MORPHIC GLOBAL OPPORTUNITIES FUND

ATTACHED FILESMorphic Global Opportunities Fund July 2014 (pdf format)

Platforms and Wraps Conference - Money Management

27-29 August, Hunter Valley, NSW

The platforms and wraps sector is changing and providers are under pressure to deliver innovation and aggregation, which are the keys to ongoing success and financial sustainability in this highly competitive market.

You are invited to hear from more than 30 leading experts who are coming together to discuss the issues and challenges facing the sector at Money Management's Platforms & Wraps Conference.

The conference involves:

INNOVATION AND THOUGHT LEADERSHIP TO DRIVE THE INDUSTRY:

• International speaker Mark Polson will share insights into the UK platform market and shed light into some corners of the market that some wrap providers would rather remain in the dark.
• International speaker Christopher Faddy will discuss the globalisation of managed accounts.
• Dr Robert Kay will give a keynote presentation on innovation and decision-making for growth and how to overcome challenges to growth.

IMPORTANT INDUSTRY UPDATES AND THE LATEST RESEARCH FINDINGS:

• Richard Wormald, General Manager, Financial Services, Coles, will talk about the supermarket giants entering into fi­nancial services and what this means for the industry.
• Vanessa McMahon, Managing Director at Wealth Insights, will provide a rundown of trends, inflows, market dynamics and key themes.
• Christina Kalantzis, Principal at Alexis Compliance & Risk Solutions, will talk about complying with RG148.

Plus many more CEOs, managing directors, and heads of insurance and platform services will explore the strategies needed to drive innovation and success in a changing industry.

Read the Conference Agenda here, and also the Network social events planner

Click here to Register
(unique offer available to www.fundmonitors - early bird rates)

There are also numerous networking opportunities, including a wine tour of Hope Estate, with a two course dinner, beverages and entertainment, along with a pre-conference golf day.

There are limited spaces remaining! Register for Money Management's Platforms & Wraps Conference, and join thought leaders and your peers at this premier event.

For more information, visit www.investmentplatforms.com.au. Alternatively, call 02 8484 0957 or email Kristyn.Ibrihim@cirrusmedia.com.au

Money Management would like to thank their sponsors:

Platinum Sponsor: GBST  Bronze Sponsor: BNY Mellon 

ATTACHED FILESMoney Management Wraps Logo (jpg format) GBSTlogo (jpg format) BNYMellonlogo (jpg format)

There is now sufficient July performance data in from fund managers to be able to make some meaningful comments regarding performance not only for July but also year-to-date and over the past 12 months.

The ASX 200 Accumulation Index rose 4.4% in July to take YTD performance to 7.57%, more than the first six months of the year put together. Against that, with 74% of results in to date, equity base funds rose 2.14% in July to take year-to-date returns to 4.44% which in the current environment is a reasonably significant underperformance.

Over 12 months the performance differential is not so stark, with equity based funds returning 13.82% against the ASX 200 Accumulation Index which has risen 16.54%. Before the disbelievers jump on these numbers as proof that absolute return and active managers fail to justify their fees, it's worth looking at the distribution of returns both within individual funds and between various strategies.

Taking individual funds first, in July the best performing fund across all strategies (Paragon) rose 12.5%, while the worst fell 8.8%. Year-to-date the best performing fund has returned 37%, and the worst -34%. Over 12 months the best performing fund has returned 101%, and the worst -24%.

While only 10% of funds in the AFM database outperformed the ASX 200 in July, that figure rises to 16% year-to-date and just over 30% over the past 12 months.

Returns by strategy are less diverse, with funds within the Equity 130/30 group averaging 3.57% in July, 10.22% year-to-date and 26.64% over the past 12 months to be the top performing strategy overall three periods. On the negative side Global Macro funds which have been struggling for some time on the back of government intervention fell 1.13% in July, while managed futures trailed the pack at -2.27% year-to-date, and currency funds the worst of the 12 months at -2.07%.

While Equity 130/30 has certainly been the standout there remains a significant spread of distribution between the underlying funds within the strategy, indicated by 12 month performances with the best up 50%, while even the poorest managed a pretty impressive 23%.

All this goes to prove what a diverse group of underlying assets, managers, funds, strategies and skills go to make up what some still choose to lump into an overall category of "alternatives".

Obviously research is an essential key to the puzzle, although as I heard at a presentation from a fund manager this week "you can't buy last years returns". However as we've seen in the media even the best research can come unstuck as shown by the problems with Van Eyk's Blueprint Funds, four of which have had redemptions frozen.

Hedge Clippings has to admit to not being across the details, why's and wherefores in this case, but they will  no doubt emerge over time. However it does indicate that conflicts of interest in the financial services sector, whether tested or not, are not restricted to the well published retail advisory space. Rightly, or or probably wrongly, the whole sector suffers from potential conflicts at every turn,, and it will be interesting to see if the final report of David Murray's Financial System Inquiry will come up with a any solutions to the problem.

Personally we doubt it. The system is too entrenched, leaving it to a combination of regulation, and personal ethics to resolve the problem.

