6 May 2014 - Fund Review: Morphic Global Opportunities Fund March 2014

AFM has updated the Fund Review on the Morphic Global Opportunities Fund.  

Key points include:

• The Fund is a global equity long/short manager with a long bias and a macro-economic overlay. The mandate allows the Fund to short sell, use derivatives and invest in assets such as commodities & currencies.
• Portfolio construction is stock selection agnostic with a bias to value based and momentum strategies. Risk management is a primary consideration in portfolio construction and the strong emphasis on risk is evidenced by the Fund's since inception annualised standard deviation of 9.67% (10.16% ASX 200 Accum Index), maximum drawdown of 4.93% (6.72% Index) and downside deviation of 3.11 (5.36 Index).
• The Fund had a net exposure of 103% and a gross exposure of 171% at March month-end with a VAR of 1.20%.
• Morphic's philosophy is that only funds with flexible investment and hedging strategies will be able to deliver acceptable, steady, real, absolute returns over the investment cycle.
• The Fund is an early stage, boutique, Sydney-based fund established in 2012 with experienced CIO's, and an investment team of 6 including a risk manager.
• The Board has a majority of independent members with significant risk and investment experience.

For further details on the Fund, please do not hesitate to contact us.

Sean Webster

Research Manager

Australian Fund Monitors