NEWS
AUI Wingate Global Equity Fund
28 Jun 2013 - Australian Fund Monitors
The AUI Wingate Global Equity Fund returned 8.95% over May and 23.81% over the preceding twelve months.
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28 Jun 2013 - AUI Wingate Global Equity Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund primarily invests in global equities, either directly or via derivatives, to generate income from dividends and option premiums, and capital growth. Preservation of investors' capital is an overriding priority. The Fund typically has between 15 and 40 holdings (stock and options) and can invest 98% of its assets in international equities, including direct holdings in shares and option positions over shares, which are fully cash backed. The Fund restricts exposure to any individual company to a maximum of 10% of the net assets of the Fund. Cash that is not used to back option positions is restricted to a maximum of 20% of net assets of the Fund. The Fund's derivatives strategy primarily involves the selling of cash-backed put options to purchase stocks at a price in Wingate's fair price range but below current market price. The sale of the put option can result in either purchase of the stock at an acceptable price to Wingate, or the Fund receiving income in the form of the option premium. Importantly all option positions are fully backed by cash holdings and the Fund does not borrow to make investments. In addition, covered call options may be used to sell stocks that are held in the portfolio. |
| Manager Comments | Performance was supported by the weaker Australian dollar as the portfolio's assets are unhedged. Successful stock selection contributed to relative outperformance notwithstanding the Fund's lower than average equity weight. Wingate continues to position the Fund in out-of-favour companies where the combination of quality and value still resides. As a consequence of the market's prolonged upward trend, Wingate's equity weightings remain at the lower end of its long term expected range. The resultant increased cash weighting leaves the Fund well positioned for any market pullback. |
| More Information | » View detailed profile of this fund |
Pengana Australian Equities Market Neutral Fund
27 Jun 2013 - Australian Fund Monitors
The Pengana Australian Equities Market Neutral Fund returned -1.7% during May as compared to the S&P/ASX 300 Accumulation Index which lost -4.5%.
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27 Jun 2013 - Pengana Australian Equities Market Neutral Fund
By: Australian Fund Monitors
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| Manager Comments | Earnings Revisions was the best performing investment theme in the Fund's model followed by Momentum and Value, while Quality detracted from performance for the month. Earnings revisions captures the trend in analyst earnings forecasts over the short and medium term where stocks with upward revisions tend to outperform stocks with downward revisions. While Momentum has been the dominant investment theme for the most of this year, the Manager is now starting to see this wane as the market begins to shift its focus to the underlying fundamentals of companies with changes to earnings forecasts. |
| More Information | » View detailed profile of this fund |
BlackRock Australian Equity Market Neutral Fund
26 Jun 2013 - Australian Fund Monitors
The BlackRock Australian Equity Market Neutral Fund returned -2.12% during May and 6.09% for the preceding twelve months.
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26 Jun 2013 - BlackRock Australian Equity Market Neutral Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund's portfolio primarily consists of long and short Australian equity positions. The Fund may also invest in other funds managed by BlackRock. Derivative securities, such as futures, forwards, swaps and options, can be used to manage risk and return Key insights into the investment process include: Analyst Expectations, Relative Valuation, Earnings Quality, Market Signals and Timing. Short-Term return enhancing opportunities including: Dividend reinvestment plans, Manging index changes, Managing cash flows and Arbitrage, Initial public offerings and Seasoned Equity Offerings and Off Market Buybacks. |
| Manager Comments | The S&P/ASX 200 fell 4.5% (5.1% accumulation) in May as investors rotated out of yield stocks and into resources. This followed a 25bp rate cut by the RBA, comments from Federal Reserve officials suggesting that its quantitative easing program of bond purchases could soon be tapered, and a resulting AUD depreciation that saw the AUD/USD cross rate fall below parity to a 20-month low. The leading sector for the month was Information Technology (+4.6%),led by Computershare (+12.7%) which benefited from its USD exposure. Materials (+2.2%) and Energy (+2.1%) also enjoyed positive returns, led by some smaller energy stocks, and companies in base metals and coal. Profit warnings during the month tended to be concentrated in domestic cyclicals and mining service sectors. |
| More Information | » View detailed profile of this fund |
Totus Alpha Fund
25 Jun 2013 - Australian Fund Monitors
The Totus Alpha Fund returned 1.84% during May and one year rolling returns are 17.34%.
