NEWS
Bennelong Kardinia Absolute Return Fund
12 Nov 2013 - Australian Fund Monitors
The Bennelong Kardinia Absolute Return Fund recorded a sound performance of 2.17% during October with a net exposure of 71%.
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12 Nov 2013 - Bennelong Kardinia Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund consists of a concentrated long/short portfolio typically comprising 30 to 40 ASX300 listed stocks, generally with a long bias aligned to the overall market direction. There is a slight bias to large cap stocks in the long side of the portfolio, although in a rising market the portfolio will tend to hold smaller caps, including resource stocks, more frequently. On the short side, the portfolio is particularly concentrated, with stock selection limited by both liquidity and the difficulty of borrowing stock in smaller cap companies. Short positions are only taken when there is a high conviction view on the specific stock. The Fund uses derivatives in a limited way, mainly selling short dated covered call options to generate additional income. These typically have less than 30 days to expiry, and are usually 5% to 10% out of the money. ASX SPI futures and index put options can be used to hedge the portfolio's overall net position. |
| Manager Comments | The Fund's longer term record demonstrates the low risk investment approach with the five year performance record showing an annualised standard deviation of 7.15%, 52% of the ASX 200 Accum Index, and a return of 12.84% pa (11.08% Index). The domestic market was focussed on the AGM season with trading updates and commentary generally cautious. Banks performed strongly with ANZ and NAB reporting solid results and increased dividends. |
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Allard Investment Fund
11 Nov 2013 - Australian Fund Monitors
Allard Investment Fund recorded 0.3% for October. Since inception (July 2003) the Fund has returned 8.74% with very low volatility of 8.00% pa and a maximum draw-down of 18.29%.
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11 Nov 2013 - Allard Investment Fund
By: Australian Fund Monitors
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| Manager Comments | At month-end the Fund was 70.7% invested in equities with the remaining 29.3% in cash and fixed income. In terms of portfolio concentration the Top 5 holdings were 41.2% and the next 5 at 16.9% with remainder totaling 12.6%. Industry break-down in terms the largest exposures are Financial Services 15.4%, Conglomerates 12.3% and Telco's at 8.6%. |
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Bennelong Long Short Equity Fund
8 Nov 2013 - Australian Fund Monitors
The Bennelong Long Short Equity Fund returned 1.88% during October bringing its 12 month return to 22.02% and the since inception return (Jan 2003) to 21.20% p.a. as compared to the ASX 200 Accumulation Index return of 10.30% p.a. over the...
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8 Nov 2013 - Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| Manager Comments | The long portfolio solidly out-performed the performance detraction from the short book. Intra-month performance was very strong but drifted toward the latter part of the month as markets rallied. Stock specific news centered around the Annual General Meeting updates of company earnings outlook guidance and a few quarterly reports, both of which marginally contributed to portfolio performance. Global equity markets continue to experience strong momentum. The prevalence of low interest rates is buoying sentiment with a strong pipeline of IPO's as well as capital management initiatives. This is also beginning to flow through to 'Main Street' with house prices both in Australia and in the U.S. rising. Domestically there has been a strong focus on costs as top line growth has been elusive. |
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Morphic Global Opportunities Fund
7 Nov 2013 - Australian Fund Monitors
Morphic's Global Opportunities Fund gains 3.14% in October as the manager successfully navigated the US budget face-off, taking 12 month performance to 34.69%.
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7 Nov 2013 - Morphic Global Opportunities Fund
By: Australian Fund Monitors
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| Manager Comments | Morphic's performance report for the month noted that once again the market mood was dictated by activities in the US. This month the concern was whether the House of Representatives would approve an increase in the total amount of debt the government could issue, and pass resolutions allowing a new budget for the year. Amid intense brinkmanship, global equity markets sold off, followed by a sharp rally when President Obama stared down the House, and the spectre of a US default on its debt faded. The Fund started the month with hedges in place for a worst case outcome on the US budget face-off. As it became clear the market was mispricing the prospect of a last minute deal, the Manager bought call options on US markets, which soared when the President prevailed. The Fund ended the period still underweight the US and overweight Japan, Europe and Emerging Market - and fully invested, but not without some caution after the strong returns of global markets year to date and with some signs of frothiness in valuations now appearing. The most likely trigger for a sell-off would seem to be a resurgence of anxiety about US monetary policy. To mitigate this risk the Manager has established a number of short term positions over US fixed income futures. As any tightening in US monetary policy will probably see the US dollar rise, the Manager has hedged part of the Fund's European exposure back in US dollars. The Fund's largest equity exposure by sector is to Financials, and geographically to North America, followed by Western Europe and Asia. At month end there was no active commodity exposure, and no active credit positions. |
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Monash Absolute Investment Fund
6 Nov 2013 - Australian Fund Monitors
Monash Absolute Investment Fund has returned 18.07% year-to-date and 37.30% for the last 12 months. October performance was 3.00%.
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6 Nov 2013 - 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. |
| Manager Comments | The Manager notes that October was another interesting month. There was no slackening in the number of placements and IPOs, which are taking advantage of improving investor confidence. Evidence of a recovering risk appetite is also shown by global fund flow data. After 5 years of strong flows into cash and bond funds and outflows from equity funds the trend has now reversed. |
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Fund Review: BlackRock Multi Opportunity Fund
5 Nov 2013 - Australian Fund Monitors
AFM's updated Fund Review for BlackRock Multi Opportunity Fund. The current strategy has returned 11.65% pa since inception (July 2004) and only three negative months since May 2010.
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5 Nov 2013 - Fund Review: BlackRock Multi Opportunity Fund
By: Australian Fund Monitors
BLACKROCK MULTI OPPORTUNITY FUND
Attached is our most recently updated Fund Review on the BlackRock Multi Opportunity Fund.
