NEWS
Bennelong Long Short Equity Fund
12 Aug 2015 - Australian Fund Monitors
The Bennelong Long Short Equity Fund's July performance was a strong +8.85% in rebounded share market (ASX200 Accumulation Index 4.40%).
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12 Aug 2015 - Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| Fund Overview | In a typical environment the Fund will hold around 70 stocks comprising 35 pairs. Each pair contains one long and one short position each of which will have been thoroughly researched and are selected from the same market sector. Whilst in an ideal environment each stock's position will make a positive return, it is the relative performance of the pair that is important. As a result the Fund can make positive returns when each stock moves in the same direction provided the long position outperforms the short one in relative terms. However, if neither side of the trade is profitable, strict controls are required to ensure losses are limited. The Fund uses no derivatives and has no currency exposure. The Fund has no hard stop loss limits, instead relying on the small average position size per stock (1.5%) and per pair (3%) to limit exposure. Where practical pairs are always held within the same sector to limit cross sector risk, and positions can be held for months or years. |
| Manager Comments | Performance were spread across a broad range of pairs with 19 out of 30 pairs making a positive contribution. Within those 19 pairs, returns were quite evenly spread. Healthcare was the strongest sector with two of the shorts, Primary Healthcare and Sonic Healthcare, both guiding profits lower. Click below to read the Fund Manager's complete commentary and future market outlook. |
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Fund Review: Supervised High Yield Fund June 2015
11 Aug 2015 - Australian Fund Monitors
Fund review on Supervised High Yield Fund, a fixed income fund, is now available.
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11 Aug 2015 - Fund Review: Supervised High Yield Fund June 2015
By: Australian Fund Monitors
SUPERVISED HIGH YIELD FUND
We would like to highlight the following aspects of the Fund:
- The Supervised High Yield Fund (SHYF) has a 6 year track record investing in fixed interest investments. The Investment strategy aims to deliver returns with zero correlation to equity markets by investing in debt securities with minimal default probability and offering a premium return above the risk free rate.
- The Fund is managed by Philip Carden whose experience in debt and capital markets spans 33 years, including time with JB Were's Capel Court Securities and Macquarie Bank, where he was the Executive Director responsible for the Debt Markets Division.
- SHYF is an Alternative Income fund which invests in Global and Australian debt markets, with all foreign currency receivables hedged back to Australian dollars.
- The Fund utilises a top down analysis of the economic environment and market to screen and identify debt market opportunities which it believes offer low risk with high yield. The next stage is the development of a risk matrix and investment strategy, following which detailed research is undertaken on specific investment opportunities which meet the pre-defined criteria established in the investment strategy.
- Prior to approving an investment for the Fund each potential investment is subject to two stress tests. The first of these is for credit and default risk, in which the investment is stress-tested to ensure that in a worst case economic environment it can repay 100% of its principal and interest obligations case scenario for the asset by examining the highest margin over the risk rate that the investment has previously experienced in a crisis situation. Any decline in value under the stress test that exceeds 10% of the Fund's value is avoided The second test examines market risk. In this case Carden looks at the worst case scenario for the asset by examining the highest margin over the risk rate that the investment has previously experienced in a crisis situation. Any decline in value under the stress test that exceeds 10% of the Fund's value is avoided.
Monash Absolute Investment Fund
10 Aug 2015 - Australian Fund Monitors
Monash Absolute Investment Fund rose 6.6% in July, comfortably beating the ASX200 Accumulation Index by 2.2%, with a lower beta (0.61).
