Based on 31% of single funds' results reported to date, AFM's index of absolute return and hedge funds returned 2.19% in April, to take year to date performance to +6.15%, and 12 month performance to 9.89%. Equity based funds have outperformed the broader average, up 2.27% in April, 7.41% YTD, and 12.22% over the past 12 months.
By comparison, the ASX200 accumulation index rose 4.54% in April, 12.99% YTD and 23.58% over 12 months.
As far as spread, or range of returns is concerned, the sector returns of the ASX provided some clue as to fund returns, particularly those focusing on the resources, and more specifically the small resources sector. The ASX Smallcap Resources Accumulation Index fell for the seventh consecutive month, with a fall of 20% in April alone, its third largest fall since inception in 1995 with gold stocks particularly affected.
As a result, the spread of fund returns for the month was wider than usual, ranging from -22% through to +22%, although 90% of results to date have been positive. The performance spread over the past year also ranges widely, from -57% through to +58%, again reinforcing the importance of strategy and fund selection. Full details are available on our index pages.
Next Tuesday sees the handing down of the federal budget, the last in the term of this parliament, and the last prior to the election in September. The Prime Minister and Treasurer have both been at pains to prepare everyone for bad news and a significant deficit, having been equally strident until comparatively recently that everything in the garden was rosy. With apologies to Abraham Lincoln, "you can fool all of the people some of the time, some of the people all of the time, but you can't fool yourself forever".
So while the pain has been flagged, the medicine has yet to be prescribed. What is interesting is that short of a miracle, neither the PM or Treasurer will be around to administer the dosage.
Meanwhile yesterday the (current) Minister for Superannuation, Bill Shorten announced his plan to establish a Council of Superannuation Custodians with the intention it would oversee a "Charter of Superannuation Adequacy and Sustainability". That all sounds well and good, but where was the Council over the past 5 years as the rules affecting Super have been chopped and changed with monotonous regularity?
Performance and News Updates on www.fundmonitors.com this week:
The Bennelong Kardinia Absolute Return Fund recorded 1.34% for April 2013 bringing since inception (May 2006) performance to 14.47% pa. We also released the latest Fund Review for April 2013, which you may read here.
Platinum Japan Fund had an exceptional April 2013 with a performance of 13.75%, well ahead of its benchmark and bringing the six month return to 45.83%.
The Bennelong Long Short Equity Fund had a flat month in April 2013 recording a return of 0.01% bringing their since inception return (January 2003) to 20.16%. Their most recent Fund Review for April 2013, is here.
Aurora Fortitude Absolute Return Fund had a sound April 2013 with a return of 1.68% bringing the twelve month return to 5.24%. The Fund's volatility is notable at 2.84% annualised since inception.
The CSAG Long Only Program delivered -0.16% for the month and -4.39% for the year to end March 2013.
Continuing our successful Meet the Manager presentation series, on Thursday 16 May, AFM is holding a city lunch time briefing featuring Jack Lowenstein from Morphic Asset Management. The Morphic Global Opportunities Fund is a global equity long/short manager with a macro-economic overlay. The Fund's portfolio construction has a long bias and favours value based and momentum strategies, with a strong emphasis on risk management. If you would like to join us for the presentation, please reply to this email.
And finally, for something completely different, short and sweet this week.
On that note, I hope you have a happy and healthy weekend!
Regards,
Chris
CEO, AUSTRALIAN FUND MONITORS
