Our Performance

Trident Global Growth Fund

February 2012 Update

The Trident Global Growth Fund has provided strong outperformance to the index since the beginning of the year despite the strengthening Australian dollar, which has risen over 5.5% in 2012 and was a significant detractor for the fund. The MSCI World Index in AUD$ has risen 2.49%; the S&P 500 has added 7% and the Australian All Ordinaries 5% since January 1.

	MSCI World Index in AUD$
31 December 2011	1154.87
9 February 2012	1183.58
Change in the Index	+28.71
Change in the Index as a %	+2.49%
Change in Fund unit price as a %	+10.98%
Outperformance (after all fees, and negative FX movement)	+8.49%

Looking forward we expect the Australian dollar to reverse much if not its entire recent rise and we should see much of the 5.5% negative impact reversed. Without the appreciation of the AUD$, the fund could have risen 16.48% if you simply add back the foreign exchange effect, this amount being net of all fees.

The big driver in the dramatic improvement in the fund’s position has been the US earnings season, where our stocks have performed outstandingly, with much better than expected reports from nearly all the stocks in the fund that have reported thus far. Most notable was the stunning report by Apple, but others like Caterpillar, Intuitive Surgical, Cummins, Cerner and Seagate have been equally impressive.

Our investment strategy of selecting top quality companies with solid balance sheets, strong and sustainable growth in sales and earnings, good management coupled with innovative products and services, is now showing it’s value. Now that markets are becoming more focussed on individual company performance rather than being totally distracted by geo-political and macroeconomic events, we should see our positions strengthen further.

Performance – Fund is already providing Out-Performance to the Market - 30 June 2011

While the fund’s underlying equity performance during the period has been generally pleasing considering the generally flat to falling market conditions (S&P 500 and ASX) occurring during the first half and more particularly in May and June, the major detracting factor from the fund’s performance has been the Australian dollar’s significant rise from around US$1.00 at the beginning of the year to US$1.07 as at 30 June. This 7% rise in the Australian dollar unfortunately cancelled out the pleasing underlying equity outperformance during the period, particularly considering much of the first quarter was spent in significant levels of cash at a time when the equity markets were performing quite well prior to the Japanese tsunami. However, the net effect to the fund of the rise of the Australian dollar was a 5.15% fall and this was offset by an over 4.30% rise in equity appreciation after all management fees had been paid and compares with a rise of 3.99% in the benchmark MSCI World Index.

For further information on the performance and the portfolio of the fund, please read the Latest Fund Manager's Report - click here.

What do you think the returns of the fund will be long term?

Lance Spicer - Fund Manager

Quite a number of people have been asking me the question, “What will the returns be for the fund?”

"To put it simply, I can’t answer the question for a number of reasons. Firstly it would be illegal for me to give you a number or even an indication. On top of that, I don’t know. It is like knowing the answer to "how long is a piece of string?".

What I can tell you is this - the fund will be different from my performance with Trident Confidential because of the following reasons:

• The fund will incur fees as in the administration fees, which pay for all the costs involved in running a fund. There are more costs than you realise – Government fees and charges, auditors, accountants, custodians, administration staff, insurances, legal fees and the list goes on.
• The fund will incur a performance fee if I achieve above market performance.
• The fund takes into account foreign exchange fluctuations.
• The investment strategy is based on a 5 year time horizon, which is a different goal to the Trident Confidential newsletter.

Now, while I regard myself as an aggressive investor my approach will be no different when it comes to the fund, I will be looking to invest in great growth companies at a value-investing price. However, my approach towards the investments for the fund will be a “longer term” and you could say just a little more conservative.
 
The idea is that if we participate in both, as any balanced portfolio of investments should (never have all your eggs in one basket), we will have greater diversification."

For the current unit price of the Fund, see the update at www.amhonline.com.au/trident. The current unit price is published monthly generally 5 business days after the 1st of every month.

The unit price shown is the price after all fees and charges (including management fees) have been taken out.

For any questions regarding all unit pricing, taxation notices, unit and share certificates and any other administrative queries please contact:

The Responsible Entity - Australian Mutual Holdings

Please call 61 (0) 2 9241 7959 or email info@amhonline.com.au

Financial Services Guide

Please go to www.amhonline.com.au/trident for the most up to date Financial Services Guide (FSG)