Bennelong Kardinia Absolute Return is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Long Short Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Bennelong Kardinia Absolute Return has Assets Under Management of 48.36 M with a management fee of 1.54%, a performance fee of 20.50% and a buy/sell spread fee of 0.4%.
The Bennelong Kardinia Absolute Return Fund returned -3.91% in February, with the market also down (S&P/ASX300 Accum Index -2.55%) as signs of weakening earnings momentum came to the fore during the February profit reporting season. US and Asian markets were also weak (S&P500 -2.4%, MSCI Asia ex Japan -4.6%) although European markets posted positive returns (Euro Stoxx 50 +1.9%, FTSE 100 +1.8%).
The Reserve Bank of Australia increased the cash rate by 25bp to 3.35% while the US Fed raised the target range for the fed funds rate by 25bps to 4.5%-4.75%. Bond yields reversed last month’s falls (US 10-year +43bp to 3.95%, Australian 10-year +30bp to 3.86%).
The key theme from the February profit reporting season was negative earnings revisions, with FY23 earnings growth cut by 0.7% to +6.6%. The cuts to earnings estimates were broad-based and outlook comments generally acknowledged that we are entering a tougher economic environment. The lack of earnings beats mirrored the experience from the US 4Q reporting season.
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