SUMMARY
The Fund generated a +1.2% return in June and +6.7% for the June half. By way of comparison, the (annual) return of the RBA cash rate plus 6% equated to approximately +0.8% for the month (+4.7% for the half), whilst the Australian stock market returned +1.9% in June and +4.7% for the half. For the 2023 financial year, the Fund’s total return equated to +10%, compared to the market return of +14.8%, and a cash rate plus 6% return of +8.9%.
After a difficult start to the financial year, we are pleased that the Fund has been able to once again exceed our objective of cash +6% (after all fees and costs), and generate a real, positive return for our investors from a portfolio of defensive, hard assets.
Having taken decisive actions to address the first-half performance, it was encouraging to see a turnaround in the second half. Perhaps more than the number itself, we were particularly pleased with the nature of the second-half performance. Despite its conservative positioning, the Fund was able to participate in broad market strength during January and June, including outperforming a positive market in April. During the negative months of February, March, and May, the Fund proved its resilience, outperforming the market in each of those periods. An overall result of +6.7% for the half was pleasing both in absolute terms, and relative to the market’s +4.7%, particularly given the challenging environment, and gives us confidence that the Fund is once again behaving as we expect it to across various market conditions.