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| Fund Overview | The Fund's bias is likely to be net long under normal market conditions, with the core strategy being to construct a portfolio of listed equity securities priced at levels that do not adequately reflect their underlying value. The Fund will seek to boost returns and limit potential market downside by selective short selling of individual stocks which are priced at levels that are viewed as materially above their underlying value. The Fund will also use certain trading strategies both within its core portfolio (through rebalancing stock weights and overall market exposure in response to price movements) and in certain other situations (typically of a shorter-duration and/or opportunistic nature) with the objective of further increasing returns. |
| Manager Comments | Commenting on the market's negative performance in June, Optimal noted that had it not been for two single day jags of 1.6 and 1.2% respectively the overall market result for the month of June would have been considerably uglier. Optimal has previously noted the warning signs in markets, and believes they are growing rather than diminishing, citing in particular the IPO frenzy, increased M&A activity, and especially recent activity in the credit markets. Optimal sees further evidence of a collapse in sentiment first apparent around the time of the Federal Budget in May leading to more cautious consumers, and companies not investing or hiring. Meanwhile the government is retrenching and cutting expenditure, while the high A$ has further impacted competitiveness and growth. Overall, Optimal feel that a positive outcome on current growth drivers, (and on geopolitical risk) is priced into equity valuations; and a worse outcome, especially coupled with any resumption of inflationary pressure and interest rate normalisation, is very much not. |
| More Information | » View detailed profile of this fund |
