BENNELONG KARDINIA ABSOLUTE RETURN FUND

Attached is our most recently updated Fund Review. 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 an nine year track record. 

• The Fund has significantly outperformed the ASX200 Accumulation Index since its inception in May 2006 and also has significantly lower risk KPI's. The Fund has an annualised return of 12.22% p.a. with a volatility of 7.34%, compared to the ASX200 Accumulation's return of 3.97% p.a. with volatility of 14.31%.

• 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 Bennelong Funds Management provide infrastructure, operational, compliance and distribution capabilities.

For further details on the Fund, please do not hesitate to contact us.

Australian Fund Monitors

ATTACHED FILESBennelong Kardinia Absolute Return Fund AFM Monthly Report January 2016 (pdf format)

MORPHIC GLOBAL OPPORTUNITIES FUND

Attached is our most recently updated  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.
• 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.

Australian Fund Monitors

ATTACHED FILESMorphic Global Opportunities Fund AFM Fund Review January 2016 (pdf format)

APN Asian REIT Fund

Attached is our most recently updated Fund Review on the APN Asian REIT Fund.

We would like to highlight the following aspects of the Fund;

• APN is an ASX-listed fund manager specialising in property investment, with an investment team of six. Established in 1996, APN now has FUM of $A2.1bn including four REIT (Real Estate Investment Trust) funds.
• The APN Asian REIT Fund (Fund) is a property securities fund that invests in a quality portfolio of Asian REITs, listed on the securities exchanges of the Asian Region, with the ability to hold some cash and fixed interest investments. 
• The Fund aims to deliver a competitive yield with lower risk than the market. The underlying stocks are selected based on a highly disciplined investment approach that focuses on the fundamentals and number of valuation approaches. The universe can include new IPO's, other corporate actions take place and / or corporate governance improvements at country or REIT level bring new stocks into focus.
• The Fund provides access to a wide spread of property-based revenue streams that are specifically analysed, selected and weighted with the aim of delivering strong and sustainable income returns. The Fund is an unhedged product.
• APN's Asian REIT Fund invests in a portfolio of 25-40 listed Asian REITs with a core philosophy of investing in properties with a sustainable rental income streams.
• The Fund has delivered an annalised return of 16.15% p.a., since inception in July 2011 with standard deviation of 9.29% p.a. The Sharpe and Sortino ratios are 1.35 and 2.45 respectively.

Australian Fund Monitors

ATTACHED FILESAPN Asian REIT Fund AFM Fund Review January 2016 (pdf format)

Meme Australian Share Fund

Attached is our most recently updated Fund Review on the Meme Australian Share Fund.

We would like to highlight the following aspects of the Fund;

• The Meme Capital Management is a Perth-based boutique Fund Manager, established in 2012 and manages the Meme Australian Share Fund.

• The Fund specializes in technical and quantitative strategies to identify investment opportunities expected to provide both positive price appreciation and relative price out-performance over the medium to long term.

• The Fund's objective is to outperform the S&P/ASX All Ordinaries Accumulation Index over rolling three year periods, through investing in ASX listed securities outside the S&P/ASX 20. The Fund only takes long positions and does not use derivatives.

• Over the past 12 months, the Fund returned positive 18.91%, versus the Index's -6.13% return. 

Australian Fund Monitors

ATTACHED FILESMeme Australian Share Fund AFM Fund Review January 2016 (pdf format)

In the race of life, always back self-interest... at least you know it's trying

Paul Keating once used this quote, and reviewing the resistance from a range of self interested parties, (including a bunch of government back benchers) to an increase in the GST having any part in the GBT (Great Tax Debate), it seems self-interest, rather than the longer term interest of Australia's budgetary and fiscal future, is alive and well. At least we now know three things:

1. Trying to sell a tax increase - sorry package, whether necessary, logical, sensible or otherwise, shortly before an election is not possible, and,
2. If nothing else, Wee Willie Shorten can run a great scare campaign, even if he has to deal leniently with the truth to do so, and;
3. The Prime minister has shown himself to be ultra-pragmatic in understanding that there's no point in flogging a dead horse in the face of said scare campaign if it's going to lead to defeat in the media, or worse still, at the polls.

In amongst all the rhetoric and rubbish spoken was someone on the ABC claiming, and being allowed to get away with it, that a pensioner spending his or her $30,000 a year will pay as much extra GST on that as Jamie Packer will on his $30,000 spend. Quietly ignoring of course that young Jamie will go through his $30,000 somewhat more quickly or more often than once a year.

Next was the cash economy, be it from the local cafe, tradesman, cleaner or whatever. While cash payments avoid income tax, it is presumed they are spent in the real economy and at least taxed. We could go on, but what's the point, the subject is dead and buried. Well done self-interest!

Now to performance and the markets which are being subject to increasing volatility, making it difficult for the average investor to do anything other than hang on, or stay on the sidelines. Even the experts are finding the going tough, although based on the selection of results below they're still proving more than capable of protecting their investors' capital to a large degree. We have about 50% of January results in to date, with the average of all funds -1.85% against the ASX200's -5.48%. Over the 12 months to 31 January the outperformance is +12%.

As with all bear markets and negative volatility the selling pressure tends to accelerate as support levels and confidence crumbles, and the weight of money that has flowed into index and mutual funds, (here and overseas over the past 3 years) and is now flowing out equally quickly is not helping the market.

On the subject of the economy AFM is pleased to be offer subscribers and readers of Hedge Clippings an opportunity to join Jamieson Coote Bonds' Charlie Jamieson, in conjunction with Deloitte to hear the combined thoughts of noted economist Saul Eslake, and the ex-head of the Future Fund, Mark Burgess, at a breakfast presentation in Sydney on 25th February. Seats are strictly limited, so please respond directly to this link. 

Performance updates and reviews received this over the past couple of weeks included the following PERFORMANCE UPDATES:

For January, the Bennelong Long Short Equity Fund returned -0.29% compared to the ASX 200 Total Return Index which fell -5.5%.

The Jamieson Coote Bonds Active Fund rose 1.39% for the month of January 2016.

Meme Australian Share Fund returned -4.89% for the month of January, outperforming by +0.59% the ASX200 Accumulation Index's return of -5.48%.

The Paragon Fund returned -0.5% for the month of January, outperforming the ASX 200 Total Return Index which returned -5.48%, by 5.98%.

Morphic Global Opportunities Fund fell 1.98% in January, outperforming its benchmark (MSCI AC World Total Return in Australian Dollars), which fell 3.35%, by 1.36%.

The APN Asian REIT Fund rose 1.95% for January. Since inception, the Fund has an annualised return of 16.15% p.a.

Bennelong Kardinia Absolute Return Fund Fund fell 3.42% in January. Since inception, the Fund has an annualised return of 12.22% p.a.

Optimal Australia Absolute Trust recorded a flat return in January, against a 5.48% fall in the ASX 200 Total Return Index.

FUND REVIEWS released this week: Jamieson Coote Bonds Active Fund; Bennelong Long Short Equity Fund; 

And on that note we trust you have a happy and safe week-end - and be good to each other this Sunday on Valentine's Day!

Regards,

Chris
CEO, AUSTRALIAN FUND MONITORS

Connect with me on LinkedIn Twitter Facebook

Australian Fund Monitors are helping to raise awareness to support research into prevention and cure for cerebral palsy. For more information visit www.cpresearch.org.au or contact me by email.