Performance Commentary

In the month of January, the portfolio gained 3.6%, outperforming the benchmark S&P/ASX Small Ordinaries Accumulation Index by 3.9%.

Global markets were flat in January, as investors digested the Biden Presidency and COVID-19 issues lingered. Europe, particularly the UK, was somewhat weaker with lockdowns and Brexit.

Domestically the retail sector, which had been ravaged all year rebounded as strong sales results dominated headlines. Traditional retailers such as Premier Investments (PMV), Harvey Norman (HVN) were stronger.

Our portfolio benefitted from the frothy stock markets and continued excess liquidity. HUB 24 (HUB) and Netwealth (NWL) were two of the strongest performers.

We have not yet switched our portfolio to a more cyclical outlook, preferring the longer-term drivers and despite valuations we believe that lower interest rates will continue to drive liquidity into the stock market.

Investment into shares and the Australian government continuing stimulus measures should amplify returns in small cap equities.

Investment Objectives

We aim to achieve superior returns to the ASX Small Ordinaries Accumulation Index by investing in high growth companies. Our investment process incorporates environmental and social factors in addition to achieving our returns.

Portfolio Characteristics