Markets Review
The S&P/ASX 300 Index fell 3.00% during January with the Northward Australian Equities Strategy down 2.78% representing 22bp outperformance.
Australian equity markets tracked global equity markets lower as concerns around weak China PMI data and a further reduction by the US Fed’s monthly asset purchases of another $US10bn. Emerging markets unsettled global investors as large capital outflows and fear of market contagion gripped investors and caused the VIX to trade up to a high of 19. The $A fell to a low of 86.67c but bounced back to close at 87.56c.
Defensive sectors outperformed during the month. Utilities (+0.75%) and Healthcare (+0.25%) were both up. The latter driven by CSL (+1.9%) and Ramsay Healthcare (+1.4%). Resmed had a weak month (-5.1%) after releasing 2nd quarter earnings that disappointed the market, however, we remain confident in the long term growth prospects of the company.
