NEWS
Fund Review: Insync Global Titans Fund
30 Jan 2014 - Australian Fund Monitors
AFM's updated Fund Review for Insync Global Titans Fund for December 2013 shows the Fund delivering an annualised return of 11.41% and annualised standard deviation of 8.50% (since inception in October 2009) with sound risk-reward statistics.
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30 Jan 2014 - Fund Review: Insync Global Titans Fund
By: Australian Fund Monitors
Insync Global Titans Fund AFM Review - December 2013 (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 15-25 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Key contributors for the month came from holdings in Disney, Oracle, Discover Financial Services, BSkyB and TEConnectivity. CR Bard and Coach were the only detractors. The Fund has no foreign exchange hedging in place and benefitted from the 2.1% depreciation of the Australian dollar against the US dollar in December.
- 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 - December 2013 (pdf format)
Pengana Australian Equities Market Neutral Fund
29 Jan 2014 - Australian Fund Monitors
Pengana Australian Equities Market Neutral Fund returned 3.6% during December and 19.11% for the year to December 2013, a sound performance given it's correlation of -0.03 and neutral market exposure.
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29 Jan 2014 - Pengana Australian Equities Market Neutral Fund
By: Australian Fund Monitors
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| Fund Overview | The manager's investment approach is premised on the belief that fundamental factors (such as earnings, cash flow and profit growth) affect stock prices, but that the adoption of quantitative techniques (i.e. computer based models) provides an advantage in assimilating and analysing this information, and building an efficient portfolio. The Fund's portfolio is constructed to be 'Market Neutral' i.e. it aims to have little or no overall exposure to movements in the equity market. The aim of low exposure to market movements is to enhance the consistency of the portfolio's performance and to provide diversification from other market oriented investments. |
| Manager Comments | The Australian Share Market had a volatile fourth quarter finishing up 3.4% however it lagged global indices as multiple IPO's and equity raisings weighed on the market. The quarter was dominated by the possible tapering of QE, but the local AGM season and quarterly updates brought mixed news. The Banks, Telco's, Health Care and the Materials sectors were the main drivers of the market as investors sought yield and growth. Against the fall over the quarter, risk appetite increased in December with the market once again shifting its focus towards smaller cap, higher risk cyclical stocks. This also occurred in the third quarter where we saw an increase in risk appetite at month end. |
| More Information | » View detailed profile of this fund |
Auscap Long Short Australian Equities Fund
28 Jan 2014 - Australian Fund Monitors
Auscap Long Short Australian Equities Fund delivered 2.57% during December and, taking full advantage of buoyant equity markets, returned 51.86% for the year.
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28 Jan 2014 - Auscap Long Short Australian Equities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund focuses on fundamental long and short investments. The Fund may utilise a multi-strategy approach if short term opportunities to increase returns, hedge the portfolio, protect capital or minimise volatility are found. The Fund is a high conviction fund and the combined portfolio will typically have 25-45 positions, investing primarily in stocks in the ASX200. The Fund may be net long, short or neutral depending on the strategies employed at the time. The Fund may hold cash so that it is in a position to take advantage of market volatility and compelling investment opportunities as and when they arise. The Fund may be geared up to 200% gross long or short and up to 150% net long or short. |
| Manager Comments | Average net exposure over the month was +119.4%, with gross longs at 145.6% and gross shorts at 26.2%. At month end the Fund had 30 long positions and 5 short positions. The Fund's biggest exposures at month end were in the consumer discretionary, financials and telecommunications sectors. The Manager notes that '...the Christmas Grinch almost stole the traditional December rally for 2013. Despite a large negative move at the start of the month, the All Ordinaries Accumulation Index managed to finish up 0.92%. The 4.6% fall in the first couple of weeks created a buying opportunity, particularly in strong, defensive businesses where declining share prices appeared to reflect an unwind of the \'carry trade\' in the Australian market rather than any change in the underlying fundamentals of the companies.' |
| More Information | » View detailed profile of this fund |
Fund Review: Bennelong Long Short Equity Fund
28 Jan 2014 - Australian Fund Monitors
The Bennelong Long Short Equity 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 ten year track record and annualised net returns of over 20%.
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28 Jan 2014 - Fund Review: Bennelong Long Short Equity Fund
By: Australian Fund Monitors
Bennelong Long Short Equity Fund (pdf format)
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 ten year track record and annualised net returns of over 20% pa.
- Fund performance was satisfactory this month despite a major surprise profit warning and substantial correction by one of the long financial positions (QBE Insurance Group). At the sector level, strong returns were made in Industrials and Health Care and Financials and Consumer Staples recorded negative returns.
- 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 71% positive months. Both the Sharpe Ratio at 1.26 and the Sortino ratio at 2.20, 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.
Research and Database Manager
Australian Fund Monitors
Bennelong Long Short Equity Fund (pdf format)
Intelligent Investor Value Fund
24 Jan 2014 - Australian Fund Monitors
Intelligent Investor Value Fund returned 0.38% during December and 44.21% over the last twelve months with a set of very strong risk statistics, notably a Sharpe ratio of 3.36.
