NEWS
14 Aug 2014 - Fund Review: Monash Absolute Investment Fund July 2014
MONASH ABSOLUTE INVESTMENT FUND
Attached is our most recently updated Fund Review. You are also able to view the Fund's Profile
- The Fund is a research driven, active equity long/short strategy investing in listed ASX companies.
- 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.
Monash Absolute Investment Fund Review July (pdf format)
14 Aug 2014 - AIMA Australia Education Forum
AIMA Australia Education Forum
Presented by: AIMA Australia
Thursday 14th August 2014 from 12:15 - 2:00pm, Sydney, NSW
Topic
The next AIMA Australia education forum will be held on Thursday 14th August. The forum will discuss regulatory, tax and other issues, as well as current observations and insights associated with a range of hedge fund investment products, including Australian unit trusts, Cayman funds, UCITS and listed investment companies.
It is a "must attend" event for hedge fund managers reviewing their current products or considering development of new products.
Date and Time
Thursday 14th August, a light lunch will be available from 12.15 - 12.45pm, with the forum to commence at 12.45pm and finish before 2pm. Please note that food and drink cannot be taken into the theatre, so please arrive early if you wish to eat.
Speakers
Nikki Bentley, Partner, Henry Davis York
Nikki has extensive experience advising fund managers, product issuers and service providers on all aspects of their businesses. She specialises in business establishment and structuring, product development, Australian financial services licences, funds management business acquisitions, wholesale and retail product disclosure, distribution and compliance.
With more than a decade's funds management experience in private practice, government and as an in-house lawyer, Nikki's practice spans the range of funds management products, advising on alternative investment products, Australian and international equities trusts, property trusts, debentures and cash management trusts.
Nikki recently advised on the establishment and offering of capital guaranteed offshore alternate investment vehicles to Australian and New Zealand retail investments raising in excess of AUD$1.4 billion; the formation of an Australian subsidiary of a large UK financial services group and advising a group of institutional investors on range of structures that would allow them to access private equity and illiquid investments costs effectively.
She is the Honorary Legal Counsel and Chair of the Regulatory Committee for the Australian branch of the Alternative Investment Management Association (AIMA) and is a member of the Investment and Financial Services Council (FSC) Regulatory Issues and Product Rationalisation working groups.
Nikki is recognised as a leading lawyer in the areas of Financial Services Regulation and Investment Funds by Chambers Asia Pacific 2014, 2013 and 2012. She has also been listed as an expert in Funds Management in Best Lawyers since 2013.
Allan Mortel, Director, Taxation, Moore Stephens
Allan has over 15 years? experience providing tax advice on a wide range of corporate tax, international tax, Goods and Services Tax (GST) and Fringe Benefits Tax (FBT) matters to privately owned businesses, multinationals and listed companies.
He is an industry expert in the financial services and not-for-profit sectors, writing articles on tax issues and making submissions on taxation reform for both these sectors. He has also presented the annual tax updates at the Property Funds Association (PFA) Research and Compliance Roadshows and the Hedge Fund Operations Forums in Sydney.
Allan is the Chairman of the Moore Stephens Australia Tax Group and a member of the Moore Stephens Australia Asian Markets Group.
Host
UBS AG, Theatre, Level 4 Chifley Tower, 2 Chifley Square, Sydney
(please note - entrance is via the Bent Street lifts, not the main foyer)
RSVP deadline
Tuesday 12th August. There is a limit of two attendees per organisation.
If you would like to attend this education event, please click here to register. If you have any specific regulatory issues you would like Nikki to cover if time allows, please include them in the box provided on the registration form.
13 Aug 2014 - Fund Review: Supervised High Yield Fund June 2014
We would like to highlight the following aspects of the Fund:
- The Supervised High Yield Fund (SHYF) has a 5 year track record investing in fixed interest investments. The Investment strategy aims to deliver returns with zero correlation to equity markets by investing in debt securities with minimal default probability and offering a premium return above the risk free rate.
- The Fund is managed by Philip Carden whose experience in debt and capital markets spans 32 years, including time with JB Were's Capel Court Securities and Macquarie Bank, where he was the Executive Director responsible for the Debt Markets Division.
- SHYF is an Alternative Income fund which invests in Global and Australian debt markets, with all foreign currency receivables hedged back to Australian dollars.
- The Fund utilises a top down analysis of the economic environment and market to screen and identify debt market opportunities which it believes offer low risk with high yield. The next stage is the development of a risk matrix and investment strategy, following which detailed research is undertaken on specific investment opportunities which meet the pre-defined criteria established in the investment strategy.
- Prior to approving an investment for the Fund each potential investment is subject to two stress tests. The first of these is for credit and default risk, in which the investment is stress-tested to ensure that in a worst case economic environment it can repay 100% of its principal and interest obligations case scenario for the asset by examining the highest margin over the risk rate that the investment has previously experienced in a crisis situation. Any decline in value under the stress test that exceeds 10% of the Fund's value is avoided The second test examines market risk. In this case Carden looks at the worst case scenario for the asset by examining the highest margin over the risk rate that the investment has previously experienced in a crisis situation. Any decline in value under the stress test that exceeds 10% of the Fund's value is avoided.
Research and Database Manager
Australian Fund Monitors
Supervised High Yield Fund Review June 2014 (pdf format)
11 Aug 2014 - Bennelong Alpha 200 Fund
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The core investment strategy of the Fund consists of the active selection of a series of paired long/short investments in Australian listed equities based upon the Investment Manager's fundamental research. The strategy seeks to capture stock Alpha whilst limiting portfolio exposure to market risk by adopting a dollar neutral portfolio market exposure position with the tactical capability to take net exposure of up to +/- 20% of gross assets. Stock selection is based on fundamental analysis to derive a view of a pair of individual stocks. The Investment Manager is style neutral in determining the stock's positioning. This primary 'pairs' strategy may be enhanced by other complementary strategies, including event driven, security and takeover arbitrage, thematic and momentum trading. The paired stock positions comprise long and short correlated securities that are in most cases simultaneously opened. A portfolio of approximately 30-100 stocks will be selected and actively managed in 15-50 pairs to comprise the core minimum (60%) of the Gross Asset Value. Up to a maximum of 40% of the portfolio's Gross Asset Value may be invested in uncorrelated securities and/or uncovered (long and/or short) positions. These 'satellite' positions are intended to enhance returns and to balance overall portfolio risk. In this regard, the Investment Manager recognises that it is not always possible to achieve a suitable paired profile within the S&P/ASX 200, and that a high conviction long or short stock idea might not always have a suitable pair. |
| Manager Comments | The Fund's best pairs the shorts, as well as the longs, all contributed positively to performance during the month, which is pleasing given the strength of the market. Unfortunately, with the exception of Breville, all the stocks in the bottom spreads contributed negatively " with the result being marginally positive fund performance for the month. Looking slightly further ahead, the prospect of higher US interest rates as growth recovers further will tend to dominate investor positioning. |
| More Information | » View detailed profile of this fund |
11 Aug 2014 - Fund Review: Alpha Beta Asian Fund AFM Fund Review June 2014
ALPHA BETA ASIAN FUND
AFM has updated the Fund Review on the Alpha Beta Asian Fund.
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.
Key points include:
- The Fund The Alpha Beta Asian Fund invests in Asian listed equity markets with a focus on liquid companies in Australia, Japan, Hong Kong, Indonesia, Philippines and Thailand. The Fund uses a systematic approach to evaluate macroeconomic, company fundamental and price data, all of which are evaluated through a series of quantitative models.
- Sydney based Alpha Beta Capital was established by Andrew Barry and Ken Lewis in May 2012. Both Barry and Lewis have significant qualifications and international experience in funds management, including working together at Coronation International, a global multi-strategy hedge fund group in London.
