microequities high income value microcap fund april 2012 update

MICROEQUITIES ASSET MANAGEMENT |AFSL 287526 |Suite 702, 109 Pitt Street, Sydney NSW 2000 Office: +61 2 9231 6169 Fax: +61 2 9475 1156 [email protected] APRIL 2012 PERFORMANCE UPDATE by Carlos Gil, Chief Investment Officer MARKETS AND ECONOMY: The unprecedented accommodative monetary stance of the US Federal Reserve provides the most skeptic equity investor little respite for remaining in fixed income and cash. The Federal Open Market Committee reiterated during the month its known previous stance of maintaining historically low borrowing costs until at least 2014. Nothing new there. However, perhaps surprisingly, Fed Chairman Bernanke reminded markets that despite expectations that growth will pick up at a moderate pace, the Fed saw the need to provide further reassurance by stating that should growth stagnate they would be prepared to take more balance sheet actions as needed. The signaling by the Fed provides investors with a pretty compelling hedge. Essentially the Fed is saying economic growth is improving at a modest pace, and if this growth continues were going to give you low rates to at least 2014. If for whatever reason the growth doesn’t continue we are going to provide further measures (essentially printing money via quantitative easing) to stimulate and deliver growth. I cannot recall seeing a more equity friendly stance in my 20 years of investing. Given the US 10 year Government bond rate is yielding around 1.93%, US investors don’t have a difficult capital allocation decision to make, with equity assets being an obvious choice. Microequities High Income Value Microcap Fund returned a positive +2.21% versus the All Ordinaries Accumulation Index positive +1.10% in April. We are pleased to report, that the second month of our High Income Value Microcap Fund has provided another positive result, with the Fund posting a 2.21% return for the month. Obviously its very early days, but we believe that some outstanding value opportunities have been captured by our Fund. Strong investment inflows were received during the month of April and in the weeks ahead we will be deploying these funds across the fourteen businesses owned by Fund. Current Forecast Grossed Up Dividend Yield of the Fund*: +12.37% *Forecast Grossed up Yield is based on internal forecasts and actual results may vary. Investors should note that Gross Dividend Yield is not a forecast distribution as distributions will depend on actual dividend income received and actual number of units on issue at the time a distribution is made. *High Income Value Microcap Portfolio as of 30 th of April 2012 6.1% 38.6% 7.2% 4.9% 14.3% 7.4% 1.4% 18.8% 1.3% Cash Software & Services Diversfie d Financials Capital Goods Media Commercial Services & Supplies Banks Consumer Durables and Apparel Retailing Latest Unit Price $1.0435 Latest Fund Performance as at April 30, 2012 FUND AOAI* OP* 1 Month +2.21% +1.10% +1.11% 2 Month +4.35% +2.26% +2.09% 3 Month 4 Month 5 Month 6 Month Inception +4.35% +2.26% +2.09% (Returns are calculated after all fees and expenses and reinvestment of distributions. Inception of Fund March 1, 2012) *AOAI: All Ordinaries Accumulation Index. *OP: Out-performance. Past performance is not indicative of future performance.

Upload: microequities-pty-ltd

Post on 05-Apr-2018

218 views

Category:

Documents

0 download

Report

Download

Embed Size (px):

TRANSCRIPT

Page 1: Microequities High Income Value Microcap Fund April 2012 update

7/31/2019 Microequities High Income Value Microcap Fund April 2012 update

http://slidepdf.com/reader/full/microequities-high-income-value-microcap-fund-april-2012-update 1/1

MICROEQUITIES ASSET MANAGEMENT |AFSL 287526 |Suite 702, 109 Pitt Street, Sydney NSW 2000

Office: +61 2 9231 6169 Fax: +61 2 9475 1156 [email protected]

APRIL 2012 PERFORMANCE UPDATE by Carlos Gil, Chief Investment Officer

MARKETS AND ECONOMY:

The unprecedented accommodative monetary stance of the US Federal Reserve provides the most skeptic equity investor

little respite for remaining in fixed income and cash. The Federal Open Market Committee reiterated during the month its

known previous stance of maintaining historically low borrowing costs until at least 2014. Nothing new there. However,

perhaps surprisingly, Fed Chairman Bernanke reminded markets that despite expectations that growth will pick up at a

moderate pace, the Fed saw the need to provide further reassurance by stating that should growth stagnate they would be

prepared to take more balance sheet actions as needed.

The signaling by the Fed provides investors with a pretty compelling hedge. Essentially the Fed is saying economic growth is

improving at a modest pace, and if this growth continues were going to give you low rates to at least 2014. If for whatever

reason the growth doesn’t continue we are going to provide further measures (essentially printing money via quantitative

easing) to stimulate and deliver growth. I cannot recall seeing a more equity friendly stance in my 20 years of investing.

Given the US 10 year Government bond rate is yielding around 1.93%, US investors don’t have a difficult capital allocation

decision to make, with equity assets being an obvious choice.

Microequities High Income Value Microcap Fund returned a positive +2.21% versus the All Ordinaries Accumulation

Index positive +1.10% in April.

We are pleased to report, that the second month of our High Income Value Microcap Fund has provided another positive

result, with the Fund posting a 2.21% return for the month. Obviously its very early days, but we believe that some

outstanding value opportunities have been captured by our Fund. Strong investment inflows were received during the

month of April and in the weeks ahead we will be deploying these funds across the fourteen businesses owned by Fund.

Current Forecast Grossed Up Dividend Yield of the Fund*: +12.37%*Forecast Grossed up Yield is based on internal forecasts and actual results may vary. Investors should note that Gross Dividend Yield is not a forecast

distribution as distributions will depend on actual dividend income received and actual number of units on issue at the time a distribution is made.

*High Income Value Microcap Portfolio as of 30th

of April 2012

6.1%

38.6%

7.2%4.9%

14.3%

7.4%

1.4%

18.8%

1.3% Cash

Software & Services