Fund update | May 2017
The OC Premium Small Companies Fund and OC Dynamic Equity Fund posted solid performance in challenging market conditions, outperforming the S&P/ASX Small Ordinaries Accumulation Index by 3.4% and 2.5%, respectively. Both Funds continue to deliver investors strong long-term returns, generating 14.4% p.a. and 17.3 p.a., respectively, over five years.
During May, the OC Micro-Cap Fund slightly outperformed its benchmark. The Fund has done a solid job of protecting investors' capital, falling a relatively moderate 1.4% during the past six months when the broader micro-cap index has performed poorly (-8.2%). Despite the negative price action, there are some compelling investment opportunities we believe will prove rewarding to investors over the long term.
'Sell in May and go away'
The adage proved wise during the month with the Australian market once again selling off in May. All three OC portfolios remain conservatively positioned with cash balances between 5 - 12%, although recent stock price falls have seen us begin to deploy some capital into some high quality businesses we had previously considered too expensive.
May 2017 reports