SUMMARY
The Fund generated a -0.7% return in August. By way of comparison, the Australian stock market declined by -0.7%, whilst the (annual) return of the RBA cash rate plus 6% equated to approximately +0.8% for the month. Calendar year to date, the Fund has achieved a return of +9.4%, which compares favourably to our benchmark return of +6.4% over the same period, and the Australian stock market at +7.0%. We are pleased that a portfolio of defensive, hard assets continues to deliver a healthy, positive real return in varying market conditions.
The key message that we took away from this corporate earnings season was that whilst the outlook for corporate revenues is likely more resilient than first thought, ongoing inflation continues to provide upward pressure on the cost of doing business. We are pleased to be able to report that for the majority of our holdings, we received a positive validation of our respective investment theses. Standout performers included our discretionary retail holdings Accent Group and Super Retail Group. Resmed was a notable detractor in the period, offsetting what was otherwise a strong period for the Fund.