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Managers Comments for April 2011
MTM in Drawdown
MTM returned -6.54% for April 2011. The benchmark S&P/ASX200 Accumulation Index returned -0.29% for April, outperforming the MTM (after management fees) by 6.25% for the month. Total return for MTM since inception (August 2010) is +6.84% vs the ASX 200 return of +11.94% for the same period.
After moving back into equities late March and holding positions over April, MTM identified negative momentum early in May and moved back to a cash position to preserve capital. MTM has been “whipsawed” in a sideways market over the past two months. This kind of behaviour is typical of momentum investment. When there is clear upward direction, there is likely outperformance. When there is clear downward direction, we move to cash. When there is volatility and no clear market direction, momentum suffers.
If the market continues to drift without direction, MTM is likely to under-perform the index. When the market establishes a clear direction, MTM is likely to out-perform.
We do not attempt to predict the market, so we cannot answer the question as to when this will occur.
It is our belief, however, that when direction eventually returns to the market, investors will be compensated in the form of strong positive returns.
Note: Please add us to your “Safe Senders” list to ensure our Monthly Report gets through. Additionally, please feel free to forward this email to any friends or colleagues who may be interested. All Performance Reports can be viewed online here.
About the manager
Porter Capital Management is a professional funds manager offering innovative, system-based investment solutions to institutions, financial advisors and individual investors.
For further information
Phone: 1300 13 44 22
Web: www.portercapital.com.au
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| Return % * |
1m |
6m |
1yr |
Inc.** |
| Prime Momentum (MTM) |
-6.54
|
-3.93
|
N/A
|
6.84
|
| S&P ASX200 Accumulation |
-0.29
|
5.55
|
N/A
|
11.94
|
| * Returns are after management + administration fees and before performance fees. ** Since inception of product (11th August 2010) |
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This product is for investors seeking...
Protection of Capital in a downturn: Moves to 100% cash in difficult economic conditions
Systematic Investment Process: A purely systematic and unemotional process which enforces discipline, objectivity and accountability during difficult investment cycles
Diversification: Low correlation to core fundamental equity managers and major indicies
A Strategy suitable for superannuation funds
Interests that are aligned with their own and a manager compensated on performance
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Key Portfolio Features
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Benchmark
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S&P/ASX200 Accumulation Index
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Suggested Timeframe
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3 - 5 years
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Typical Number of Stocks
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0 - 20
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Investment Fee
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1.30%
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Performance Fee
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20% of outperformance
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Historical Portfolio Turnover
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Medium
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Style
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Growth
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Investment Universe
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S&P/ASX200
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Process
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Quantitative
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| This report provides general information only and does not take into account the investment objectives, financial circumstances or needs of any person. To the maximum extent permitted by law, Porter Capital Management (PCM), its directors and employees accept no liability for any loss or damage occurred as a result of any action taken or not taken on the basis of the information contained in the report or any omissions or errors within it. Before making an investment decision you should consider the latest Product Disclosure Statement and Financial Services Guide and assess whether the product and/or service is appropriate for you. It is advisable that you obtain professional independent financial, legal and taxation advice before making any financial investment decision. PCM does not guarantee the repayment of capital or payment of income, or the performance of its investments. |