Specific results received this week include the following PERFORMANCE UPDATES:

The Forager Australian Shares Fund recorded an out-performance of the Index 2.30% (Fund 6.70%) during July and 13.73% for the previous 12 months.

Totus Alpha Fund returned 3.55% during July with an annual return of 37.86% and a volatility of 15.62%.

With a standard deviation of 8.64%, the Morphic Global Opportunities Fund returned 11.34% over the prior 12 months.

The Alpha Beta Asian Fund returned 1.02% during July and 10.61% for the previous 12 months with a volatility of 4.18%.

AFM are now accredited by the Financial Planning Association of Australia to issue CPD points for FUND REVIEWS.
This week's updated reviews include:

Microequities Deep Value Microcap Fund, Bennelong Kardinia Absolute Return Fund, Optimal Australia Absolute Trust and also Insync Global Titans Fund

Read the most recent Fund Review for any of our research clients, and then answer 5 straightforward questions, these are presented in multiple choice format. An 80% or more success score will provide 0.5 CPD points, with a certificate provided as proof of completion. There is no charge for this service.

UPCOMING EVENTS:

Tuesday 26 August in Melbourne and also Tuesday 9 September in Brisbane , from 12pm to 4.30pm - ARRIA is hosting a further round table discussion, providing a valuable opportunity to meet with like-minded advisers. Free to Financial Advisors.

Wednesday 27 - Friday 29 August Money Management's Platforms and Wraps conference in the beautiful Hunter Valley, NSW. Covers the latest industry trends and innovation, while also exploring technology iniatives, client segmentation, data ownership, analytics, marketing and distribution, regulatory reform and consolidation. Pre-conference golf and wine tour of Hope Estate included. Special rate for fundmonitors.com members.

Tuesday 16 September in Sydney AIMA Australia's Hedge Fund Forum - and event by the Industry for the industry featuring quality Australian and international speakers.

If you would like your Event listed in our calendar, please contact us.

This week's Now For Something Completely Different is a gentle reminder that today is Daffodil Day. Every dollar raised goes into cancer research, something that touches us all.

Best wishes for a happy and healthy weekend,

On that note, have a good weekend.

Best wishes,

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.

INSYNC GLOBAL TITANS FUND

ATTACHED FILESInsync Global Titans Fund 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

ATTACHED FILESOptimal Australia Absolute Trust - July 2014 (pdf format)

AARIA ROUND TABLE 2014

Tuesday 26 August 2014 in Melbourne

We operate in the area of "real returns" and are eager to help our network of IFA's that operate outside the traditional static buy and hold methodology. This has led me to meeting the Association of Real Return Investment Advisers (ARRIA).

The Group has been established as a not-for-profit entity run by advisers for advisers. ARRIA is an initiative based on feedback and insights from advisers regarding the challenges that they face in using Real Return investment strategies, which they believe are able to deliver tangible solutions to meet their client's objectives.

ARRIA is hosting a round table discussion on Tuesday 26^th August, from 12pm to 4.30pm, in Melbourne and offers a valuable opportunity to meet with likeminded advisers. The agenda for the round table is as follows:

Round Table 1: Agenda

• What are the implications of developing Real Return outcomes for PI and the regulators?
• Panel discussion - which alternative "strategies" work when?
• Panel discussion - what are the new investment opportunities, "access" methods (e.g. LICs), strategies, asset classes and investment flavours?
• Tool time
• Open Forum

Click here to register for the Round Table event, or if you would like more information please contact:

Philip Reid   |   General Manager
Association of Real Return Investment Advisers Limited (ARRIA)
ABN 82 99 168 267 623
GPO Box 5025, Sydney NSW 2001
T 0411-828 097   E info@arria.com.au

The next Round Table event to be held in Melbourne will be on Tuesday 25 November 2014.

As an association ARRIA aims to:

• assist in setting and maintaining a higher level of professional standards for all Real Return Investment Advisers and all relevant Stakeholders in the real return investment industry.
• create an environment where all Real Return Investment Advisers and all relevant Stakeholders can network in appropriate forums to advance the exchange of information, best-practice and compliance issues;
• create an environment where all Real Return Investment Advisers and all relevant Stakeholders can leverage industry resources;
• assist with the gathering and dissemination of resources in order to help facilitate:
• the collation and provision of information of interest or relevance;
• the development and / or access of appropriate tools;
• access to and sourcing of relevant and appropriate expertise;
• liaise and co-ordinate communications with government, regulatory bodies, other relevant industry associations and general service providers in the real return investment industry;
• whether undertaken with or without other participants; to promote, organise, conduct and/or participate in meetings, lectures, seminars, study groups, conferences, education, training and counselling courses for the purposes of increasing and advancing the knowledge and understanding of all facets and issues affecting or related to Real Return Investment Advisers and all relevant Stakeholders in the real return investment industry;

The operations of ARRIA are overseen by a Board, under the direction of the associations' corporate constitution and guidance of the directors. Both Directors and the Board are elected by the members on a rotation policy.

ATTACHED FILESARRIA Round Table (pdf format)