We would like to highlight the following aspects of the Fund:
- The Fund offers broad diversification across asset classes including equities, fixed income, currencies and commodities with an attractive risk profile, having provided double digit returns in 2009 through 2012 with low volatility of 2.10% over the last 48 months.
- The current strategy has seen the Fund record only three negative months since May 2010, leading to annualised returns over the past 48 months (to September 2013) of 11.68% and an annualised volatility of 2.10% pa. The four year Sharpe Ratio is 3.60, indicating an excellent reward-to-risk ratio.
- BlackRock's Active Scientific involves extensive research into every aspect of the investment process starting with the identification of fundamental investment insights. These are thoroughly tested to ensure that the outcome consistently adds to performance: Quantitative analysis is also applied to balance both performance and risk ensuring the position is only taken when the potential for reward is adequate. Only insights meeting this multi level process are implemented into portfolios.
Research and Database Manager
Australian Fund Monitors
Fund Review: Aurora Fortitude Absolute Return Fund
4 Nov 2013 - Australian Fund Monitors
AFM's updated Fund Review for the Aurora Fortitude Absolute Return Fund for August 2013. The Fund is characterised by steady returns and very low risk. The since inception (March 2005) return is 8.22% pa and the annualised standard deviation 2.78%.
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4 Nov 2013 - Fund Review: Aurora Fortitude Absolute Return Fund
By: Australian Fund Monitors
Aurora Fortitude Absolute Return Fund (pdf format)
AURORA FORTITUDE ABSOLUTE RETURN FUND
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.
Strong use of low risk "long" derivatives and option overlays has provided positive returns with low volatility during periods of market dislocation. Over 87% of monthly performances have been positive, with no losing months in 2008 and a largest drawdown of -2.09%.
ASX listed Aurora Funds Limited was established on the merger of three existing fund management businesses, managing approx. $480m on behalf of more than 2,500 retail and wholesale investors.CIO John Corr has over 20 years financial market experience with a strong focus on risk.
Research and Database Manager
Australian Fund Monitors
Aurora Fortitude Absolute Return Fund (pdf format)
Allard Investment Fund
1 Nov 2013 - Australian Fund Monitors
The Allard Investment Fund has returned 8.8% pa over the last five years with a volatility of 9.09% as compared to the ASX 200 Accumulation comparative data of 7.29% and 14.78%. The September return was -0.1%.
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1 Nov 2013 - Allard Investment Fund
By: Australian Fund Monitors
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| Manager Comments | The Fund's low risk exposure to Asia equities is shown by the largest draw-down of -18.29% and a downside deviation of 5.5% with the Index comparative data of -47.19% and 9.97%. At end-September the geographic breakdown was HK/China 32.6%, Singapore 13.3% and Korea 9.2%. Cash and Fixed Income holdings were 31.5%. The industry breakdown was Financial Services 13.8%, Conglomerates 12.4% and Telco's at 8.7%. The portfolio concentration was 40.8% for the Top 5 holdings and 15.9% for the next 5 holdings. |
| More Information | » View detailed profile of this fund |
BlackRock Multi Opportunity Fund
31 Oct 2013 - Australian Fund Monitors
Since inception in July 2004 the the BlackRock Multi Opportunity Fund has returned 8.65% pa with low volatility of 4.18%.
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31 Oct 2013 - BlackRock Multi Opportunity Fund
By: Australian Fund Monitors
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| Fund Overview | - Australian and International Equity Long/Short - Global Fixed Income Long/Short - Global Macro - Commodity Alpha - Alpha Transport The Fund's goal is to provide investors with a source of consistent, risk-controlled, absolute returns that are over time, expected to have low correlations with the returns of major asset classes. The Fund aims to achieve a return of 8% p.a. before fees, above the RBA Cash Rate Target over rolling 3 year periods. In order to achieve its expected return objective, the Fund will target a total expected risk of between 4-6% p.a. over the same rolling 3 year period. |
| Manager Comments | The Fund's absolute return mandate is shown by the maximum draw-down of 9.45% and 80 % positive months as compared to the Index of draw-down of 47.19% and 65% positive months. The Multi Opportunity Fund delivered positive performance in the third quarter, despite under-performing the cash benchmark. The Global equity long/short and Australian Equity long/short strategies added value while our Fixed Income Global Alpha strategy was flat. Both the Global Macro strategy and International Alpha Transport detracted. The fund returned 0.25% for the quarter versus the RBA cash benchmark return of 0.66%, delivering an excess return of -0.41%. The Australian equity selection strategy outperformed the market in the third quarter due to strong performance in July. This early performance was on the back of geo-political tensions lifting the oil price and a rally in domestic cyclicals. In September the strategy under-performed the market. The rally of domestic cyclicals rally following the reporting season impacted our positioning negatively, with the primary detractors being building materials. |
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CorCapital Fund
31 Oct 2013 - Australian Fund Monitors
The CorCapital Fund has returned 6.00% pa since inception (August 2012) with a volatility of 6.64%. The September return was -1.49%.
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31 Oct 2013 - CorCapital 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 | Over the last quarter all the Fund's asset classes of equities, gold, fixed interest and cash delivered positive returns for total return of 5.36%. The Manager notes that the Fund is currently earning about 4 per cent on portfolio cash. The Fund's fixed interest investments were slightly positive on a total return basis over the quarter as US long-term bond yields moved higher. Whether that continues due to a possible 'tapering' of Fed buying or because investors are becoming concerned about the absolute size of buying (government borrowing) will become clearer over time. Gold contributed nearly as much as equities over the quarter but continues to come under selling pressure which we discuss further below. Due to the re-balancing discipline the Fund is always in a position to capitalise on volatility by buying low and selling high and did so again during the quarter in the gold market. |
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