It was another strong month for the Aurora Capital Funds during July. The Aurora Growth Fund returned 3.6% after fees (11.8% year-on-year), and the Conservative Fund returned 2.3% (6.9% year-on-year).
Global Markets
Despite the strong overall performance, July was different from previous months in that there was a shift from high-performing growth sectors to weaker, interest rate-sensitive sectors. The dominant AI sector, which had been doing well, lost ground in the second half of the month, performing worse than the broader market. This was due to disappointing earnings from Microsoft, Intel, and Nvidia, along with concerns that the U.S. economy is slowing down faster than expected, which could lead the Federal Reserve to cut rates more than anticipated. As a result, investors moved into previously less popular sectors like small caps (smaller sized companies such as those that make up the US Russell 2000 Index that rose 10% for the month), and interest-sensitive sectors like listed infrastructure (+8%).
New Zealand Markets
NZ assets also performed well, with NZ equities up 5.8% and NZ fixed income up 2.3%. This was driven by the Reserve Bank of New Zealand's decision to hold rates steady at its July meeting, leading markets to expect up to three rate cuts this year. A better-than-expected CPI release, with a headline rate of 3.3% compared to the expected 3.6%, also contributed to the positive performance.
Aurora Fund Performance
Keep up to date with the Aurora funds’ monthly performance by viewing our Fund Fact Sheets here.
DISCLAIMER
This information is provided in a general nature only and should not be construed as or relied on as financial advice. This is not a recommendation to invest in a particular financial product or class of financial products. You should seek financial advice specific to your circumstances from a Financial Adviser before making any investment decisions.
Past performance is not a reliable indicator of future performance. The value of your investment may go up and down.