|Fund Type||February||March||YTD||12 Month||% Reported|
Equity Based Funds
Non Equity Based Funds
Fund of Funds
27 Apr 2015 - Fund Review: Bennelong Kardinia Absolute Return Fund March 2015
- The Fund is long biased, research driven, active equity long/short strategy investing in listed ASX companies with an nine year track record.
- The Fund has significantly outperformed the ASX200 Accumulation Index since its inception in April 2006 and also has significantly lower risk KPI's. The Bennelong Kardinia Absolute Return Fund returned 1.24% in March and has volatility of 7.35% pa, compared to the ASX200 Accumulation's 14.23%.
- The Fund also has a strong focus on capital protection in negative markets. Portfolio Managers Mark Burgess and Kristiaan Rehder have significant market experience, while the Bennelong Group provide infrastructure, operational, compliance and distribution capabilities.
27 Apr 2015 - Insync Global Titans Fund
|Latest Return Date|
|Latest 6 Months|
|Latest 12 Months|
|Latest 24 Months|
|Annualised Since Inception|
Insync employs four simple screens to narrow the universe of over 40,000 listed companies globally to a focus group of high quality companies that it believes have the potential to consistently grow their profits and dividends. These screens are size of the company, balance sheet performance, valuation and dividend quality. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio of typically 15-30 stocks.
The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, derivatives (for example futures, options and swaps), currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled investment vehicles.
At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio.
The performance was driven by positive contributions from our holdings in Roche, Sanofi, Medtronic and Disney. The main negative contributors were Experian, BAT, Microsoft and Discover Financial Services. The Fund continues to have no foreign currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside.
Read Fund Manager's complete report on the AFM site.
24 Apr 2015 - Hedge Clippings
Superannuation: Time to go back to basics?
It is a sad reality that from a great concept, Australia's superannuation system, much admired by many governments around the world, has become a dog's breakfast - complicated, messy and not really recognisable from its origins. And without going into graphic details of what happens to a dog's breakfast when it is repeatedly consumed, and then regurgitated - well, I think you understand the picture.
Our understanding of the original concept of superannuation was that the government of the day recognised that looking into the future, funding the ageing population was going to impose significant budgetary issues.
By forcing either employees or their employers to pay a proportion of all wages into a compulsory retirement scheme the intention was that, coupled with the magic of compounding returns, after 40 years a large proportion of the population would be self-sufficient in their retirement, thereby reducing the drain on the public purse.
Understanding that there are two sure ways to try to alter behaviour - generally known as the carrot or the stick approach - Keating's concept was quite simple: Legislate to enforce a basic level of compulsory contribution (the stick) and then provide attractive taxation benefits (the carrot) to encourage those able to do so to make additional contributions.
To gain acceptance, and to ensure both individuals and their employers could get used to the process, the Superannuation Guarantee Levy or SGL commenced at 3%, and has steadily risen since to 9.5%. Most economists understand that to be really effective the SGL should be 15%, but at least at 9.5% it is getting there.
So far so good.
Unfortunately for whatever reason successive governments have comprehensively tinkered around the edges, making the taxation rules, processes and conditions associated with superannuation unbelievably complicated. At the same time they have created an uneven playing field, making superannuation significantly more attractive for some in the community than others.
This is probably par for the course for all governments and bureaucrats, and it may well be far-fetched to think that this or any other government will return to the basic concepts while making superannuation simpler fairer and as a result more economical for both retirees and the country as a whole.
By all means provide the carrot of a concessional tax rate for super contributions, and to encourage people to make additional contributions, but either at the time of making a contribution or when eventually in retirement. However having a concessional tax rate when making the contribution and a zero tax rate in retirement seems unnecessarily generous.
Equally allowing retirees to take 100% of their superannuation as a lump sum on retirement, rather than as an annuity to replace or supplement the aged pension defies logic.
While Australia has a poor record when it comes to the complexity of its taxation system, it is disappointing that when introducing something as well-meaning and logical as self-funded retirement they didn't take the opportunity of making it both effective and simple. Added to the problem of complexity (as noted above)is the constant change introduced by successive governments, each in turn further complicating the system.
