Switzer Dividend Growth Fund May 2022 Portfolio Update

Welcome to the May 2022 Investment Update for the Switzer Dividend Growth Fund (SWTZ or the Fund). Click here to download the report.

Performance Summary

The portfolio delivered a return of -2.32% over the month of May, compared with the S&P/ASX 200 Accumulation Index return of -2.60%.

Over the past 12 months, SWTZ has paid a distribution yield of 3.17%, or 4.48% including franking credits. Distribution yield is calculated as the distributions received over the 12 months to 31 May 2022 relative to the price at the beginning of the period.

Given its focus on income and capital preservation, over the long term we expect SWTZ to marginally underperform in rising markets and marginally outperform in falling markets.

Portfolio Commentary

Higher volatility characterised the month of May, with the ASX 200 down 2.6%. A concerted push by central banks to tighten financial conditions to counter the effects of rising inflation continued to weigh on equities. The prospect of rising interest rates was particularly damaging to the Real Estate and Technology sectors which fell 8.9% and 8.7% respectively. Materials (+0.1%) was the only sector to manage a positive return for the month.

Commodities were a welcome source of diversification in the portfolio as markets grappled with tightening financial conditions and persistent high inflation. BHP Group and Santos provided an important ballast to the portfolio in a turbulent month. A prolonged period of under investment, coupled with ongoing supply chain disruptions as economies reopened, has contributed to the sharp rise in commodity prices.

With a backdrop of rising raw material prices, the portfolio also benefited from exposure to Amcor and Brambles which had contractual pass-through price mechanisms to absorb higher costs.

Nevertheless, the portfolio was impacted by Goodman, Macquarie, News Corp and Woolworths on the back of higher interest rates concerns. Weaker-than-expected earnings results from the US bellwether stocks of Amazon, Target, and Walmart due to higher costs brought on by supply chain disruption and excess inventory, also impacted local markets.

The Health Care sector recovery in volumes lost during the COVID-19 pandemic continues to face headwinds in Australia, as the impact of COVID-19 continues to delay medical testing and elective surgery. Whilst the backlog for patient care is inevitably weighing on health companies’ results in the short term, the recovery in earnings should be underpinned by the demand for the treatment of chronic disease, catch-up referrals, and an ageing population. Encouragingly, in the United States, CSL and key industry participants have highlighted that plasma volumes (depressed during the pandemic) are now returning to pre-COVID levels.

We are seeing the first tangible signs that rising interest rates and high input costs are dampening both earnings momentum (with earnings revisions turning negative) and house prices (which are declining for the first time in the cycle). Amid an economic environment characterised by slowing growth, our clear preference is to be invested in companies that offer exposure to Consumer Staples and defensive Industrial sectors. Moreover, in a period of high inflation we continue to hold commodity stocks that are benefiting from elevated prices and offer a hedge against inflation.

Investment Objective

The Switzer Dividend Growth Fund is an income-focused exchange-traded managed fund with a mix of yield and quality companies. The objective of the Fund is to generate an above-market yield while maximising franking where possible and deliver capital growth over the long term. We select companies that, in aggregate, generate sustainable dividend income. The Fund is characterised by a strong and diverse portfolio of companies that exhibit good cash flows and strong business models.

DISCLAIMER: AGP Investment Management Limited (AGP IM) (ABN 26 123 611 978, AFSL 312247) is a wholly owned subsidiary of Associate Global Partners Limited (AGP) (ABN 56 080 277 998), a financial institution listed on the ASX (APL). AGP IM is the Responsible Entity and Vertium Asset Management Pty Ltd is the investment manager of Switzer Dividend Growth Fund (Quoted Managed Fund) (ARSN 614 066 849) (the Fund).

This material has been prepared for general information only. It does not contain investment recommendations nor provide investment advice. It does not take into account the objectives, financial situation or needs of any particular individual. Investors must, before acting on this material, consider the appropriateness of the material.

Any references to ‘We’, ‘Our’, ‘Us’, or the ‘Team’ used in the context of the portfolio commentary, is in reference to Vertium Asset Management Pty Ltd, as investment manager for the Fund.

Neither AGP IM, AGP, their related bodies corporate, entities, directors or officers guarantees the performance of, or the timing or amount of repayment of capital or income invested in the Fund or that the Fund will achieve its investment objectives. Past performance is not indicative of future performance.

Any economic or market forecasts are not guaranteed. Any references to particular securities or sectors are for illustrative purposes only and are as at the date of publication of this material. This is not a recommendation in relation to any named securities or sectors and no warranty or guarantee is provided that the positions will remain within the portfolio of the Fund.

Investors should seek professional investment, financial or other advice to assist the investor determine the individual tolerance to risk and needs to attain a particular return on investment. In no way should the investor rely on information contained in this material.

Investors should read the Fund’s Product Disclosure Statement (PDS) and consider any relevant offer document in full before making a decision to invest in the Fund. The Fund’s Target Market Determination and other relevant information can be obtained by visiting www.associateglobal.com.