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25 Jun 2013 - 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 | Since inception the fund has averaged returns of +1.45% (net) in months in which the ASX was up and +1.63% (net)in months in which the ASX was down. May was a difficult month for many of the long positions as the backup in bond yields globally led investors to dump yield plays around the world and Australia was not spared. The Manager is of the view that the risk to interest rates in Australia post the mining boom remains to the downside and therefore the sell-off in a number of Australian yield plays was probably overdone. A number of high PE "market darling" stocks were also sold off during the month and the Manager used the sell off as an opportunity to add selectively to positions in the online and high growth/high return mid cap space. The fund's short positions in second and third tier mining and mining services stocks continued to deliver strong returns during May while the (more) recently added domestic cyclical shorts also contributed nicely to performance. |
| More Information | » View detailed profile of this fund |
Auscap Long Short Australian Equities Fund
24 Jun 2013 - Australian Fund Monitors
The Auscap Long Short Australian Equities Fund returned -4.05% during May and 10.51% for the last six months.
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24 Jun 2013 - 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 gross capital employed by the Fund was 162.3% long and 31.2% short. Average net exposure over the month was +131.1%. At the end of the month the Fund had 25 long positions and 14 short positions. The Fund's biggest exposures at month end were spread across the consumer discretionary, financials, utilities telecommunications and materials sectors. |
| More Information | » View detailed profile of this fund |
Fund Review: Insync Global Titans Fund
24 Jun 2013 - Australian Fund Monitors
AFM's updated Fund Review for Insync Global Titans Fund, showing KPI's for May 2013 vs ASX200, Performance (net of fees) and Cumulative Performance since inception.
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24 Jun 2013 - Fund Review: Insync Global Titans Fund
By: Australian Fund Monitors
Insync Global Titans Fund Review - May 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 aspects of the Fund:
- Boutique Sydney-based fund manager established in 2009 with an investment team of 3, with additional input from the CEO who is
- responsible for all operational, risk and compliance management.
- The Global Titans Fund invests in a concentrated portfolio of 15-25 stocks, targeting exceptional, large cap global companies with a strong
- focus on valuation 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 through extensive company research, the ability to hold cash and long protective index put options.
- Strong track record of above MSCI ($A) benchmark performance with limited drawdowns.
Research and Database Manager
Australian Fund Monitors
Insync Global Titans Fund Review - May 2013 (pdf format)
Hedge Clippings
21 Jun 2013 - Australian Fund Monitors
Weekly commentary and opinion from AFM's CEO, Chris Gosselin. This week, Chris touches on the global economy, the Aussie dollar and volatility.
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21 Jun 2013 - Hedge Clippings
By: Australian Fund Monitors
QE's has to end sooner or later.
Nothing lasts forever (except true love, so they say) and QE3 will be no different. The question of course is whether Dr Bernanke, or his successor, can manage the taper from the US $85 billion a month of QE life support through to a reasonably healthy and self supporting economy without investors pulling the rug out from underneath the market?
Based on last night's performance from New York and Europe, it seems not, but surely any reasonably sensible market participant would be able to work out that sooner or later the QE theme tune has to end as the US economy recovers. However, investors being what they are, history shows that nearly everyone hangs around thinking they'll be able to exit painlessly. Memories of '87, the "tech wreck" of 2000, and even the great credit bubble leading up to 2008 don't seem to last too long.
China seems to be following the same way, and although the staunch believers are committed to the "stronger for longer" theme, it's worth reminding them again that nothing lasts forever, at least not without some imbalances being created along the way.
Japan, the world's third largest economy, is learning the hard lessons of trying to kick start a moribund economy to life. For a start Japan's demographics will create significant difficulties, with its workforce forecast to fall to just half the population by 2050, down from 70% in 1990. Japan's experiment is just starting, and it may well work, but the risks along the way are significant.
And finally on the "nothing lasts forever" theme the Aussie dollar's flirt with parity against the US$ seems to have come to an end, in spite of some still believing the current fall is just a temporary blip. Falling interest rates at home, rising one's in the US, a slowdown in resources (price and volume) and repatriation of capital from the carry trade of the past few years make any meaningful rally unlikely.
Volatility is back, and as we suggested back on February 22 when we warned of the historically low levels of the VIX, that's often an indication of the lull before the storm.
Performance and News Updates on www.fundmonitors.com this week:
Aurora Fortitude Absolute Return Fund returned 0.78% during May and 5.79% over the last 12 months. The Fund is characterised by it's very low volatility at 2.84% pa (since inception) as compared to the S&P/ASX 200AI volatility of 14.58%.