And in case you think this is just Hedge Clippings having a typical Friday afternoon whinge, here's a link to the Charter of Superannuation Adequacy and Sustainability and Counsellors Superannuation Custodians (itself a monumental mouthful) report to the government in 2013, Chapter 3, entitled Constant Change.
The Aurora Fortitude Absolute Return Fund returned 0.55% to bring its annual performance since inception to 7.32%.
Avenir Value Fund rose 0.78% in a down equities market (-0.09%).
The Bennelong Kardinia Absolute Return Fund returned 1.24% bringing the Fund's annual performance since inception to 13.29% compared to the ASX200 Accumulation benchmark's 5.87%.
Morphic Global Opportunities Fund rose 1.61% in March as its benchmark (MSCI AC World Total Return in AUD) rose 0.87%, resulting in out-performance of 0.74%.
Totus Alpha Fund had a strong performance in March of 5.50%, compared to the ASX200 Accumulation Index of -0.09%.
25-27 May 2015 - Digital Marketing for Banking and Financial Services Summit
15 September 2015 - AIMA Australia Hedge Fund Forum 2015
This year marks the 100th anniversary of the landings at Gallipoli, an event now seared into Australia's national identity and psyche. Given the media bombardment of Gallipoli over the past couple of months, which figuratively speaking has risked being as saturated as the shelling which took place at the time, And Now for Something Completely Different was reluctant to join in.
However that would not allow us to pay tribute to the memory of the 46,000 allied soldiers*, killed over the nine months of the campaign, nor the 65,000 Turkish soldiers* killed defending their homeland, nor all those killed in various campaigns since.
Lest We Forget.
On that note, I hope you have a happy and safe week-end.
CEO, AUSTRALIAN FUND MONITORS
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24 Apr 2015 - AIMA Australia Hedge Fund Forum 2015
AIMA Australia Hedge Fund Forum 2015
15 September 2015 at the Sofitel Sydney Wentworth, Sydney, Australia
The AIMA Australian Hedge Fund Forum is the annual non-profit hedge fund conference organised by the industry for the industry.
Our 2014 Forum was a full day event showcasing the skills of local managers, their approach to business and their market views to local and international delegates. We look forward to seeing you at the 2015 forum.
For more details, including sponsorship opportunities please contact:
Michael Gallagher at firstname.lastname@example.org
24 Apr 2015 - Fund Review: Bennelong Long Short Equity Fund March 2015
BENNELONG LONG SHORT EQUITY FUND
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
- The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large cap stocks from the ASX/S&P100 Index, with a twelve year track record and annualised returns of 17.45%.
- The consistent returns across the investment history indicates the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market. The Fund's Sharpe Ratio and Sortino Ratio are 1.05 (Index 0.37) and 1.75 (Index 0.41) respectively.
Fund performance in March was 3.59%, with no major changes to the Fund's positioning. Across the portfolio, 21 of the 31 pairs posted a profit. The Fund's strongest positive contributors were across three separate sectors and included: 1) Retail, 2) Financials and 3) Gaming. On the negative side, the largest setback was in Healthcare sector.
24 Apr 2015 - Avenir Value Fund
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The Fund will invest in securities where Avenir believes the company is simply mis-priced and deeply undervalued and offers significant potential for revaluation. The Fund will also invest in companies that are subject to specific corporate events such as mergers, acquisitions, restructurings, recapitalisations, spin-offs, demergers, management change, distressed situations, and other sharply delineated corporate events. The Fund will also selectively invest in short positions in companies where Avenir believes the company is significantly overvalued or where the company's business model is broken or structurally challenged.
The Fund's Sharpe and Sortino ratios are 1.17 and 2.05 respectively since inception in August 2011. Also notable are the Up and Down capture ratios at 0.42 and -0.26 respectively. At month-end, the Fund's geographical disposition was 47% US, 12% Asia, 13% Western Europe, 1% Australia, 11% other and 15% cash. The top 10 holdings were 58% of NAV.
Review the latest Fund Report on the AFM website.