11 May 2026
| Click here for a PDF of this newsletter Global markets rebounded after their severe March falls, as hopes increased that geopolitical tensions would ease and commodity prices rebounded. Oddly, given the lack of any concrete resolution in the Iran conflict, the US market powered ahead with the S&P 500 rising 10%, the Dow Jones up 7% and the Nasdaq up a remarkable 15%. The Japanese market also joined the party with the Nikkei 225 up 16%. However, the local market was weighed down by slow growth and persistent inflation with ASX S&P/ASX All Ords Accumulation Index ending the month up just 2.4%, after giving back some gains early in the month Despite a number of solid company updates, the Cyan C3G Fund rose a modest 1.0%. Australian investors battled with fuel security issues, depressed consumer sentiment and a worrying headline March inflation figure of 4.6% which fuelled fears of further rate hikes and hindered any sustained share market rebound.
Some of the more notable moves in the ASX included the shock trading update from Cochlear (COH -44%) and the continuing declines in A2 Milk (A2M -26%) and CSL (CSL -12%). On the plus side, the All Ords was lifted by a rebound in resources names including: Liontown (LTR +38%), Mineral Resources (MIN +19%) and PLS Group (PLS +18%) whilst tech names like Next DC ( NXT +28%) and Codan (CDA +33%) ran after solid trading updates. Click here for a PDF of this newsletter Month in Review Whilst the return for April was not as positive as we would have hoped, we were encouraged to see some strong results from our core companies. Raiz Invest (RZI +7%) saw an impressive jump in active customer numbers into April (now at 347,000) and re-confirmed FY26 underlying EBITDA guidance of $4.5-$5.5m – a forecast we think remains conservative given recent price rises across the platform and continued customer growth.
Alcidion (ALC +5%) reported record Q3 cash receipts of $14.5m and positive operating cash flow setting the company up for a record FY26. Of note, ALC continued to win new clients (like Gold Coast Health) along with other contract extensions and renewals that were not individually released during the quarter. With the finalisation of the large University Hospital Sussex expected this month, we believe the company is poised for a material uplift in valuation. The was some corporate activity with the Fund subscribing to the IPO of KTEK Aerosystems a structural drone parts manufacturer that is seeing booming demand from the military sector. KTEK is expected to list mid-May. Technology driven debt management business Credit Clear (CCR +7.5%) aggressively activated its on-market share buy-back with the purchase of almost 11m shares throughout April – sending a strong market signal of the company’s belief in the inherent value in the shares. Despite reporting record quarterly sales of $21m, separately signing a manufacturing deal with Aurora Cannabis and seeing a mid-month boost from the US Government’s reclassification of marijuana products, Bioxyne (BXN -8%) ended the month lower. We fully expect this to be a temporary slump given the confluence of tailwinds the company is experiencing both in Australia and overseas.
Media There were a number of media pieces done during the month as listed on our website and Linkedin. Outlook The Australian stock market has not been tracking the positive lead from international markets of late, with the above-mentioned issues of benign domestic growth combined with spiking inflation. These economic factors are not unique to Australia, but local investors appear to have been more cautious than their overseas counterparts. Global inflation is being watched closely and although major central banks (other than the RBA) appeared closer to the end of their tightening cycles, that theory is now being questioned and may impact short-term sentiment. However any easing in geopolitical tensions will likely support a stable backdrop for equities. Some sectors, particularly consumer‑facing industries, of which the Cyan C3G Fund has no exposure, are likely to continue to struggle until the interest rate cycle turns lower. But if inflation moderates and earnings hold up, the broader market is well‑positioned to benefit from a gradual shift back toward risk‑taking. With the Fund’s core holdings exposure to healthcare, government spending, education and financial services, we are confident it is well structured to continue to ride out any macroeconomic uncertainty whilst providing strong value with a range of corporate catalysts to push higher as conditions improve. Please stay in touch with our intra-month commentary via Linkedin or feel free to contact us at any time. Dean Fergie and Graeme Carson
Cyan Investment Management AFSL No. 453209 An investment in the Cyan C3G Fund can be made by clicking here |
