Early indicators are that performance from Australian absolute return funds in March was positive, although well below the performance of the ASX200 and the S in the US, according to Au
Early indicators are that performance from Australian absolute return funds in March was positive, although well below the performance of the ASX200 and the S in the US, according to Australian Fund Monitors.
Equity based funds reporting to date returned 2.61 per cent, with non-equity funds returning 0.86 per cent.
Equity markets showed extreme volatility. The SPI futures contract started the month by falling eight per cent only to promptly rally by 24 per cent to close the month with a gain of ten per cent. Much of the rally was focused on eight stocks, with the big four banks, Macquarie and Wesfarmers, along with BHP and RIO, accounting for over 80 per cent of the gains made in the ASX200.
Some equity based managers who have suffered in the bear market of 2008 produced excellent returns, with PM Capital’s opportunities fund leading the pack with a return of 14.9 per cent for the month, and Pengana’s Australian equities long/short bringing home 7.60 per cent.
St Helen’s Arran fund returned 6.55 per cent, bringing YTD to 9.44 per cent, and 12 month performance to +3.35 per cent.
Attunga posted strong gains across the board in March. The Attunga Agricultural Fund was up +3.73 per cent in March, while the Enviro Opportunities Fund gained +4.51 per cent. Attunga’s offshore fund posted the strongest return, up +6.9 per cent for the month.
MM Capital fund continued a run of positive returns. The MM Capital Investment Trust No. 1 was up +0.26 per cent in March, following on from gains in January and February. Successful closeouts of positions in St George Convertible Preference shares as well as a share placement in Axa Asia Pacific pushed the fund to a positive result for March. The fund was also able to avoid two notable failed deals during the month, OZ Minerals and Adelaide Managed Fund Asset Backed Yield Trust.
Austral fund remains cautious in equity markets. The Austral Equity Fund made a small gain in March, up +0.57 per cent, following on from similar returns in January and February. The fund remained defensively positioned in equities due to ongoing volatility.