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10 Aug 2015 - Monash Absolute Investment Fund
By: Australian Fund Monitors
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| Fund Overview | The fund seeks to identify opportunities in the share market to make positive returns (long and short) irrespective of market conditions. It is style agnostic, as compelling investment opportunities exist across all investment styles from time to time. The Fund places a high priority on capital preservation, and has an absolute return focus in accepting market risk. The Manager's experience across value, growth and discounted cash flow styles allows them to use a comprehensive approach to investment decisions that applies all three. They also have the patience to seek out only compelling opportunities, rather than settling for relative value. The portfolio is somewhat concentrated, looking to diversify across industries and themes, rather than by trying to stay near an index. The portfolio may at times have a large amount of cash or other protection. However once investments are made turnover may be relatively high in order to lock in gains and avoid losses. |
| Manager Comments | The month's result was mainly driven by the reassessing of some of their smaller company exposures following positive news, but contributions to the return came from across the whole portfolio. Some of the strong positive contributors were 1-Page, Catapult, Impedimed and Yowie. Click below to read the July Performance Report. |
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Fund Review: Insync Global Titans Fund June 2015
7 Aug 2015 - Australian Fund Monitors
Latest Fund Review on Insync Global Titans Fund is now available.
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7 Aug 2015 - Fund Review: Insync Global Titans Fund June 2015
By: Australian Fund Monitors
Insync Global Titans Fund AFM Fund Review June 2015 (pdf format)
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans Fund.
We would like to highlight the following:
- The Fund outperformed its benchmark MSCI All Country World ex-Australia Net Total Return Index ($A) by 0.50%, in June. The Fund's performance was driven by positive contributions from holdings in Comcast, Disney and Baxter. The main negative contributors were Oracle, Nestle and Microsoft. The Fund continues to have no foreign currency hedging in place as Insync considers the main risks to the Australian dollar to be on the downside.
- The Global Titans Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
Insync Global Titans Fund AFM Fund Review June 2015 (pdf format)
KIS Asia Long Short Fund
6 Aug 2015 - Australian Fund Monitors
As of 30 June 2015, KIS Asia Long Short Fund's annual return since inception was 14.93% p.a. Over the same time frame, the AFM Asia Pacific ex-Japan Index has returned 4.58% p.a.
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6 Aug 2015 - KIS Asia Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Whilst the Fund's primary strategy is focused on long/short equities, the ability to retain discretionary powers to allocate across a number of other investment strategies is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage, special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.). The Fund's geographic focus is Asia excluding Japan, but including Australia). The Fund may invest outside of this region to the extent that: 1. The investment decision is driven from the Asian region or; 2. The exposure is intended to mitigate risk or enhance return from factors external to the Asian region. |
| Manager Comments | The Fund reduced most of their exposure to the Chinese listed A shares but were still effected by the moves in Hong Kong. Majority of the month's return came from the Special Situations Strategy, contributing 47bp. However, the Long Short Strategy did not perform, losing the Fund 187bp, specifically on their long position in Sirius Resources (SIR.AX) and in Vocation Ltd (VET.AX). To read more, click the Manager's Report icon. |
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Supervised High Yield Fund
5 Aug 2015 - Australian Fund Monitors
Supervised High Yield Fund rose 0.21% in market conditions, which were marked by high levels of uncertainty and volatile debt and equity markets.
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5 Aug 2015 - Supervised High Yield Fund
By: Australian Fund Monitors
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| Fund Overview | The fund may also invest in interest rate swaps, options over authorized investments and exchange traded futures contracts. All these will be either listed or traded in a market where they can be independently valued. Fundamental to the investment procedure is the tenet that no debt security will qualify for investment unless it can repay 100% of its principal and interest in a worst case economic scenario. |
| Manager Comments | More than half of the portfolio's composition was in Residential Mortgage-Backed Securities (RMBS) at 65.50%. The rest of the portfolio was divided in the following sectors: US Corporate Loans at 21.70%, Cash at 8.70% and AUD Corporate Loans at 4.10%. Click below to view the latest Fund Manager Report. |
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Laminar Credit Opportunities Fund
4 Aug 2015 - Australian Fund Monitors
The Laminar Credit Opportunities Fund returned 0.64% for the month of June, to bring its annual performance since inception to 18.79% per annum.
