Wed, Aug 31, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Australian Fund Monitors Index returned 1.50% in July (+0.32% YTD) while ASX was up 4.46% (-7.75% YTD)

Tuesday, August 17, 2010
Opalesque Industry Update - According to Chris Gosselin, C.E.O. of Australian Fund Monitors Pty Ltd in Sydney, the current markets, whether they be equity or alternative, are proving to be testing times.

Although on a 12 month basis ASX 200 is still in positive territory, up 5.86%, over the 11 months period of September 2009 to the end of July 2010 the ASX 200 has gone nowhere. However that statistic obscures intra-month volatility which has tested fund managers, and long-suffering investors, with some wild swings.

In the past year the ASX 200 has made monthly gains or losses in excess of 5% on six occasions, with the 12% rally for August/September last year offset by the decline of a similar size from April to June 2010.

Index

July 2010

YTD

Last 12 Months

All Funds

1.50%

0.32%

8.12%

Equity Based

2.20%

-0.06%

10.43%

Non Equity Based

-0.27%

-0.04%

4.21%

ASX

4.46%

-7.75%

5.86%

S&P500

6.88%

-1.21%

11.56%

These are obviously not markets for trend followers. At the same time picking the timing of the market's next rise or fall has not been easy given the abrupt nature of directional changes.

Stock picking has been no easier, as has been shown in the past couple of weeks by the likes of Commonwealth Bank, Telstra, AWB and Leighton. This makes it interesting to look through managers' performance reports to see those which highlight positive performance from a particular earnings surprise or event, offset by another manager's negative performance from the same event.

So while it's been tough, it's been encouraging to see equity-based hedge funds at least make headway of close to 10% while the market has bounced up and down on the same spot. In addition year-to-date they have outperformed the ASX by close to 8%. That's not to say that there hasn't been significant monthly volatility within the hedge fund sector, and some significant under and over performance by particular funds.

15% of all funds in the AFM database turned in a negative performance over the past 12 months, whilst at the other end of the spectrum a similar percentage returned over 25%. Some managers that had previously provided stable results started to show that they were not infallible, whilst others continued to provide the consistency we had come to expect.

So while the markets are continuing to test fund managers, some managers' performances are continuing to test investors.

fundmonitors.com.au.


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. The Big Picture: Water is single largest environmental investment opportunity[more]

    Benedicte Gravrand, Opalesque Geneva: Water, the world’s most precious and undervalued commodity, is set to lead the socially and environmentally responsible investment themes. This is according to specialist fund manager Thomas Schumann. His firm,

  2. Commodities - Hedge funds pile into bullish bets on U.S. crude by most on record, Rig count steady, hedge funds dump short contracts on 63 million barrels, Hedge funds bail on Copper as Goldman predicts ‘supply storm’, Hedge funds pile up bets against sterling[more]

    Hedge funds pile into bullish bets on U.S. crude by most on record From BRecorder.com: Hedge funds and other speculators raised their bullish bets on US crude oil in the past week by the most on record fuelled by speculation that Organization of the Petroleum Exporting Countries will agr

  3. Investing - U.S. hedge fund Marathon makes Brexit bet on European property, Hedge funds love Liberty and John Malone, DE Shaw could bid for control over TerraForm Power, New York hedge fund increases stake in Tronc as sale talks continue, Don't wait too long to check this +20% value fund's ideas[more]

    U.S. hedge fund Marathon makes Brexit bet on European property From FT.com: Marathon, a $13bn US hedge fund, is building a big Brexit trade, increasing its investments in property across Ireland, France, Germany and the Netherlands, in a bet that they will be among the big beneficiaries

  4. Opalesque Exclusive: Investors struggle to identify the better performing hedge funds[more]

    Komfie Manalo, Opalesque Asia: Fund managers and investors believe that performance is one of the major factors driving change in the hedge fund industry, a Preqin survey showed in its latest Hedge Fund Spotlight. Preqin said that the disappoin

  5. …And Finally - Baby born on Cebu Pacific airplane gets 1 million air miles[more]

    From CNN.com: Here's one kid who'll probably learn to fly before she can crawl. After being born four hours into a flight from Dubai to Manila, baby girl Haven has been gifted 1 million air mile points. Haven's mom went into labor more than five weeks early while flying on an aircraft op