Please access the video via the link below, featuring Andrew Mouchacca, one of the Portfolio Managers of the Flinders Emerging Companies Fund:
Some of the things we talk about in our meetings with clients and the correspondence we send out, are that we remain comfortable and confident with the investments held in our portfolios. Just as we saw towards the end of 2021, during times of ‘excess’ where there is an overwhelming sense of positivity and often ‘greed’, all boats rise with the tide. This is when we see even poor quality and speculative investments increasing in value. On the flip side, the opposite is true, during times of ‘negativity’ and ‘fear’, all investments feel this impact, even the high-quality ones, where fundamentals haven’t changed.
In the Australian share market, we have seen investors selling smaller companies, resulting in share prices dropping. This has been felt by the Flinders Emerging Companies Fund which is held across a number of the Financial Keys model portfolios. However, this Fund continues to hold good quality stocks with potential for long term positive performance.
To provide an insight into this Fund Manager, how they are viewing the current state of play and the types of companies they are investing into, we requested a video update from the Manager.
The Australian equity market (ASX 200), although starting the quarter in good spirits and continuing to rally, driven by lower-than-expected inflation data and positive sentiment, witnessed an acceleration in market volatility due to various economic and political factors. This did not deter investors as the index made history on 17 July by surpassing the 8,000 mark and closing at an all-time high of 8,057. Off the back of positive momentum supported by optimism of interest rate cuts by the US Federal Reserve as early as September the benchmark delivered a strong quarterly return of +7.8%.
A new generation of just over 5 million Australians – born between 1965 and 1980 – are approaching their retirement years.
The Australian equity market (ASX 200), ended the quarter in the red (-1.1%). Higher than expected year-on-year core inflation readings flowing through from the March quarter attributed to the weak performance whilst market anxiety also increased at the thought of a possible rate hike - a long way away from the cuts that had been priced in earlier in the year and in late 2023.