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4 Aug 2015 - Laminar Credit Opportunities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund may also invest in derivatives for hedging purposes. The portfolio of the Fund comprises primarily Investment Grade holding of 75% of the Fund's assets. Benchmark allocations are Australasia 50% to 100%, North America 0% to 50% and Europe 0% to 50%. Currency hedging may take place depending on benefits to the Fund. |
| Manager Comments | For the quarter, the Fund delivered 1.83% and over the past 12 months 7.92%. The monthly returns for the past year have ranged from 0.51% to 0.84%. In June, majority of the Fund's portfolio composition was in Residential Mortgage Backed Securities (RMBS) at 67% and Short-dated loans at 21%. Click on the link below to read the latest Fund Manager's Report. |
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Fund Review: Aurora Fortitude Absolute Return Fund June 2015
3 Aug 2015 - Australian Fund Monitors
Latest fund review now available on the Aurora Fortitude Absolute Return Fund, which has one of the most risk averse Key Performance Statistics of any fund in AFM's database.
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3 Aug 2015 - Fund Review: Aurora Fortitude Absolute Return Fund June 2015
By: Australian Fund Monitors
AURORA FORTITUDE ABSOLUTE RETURN FUND
We would like to highlight the following aspects of the Fund;
- The Aurora Fortitude Absolute Return Fund (AFARF) has a 10 year track record investing in ASX listed equities. A Market Neutral overlay is used across a multi strategy approach which allows for flexible asset allocation to maximise returns and minimise risk under a variety of market conditions and cycles.CIO John Corr has over 20 years financial market experience with a strong focus on risk.
- Significant use of low risk "long" derivatives and option overlays has provided positive returns with low volatility during periods of market dislocation. Risk statistics are impressive and shows the Funds risk philosophy; over 85% of monthly performances have been positive with no losing months in 2008, the Fund's largest drawdown is -2.09% and the Sharpe ratio 1.06.
- ASX listed Aurora Funds Limited was established on the merger of three existing fund management businesses, managing approx. $230m on behalf of more than 2,500 retail and wholesale investors.
Insync Global Titans Fund
31 Jul 2015 - Australian Fund Monitors
In June, the Insync Global Titans Fund outperformed its benchmark MSCI All Country World ex-Australia Net Total Return Index ($A) by 0.50%.
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31 Jul 2015 - Insync Global Titans Fund
By: Australian Fund Monitors
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| Fund Overview | 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. |
| Manager Comments | The Fund's performance was driven by positive contributions from holdings in Comcast, Disney and Baxter. The main negative contributors were Oracle, Nestle and Microsoft. The Fund continues to have no foreign currency hedging in place as Insync considers the main risks to the Australian dollar to be on the downside. Click below to read the latest Fund Manager Report. |
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Fund Review: Totus Alpha Fund June 2015
30 Jul 2015 - Australian Fund Monitors
June Fund Review with key statistics for Totus Alpha Fund now available.
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30 Jul 2015 - Fund Review: Totus Alpha Fund June 2015
By: Australian Fund Monitors
Fund Review: June 2015 (pdf format)
TOTUS ALPHA FUND
We would like to highlight the following aspects of the Fund;
- Totus Capital is a Sydney based long short fund manager established in 2012 by Ben McGarry which aims to place equal emphasis on performance and capital preservation. The Fund invests mainly in Australia, but also in other developed economies, with a primary exposure to equity markets.
- The Totus Alpha Fund's investment strategy is to identify structural themes, and then seek to drive performance by investing in securities that have concentrated exposure to those themes. Single stock short positions are used to generate alpha, frequently in under researched parts of the market such as the small and mid-cap space. Index derivatives are used to hedge the portfolio's market risk.
- McGarry qualified as a Chartered Accountant with PWC in 1999 and has 14 years market experience, commencing his career covering European building materials and construction sectors at Morgan Stanley in London. Previous experience included analytical roles at Ausbil, a Sydney based $10bn+ long-only manager, and sell side emerging companies experience at UBS. McGarry's emerging company research with UBS included exposure to a range of sectors including energy, materials, industrials, tech, financials, retail and telecommunications.
- The Fund has delivered an annalised return of 24.97% since inception in March 2012 as compared to 12.14% for the ASX 200 Accumulation Index. The standard deviation has been higher than the Index at 13.44% as compared to 11.48% and the Sharpe ratio is 1.53.
Fund Review: June 2015 (pdf format)
