The Stonehouse Core Value Portfolio (CVP) rose +1.0% in September, in a month that saw the Australian share market finish slightly down (-0.02%) while the MSCI World Index delivered a solid positive return of +2.4% (in AUD Hedged terms). The Australian dollar (-0.8%) continued to weaken and Australian bonds also fell (-0.3%) during the month.
The Portfolio’s International Equity managers had a strong September, with major contributors including Lazard Global Small Caps (+6.6%), Old Mutual (+3.0%), Platinum (+2.5%) and Wingate (+2.4%). We increased the holdings in specific regional exposures where we see compelling relative value available, namely via the iShares Japan High Dividend ETF (+3.9%) and Lansdowne European Equity (+2.7%) who also performed well for the month. The Janus-Henderson Global Natural Resources Fund returned an impressive +4.2% for the month and the decision was made to redeem from the manager to take advantage of the strong run in performance and re-allocate to more diversified equity exposures.
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