Market correction: IML Portfolio update from Anton Tagliaferro

11 March 2020

Global sharemarkets, including Australia's, experienced heavy falls over the last few weeks due to escalating concerns over the economic ramifications of the spread of  COVID-19 around the world.

We recognise that these are very uncertain times for investors and with that in mind, this update from Anton Tagliaferro includes specific insights regarding the current environment for investors in IML Funds.  

Key takeouts:

  • Prior to this current correction, many sectors of the sharemarket were overvalued and IML Funds were not invested in any of the 'froth and bubble' which saw our Funds lag the ASX300 returns over the past couple of years. 
  • All of IML’s funds have been negatively impacted by the recent sharp falls in the market as all stocks have been sold down heavily. However when calm eventually returns to the markets, good quality businesses - like those in IML's portfolios - which have a good track record of recurring earnings and which pay dividends should recover better. 
  • Our investment team are assessing the possible ramifications of the coronavirus on each stock as we look for opportunities to use our cash holding to selectively invest in quality companies as value emerges.

To hear more about how the IML investment team are positioning our Funds during the correction, we encourage advisers to attend our national adviser roadshow which commenced yesterday, and welcome investors to attend our investor events which commence next week. For those unable to attend in person, a webinar will be held on 25 March. 

While the information contained in this article has been prepared with all reasonable care, Investors Mutual Limited (AFSL 229988) accepts no responsibility or liability for any errors, omissions or misstatements however caused. This information is not personal advice. This advice is general in nature and has been prepared without taking account of your objectives, financial situation or needs. The fact that shares in a particular company may have been mentioned should not be interpreted as a recommendation to buy, sell or hold that stock.
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