NEWS
Fund Review: Insync Global Titans Fund September 2015
2 Nov 2015 - Australian Fund Monitors
Latest Fund Review on Insync Global Titans Fund is now available.
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2 Nov 2015 - Fund Review: Insync Global Titans Fund September 2015
By: Australian Fund Monitors
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 1.4%, in September. The performance was driven by positive contributions from our holdings in Microsoft, BAT, Reckitt Benckiser, Nestle and McDonald's. The main negative contributors were Medtronic, Zimmer, eBay and McGraw-Hill. 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.
- 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.
Hedge Clippings
31 Oct 2015 - Australian Fund Monitors
Two sides of the confidence coin
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31 Oct 2015 - Hedge Clippings
By: Australian Fund Monitors
Two sides of the confidence coin
There's little doubt that business conditions are not getting any easier based on a number of results and guidances released this week. The share price of electronics retailer Dick Smith has been savaged following an earnings downgrade; Woolworths continues to struggle to return to the glory days of their dominance over Coles, as well as having to contend with the rise of Aldi; and National Australia Bank's margins in the business loan division appear to be declining sharply.
In spite of this business confidence, based on the NAB's monthly survey of around 350 small, medium and large Australian companies, increased to 5 in September from a score of 1 in August, not-withstanding it remains a long way south of the all-time high of 21 in May 2002, but also well north of the all-time low of -31 in January 2009 during the hiatus of the GFC.
To what extent the rise in business confidence is a result of the change in Prime Minister will no doubt depend on one's own political view, but anecdotal evidence would suggest that the two are strongly correlated. In discussions over the past couple of weeks with a variety of fund managers amongst others, the majority of whom one would safely assume to be variously to the right of centre, the mood appears to be universally positive.
To what extent one person can change the Country's outlook, and even more importantly, to what extent that change will affect the eventual outcome, we will have to wait and see. The pertinent point is that even rusted on Liberal voters were deeply concerned with the direction (or should that just be the diction) of the previous leadership, and it now appears that clear confidence in leadership, and clear direction, might be able to overcome difficult economic conditions.
Given that this week-end we will see the Wallabies in the final of the RWC, when just over 12 months ago they were a leaderless, or badly led rabble, and more generally tagged as the "Woefull Wallabies" there's a great message here. Michael Cheika has shown that properly motivated, the same players playing up at the back of the bus can respond to difficult times, and through hard work and plenty of grunt, turn a potential disaster into the possibility of taking the prize.
Irrespective of the outcome of this week-end's final, pride will have been restored both on and off the paddock, win, lose, or heaven help us, draw.
Specific results received this week include the following PERFORMANCE UPDATES:
APN AREIT Fund returned +0.14% in September compared to the AREIT Index -0.28%, to outperform by 0.42%. Since inception in February 2009, the Fund has returned 17.38% p.a.
Insync Global Titans Fund returned -1.3% in September, outperforming its benchmark MSCI All Country World ex-Australia Net Total Return Index ($A) which fell -2.7%.
KIS Asia Long Short Fund rose 2.81%, to outperform the AFM Asia Pacific ex-Japan Index by 5.70%.
The Freehold Absolute Return Fund delivered -1.38% outperforming the ASX200 total return in a weak equity market, which declined -2.96%.
Supervised High Yield Fund rose 0.36% in September, to bring annualised performance since inception to 9.91% p.a.
For the month of September COR Capital Fund returned -0.66% to bring it's annualised return since inception to 4.18%.
FUND REVIEWS released this week: Morphic Global Opportunities Fund; Pengana Absolute Return Asia Pacific Fund; APN Asian REIT Fund
And on that note, Go! Wallabies, Go! so that at least on this side of the Tasman we can enjoy the week-end.
Regards,
Chris
CEO, AUSTRALIAN FUND MONITORS
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KIS Asia Long Short Fund
30 Oct 2015 - Australian Fund Monitors
KIS Asia Long Short Fund rose 2.81% for the month of September, to outperform the AFM Asia Pacific ex-Japan Index by 5.70%.