http://damai.balikpapan.go.id/assets/css/scatter-hitam/ https://scatterhitam-slot.com https://tth.com.tc/ https://gna.university/ https://guiqac.gnauniversity.edu.in/ http://tourism.gov.eg/ powergaming88 http://e-office.utu.ac.id/asset/assets/plugins/gacor/ powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 slot zeus nolimit city sv388 https://pariamantimur.pariamankota.go.id/assets/ https://sipatudia.bpsdm.sumbarprov.go.id/assets/mahjong/ slot jepang http://46.250.237.148:8005/ http://simokata.tabanankab.go.id/dist/img/thailand/ scatter hitam slot thailand link slot thailand 777 slot powergaming88 slot luar negeri slot gacor maxwin slot gacor hari ini slot gacor terbaru mahjong ways 2 slot thailand jp slot slot bni slot bri slot bsi slot danamon slot gopay slot server korea slot malaysia slot amerika slot rusia fan tan monopoly live lightning roulette mega ball sweet bonanza candyland mega sic bo mega baccarat andar bahar sbobet88 ktm303 slot dubai slot qris powergaming88 Slot Thailand Slot Zeus Pg Soft Starlight Princess Slot Gacor Maxwin Joker123 Sv388 Slot Thailand Slot Thailand Slot Qris slot thailand joker123 mahjong ways 2 888slot slot jepang slot thailand slot mahjong ways slot qris slot deposit dana slot dana nolimit city slot thailand sv388 slot888 slot kamboja http://labse.ce.undip.ac.id/sejarah/gacorx/ Slot Thailand Starlight Princess Mahjong Ways 2 Slot Maxwin slot thailand slot filipina slot88 slot thailand slot mahjong NEW SLOT POLA GACOR https://mandiri-gacor.angkolatimur.tapselkab.go.id/ jp slot slot ganas https://cheat-gacor.angkolatimur.tapselkab.go.id/ crazy time live slot qris https://sqris.angkolatimur.tapselkab.go.id/ slot akurat qris https://pragmaticplay.dharmasatyasarana.co.id/ https://dana.sidamaju.skom.id/ https://joker123.putramuko.co.id/ https://akun-pro-rusia.mariyadl.sch.id/ slot zeus server thailand server hongkong slot ovo slot gopay slot linkaja joker123 nolimit city sv388 starlight princess mahjong ways pg slot slot zeus sv388 idn slot https://joker123.elearningmansatuokit.sch.id/ slot server thailand slot thailand https://slot-thailand.itr.ac.id/ https://pn-watansoppeng.go.id/media/jui/server-thailand/ https://dinkes.hsu.go.id/wp-content/uploads/server-thailand/ nolimit city slot ovo slot gopay pragmati play starlight princess slot pg soft slot mahjong slot zeus digmaan slot mania slot zeus server thailand ying77 slot thailand judi bola live casino sv388 pg soft slot dana mahjong ways slot mania slot x500 ladangtoto slot server kamboja digmaan digmaan slot88 scv388 sabung ayam online slot live casino sicbo online slot thailand ladangtoto sv388 ladangtoto powergaming88 66kbet powergaming88 slot thailand ladangtoto slot thailand server thailand slot thailand slot thailand slot thailand slot gacor ladangtoto2 ying77 bet server thailand slot thailand ying77 slot88 ladangtoto ladangtoto slot maxwin sv388 sv388 slot gacor 66k bet slot dana sabung ayam inline slot mahjong slot toto slot server thailand slot gacor slot server thailand slot thailand situs slot wwg slot slot daftar judi slot online indonesia slot gacor slot mawin slot gacor slot thailand slot gacor slot gacor demo slot pragmatic sv388 slot88 pgsoft Daftar Judi Slot Online Indonesia Paling Gacor di Indonesia Daftar Situs Judi Slot Online SLOT88 lucky neko slot gacor slot88 slot kakek slot maxwin slot thailand Slot Mahjong Ways 2 Mudah Jackpot Paus di PG Soft Hari ini 2023 Lucky Neko Situs Slot Gacor Pgsoft Hari Ini SITUS SABUNG AYAM SV388 ONLINE DAFTAR LINK LOGIN APK AGEN SV388 slot gacor slot gacor hari ini slot gacor sbobet gtr303 https://windizupdate.com/ slot online gtr303 slot thailand situs slot gacor slot toto scatter hitam crazy time crazy time casino online slot gacor gtr303 situs judi bola terpercaya gtr303 gtr303 gtr303 slot thailand ktm303 casino online togel online situs togel crazy time slot gampang menang slot gacor slot gacor ktm303 joker123 https://dinkes.hsu.go.id/scatter-hitam/ https://pmb.itsnupekalongan.ac.id/vendor/bin/scatter-hitam/ https://jurnal.univa-labuhanbatu.ac.id/public/site/scatter-hitam/ https://lpm.univa-labuhanbatu.ac.id/wp-content/themes/jnews/scatter-hitam/ https://scatterhitam-slot.com https://tth.com.tc/ https://gna.university/ https://guiqac.gnauniversity.edu.in/ http://tourism.gov.eg/ powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 Slot Thailand Starlight Princess Mahjong Ways 2 Slot Maxwin https://sipatudia.bpsdm.sumbarprov.go.id/assets/mahjong/ scatter hitam powergaming88 sv388 idn slot https://slot-thailand.itr.ac.id/ https://pn-watansoppeng.go.id/media/jui/server-thailand/ slot mania slot zeus ying77 judi bola live casino sv388 mahjong ways slot mania slot server kamboja digmaan slot88 slot live casino slot thailand powergaming88 powergaming88 slot thailand ladangtoto slot thailand server thailand slot thailand slot thailand slot thailand slot gacor powergaming88 ladangtoto sv388 slot toto slot server thailand slot thailand situs slot wwg slot slot gacor slot mawin slot gacor slot thailand slot gacor slot gacor slot88 pgsoft Daftar Judi Slot Online Indonesia Paling Gacor di Indonesia Daftar Situs Judi Slot Online SLOT88 lucky neko slot gacor slot88 slot maxwin slot thailand Slot Mahjong Ways 2 Mudah Jackpot Paus di PG Soft Hari ini 2023 Lucky Neko Situs Slot Gacor Pgsoft Hari Ini SITUS SABUNG AYAM SV388 ONLINE DAFTAR LINK LOGIN APK AGEN SV388