Update written by Roger Clayton, Salt Funds Management – 9th March 2021

NZ’s S&P/NZX50 Gross fell -6.9% despite a strong reporting season where earnings beats outnumbered misses by 5:1. The best performers were Vista (+14%) on the re-opening trade, Skellerup (+14%) on a strong result, while an improved outlook and rotation into cyclicals drove Westpac (+13%) higher. The biggest declines were seen in large caps Meridian (-20%) and Contact Energy (-16%) pulling back after last month’s clean ETF related surge, and a2 Milk (-16%) on a guidance downgrade. The Fund outperformed its benchmark in the month of February, declining by -6.27% compared to the sharp -6.86% retreat by the S&P/NZX50 Gross Index.

For more detail, the latest Salt NZ Dividend Appreciation Fund fact sheet can be found here.

The S&P/NZX All Real Estate Gross Index experienced its weakest month since the original Covid-19 panic, declining by -4.3% in February. This was a little weaker than the -2.6% decline of the S&P/ASX200 A-REIT Accumulation Index. Both these indices dramatically underperformed the +4.0% advance by the global FTSE EPRA/NAREIT Index, which carries a far greater weighting to the more cyclical retail shopping centre segment. This had lagged sharply over the last year but is now beginning to recover as economies rebound and a re-opening trade is taking hold across markets. The Fund delivered a very strong month of relative performance, returning -3.58% compared to the -4.33% decline turned in by the S&P/NZX All Real Estate Gross Index.

For more detail, the latest Salt Enhanced Property Fund fact sheet can be found here.