Insights, March 2020 - Fund Updates

The events of the February reporting season have been totally overshadowed by the emergence of the novel coronavirus (COVID-19 or ‘the virus’) which originated in the Hubei province of China but is now rapidly spreading across the globe.

The overall reporting season was a solid one for OC Funds from a results perspective, but this was of little consequence as investor sentiment shifted rapidly to ‘risk off’ mode as the virus spread. Like many other investors, we initially underestimated the likelihood of global contagion occurring and the Fund’s exposure to the travel, technology, financial and mining services sectors has hurt our performance during the past fortnight.

The OC Premium Small Companies Fund and OC Dynamic Equity Fund returned -10.2% and -9.4% respectively, behind both the S&P/ASX Small Ordinaries Accumulation Index (-8.7%) and the S&P/ASX Small Industrials Accumulation Index (-8.4%).

The OC Micro-Cap Fund delivered -9.2%, still well ahead of the S&P/ASX Emerging Companies Index which returned -14.1%.

To discuss our portfolios in detail, contact our Copia business development team.

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TAGS : Australian equities, Australian shares, Dynamic Equity, Fund update, January 2020, Latest report, Micro-cap, Premium Small Companies, Small caps