SUMMARY
The Fund generated a -3.8% return in the March quarter. By way of comparison, the (annual) return of the RBA cash rate + 6% equated to approximately +1.5% for the quarter, whilst the Australian stock market grew by +1.6% over the same period. The Australian market was a standout performer globally in the March quarter. With the exception of the FTSE, all other global benchmarks experienced declines.
Overall performance in the March quarter benefited from our positioning for inflation and rate rises, however it was negatively impacted by a larger than usual participation in the market correction early in the period, and a lower participation in the resource and energy led market recovery toward the end of the period.
That said, large dividend receipts have bolstered cash levels and provided capacity to acquire additional holdings at attractive levels. Furthermore, the underlying cash flows in the portfolio remain intact, evidenced by a generally strong corporate reporting season in February. With an after tax cash yield of 7.6% at the end of March, the Fund continues to be attractively valued and well positioned for what we believe will be fundamental themes throughout 2022 of elevated inflation and the inflection point in the rate cycle.
Below is a recording of our recent webinar where CIO and Portfolio Manager Rhett Kessler provides performance, portfolio, and stock-specific updates for the Fund. Financial planners may also complete a short questionnaire available HERE for CPD points. You can also find a summarised portfolio and investment update HERE.