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30 Oct 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's annualised return since inception was 14.91% p.a. In comparison, the AFM Asia Pacific ex-Japan Index has an annualised returned of 2.68% p.a. The Fund has achieved this double-digit performance with lower volatility of 5.50% (Index 9.81%), to give notable Sharpe and Sortino ratios of 1.97 and 4.59 respectively. |
| More Information |
Supervised High Yield Fund
30 Oct 2015 - Australian Fund Monitors
Supervised High Yield Fund rose 0.36% in September, to bring annualised performance since inception to 9.91% p.a.
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30 Oct 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 (as a percentage of NAV) was invested in Residential Mortgage-Backed Securities (RMBS) 61.23%. The rest of the portfolio composition was in USD Corporate Loans at 21.62%, Cash at 13.04% and AUD Corporate Loans at 4.11%. The Fed's lack of action caused market participants to respond by reducing exposure to risk assets in favor of increasing exposure to safer investments. Sovereign Bonds rallied and US 10 year Treasury notes increased by 1.67%. The net effect of this market was relatively minor to the Fund. Click below to view the latest Fund Manager Report. |
| More Information |
Fund Review: APN Asian REIT Fund September 2015
30 Oct 2015 - Australian Fund Monitors
September Fund Review is now available on APN Asian REIT Fund, a property securities fund, investing primarily in the Asian REITS.
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30 Oct 2015 - Fund Review: APN Asian REIT Fund September 2015
By: Australian Fund Monitors
APN Asian REIT Fund AFM Fund Review September 2015 (pdf format)
APN Asian REIT Fund
We would like to highlight the following aspects of the Fund;
- APN is an ASX-listed fund manager specialising in property investment, with an investment team of six. Established in 1996, APN now has FUM of $A2.1bn including four REIT (Real Estate Investment Trust) funds.
- The APN Asian REIT Fund (Fund) is a property securities fund that invests in a quality portfolio of Asian REITs, listed on the securities exchanges of the Asian Region, with the ability to hold some cash and fixed interest investments.
- The Fund aims to deliver a competitive yield with lower risk than the market. The underlying stocks are selected based on a highly disciplined investment approach that focuses on the fundamentals and number of valuation approaches. The universe can include new IPO's, other corporate actions take place and / or corporate governance improvements at country or REIT level bring new stocks into focus.
- The Fund provides access to a wide spread of property-based revenue streams that are specifically analysed, selected and weighted with the aim of delivering strong and sustainable income returns. The Fund is an unhedged product.
- APN's Asian REIT Fund invests in a portfolio of 25-40 listed Asian REITs with a core philosophy of investing in properties with a sustainable rental income streams.
- The Fund has delivered an annalised return of 17.74% p.a., since inception in July 2011 with standard deviation of 9.15% p.a. The Sharpe and Sortino ratios are 1.51 and 2.89 respectively.
APN Asian REIT Fund AFM Fund Review September 2015 (pdf format)
Cor Capital Fund
29 Oct 2015 - Australian Fund Monitors
For the month of September, Cor Capital Fund returned -0.66%.
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29 Oct 2015 - Cor Capital Fund
By: Australian Fund Monitors
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| Fund Overview | The Cor Capital Fund is a Multi- Asset Fund which combines a pre-determined strategic asset allocation with active but systemised rebalancing to generate returns and manage volatility whilst maintaining transparency and liquidity. The Fund strategy is not reliant on accurate market predictions, forecasts or timing for success. Returns are generated in a number of ways; 1) by maintaining sufficiently large positions in a diverse group of asset classes, 2) via the 'volatility harvesting' consequences of active rebalancing, and 3) from the offsetting behaviour of certain asset classes under specific conditions. The combined portfolio is expected to exhibit relatively low volatility and low turnover. In the interests of avoiding complexity, maintaining liquidity, and minimising reliance on third parties, the Fund strategy does not employ gearing, derivatives or short-selling. |
| Manager Comments | The greatest positive influence on the portfolio was the gold bullion allocation (+5% for the quarter) which tends to do relatively well when paper currencies fall. The equities weakness was offset by strength in investment grade bonds (+2% for the quarter) in anticipation of lower future interest rates. The portfolio's asset allocation as of 30 September was 25.3% in Gold, 25.4% in Fixed Interest, 24% in Equities and rest in cash at 25.3%. Click below to read the Fund's latest quarterly report. |
| More Information |
Fund Review Pengana Absolute Return Asia Pacific Fund September 2015
29 Oct 2015 - Australian Fund Monitors
Latest Fund Review now available on Pengana Absolute Return Asia Pacific Fund, which has over 6 years of track record and annualised return of 9.72% p.a.
