Dear Investor

I hope you, your family and friends are healthy and coping in these very challenging times.

I am writing to you in order to give some insights as to how we think your investment in the ORAH fund is dealing with the large falls in equity markets.

The Fund generated a return of -4.25% (Class A) for the month ending 29 February 2020 compared to the benchmark which returned -6.35% over the same period. The full performance report and commentary can be found HERE.

As you are aware, ORAH Fund (being a fund of funds) only provides monthly pricing to our investors – and due to the time lag in information that we receive from our underlying funds, the monthly numbers are usually only available about 3-4 weeks after month end. Whilst we don’t have actual up-to-date information, I appreciate that you nevertheless would like to be provided with some insights as to how the fund is likely to have performed.

The disruption to world equity markets caused by COVID-19 has been sudden and severe, with many indices falling back to levels not seen for several years. During market crashes, it is almost inevitable that equity funds will experience negative returns – and the ORAH fund is certainly no exception.

Nevertheless, we would expect ORAH to perform significantly better than the equity markets (and initial indications suggests it has) for the following reasons:

• ORAH is highly diversified across a dozen funds
• The majority of our fund managers are conservative in their approach to investing and had avoided many of the riskier stocks and sectors
• Approximately half of ORAH’s exposure is to offshore equities that are valued in USD, and therefore benefit when the AUD:USD exchange rate decreases

In my view, although equity markets are in panic mode, it is essential that fund managers don’t panic and change the way that they invest. Whilst our managers are no doubt extremely upset that investors will have experienced losses, it is essential to remain calm and focus on long-term value creation. We have been in close contact with most of our managers and I am satisfied that they have maintained their composures and have stuck to their strategies and processes.

None of us has any great knowledge about how and when life will return to normal and when economic conditions will improve. I do have absolute faith that this will happen in the not-too-distant future, however irrespective of this timing, I am confident that your investment in ORAH is in good hands.

The Orah Fund will be making an emergency $10,000 donation to Jewish House for a supply of hand sanitiser for front line service workers, and food vouchers and medical help to those in need during the current hard times. Thanks Jewish House for all your crises managment work during this trying time.

Thank you for the faith that you have shown in us – and thank you for sticking with us during these times. We appreciate your patience and support and will do our utmost to perform for you over the coming months and years.

Please feel free to call or email us if you would like to discuss your investment.  Whilst our people are working remotely, we continue to operate at full force and are always happy to hear from you.

Wishing you, your family and your friends, healthy and prosperous times ahead.

Regards
Russel Pillemer
Chairman, The ORAH Fund