Performance update | April 2016
The May federal budget was largely considered a benign event for equity markets, and indeed the broader economy. This was understandable given the unusual circumstance of a federal election immediately following the budget and the government not willing to impose any tough new fiscal measures on the electorate so soon before going to the polls.
We did extensive due diligence prior to the budget, checking potential impacts on our stocks and, as expected, the budget held few demons for our companies. Pleasingly, the majority of our stocks were not impacted at all which came as a relief to companies in some sectors, such as novated leasing, which had been impacted by some negative policy in recent budgets (e.g. SG Fleet, Eclipx) and can be vulnerable to changes in government policy.
Following a volatile opening quarter of the calendar year, the Funds finished April behind their respective benchmarks, except for the OC Premium Small Companies Fund which was slightly ahead of the S&P/ASX Small Industrials Accumulation Index. Over the long-term, they continue to deliver investors strong returns with the OC Premium Small Companies Fund up 12.4% p.a. over the past three years.
View the April 2016 performance reports: