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8 Jan 2013 - Performance Report: Optimal Australia Absolute Trust

By: Australian Fund Monitors
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Report Date07 January 2013
ManagerOptimal Fund Management Australia
Fund NameOptimal Australia Absolute Trust
StrategyEquity Long/Short
Latest Return DateDecember 2012
Latest Return0.66%
Latest 6 Months1.62%
Latest 12 Months4.55%
Latest 24 Months12.99%
Annualised Since Inception12.55%
Inception Date15 September 2008
FUM (millions)AU$136
Fund OverviewThe investment objective of the Fund is to seek to achieve above average returns in absolute terms, through investing in listed securities in Australia and New Zealand, subject to the overarching requirement of capital preservation. Investments will predominantly be in equity securities but may include fixed interest instruments, money market instruments, derivatives and foreign exchange contracts.

The Fund's bias is likely to be net long under normal market conditions, with the core strategy being to construct a portfolio of listed equity securities priced at levels that do not adequately reflect their underlying value. The Fund will seek to boost returns and limit potential market downside by selective short selling of individual stocks which are priced at levels that are viewed as materially above their underlying value. The Fund will also use certain trading strategies both within its core portfolio (through rebalancing stock weights and overall market exposure in response to price movements) and in certain other situations (typically of a shorter-duration and/or opportunistic nature) with the objective of further increasing returns.
Manager CommentsThe Optimal Australia Absolute Trust returned 0.66% in December bringing the 2012 return to 4.55%. The December return was driven by a 1.30% gain in the long portfolio which outweighed the 0.55% loss on the short portfolio. Long portfolio gains were driven by resources, media, banks and transport whilst short portfolio losses were generated in index futures, banks, staples and healthcare.
More Information» View detailed profile of this fund

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