SUMMARY
Dear Investors
Given recent events I would like to update you on the performance and positioning of the fund. In February the fund was down 3.1% while in March the fund is down approximately 23% month to date. As an investor in the fund I share your concern.
22% of the fund is held in Australian dollar cash. We would note that the Australian dollar at 57 cents is at the low end of its 30-year trading range of 48cents in 2000 to $1.07 in 2011. As opportunities arise, we will deploy that capital.
46% of the fund is invested in healthcare stocks which have fallen along with the broader market. Smaller companies, where the company has significant exposure have suffered more than larger companies. It is clear that most companies will suffer some impact from Covid-19 related disruptions. The healthcare sector is not immune although it will be more resilient than others. Many of these companies are now trading at exceptionally low valuations.
Below I have provided a detailed look into some of the holdings in the portfolio and why we believe there is great potential for future upside from these holdings. [CLICK HERE]