In February the CTN investment portfolio returned 9.9%, Best performers included Mayne Pharma (MYX, which rose 52%) after they announced the acquisition of Doryx from its distribution partner Actavis. Other major contributors over the month included GBST (GBT, 32%), Altium (ALU, 34%), Sino Gas and Energy (SEH, 48%) and Slater and Gordon (SGH, 22%). Outlook for small industrials is solid with the low interest rate and lower currency environment supporting earnings. However, without the strong cyclical upswing we continue to look for companies with strong balance sheets and solid growth profiles that are mostly independent of the economic cycle. We have also introduced some more defensive companies, including REITs and infrastructure. Small resources should continue to underperform. We remain underweight Energy based on our negative view on oil prices and, likewise, we remain underweight iron ore exposed sectors including mining and capital goods. Despite this underweight, we continue to monitor for value opportunities where the structural outlook for the company is solid. We are also looking for companies exposed to particular commodities that offer unique opportunities. Full portfolio update (VIEW LINK)