| Report Date | 06 June 2013 |
| Manager | K2 Asset Management |
| Fund Name | K2 Asian Absolute Return Fund |
| Strategy | Equity Long/Short |
| Latest Return Date | May 2013 |
| Latest Return | 2.38% |
| Latest 6 Months | 19.23% |
| Latest 12 Months | 33.85% |
| Latest 24 Months | 8.40% |
| Annualised Since Inception | 11.19% |
| Inception Date | 01 September 1999 |
| FUM (millions) | AU$106.8 |
| Fund Overview | The investment team does not use a single approach to stock picking, rather, each investment manager brings their own investment style and methodology to the portfolio. Key variables of earnings, valuation and management are examined to determine whether securities are over or undervalued. The investment team's ability to pick major investment themes, or 'catalysts', in a timely manner is a key competitive advantage. The stock selection process is based on the investment manager's own primary research, direct contact with companies and subscriptions to independent research houses. The Fund actively manages currency exposure with the aim of using hedging to reduce the risk of currency movement and protect stock returns. The level of hedging will depend on K2's expectation of future currency exchange rate movements. |
| Manager Comments | The K2 Asian Absolute Return Fund returned 2.38% during April to bring the twelve month performance to 33.82%.
The Fund's net exposure band has been maintained at 80% to 100%, ending the month at 96%, marginally lower than April. Increasing volatility in recent weeks together with seasonal weakness justifies a wider trading band with respect to the fund's net exposure.With the AUD's substantial fall against the USD total currency gains for the fund were approximately 288bps.
Given forward PE valuations remain well below long term averages, the attractiveness of equities remains in place. The longer term question facing the region is how well China responds to the new leadership's shift of growth drivers away from government led stimulus towards a more private sector led economy. |
| More Information | » View detailed profile of this fund |
