NEWS
Aurora Fortitude Absolute Return Fund
13 Feb 2014 - Australian Fund Monitors
Aurora Fortitude Absolute Return Fund returned 0.32% during January and 8.12% for the previous 12 months with a very low volatility of 1.39% (S&P ASX 200 Accum 11.54%).
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13 Feb 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 portfolio strategies were positive with the exception of Options at -0.05%. For the best two performing strategies the manager comments that 'Long/Short (+0.8%) performed well despite mostly comprising of long positions in the small to mid cap space.' and for the Acquisition strategy 'January proved to be a very quiet time for Mergers and Acquisitions (+0.6%) except for Dexus Property declaring its bid for Commonwealth Property Office Fund unconditional. We expect this year will provide a raft of new deals across the market capitalisation spectrum as companies seek to create value, and extract synergies via mergers and takeovers.' |
| More Information | » View detailed profile of this fund |
Bennelong Kardinia Absolute Return Fund
12 Feb 2014 - Australian Fund Monitors
Bennelong Kardinia Absolute Return Fund returned -2.12% during January and 9.91% over the previous twelve months with a volatility of 4.01%.
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12 Feb 2014 - 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 manager comments that 'long positions in Vocation and short positions in Webjet and Share Price Index futures contracts were the largest positive contributors to performance, whilst Twenty-First Century Fox, Super Retail and Seek were the largest detractors. Net equity market exposure was progressively decreased during the month to 38.5% (64.3% long and 25.8% short).' |
| More Information | » View detailed profile of this fund |
Optimal Australia Absolute Trust
11 Feb 2014 - Australian Fund Monitors
Optimal Australia Absolute Trust returned 0.57% during January, a weak month for domestic equities, and 1.60% for the last twelve months with a volatility of 1.83%. Since inception in September 2008 the annualised return is 10.34%.
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11 Feb 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 Fund was 45.0% long and 30.4% short for net exposure of 14.6% as at month-end. The manager comments that they 'still think that 2014 looms as less about a one-way bet on equities and the impact of financial repression on risk assets, and much more about stock selection and risk management. After the large gains in equity markets last year, it may just be that investment allocations are much more 'all-in' than commonly thought. Investors seem to struggle to defend their more over-owned and popular market leaders even at these lower price levels, and an air of caution may pervade for a while longer through what may well be a challenging earnings season through February.' |
| More Information | » View detailed profile of this fund |
Fund Review: BlackRock Multi Opportunity Fund
10 Feb 2014 - Australian Fund Monitors
AFM's updated Fund Review for the BlackRock Multi Opportunity Fund for December. The current strategy has returned 8.85% pa since inception (July 2004), annualised volatility of 4.14% and 13.88% and only three negative months since May 2010.
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10 Feb 2014 - 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 4.14% since inception.
- 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 October 2013) of 12.31% and an annualised volatility of 2.13% pa. The four year Sharpe Ratio is 3.66, 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
Morphic Global Opportunities Fund
10 Feb 2014 - Australian Fund Monitors
Morphic Global Opportunities Fund returned -1.66% in January,a negative month for global equities, and 34.52% for the previous twelve months.
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10 Feb 2014 - Morphic Global Opportunities Fund
By: Australian Fund Monitors
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| Manager Comments | The Fund's performance statistics are sound with a Sharpe ratio of 2.99, up and down capture ratio's of 0.73 and -1.11 and 83% positive months. The volatile intra-month performance of the Fund mirrored that of most world stock markets, which were weak initially, then rallied strongly, only to sell-off sharply at the end of the month. Though stock correlations tend to be high in sharp sell-offs, the Fund's portfolio had a number of bright spots. The Fund closed the month 96% invested due to growing caution about the outlook, but nothing near conviction of the last two years bull market is over yet. |
| More Information | » View detailed profile of this fund |
Bennelong Long Short Equity Fund
7 Feb 2014 - Australian Fund Monitors
Bennelong Long Short Equity Fund returned -2.32% during January, a difficult market both globally and in Australia, with the twelve return 19.07%.
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7 Feb 2014 - Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| Manager Comments | Fund performance was disappointing in January with exposures in the Consumer Discretionary (long) and Materials (short) sectors being the main culprits. Earnings are the key focus for local market participants leading into the February interim reporting period, particularly given several profit warnings announced in January. Investors are being reminded that the market re-rating that occurred throughout 2013 needs to be supported by earnings in an environment where growth is generally only modest. |
| More Information | » View detailed profile of this fund |
Fund Review: Aurora Fortitude Absolute Return Fund
6 Feb 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Aurora Fortitude Absolute Return Fund for December 2013. The Fund is characterised by steady returns and very low risk. Since inception (March 2005) the Fund has returned 8.16% pa.
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6 Feb 2014 - Fund Review: Aurora Fortitude Absolute Return Fund
By: Australian Fund Monitors
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.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. Annualised return since inception is 8.16% with a very low standardised standard deviation of 2.75%. 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.
Sean Webster
Research and Database Manager
Cor Capital Fund
6 Feb 2014 - Australian Fund Monitors
Cor Capital Fund returned -0.22% during December and 1.69% for the calendar year with a low volatility of 6.83%.
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6 Feb 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 | Performance attribution over the last three months was equities 0.88%, cash 0.17%, fixed interest 0.01% and gold -1.63% with no significant adjustments made over the last 3 months. |
| More Information | » View detailed profile of this fund |
Fund Review: Optimal Australia Absolute Trust
5 Feb 2014 - Australian Fund Monitors
AFM's updated Fund Review for the Optimal Australia Absolute Trust for December 2013 has been released. The fund is characterised by very low risk with an annualised standard deviation 3.60% and a Sharpe Ratio since inception of 1.73.
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5 Feb 2014 - Fund Review: Optimal Australia Absolute Trust
By: Australian Fund Monitors
Fund Review: Optimal Australia Absolute Trust (pdf format)
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 ASX2
- 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 -1.38%
- The investment team comprising George Colman, Peter Whiting and Stephen Nicholls have close to 90 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: Optimal Australia Absolute Trust (pdf format)
Fund Review: BlackRock Australian Equity Market Neutral Fund
4 Feb 2014 - Australian Fund Monitors
BlackRock Australian Equity Market Neutral Fund returned -0.01% in December bringing its since inception (Oct 2001) return to 11.77% pa (Index 8.62% pa) with a volatility of 5.63% p.a (Index 13.10% p.a.).
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4 Feb 2014 - Fund Review: BlackRock Australian Equity Market Neutral Fund
By: Australian Fund Monitors
BlackRock Australian Equity Market Neutral Fund (pdf format)
BLACKROCK AUSTRALIAN EQUITY MARKET NEUTRAL FUND
Attached is our most recently updated Fund Review on the BlackRock Australian Equity Market Neutral Fund.
We would highlight the following:
- The Fund's portfolio generally consists of approx. 180-200 stocks in equally weighted long and short portfolios to maximise potential returns while minimising market volatility.
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The strategy has recorded a return of 11.77% since inception (Sept 2001) as compared to the ASX 200 Accumulation Index return of 8.62% and with a volatility less than one-half that of the Index at 5.63% pa as compared to 13.10% pa.
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The Fund has also recorded a maximum drawdown of 12.41% as compared to 47.19% for the Index and has had 78% positive months since inception.
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Blackrock operates in 27 countries including Australia (where BlackRock has A$63.5 billion in FUM - December 2013) managing a broad range of strategies across a variety of asset classes.
Research and Database Manager
Australian Fund Monitors
BlackRock Australian Equity Market Neutral Fund (pdf format)
