Insights, June 2021 - Fund Updates

The domestic small cap index finished modestly higher in May, with the focus of markets still firmly on inflation and particularly on whether the inflationary outbreaks we are witnessing are structural or transitory and the broader implications for monetary policy. Cyclical stocks continue to outperform as the ongoing rotation from growth to value continues, and technology and other high multiple stocks drift as investors reduce exposure to growth names.

The OC Premium Small Companies Fund and OC Dynamic Equity Fund were down -1.7% and -1.6% respectively in May. The S&P/ASX Small Ordinaries Accumulation Index eked out a small +0.3% gain for the month, with strength in commodity stocks underpinning a solid outperformance versus the S&P/ASX Small Industrials Accumulation Index which was down -0.6% for the month.

The S&P/ASX Emerging Companies Accumulation Index was up +2.0% for the month, with strength in junior resource stocks and several early-stage biotechnology stocks underpinning a solid outperformance of the Index versus the OC Micro-Cap Fund (-0.5%) which has limited exposure to the more speculative end of the micro-cap stock universe.

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

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