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29 Oct 2015 - Fund Review Pengana Absolute Return Asia Pacific Fund September 2015
By: Australian Fund Monitors
PENGANA ABSOLUTE RETURN ASIA PACIFIC FUND
Attached is our most recently updated Fund Review on the Pengana Absolute Return Asia Pacific Fund.
- The Pengana Absolute Return Asia Pacific Fund ("PARAP") was established in 2008 by portfolio managers Antonio Meroni and Vikas Kumra. The Fund is a feeder fund into a Cayman Islands AUD share class fund.
- The Fund invests both long and short in Asia Pacific equities, including in Australian and New Zealand, after a stock specific "event" has either occurred or been announced and the portfolio aims to be uncorrelated to the underlying equity markets. A combination of the Manager's experience, thorough research and continuous back- testing identify the most attractive of these events.
- Risk controls include limits on individual positions as well as gross and net exposure. Limits are in place for option exposure and cash borrowing, with stop loss limits on individual positions. Overall the manager is looking to derive returns from the event strategies as opposed to any currency or market exposures.
- Since inception, the Fund has an annualised return of 9.72% p.a., compared to the AFM's Asia Pacific Index of 5.23%. The Fund has achieved this with lower volatility of 6.18% (Index 11.96%).
For further details on the Fund, please do not hesitate to contact us.
Freehold Absolute Return Fund
28 Oct 2015 - Australian Fund Monitors
Freehold Absolute Return Fund delivered -1.38% in a weak equity market (ASX200 Total Return), which declined 2.96%.
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28 Oct 2015 - Freehold Absolute Return Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund's research use detailed analysis of the underlying assets integrated with financial analysis to determine a sustainable yield and fundamental DCF valuation for the security. Also the Fund believes in having a strong risk control framework. The Fund will also use trading strategies via rebalancing of core portfolio positions as well as taking advantage of shorter duration inefficiencies in markets caused by an imbalance in demand and supply for global REIT and Infrastructure securities. The Fund focuses on generating absolute returns after fees of 12 to 15% pa over the medium to long term. The long-short nature of the Fund combined with Freehold's rigorous investment process ensures returns generated by the Fund are largely independent of rising or falling markets. Freehold is focused on providing investment opportunities primarily within core, value-add, opportunistic and development sectors of direct property and across listed and unlisted real estate and infrastructure securities. |
| Manager Comments | The Fund maintained a modest net long market exposure during the month which contributed to the negative performance in September. Positive contributors to the portfolio were APA Group, Dexus and Macquarie Atlas. Negative contributors were Mirvac, Goodman Group and APN Property Group. The Fund Manager is favorable to the two childcare related stocks Folkestone Education (FET), which was discussed in the Fund monthly performance report as the stock of the month, and also Arena REIT (ARF). Click Manager's Report to read more. |
| More Information |
Insync Global Titans Fund
27 Oct 2015 - Australian Fund Monitors
The Insync Global Titans Fund returned -1.3% in September, compared to its benchmark MSCI All Country World ex-Australia Net Total Return Index ($A) -2.7%.
Read more...
27 Oct 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 performance was driven by positive contributions from the Fund's holdings in Microsoft, BAT, Reckitt Benckiser, Nestle and McDonald's. The main negative contributors were Medtronic, Zimmer, eBay and McGraw-Hill. The Fund continues to have no foreign currency hedging in place as the Fund considers the main risks to the Australian dollar to be on the downside. Click below to read the latest Fund Manager Report. |
| More Information |
Fund Review: Morphic Global Opportunities Fund September 2015
27 Oct 2015 - Australian Fund Monitors
Read latest September Fund Review on Morphic Global Opportunities Fund.
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27 Oct 2015 - Fund Review: Morphic Global Opportunities Fund September 2015
By: Australian Fund Monitors
MORPHIC GLOBAL OPPORTUNITIES FUND
Attached is our most recently updated 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.
- 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.
