Australian Value: February 2014

The reporting season dominated the Australian market which gained 5.4%, as measured by the S&P/ASX 300 Index, and modestly outpaced the global market. Macroeconomic data reported in February was on the softer side with an increase in unemployment and lower consumer confidence. The RBA left rates unchanged at 2.5%, but shifted its view to a more neutral stance. The Australian dollar ended the month higher at US$0.896. (All returns stated in Australian-dollar terms.) All sectors were positive in February, with the best performers in consumer discretionary, technology and energy. The more defensive sectors lagged the most, particularly telecom, consumer staples and healthcare.