28 May 2016 - Hedge Clippings

​Upcoming election outcomes - What would we know?

Had you asked 12 months ago if Donald Trump was going to be one of the runners in a two horse US presidential race, most people, including yours truly, but possibly not Trump himself, would have bet the house against such an outcome. Everything coming out of the US since then has backed that view, but here we are, so it just shows that Hedge Clippings knows about as much about US politics as anyone else.

Assuming the Republican party machine doesn't rain on his parade in the meantime, we're still not convinced that when voting day comes around in November the average American who can be bothered to turn up at the polls will actually elect him, but as above, what would we know?

Meanwhile in Great Britain, what would seem to be unthinkable not long ago, namely that they might abandon the opportunity to nip across the English Channel for the day to stock up on some cheap plonk (sorry, quality French wine), now looms as a distinct possibility.

Closer to home, if last October you'd asked there would have been an equally lopsided book on the question of who was going to win the next Australian Federal Election, due in just over a month's time. In fact, if you'd asked most punters who were the then leader of the opposition, they probably either wouldn't have known or couldn't have cared. If told, most would have responded "Wee Willie Who?" 

At the time newly appointed PM Malcolm Turnbull's approval rating was at an all-time record high of close to 70%. Once again, what would we know?

What went wrong? Watching Tasmanian Senator Jacqui Lambie, possibly not considered to be the sharpest brick in the load, on the ABC's Kitchen Cabinet with Annabel Crabb perhaps gave an accurate clue from one, who if nothing else, seems disarmingly honest*. When asked about Malcolm Turnbull's subsequent decline in popularity, she responded firstly that a combination of relief  at the change and unrealistic expectations might have been part of the problem, with the other being that he's been shackled by his predecessor's right wing cabal.

So with five months (and a bit) to go in the US before Americans vote to elect the most powerful (and potentially dangerous) politician in the world, less than four weeks to British voters possibly "BREXITING", and five weeks and one day until Australians decide their future, Who Knows? What is extraordinary is that any of the outcomes is in doubt.

*Jacqui Lambie also advised she'd happily vote to halve Tasmania's number of Senators from the current 12 to 6, even if it did cost her seat. Now that's unusually honest!

The ASX200 Accumulation Index returned +3.37% in April, with a range of fund returns as follows:

Supervised Global High Yield (previously Supervised High Yield Fund) rose 0.48% for the month of April, to bring annualised performance since inception to 9.35% p.a.

Pengana PanAgora Absolute Return Global Equities Fund returned -3.49% for the month of April. The Fund has a low systematic risk (beta) to the ASX200 and the MSCI World Indices of 0.07 and 0.08 respectively.

APN AREIT Fund rose 3.37% in April, outperforming the S&P/ASX300 Property Trust Accumulation Index's return of 2.76%, by 0.61%.

Signature Quantitative Fund returned -0.30% to take annualised return since inception to 7.26% p.a.

FUND REVIEWS released this week: Pengana Absolute Return Asia Pacific Fund; Bennelong Twenty20 Australian Equities Fund; Supervised Global Income Fund;

And on that note, have a great weekend.

Regards,

Chris
CEO, AUSTRALIAN FUND MONITORS

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Australian Fund Monitors are helping to raise awareness to support research into prevention and cure for cerebral palsy. For more information visit www.cpresearch.org.au or contact me by email.