| Report Date | 06 December 2010 |
| Manager | MM&E Capital Limited |
| Fund Name | MM&E Capital Investment Trust No. 1 |
| Strategy | Event Driven |
| Latest Return Date | November 2010 |
| Latest Return | 0.62% |
| Latest 6 Months | 2.07% |
| Latest 12 Months | 4.94% |
| Latest 24 Months | 9.01% |
| Annualised Since Inception | 7.32% |
| Inception Date | 01 July 2002 |
| FUM (millions) | AU$17 |
| Fund Overview | The fund is an event-driven Australian equities fund with a short-term perspective (six months or less). It aims to earn positive returns irrespective of overall moves in related market indices. Its investment strategies include merger/takeover arbitrage, convertible/preference share arbitrage, placements/sell downs, IPOs, rights issues and share buybacks. The fund holds liquidity in floating-rate income securities, buy and write situations, and cash. The fund hedges a significant proportion of its long positions with short positions and/or written call options. All of the Trust's investments are in securities listed on either the ASX or the SFE (except, on occasion, where the shares of a foreign company are short-sold to hedge the takeover of an ASX-listed company). It allocates a maximum 20% of funds in any situation and requires committee approval for investments above 5%. A stop-loss is incorporated at 20%. |
| Manager Comments | The Fund enjoyed a positive month during a period in which Australian equity prices fell due to European sovereign debt concerns and instability on the Korean Peninsula. The takeovers for both Intoll and AWB completed successfully, while the Fund reduced its exposure to Citadel Resource Group (under takeover by Equinox Minerals) at a small profit. In the convertible space, the Fund’s holding of Paperlinx’s Preference Shares continued to recover in value after the company announced its intention to resume the December distribution payment. |
| More Information | » View detailed profile of this fund |
