NEWS
Fund Review: Morphic Global Opportunities Fund July 2014
27 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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27 Aug 2014 - Fund Review: Morphic Global Opportunities Fund July 2014
By: Australian Fund Monitors
Morphic Global Opportunities Fund July 2014 (pdf format)
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
Morphic Global Opportunities Fund July 2014 (pdf format)
Aurora Fortitude Absolute Return Fund
26 Aug 2014 - Australian Fund Monitors
Aurora Fortitude Absolute Return Fund returned 0.07% during July and a one year return of 3.44% with a volatility of 0.97% and a Sharpe ratio of 0.95
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26 Aug 2014 - 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 | The Fund has a maximum draw-down of 2.09% since inception in February 2005 and 92% positive months. The Sharpe ratio over this time is 1.15. The Manager notes that they have published a thought piece "Defensive Strategies and Low Volatility". Activity in Mergers and Acquisitions (+0.29%) increased considerably during the month. Several new deals were announced whilst existing deals gained momentum. Yield (+0.11%) spreads continue to compress as participants clamour for yield in a low interest rate environment. The Fund is purposefully avoiding duration exposure and seeks to invest in short dated, high quality exposure and special situations. The Options portfolio (-0.43%) was again a significant detractor. Realised volatility for the month reached a new low. |
| More Information | » View detailed profile of this fund |
Cor Capital Fund
25 Aug 2014 - Australian Fund Monitors
Cor Capital Fund returned 1.01% and 4.01% for the year ended July 2014 with a volatility of 4.08%.
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25 Aug 2014 - 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 | The main overall return contribution for July was from equities (+1.02%) with fixed interest (+0.05%), cash (+0.03%) and precious metals (-0.09%) all relatively flat. While equity market volatility has increased over the last two months, it hasn't been to the degree that the Fund's allowed ranges have been breached, and so there were no changes to the portfolio for the month. |
| More Information | » View detailed profile of this fund |
Fund Review: Bennelong Alpha 200 Fund July 2014
25 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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25 Aug 2014 - Fund Review: Bennelong Alpha 200 Fund July 2014
By: Australian Fund Monitors
Bennelong Alpha 200 Fund Review July 2014 (pdf format)
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 BLESM 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.
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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.
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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 or the CPD points, please do not hesitate to contact us.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Bennelong Alpha 200 Fund Review July 2014 (pdf format)
Alpha Beta Asian Fund
22 Aug 2014 - Australian Fund Monitors
Alpha Beta Asian Fund returned 1.02% during July and 10.61% for the previous 12 months with a volatility of 4.18%.
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22 Aug 2014 - Alpha Beta Asian Fund
By: Australian Fund Monitors
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| Fund Overview | The investment objective of the Fund is to produce positive annual returns without excessive risk. This is achieved through the use of a quantitative approach to invest both long and short in large cap companies listed on Asian stock exchanges. The Fund may also use index futures to manage risk. Stock prices and company fundamental data are decomposed into directional and mean reverting components. Each of Alpha Beta's models are based on either of these known behaviours with capital management built into each model. The benefit of a quantitative approach is that it is both repeatable and unemotional, and allows a different source of returns to be extracted from a very noisy market environment. |
| Manager Comments | Since inception, the low correlation (0.15) to MSCI Asia Pacific (MXAP) and low beta (+0.09) confirms the market neutral nature of ABAF with a Sharpe Ratio of 1.4. The Manager's report is on the AFM website under the Fund's profile. |
| More Information | » View detailed profile of this fund |
Fund Review: Insync Global Titans Fund July 2014
22 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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22 Aug 2014 - Fund Review: Insync Global Titans Fund July 2014
By: Australian Fund Monitors
Insync Global Titans Fund July 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:
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The Fund has performed slightly ahead of the ASX over longer time frames. Since inception (Oct '09) the Fund has returned an annualised return of 9.50% against 8.14% for the ASX 200 Acc. The fund performed well from June '11 to June '12 and then lagged slightly for some months due to the market's preference for more cyclical stocks. Since October '12 performance has been below the domestic and global indices.
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In line with the Fund's emphasis on capital protection, the largest single month decline of 3.23% and largest drawdown of 4.39% as compared to 7.51% and 15.13% respectively for the ASX. This emphasis is also reflected in the low annualised standard deviation of 8.34% versus 11.83% for the ASX. The emphasis on capital preservation is seen in the Fund's stability over the period and March to June 2010 and April - Sept 2011 .
- 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 July 2014 (pdf format)
Fund Review: Optimal Australia Absolute Trust July 2014
21 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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21 Aug 2014 - Fund Review: Optimal Australia Absolute Trust July 2014
By: Australian Fund Monitors
Optimal Australia Absolute Trust - July 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 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.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Optimal Australia Absolute Trust - July 2014 (pdf format)
Morphic Global Opportunities Fund
20 Aug 2014 - Australian Fund Monitors
Morphic Global Opportunities Fund returned -0.73% during July and 11.34% over the prior 12 months with a standard deviation of 8.64%.
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20 Aug 2014 - Morphic Global Opportunities Fund
By: Australian Fund Monitors
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| Manager Comments | The Sharpe ratio is 2.23 and the Up and Down capture ratios 0.54 and -1.08 since inception. The Fund remains of the view we are still within a bull market - money is cheap, earnings continue to improve and the global economy still has plenty of growth capacity left. As such the Manager is fully invested. While it will continue to monitor market developments, particularly in credit markets, it will likely use any further market falls to increase exposure to companies that offer good upside potential. The currency is unhedged. |
| More Information | » View detailed profile of this fund |
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.
Read more...
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)
