - Australian Fund Monitors
Bennelong's Long/Short Equity Fund returned -0.80% in May 2014, a difficult market both globally and in Australia, with a twelve month return of 4.81% (ASX 200 Acc 16.45%).
Read more...
3 Jul 2014 - Fund Review: Bennelong Long Short Fund AFM Fund Review May 2014
By: Australian Fund Monitors
BENNELONG LONG SHORT EQUITY FUND
Attached is our most recently updated Fund Review on the Bennelong Long Short Equity Fund.
- The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large cap stocks from the ASX/S&P100 Index, with a twelve year track record and annualised net returns of 18.26% pa.
- Since inception in January 2003 the Fund has had positive annual returns each year, including an 11.95% return in 2008 and 20.6% in 2011, both of which were negative years for the ASX200.
- The Fund's risk statistics are also sound with maximum drawdown of 12.22% and 68% positive months. Both the Sharpe Ratio at 1.09 and the Sortino ratio at 1.84, indicate a high reward-to-risk ratio.
- The consistent returns across the investment history indicates the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market.
-
Fund performance was muted for the month as the market drifted without any strong thematic and investors were subject to merger andacquisition activity/speculation, yield/defensive buying and stock specific issues. Our assessment is that the April factors thatnegatively impacted fund returns, which were of a more global nature, were persisting early in the period but since have abated. Fund activitywas limited in May as our view of market fundamentals have not really changed.
Research and Database Manager
Australian Fund Monitors
Fund Review: Optimal Australia Absolute Trust May 2014
2 Jul 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Optimal Australia Absolute Trust for May 2014 has been released. The fund is characterised by very low risk with an annualised standard deviation 3.49% (Index 14.85%)and a Sharpe Ratio since inception of 1.78.
Read more...
2 Jul 2014 - Fund Review: Optimal Australia Absolute Trust May 2014
By: Australian Fund Monitors
OPTIMAL AUSTRALIA ABSOLUTE TRUST
Attached is our most recently updated Fund Review on the Optimal Australia Absolute Trust.
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 1.40% in May with an annual return of 4.81% and a very low standard deviation of 1.70% (ASX 200 Acc 8.87%).
- The Fund has recorded out-performance of the market since inception in September 2008 with approximately 84% of monthly performances having positive returns and the largest drawdown was -1.38% (Index -33.11%).
- The Fund has sound Sharpe and Sortino ratios at 1.78 and 5.22 since inception, as compared to the Index ratios of 0.21 and 0.18 respectively.
- 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
Fund Review: Insync Global Titans Fund May 2014
2 Jul 2014 - Australian Fund Monitors
AFM's updated Fund Review for Insync Global Titans Fund for May 2014 shows the Fund delivering an annualised return of 10.14% and standard deviation of 8.43% (since inception in October 2009) with sound risk-reward statistics.
Read more...
2 Jul 2014 - Fund Review: Insync Global Titans Fund May 2014
By: Australian Fund Monitors
Insync Global Titans Fund AFM Review - May 2014 (pdf format)
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans Fund.
We would like to highlight the following:
- 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.
-
The Funds unit price increased by 1.7% in May. Key positive contributors for the month came from our holdings in Reckitt Benckiser, Zimmer, Directv, Express Scripts and Discover. The main negative contributors were Coach, Safran and Wyndham. The Fund continues to have no foreign currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside.
- 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
Insync Global Titans Fund AFM Review - May 2014 (pdf format)
Fund Review: Supervised High Yield Fund May 2014
2 Jul 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Supervised High Yield Fund for May 2014. The Fund is characterised by positive returns and very low risk. Since inception (April 2009) the Fund has returned 11.01% pa with a volatility of 2.20%
Read more...
2 Jul 2014 - Fund Review: Supervised High Yield Fund May 2014
By: Australian Fund Monitors
Supervised High Yield Fund AFM Review May 2014 (pdf format)
SUPERVISED HIGH YIELD FUND
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.
- Annualised return since inception is 11.01% with a very low standardised standard deviation of 2.20%. Other risk statistics are impressive and show the Fund's risk philosophy; over 98% of monthly performances have been positive, the Fund's largest drawdown is -0.12% and has a Sharpe ratio of 3.18.
Sean Webster
Research and Database Manager
Supervised High Yield Fund AFM Review May 2014 (pdf format)
Fund Review: Morphic Global Opportunities Fund May 2014
1 Jul 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Morphic Global Opportunities Fund for May 2014 has been released. The fund returned 3.91% during the month for an annual return of 21.73%.
Read more...
1 Jul 2014 - Fund Review: Morphic Global Opportunities Fund May 2014
By: Australian Fund Monitors
MORPHIC GLOBAL OPPORTUNITIES FUND
AFM has updated the Fund Review on the Morphic Global Opportunities Fund.
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.
- Portfolio construction is stock selection agnostic with a bias to value based and momentum strategies. Risk management is a primary consideration in portfolio construction and the strong emphasis on risk is evidenced by the Fund's since inception annualised standard deviation of 9.37% (9.71% ASX 200 Accum Index), maximum drawdown of 4.93% (6.72% Index) and downside deviation of 2.97 (5.11 Index).
- The Fund had a net exposure of 101% and a gross exposure of 165% at May month-end with a VAR of 1.06%.
- 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
Fund Review: Monash Absolute Investment Fund May 2014
1 Jul 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Monash Absolute Investment Fund for May 2014. The Fund is characterised by strong absolute returns and low risk. Since inception (July 2012) the Fund has returned 22.39% pa with a volatility of 7.72%.
Read more...
1 Jul 2014 - Fund Review: Monash Absolute Investment Fund May 2014
By: Australian Fund Monitors
MONASH ABSOLUTE INVESTMENT FUND
Attached is our most recently updated Fund Review. You are also able to view the Fund's Profile.
The Fund is a research driven, active equity long/short strategy investing in listed ASX companies.
Monash Absolute Investment Fund returned -0.5% during May in a volatile equity market. The Fund's 12 month record is strong at 25.56% (Index 21.94%) with a volatility of 8.92% (8.87%). Sharpe and Sortino ratios are notable at 2.34 and 10.57 over the same time frame. The Fund had a net exposure of 66% at month-end with gross exposure 78%. Since inception VaR is 1.0%.
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
Fund Review: Microequities Deep Value Microcap Fund May 2014
30 Jun 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.
Read more...
30 Jun 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.
-
The Fund has delivered very strong performance since inception with a 29.82% annualised return compared to the ASX 200 IndexAccum return of 14.89%. Volatility has been somewhat higher than the Index at 15.09% (ASX 200 Accum 12.63%) however theSharpe ratio at 1.58 (0.88) reflects the very high incremental returns for taking on the extra volatility/risk.
-
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
