SUMMARY
The Fund generated a -0.7% return in February. By way of comparison, the Australian stock market rose by 1.2%, whilst the 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 +1.7%, in line with the cash plus 6% benchmark for the 2 months, and compared to the market’s growth of 2.2% over the same period.
At the headline, it was a disappointing month for the Fund. However, we consider it relevant to focus on the calendar year-to-date performance given the spread of corporate reporting across the two months, with trading updates in January pulling forward the positive contributions of certain investments into that period. This year, the Fund benefited in particular from early trading updates from Resmed, discretionary retailers Super Retail and Accent Group, as well as strong trading momentum from health insurers NIB and Medibank, to outperform the market with a +2.4% return in January. February was not without its challenges, and we continue to assess each of our investment theses as new information arises. That said, as we exit the half-year reporting season, we are pleased to have been able to validate our investment thesis for the vast majority of the Fund’s positions and to be tracking in line with our benchmark return calendar year date.