Monash Absolute Investment Fund



Fund Strategy

The Monash Absolute Investment Fund ARSN 606 855 501 (Fund) seeks to implement the investment strategy by investing in a diversified portfolio of predominantly Australian equities (long and short), with overseas assets expected to average no more than 5% over time.

The investment strategy is Benchmark Unaware and there is no predetermined asset allocation; rather, the Fund only invests when suitable opportunities are identified. As such, asset exposures may vary significantly over time and without notice.

The Fund seeks to only invest in compelling opportunities. To identify these investment ideas, Monash Investors primarily employs fundamental, bottom-up company research and the judgement of its experienced portfolio managers.

Monthly Performance Report: February 2018

Monthly Update

The portfolio decreased 2.40% (after fees) for the month of February, during which the S&P/ASX200 rose 0.36% and the Small Ords rose 0.03%.

February was an eventful month, which started with a fall in the market due to rising inflation and bond yields. AS a risk control measure some positions were trimmed in the portfolio and cash holdings were increased from 15% to 30%.

The month also saw some significant stock price movements following the half-year results announcements and the portfolio adjusted its positioning in response to those disclosures too.

Monthly Portfolio Metrics

Outlook Stocks (Long)21 Position: 74%
Outlook Stocks (Short)2 Positions: -5%
Event, Pair and Group (Long)4 Positions: 13%
Event, Pair and Group (Short)0 Positions: 0%
Gross Exposure92%
Net Exposure82%

Return Summary Since Inception1(after all fees)

Since Inception (p.a.)11.11%
1 Month0.82%
3 Months5.44%
6 Months16.2%
1 Year13.72%
3 Years6.86%
5 Years10.33%

1Inception date of Fund is 2 July 2012.

Portfolio Analytics Since Inception

Sharpe Ratio0.96
Sortino Ratio1.91
Standard Deviation (p.a.)9.07%
Positive Months66%
Maximum Drawdown-15.21%
Avg Gross Exposure88.7%
Avg Net Exposure76.8%
Avg Beta0.58
Avg VAR1.17%

On Monday the 5th of March, a conference call was presented by Simon Shields from Monash Investors to provide a post reporting season portfolio update for both investors in the Fund and Monash Absolute Investment Company (ASX: MA1) which has the same investment strategy. The presentation is available on Monash Investors website at

Below is a summary of the presentation and items discussed during the call:


  • The 2018 Financial year to date has seen a strong rebound in performance.

    • The Fund returned 13.75% after fees for the 7 months to 28 February 2018.
    • February was the first negative month in 9 months.
  • Longer Term Performance Review.

    • Five year performance for the Fund of 8.86% is an indicator of the longer term performance of the investment strategy.
    • Superior after fee returns were achieved compared to index tracking ETFs, and with considerably different portfolios on both a stock and sector level.[1]
    • The good performance was also achieved despite a significant cash weighting.
    • Five year after fee returns to 31 January 2018
      • 33% p.a. with an average cash weighting of 20%.
      • 85% p.a. VAS (Vanguard Australian Shares Index ETF) based on the ASX 300
      • 22% p.a. VSO (Vanguard MSCI Small Companies Index ETF) based on small companies.
    • Reporting Season Summary.

      • February 2018 reporting season was mixed compared to prior periods, and in the case of a couple of stocks we decided to exit our holdings, as a result of business outcomes at odds with our investment thesis. These stocks were Catapult (ASX: CAT) and Silverchef (ASX: SIV).
      • On the other hand, some stocks that we held did better than expected. Highlights were Netcomm Wireless (ASX: NTC) NextDC (ASX: NXT) and Lovisa (ASX: LOV).
    • Key Recent Portfolio Actions

      • A number of new outlook holdings have been added to the portfolio
        • These are all stocks with more than 60% upside to our price target
      • A significant number of the outlook holdings have had their had their weightings reduced or been exited in the last 6 months
        • Due to rising share prices, which reduces the remaining upside payoff; or
        • Due to investment thesis violation, in which case we exited the stocks.
        • Overall, the number of positions in the portfolio has reduced
      • The level of cash holding in the portfolio increased
        • In addition to the selling referred to above
        • As a risk control measure for the whole portfolio
        • In response to increased potential for a market correction

Key Fund Information

Minimum Investment$20,000
Management Fee1.53% p.a.
Performance Fee20.5% above the RBA Cash Rate with High Water Mark
Pricing FrequencyDaily
Distributions Annually
Morningstar CategoryAlternatives Strategies

For all business development enquiries, please contact

SA,WA,NT: Andrew Fairweather
Winston Capital partners (Acting on behalf of Monash Investors)

P. +61 401 716 043

VIC, TAS: Stephen Robertson
Winston Capital partners (Acting on behalf of Monash Investors)

P. +61 418 387 427

NSW,ACT,QLD: Rory MacIntyre
Winston Capital partners (Acting on behalf of Monash Investors)

P. +61 434 669 524

For all investor enquiries, please contact

Link Fund Solutions Pty Ltd (Acting on behalf of the Fund)

P. +61 2 9547 4311

Monash Absolute Investment Fund Unitholder Services, GPO Box 5482, Sydney NSW 2001

For all other enquiries


Cumulative Return Since Inception

Gross/Net Exposure Since Inception

Invest with us

We would welcome you as a co-investor in the Fund.

Important Information

This document is issued by Monash Investors Pty Limited ABN 67 153 180 333, AFSL 417 201 (“Monash Investors”) as authorised representatives of Winston Capital Partners Pty Ltd ABN 29 159 382 813, AFSL 469 556 (“Winston Capital”) for the provision of general financial product advice in relation to the Monash Absolute Investment Fund ARSN 606 855 501 (“Fund”). Monash Investors is the investment manager of the Fund. The Trust Company (RE Services) Limited ABN 45 003 278 831, AFSL 235 150 (“Perpetual”) is responsible entity of, and issuer of units in, the Fund. The inception date of the Fund is 2nd July 2012.
The information provided in this document is general information only and does not constitute investment or other advice. The content of this document does not constitute an offer or solicitation to subscribe for units in the Fund or an offer to buy or sell any financial product. Accordingly, reliance should not be placed on this document as the basis for making an investment, financial or other decision. This information does not take into account your investment objectives, particular needs or financial situation. Monash Investors, Winston Capital and Perpetual do not accept liability for any inaccurate, incomplete or omitted information of any kind or any losses caused by using this information. Any investment decision in connection with the Fund should only be made based on the information contained in the disclosure document for the Fund. A product disclosure statement (“PDS”) issued by Perpetual dated 12 September 2017 is available for the Fund. You should obtain and consider the PDS for the Fund before deciding whether to acquire, or continue to hold, an interest in the Fund. Initial Applications for units in the Fund can only be made pursuant to the application form attached to the PDS.
Performance figures assume reinvestment of income. Past performance is not a reliable indicator of future performance. Comparisons are provided for information purposes only and are not a direct comparison against benchmarks or indices that have the same characteristics as the Fund.
Monash Investors, Winston Capital and Perpetual do not guarantee repayment of capital or any particular rate of return from the Fund and do not give any representation or warranty as to the reliability, completeness or accuracy of the information contained in this document. All opinions and estimates included in this document constitute judgments of Monash Investors as at the date of this document are subject to change without notice. Perpetual is not responsible for this document.

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