| Report Date | 22 February 2013 |
| Manager | PM CAPITAL |
| Fund Name | PM CAPITAL Enhanced Yield Fund |
| Strategy | Equity Long/Short |
| Latest Return Date | January 2013 |
| Latest Return | 0.70% |
| Latest 6 Months | 3.45% |
| Latest 12 Months | 6.59% |
| Latest 24 Months | 11.40% |
| Annualised Since Inception | 6.89% |
| Inception Date | 01 March 2002 |
| FUM (millions) | AU$295 |
| Fund Overview | PM CAPITAL holds concentrated positions in companies viewed to be substantially mis-priced by the market, expecting the businesses to generate significant returns over a two- to three-year time horizon. The fund aims to invest a significant portion of its assets in higher-yield and/or securities with fully-franked dividends and limited risk of capital loss. The fund will limit its net exposure (gross exposure adjusted for hedging via short positions in stocks and/or futures and option positions) to equity securities to a maximum 20% of portfolio. It is not afraid to hold cash. The investment process is focused on 'buying good businesses at good prices'. It is a research-intensive, bottom-up approach. PM CAPITAL is not a market timer; rather, it aims to deliver superior returns through selective and concentrated long-term investments in undervalued businesses. The fund is managed with an absolute return focus, wary of interest rate and equity market risk, with the majority invested in yield securities and cash. |
| Manager Comments | The PM Capital Enhanced Yield Fund returned 0.7% over January and 6.6% over the preceding 12 months well above the benchmark RBA Cash Rate over that time of 3.7%. The fund has not had a negative month since September 2011, some 17 months.
The manager has noted that credit spreads continued to tighten over January as global stimulus and the stronger US economy fueled confidence and assets moved out of cash into riskier assets. As a result some of the funds investments were sold and rotated into more attractive opportunities.
Strong results were recorded from a number of yield securities including APT Pipelines, Tabcorp, Crown and RBS. Buy and write strategies over Google, Applied Materials and MGM contributed. Notably there were no negative contributors for the month.
The fund has a very low interest rate duration of 0.2 years and a cash exposure at end-Jan of 31.8% and a 92% allocation to Australia.
|
| More Information | » View detailed profile of this fund |
