The Dual Momentum Fund - February 2019 Performance Review

The Dual Momentum Fund – February 2019 Performance Review

Posted 11/03/2019

The Fund returned +3.26% return for February, pleasing considering that our portfolio is still in the re-setting phase after being largely invested in cash until mid-January. During this period stocks with strengthening trends are consolidating their positions in the portfolio while those whose trends fail to proceed are replaced with new opportunities. As a consequence the proportion of the portfolio which comprises confirmed rising and outperforming trends increases over time. The fund closed the month virtually fully invested, with global equities comprising 94.5% and cash levels of around 5.5%.

Though all markets posted positive returns for the month individual returns were mixed, with Australia at 5.3% and USA (Nasdaq) at 3.4% being the strongest markets, with Hong Kong at 2.5% and the UK at 1.5% bringing up the rear. Our total allocations to the USA and Canada increased during the month from 51.6% to 59.9%, Asia Pacific (incl. Australia) reduced from 36.6% to 26.8% and Europe was steady at about 7.9%. Our strongest global sectors remain Materials (17.3%), Utilities (12.7%), Consumer Staples (12.0%) and Real Estate (10.7%).

Currency movements were mixed during February, with the Australian Dollar falling as little as 0.1% relative to the Yen and as much as 3.6% against the British Pound. On a month-end portfolio weighted basis currencies had a +2.1% effect on our portfolio results.

Our proven strategy of systematically targeting stocks whose individual share price is both increasing and outperforming over medium to long term time frames will continue to be applied. Our active bottom-up investment style will guide portfolio allocations such that they will continue to expand or contract in response to market risk and reward characteristics as they continue to evolve.

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The Dual Momentum Fund remains open to new investment. Apply online by first downloading and reading the Information Memorandum and then clicking the button below. The facility is also accessible from our company website at www.thedualmomentumfund.com.au.