The Antares Australian Equities Fund delivered a return of -0.4% (net of fees) for the month of June, underperforming its benchmark by 0.6%.
The Australian share market was virtually flat in June, with the S&P/ASX 200 Accumulation Index rising just 0.2%. Strength in health care (+6.1%), banks (+1.5%) and technology (+1.4%) was largely offset by weakness in energy (-6.9%) as the oil price fell in response to expectations of increased supply. REITs (-4.8%) and utilities (-2.7%) were also amongst the worst underperformers, negatively impacted by the rise in domestic 10-year bond yields. The iron ore price rose 14% as China’s growth data improved. This supported large resource stocks, including BHP Billiton (BHP) and Rio Tinto (RIO), that rallied strongly late in the month.
The Fund benefited from an overweight position in Vocus Group (VOC) as private equity group, KKR, made a takeover bid for VOC, offering $3.50 cash per share. This represented a 22.4% premium to the last closing price. The offer is subject to several conditions, including satisfactory due diligence, financing and a unanimous recommendation from the VOC board. VOC has formed an Independent Board Committee to review the proposal and make a recommendation.
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