Australia's Best Stock Fund Is Winning With Cash
- Smallco Broadcap managers investing 25% of stock fund in cash
- Australia index rose average 4.8% in 3 months after past polls
Rolls of Australian dollar bill notes of different denominations are arranged for a photograph in Melbourne, Australia, on Thursday, Aug. 15, 2013.
Photographer: Carla Gottgens/BloombergThis article is for subscribers only.
Australia’s best stock fund is betting against history and national elections.
Despite Australian equities typically climbing after elections, Smallco Broadcap Fund is putting a quarter of its assets in cash. Managers at the fund, which has beaten more than 450 stock funds with an annual 22 percent return over the past five years, say valuations are too high and either political party will struggle to boost economic and earnings growth, especially after the Brexit vote sparked global market turmoil.