- The Strategy relies on a number of core beliefs: Firstly that a well designed systematic investment process, operating within a multi-strategy framework will be able to extract consistent returns, on average, with low volatility. Secondly, by utilising holding periods substantially shorter than the industry-norm, profit opportunities consistently arise. Finally, a strategy that holds a large number of small positions versus a small number of concentrated positions, will remove much of the emotional angst of trading, and the investment process becomes repeatable.
- In keeping with the Manager's overall systematic approach the Risk Management includes real time monitoring of positions and market exposure, and is combined into a proprietary and automated system called PARMS (Portfolio and Risk Management System). PARMS is a centralised and integrated system which provides full functionality including stress testing.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research Manager
Alpha Beta Asian Fund June 2014 (pdf format)
11 Aug 2014 - ARRIA Round Table - Sydney
AARIA ROUND TABLE 2014
12 August 2014 in Sydney
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 12th August, from 12pm to 4.30pm, in Sydney 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 Sydney will be on Tuesday 11 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.
ARRIA Round Table (pdf format)
10 Aug 2014 - Financial System Inquiry
Financial System Inquiry - Public Forum
Presented by: The Committee of the Financial System Inquiry
The Committee of the Financial System Inquiry invites members of the public to attend a Public Forum to discuss the Inquiry.
The Chair of the Inquiry, Mr David Murray AO will attend each forum with members of the Committee. The forums are open for anyone to attend and provide an opportunity for members of the public to hear about the Inquiry, ask questions of the Committee, and raise issues for examination by the Inquiry.
Forums will be held in Perth, Melbourne, Brisbane and Sydney during August, with venues to be advised shortly.
Interested persons can register online.
Dates
- Perth: Wednesday 13 August, 6pm - 8pm - venue tba
- Melbourne: Thursday 14 August, 6pm - 8pm - venue tba
- Brisbane: Tuesday 19 August, 6pm - 8pm - venue tba
- Sydney: Wednesday 20 August, 6pm- 8pm - venue tba
If you would like to attend this education event, please click here to register.
10 Aug 2014 - Continuing Professional Development
Continuing Professional Development
AFM have been accredited by the Financial Planning Association of Australia to issue CPD points.
What you need to do:
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 cost for this service.
Reading the review and answering the questions will take approximately 10 minutes to complete.
Certified Financial Planner (CFP) professional members are required to keep up to date with industry knowledge to maintain their professional proficiency and status. This continuing professional development translates to CPD points which are to be maintained and recorded over a three year period (triennium). The current triennium runs from 1 July 2012 - 30 June 2015. CFP professionals must achieve a total of 120 CPD points during each three year period. The breakdown of these points needs to be as follows:
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at least 50% accredited,
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50% non-accredited
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including 3 ethics points.
CFP professionals must accumulate a minimum 35 points each year.
8 Aug 2014 - Hedge Clippings
This week's Clippings is going to attempt to multi-task, (not your scribe's strongest point) or at least cover a number of different topics. Feedback (positive or negative) is welcome.
Firstly AFM's Research Manager, Sean Webster has taken a look below the surface of yesterday's poor employment numbers (6.4% against the market expectation of 6.1%) which helped trigger a fall of almost 1c in the Aussie dollar, and led to further expectations of the RBA easing official rates by Christmas. RBA Governor Glen Stevens came out today and tried to pour cold water on that view, but it would certainly seem that any rate rise might be further off than previously expected.
Sean's piece, 'Lies, damn lies and statistics' is not suggesting there was any fiddling of the books, just that the ABS has made some significant changes to its data collection and survey methodology, and yesterday's numbers are the first example of the resultant numbers. For those wondering why the numbers were such a surprise it makes excellent reading.
What might also have impacted the unemployment rate was the never ending budget saga, which three months after budget night is still being debated in the media at least, as debate in parliament has been interrupted by Federal MP's winter overseas holidays (apologies, "fact finding tours"). Business hates uncertainty, almost as much as a bad budget. With the final budget outcome yet to be determined by negotiation with the minor parties in the Senate, including the uncertain Clive Palmer, business confidence and patience might be running as low as Treasurer Joe Hockey's.
