First Quarter 2021 Investor Letter - Extract
Updated: Apr 7
Below is an executive summary extracted from our Balmoral Fund Investor Letter sent 7 April 2021.
If you would like additional information please contact me.
Our Fund has performed successfully, as forecast, over the first three months of 2021, up 5.7% from the end of December 2020.
More importantly our longer-term performance continues to align with our two objectives of delivering consistently positive and meaningful real returns:
Our positive return focus means we look to deliver positive returns regardless of market conditions. That was demonstrated in the exceptionally stressed conditions over the first 3 months of 2020 when global equity markets collapsed over 30% yet the Balmoral Fund increased in value.
Our meaningful real returns focus means we look to compound our investment capital at 8% per year over rolling 3-year periods.
As at the end of March 2021:
Our 3-year compound annual growth rate was 8.5%.
Since Inception (Australia Day 2017) our Fund has delivered a compound annual growth rate of 8.2%.
Inflation in Australia was 0.9% in 2020 and 1.8% in 2019. This means an 8% compounding rate each year meaningfully improves our capital’s purchasing power.
As importantly targeting 8% has permitted us room to utilise risk management appropriate to the conditions which is so critical to our positive return focus.