SUMMARY
The Fund generated a +3.2% return in March. By way of comparison, the Australian stock market rose by 3.1%, whilst the return of the RBA cash rate plus 6% equated to approximately +0.7% for the month. For the March quarter, the Fund generated a return of +4.9%, almost double the cash plus 6% benchmark return of 2.4%, and compared to the market return of 5.5% for the same period. Financial year to date, the Fund has achieved a return of +9.5%, ahead of the cash plus 6% benchmark of +7.5%, and compared to the market’s growth of 13.8% over the same period.
Resilient corporate earnings and a still dovish lean by central banks globally provided the impetus for further equity market gains in March. Despite its conservative positioning, including over 10% in cash, the Fund was a healthy participant in the market strength during the month. Performance remains robust and pleasingly continues to track ahead of our cash plus 6% objective for the month, the quarter and the financial year to date. That said, we are increasingly wary of the momentum driven equity rally, particularly in light of our cautious view on inflation and interest rates. We note the recent divergence in Equity, bond and currency markets, particularly given the recent stalling in early April.