Elsewhere Sean also unearthed this excellent article entitled The Great Fee Debate - Resetting Manager and Investor Expectations. If there's one subject guaranteed to generate ill feelings, let alone a debate, it is the quantum and structure of fund manager's fees. We have raised this issue before, and it was front and centre in David Murray's interim FSI report a few weeks ago, but Jonathan Rochford of Narrow Road Capital has some excellent points to make - most of all his number one factor when choosing a manager: Integrity. At AFM we often ask ourselves a rhetorical question when speaking with managers: Do they see managing other people's money as an opportunity, or a responsibility? Only after that can one analyse the value for money the Manager is providing.
Finally ASIC has today released its clarification on how it will apply the wholesale investor test to self-managed superannuation funds (SMSF's). As ASIC says: "This has long been an area of ongoing legal uncertainty" (and therefore probably quite a lucrative area of advice for the legal fraternity) where SMSF's were not necessarily judged to be wholesale investors even though their trustees were.
ASIC's revised approach can be viewed here, and as the previous approach (QFS 150) was issued ten years ago, and the SMSF sector has since grown dramatically to number over 500,000 funds, representing over one third of Australia's retirement pool by value, the clarity will be welcomed. As we read it, ASIC's new approach means that it is the Trustee's status as a wholesale investor which determines the wholesale status of their super fund. Maybe we should get a legal opinion on that. Or two just to be sure.
Specific results received this week include the following PERFORMANCE UPDATES:
Microequities Deep Value Microcap Fund recorded a return of 5.94% during July and 34.46% for the previous twelve months.
Returning a performance result of 3.20% in July, the Monash Absolute Investment Fund is now at 20.24% over the prior year with a volatility of 8.62% in line with the Index.
AFM are now accredited by the Financial Planning Association of Australia to issue CPD points for FUND REVIEWS.
This week's new reviews include:
Optimal Australia Absolute Trust, Aurora Fortitude Absolute Return Fund 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.
Tuesday 12th August 2014, from 12pm to 4.30pm - ARRIA is hosting a round table discussion in Sydney, providing a valuable opportunity to meet with like-minded advisers. No cost to participants. Also in Melbourne on Tuesday 26 August and Brisbane on Tuesday 9 September.
Wednesday 13 August 2014 - Perth and Thursday 14 August - Melbourne: Financial System Inquiry - Public Forums to raise issues and discuss the inquiry. Brisbane and Sydney next week. Click here to see dates in your capital city and register.
Thursday 14th August in Sydney: AIMA Australia Education Forum. The forum will discuss regulatory, tax and other issues, as well as current observations and insights associated with a range of hedge fund investment products, including Australian unit trusts, Cayman funds, UCITS and listed investment companies. It is a "must attend" event for hedge fund managers reviewing their current products or considering development of new products.
14-15 August in Sydney: Alternative Investments Conference - Investigating the rise and rise of non-traditional high yield and low risk investment products, strategies and allocation in an era of prolonged volatility and low returns.
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.
If you would like your Event listed in our calendar, please contact us.
This week's Now For Something Completely Different should either put to rest the argument that children are not influenced by what they see on TV, or that cats are more intelligent than dogs. Enjoy, and wishing you a safe and happy week-end.
Best wishes,
Chris
CEO, AUSTRALIAN FUND MONITORS
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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.
8 Aug 2014 - Fund Review: Insync Global Titans Fund June 2014
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans Fund.
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:
- Global markets continued to record moderate gains over the month of June. Despite Q1 US real GDP estimates being revised down to -2.9% year on year, the US S&P 500 Index recorded its 6th straight quarterly gain supported by the Fed?s commitment to maintaining low interest rates despite signs of higher inflation. The news in Europe was less than rosy as markets slid on deflation concerns, thus far not taking much comfort in the ECB?s fresh round of measures to encourage bank lending.
- The Global Titans Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- 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
Australian Fund Monitors
Insync Global Titans Fund June 2014 (pdf format)
