Thursday, 19th November 2020
We have a performance update on our investment in the Finexia ASX 200 Investment Units Series 1.
The aim of the ASX 200 Series 1 was to provide exposure to the broader Australian market, which can often be difficult to gain access without having to resort to exotic complex trading instruments usually the domain of institutional investors.
Our objective was to make it simple to understand the underlying investment and track its performance. The product was designed to be a small part of our client’s overall portfolio, adding a genuine element of diversity to any portfolio. The response and take-up was overwhelming and to date, our research and view of the Australian equities market has proven accurate.
Since our entry into the trade, to say the external environment has been ‘turbulent’ and that the Australian Sharemarket has been resilient are two massive understatements!
The market has had to deal with and overcome the uncertainties of:
- The COVID-19 global shutdown
- Economic shutdowns and border lockdowns
- State elections
- US Federal election
We deliberately structured the entry trade over a number of months to mitigate our exposure of a single day. This strategy is termed, dollar cost averaging and again this decision has been beneficial for us all. You can see from the table below, had we traded the whole investment on day 1 (17 January 2020), the price would have been 7064.10 and our investment would still be ‘underwater’.
The entry price for the Finexia ASX 200 Investment Series 1 is 6070.40.
As at last night’s market close, the ASX 200 was at 6531.00. Hence, in one of the strangest times in our lifetime, the Finexia ASX 200 investment is currently returning 7.60% since inception. A great result for all investors.
Be assured the Finexia team are continuously surveilling investment markets for the next opportunity for our clients. Stay tuned.