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24 Jan 2014 - Intelligent Investor Value Fund
By: Australian Fund Monitors
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| Manager Comments | The Fund also had a maximum draw-down of -0.69% as compared to 6.72% for the ASX 200 Accum and an up capture ratio of 1.06 and down capture ratio of -0.64. The Manager notes that 'With the exception of US markets and the industrials side of the Australian market, we are finding plenty of interesting ideas to invest in. But those two exceptions are in the middle of our circle of competence. With significant amounts of cash in both portfolios, a correction of any sort would be welcome.' |
| More Information | » View detailed profile of this fund |
Totus Alpha Fund
23 Jan 2014 - Australian Fund Monitors
Totus Alpha Fund returned -0.39% during December and 60.19% for the year to December. Top contributors to performance over the month were long positions in Australian index futures +1.72%, Japanese index futures +1.6% and a short in...
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23 Jan 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 as determined by Totus Capital. 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 Fund was notable in having an up capture ratio of 1.16 and down capture ratio of -1.52 over the last 12 months. Correlation with the ASX 300 Accum has been very low at -0.052 (since inception). As at 31 December, the fund had a net exposure of 93% and a gross exposure of 248%. The fund held 98 positions (54 long and 44 short) and major investment exposures were as follows: Longs: Online 14%, Sustainable yield 21%, Scarce growth 29%; Shorts: Structural change 19%, Mining Capex 29%, Gold miners 16%. |
| More Information | » View detailed profile of this fund |
Fund Review: Bennelong Kardinia Absolute Return Fund
23 Jan 2014 - Australian Fund Monitors
Bennelong's Kardinia Long/Short equity fund returned 1.11% in December 2013, taking returns for the year to 14.78%, broadly in line with annualised returns since inception of 14.10%.
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23 Jan 2014 - Fund Review: Bennelong Kardinia Absolute Return Fund
By: Australian Fund Monitors
Fund Review: Bennelong Kardinia Absolute Return Fund (pdf format)
BENNELONG KARDINIA ABSOLUTE RETURN FUND
Attached is our most recently updated Fund Review (December 2013). You are also able to view the Fund's Profile.
The Fund is long biased, research driven, active equity long/short strategy investing in listed ASX companies with a seven year track record.
Bennelong's Kardinia Long/Short equity fund returned 1.11% in December 2013, taking returns for the year to 14.78%, broadly in line with annualised returns since inception of 14.10%. By month end the Manager had increased the Fund's net exposure to 74.8%, based on 82.5% long, and 7.7% short..
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
Fund Review: Bennelong Kardinia Absolute Return Fund (pdf format)
Aurora Fortitude Absolute Return Fund
22 Jan 2014 - Australian Fund Monitors
Aurora Fortitude Absolute Return Fund returned 0.74% and 7.57% for the last 12 months with a volatility of 1.58% and only one negative month.
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22 Jan 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 | All strategies had positive returns in December with Mergers and Acquisitions the best performing strategy with 0.28% followed by the Yield strategy with 0.27% which benefited from the Fund's holding in Yancoal Contingent Value Rights. |
| More Information | » View detailed profile of this fund |
Optimal Australia Absolute Trust
21 Jan 2014 - Australian Fund Monitors
Optimal Australia Absolute Trust returned 0.54% during December ending the month with a net exposure position of 11.1%.
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21 Jan 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 Manager notes 'Markets may well need to reacquaint themselves with elevated volatility for some time, given a fundamental change in the direction of monetary policy, in the start of 'tapering' of bond buying by the US Federal Reserve. Central bank intervention (via both liquidity creation and 'fixing' bond rates) has driven equity market pricing to some very strange extremes. While 'tapering' may have started small, and its future pace will depend on the economy, it is still a major change in a policy which has been unequivocally favourable for asset prices and which, having started, is unlikely to be reversed, absent a major growth shock. This dynamic also throws the focus squarely on to growth. Logically, for share prices to advance, higher growth will be required to offset higher discount rates. Australia of course marches to the beat of a different drummer. We did not have emergency liquidity creation, nor have we (yet) had an economic crisis, and our growth rate seems unlikely to march sharply upwards in view of structural constraints.' |
| More Information | » View detailed profile of this fund |
Pengana Australian Equities Fund
20 Jan 2014 - Australian Fund Monitors
Pengana Australian Equities Fund returned 1.27% during December with a month-end cash balance of 22%. Annual return was 18.60% (S&P/ASX 200 Accum 20.12%) with a volatility of 7.82% (Index 11.43%)
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20 Jan 2014 - Pengana Australian Equities Fund
By: Australian Fund Monitors
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| Manager Comments | As at 31st December 2013, the Fund's exposure to non-Australian dollar earnings streams (inclusive of companies with global earnings profiles such as Resmed, Fox Group, CSL, NZ based companies and US dollar exposure) stood at 22%. In terms of outlook the manager notes that 'several important factors continue to have a medium term positive impact on consumer and business sentiment. These include: Political certainty after a nine month election period; stronger asset prices (in almost every asset class); a surprisingly firm iron ore price (vital as Australia's largest export); the banks exhibiting a re-invigorated appetite for lending and an improving global economy; a surprisingly resilient employment rate and consistently low interest rates. The above factors are translating into an exuberant environment for financial assets as investors anticipate any sign of green shoots to indicate an imminent recovery.' |
| More Information | » View detailed profile of this fund |
