Market Insights > Slice of Pie Newsletter > Apr 20, Issue No. 140
As Coronavirus continues its rapid global spread, investors will have to cope with continuing volatility with big swings and rallies expected over coming months; averaging in best approach for long-term investors.
Mike’s update on how we see things unfolding as coronavirus fall-out spreads
The ASX Small Ordinaries Accumulation Index rebounded along with other global markets in January, up 5.5% for the month. Pie’s Australasian funds continue to hold in excess of 50% cash, plus market hedging.
The Global Smaller Companies Fund was down 3.7% during the quarter vs the STEMGLU S&P Global SmallCap Total Return Index which was down 29.8%. The cash level as at 31st March was 25%.
During the quarter, the US 10-year Treasury Yield fell from 1.882% at the end of December last year, to 0.699% by the end of March (when yields fall, bond prices go up, so this was positive for the Fund’s global bond exposure)
Defensive positioning during Mad March
April 2020 Fact Sheet
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Product Disclosure Statements
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Past performance is not a guarantee of future returns. No person, including the Directors of Pie Funds Management Limited, guarantees the repayment of units in the funds or any returns of units in the funds. Returns can be negative as well as positive and returns over different periods may vary. The JUNO KiwiSaver Scheme is owned, managed and issued by Pie Funds.
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We are taking steps to try to preserve investor capital and take advantage of opportunities, arising from the severe market disruption associated with COVID-19.
To assist with buying into the current severe sell-off we have secured approval from our supervisor for a temporary exception to our Statement of Investment Policies and Objectives (SIPO), to allow us to exceed our maximum number of positions for the following funds:
We sought permission to increased position limits because we believe it will help us better serve our investors’ interests by:
The exemption is in force now. We will review the need for the exception in six months. If market conditions have returned to more normal settings, we will return within SIPO limits.