The fund made a satisfactory start to FY27, with gains of approximately 6% in the September quarter. That put since inception returns at 11.5% p.a. after all fees and expenses since November 2022.
The above portfolio returns do not include any additional benefits of franking credits that clients may receive.
It is worth noting however that since this September quarter update (posted on November 9th), markets have been challenging for investors who hold meaningful exposure to ASX small cap stocks. The Cadre Tactical Opportunities Fund has not been immune to this trend.
We view the recent weakness in ASX small caps and ASX materials indices as providing attractive relative value opportunities for active managers. Both areas of the market showed declines of about 15% within a couple of months after late August. The fund has been hunting for opportunities in these areas and has been able to deploy some capital accordingly.
Please don’t hesitate to get in touch if you have any questions.
P.S. I (Steve), personally made an investment in the fund at the end of October.
