Four Aussie equity funds were trending down before COVID-19
Although almost every fund in the Australian equities sector has lost value since the COVID-19 pandemic shook markets, but were four funds that experienced losses before that, according to FE Analytics data.
The funds that experience a loss in the three months to 31 January, 2020, were Ganes Focused Value (-4.58%), Sandon Capital Activist (-2%), Pentalpha Income for Life (-1.87%) and Antares Dividend Builder Professional (-1.17%).
The Australian equity sector within the Australian Core Strategies universe returned 5.64% in that same time period.
From 1 February, Australia’s department of health issued its first directive not to travel to mainland China, but it was not until later in the month the markets began to react significantly.
The Ganes Value fund returned 19.28% over the year to 31 December, 2019, but in the last quarter of the year it lost 3.05%.
In its final report for 2019, Ganes said the philosophy of the fund remained based holding good or world class businesses for the long-term.
“If we get that right the returns should follow, although just not necessarily in line with the market all the time,” it said.
From 31 January to date, Antares lost -30.59%, Ganes lost 29.34%, and Pentalpha lost 3.63%.
The biggest loss in that time span was Crescent Wealth Australian Equity, which lost 38.52%, while the sector average was a loss of 26%.
In its February factsheet, Antares noted that while there had been some benefit from a weaker Australian Dollar and the stable performance of iron ore and gold price, the virus headlines dominated the market.
“Typically, investor attention during February focuses on reporting season - but with results and outlook statements progressively becoming more negative over the month these just fed the virus gloom,” it said.
It attributed its performance to not investing in biotechnology company CSL, while holding onto Tabcorp and Nine Entertainment.
It’s top 10 holdings including all the big four banks, Sydney Airport, Boral, Medibank Private and Suncorp.
Australian equity funds with negative returns prior to COVID-19 over the three months to 31 January 2020
AUTHOR
Chris Dastoor
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