The Pengana Australian Equities Fund recorded -1.3% during May and 25.66% for the last twelve months. As at 31st May, cash (including notes and preference shares) represented 31% of the Fund. The top five holdings by value were: DUET Group, Caltex, ANZ Bank, Telstra and Resmed.
Pengana Asia Special Events Fund recorded 1.63% during May and has a twelve month performance record of 11.79%.
The Monash Absolute Investment Fund returned -1.1% during May and 13.87% for the last six months. Despite a difficult month for stocks in Australia the portfolio fell only 1.1% in May and is up 17.3% for the financial year.
And finally there is no "for something completely different" this week as we mentioned above, nothing lasts forever (except as we noted true love, so they say).
On that note, I hope you have a happy and healthy weekend!
Regards,
Chris
CEO, AUSTRALIAN FUND MONITORS
Monash Absolute Investment Fund
21 Jun 2013 - Australian Fund Monitors
The Monash Absolute Investment Fund returned -1.10% during May and 13.87% over the last six months.
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21 Jun 2013 - Monash Absolute Investment Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund places a high priority on capital preservation, and have an absolute return focus in accepting market risk. The Manager employs a comprehensive approach to making investment decisions utilising value, growth and discounted cash flow styles. The portfolio is somewhat concentrated and the manager looks to diversify the portfolio across industries and themes rather than staying near an index. The portfolio may at times have a large amount of cash or other protection. |
| Manager Comments | Despite a difficult month for stocks in Australia the portfolio fell only 1.1% in May and is up 17.3% for the financial year. During the month the portfolio benefited from a positive announcement from NextDC and participation in a number of placements and IPOs. |
| More Information | » View detailed profile of this fund |
Pengana Asia Special Events Fund
21 Jun 2013 - Australian Fund Monitors
The Pengana Asia Special Events Fund recorded 1.63% during May and has a twelve month performance record of 11.79%.
Read more...
21 Jun 2013 - Pengana Asia Special Events Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund seeks to profit from trading securities which are primarily subject to corporate events or from trading-related securities which the Investment Manager believes are mispriced by the market. The Fund invests in securities that are listed on Asian stock markets and other markets where related securities may be listed and in securities which are listed on markets outside of Asia where more than 70% (by assets or earnings) of the underlying business originates from an Asian country. The Fund aims to generate consistently positive returns which have a low correlation to the Asian stock markets. The objective is to generate 10-20% pa with a standard deviation of 6-10% |
| Manager Comments | The rally in the Japanese market came to an abrupt end as the Nikkei recorded the first negative month of the year driven primarily by the volatility in the JGB yields and the Yen. Investors started to question the sustainability of the stimulus driven rally and this volatility presented both challenges and opportunities for the Fund. The Fund also observed \'yield plays\' such as REITs, Telcos and the Aussie dollar coming under pressure during the month.Deal activity particularly in Japan picked up significantly, with May being the most active month in terms of deal count for the year. The volatility in the Japanese market will continue to offer great trading opportunities around the recently announced transactions. |
| More Information | » View detailed profile of this fund |
Fund Review: Aurora Fortitude Absolute Return Fund
18 Jun 2013 - Australian Fund Monitors
AFM's updated Fund Review for Aurora Fortitude Absolute Return Fund, showing KPI's for May 2013 vs ASX200, Performance (net of fees) and Cumulative Performance since inception.
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18 Jun 2013 - Fund Review: Aurora Fortitude Absolute Return Fund
By: Australian Fund Monitors
Fund Review: Aurora Fortitude Absolute Return Fund (pdf format)
AURORA FORTITUDE ABSOLUTE RETURN FUND
Attached is our most recently updated Fund Review on the Aurora Fortitude Absolute Return Fund.
We would like to highlight the following aspects of the Fund;
- ASX listed Aurora Funds Limited established on the merger of three existing fund management businesses, managing approx. $550m on behalf of more than 2,500 retail and wholesale investors.
- The Aurora Fortitude Absolute Return Fund (AFARF) has a 8 year track record investing in ASX listed equities. CIO John Corr has over 20 years financial market experience with a strong focus on risk.
- 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.
- Strong use of low risk "long" derivatives and option overlays has provided positive returns with low volatility during periods of market dislocation.
- Over 86% of monthly performances have been positive, with no losing months in 2008 and a largest drawdown of -2.09%.
Research and Database Manager
Australian Fund Monitors
Fund Review: Aurora Fortitude Absolute Return Fund (pdf format)
