Cash Position Still Large

The fund still sits on $89k cash in bank, or 70% of the funds assets. The trustees recognise that the funds performance may have been better over the last year if their exposure to shares had of been greater; however they note the following:
- Earnings growth has outpaced market growth over the last three years; based on market price verus future earnings the market is now "cheaper" than three years ago.
- The trustees have been evaluating share purchases and simply have been unable to find any shares that they were comfortable buying for the long term, or in a couple instances the shares prices moved to quickly.
- The trustees are currently looking at some shares; including NAB, FLT and MMC.
- We have been looking for better vehicles for the funds cash holdings, but none of the current cash alternatives offer attractive risk to reward at the moment.
- The fund has a very long term view and one year of under performance will not force the trustees in to the market.