During 2020 we reassessed the outlook for every stock held as well as performing a thorough reassessment of their balance sheet position and available liquidity assuming the COVID-19 related downturn persists for some time. This has led to a number of companies being sold or positions reduced with capital being reinvested in less cyclical businesses with strong asset backing where valuation has become attractive with the market weakness. What has been surprising is the ease at which we have been able to sell those positions where we no longer want exposure into the market strength.Being more conservatively run companies, many of our new positions have not outperformed the market recovery to date but we believe they are well positioned.
See attached for the full report
During December 2020 the Fund returned 2.11% versus the S&P/ASX 300 Accumulation Index of 1.32%, outperforming the market by 0.79% (after fees). Overweight positions in Renewable Energy and Transition Commodities and an underweight position in Healthcare contributed to relative performance while an overweight position in Food Products and an underweight position in Information Technology detracted from relative performance.
Ethical Partners has made a submission to to the inquiry on the Climate Change Bill. In our view it is clear that we desperately need whole of government support around the important elements of this bill.
Biodiversity is a very important area of engagement for us at EPFM, and an area of increasing interest for investors. Experts believe that we are in the midst of the Earth’s sixth mass extinction event -some 75 per cent of terrestrial and 66 per cent of marine environments have already been severely altered by human activity and one million species face extinction – many within decades.
During October 2020 the Fund returned 2.85% versus the S&P/ASX 300 Accumulation Index of 1.89%, outperforming the market by 0.96% (after fees). Overweight positions in Insurance stocks and an underweight position in Metals & Mining contributed to relative performance while overweight positions in Consumer Staples and Media & Entertainment detracted from relative performance.