The AMP Capital Total Return Fund returned -6.50% in December, capping off a disappointing year for the fund (down -33.17% after fees).
During December the fund brought its leverage back to around 1.2x, as per its stated goals for the last quarter of 2008, negatively impacting performance. Although painful, the manager believes this will enable the fund to better exploit future opportunities. Negative performance in the energy and materials sector also contributed to the December result, although the fund did see positive returns from many of its equity and relative value strategies. Ongoing volatility and lack of demand and liquidity in credit markets remained the salient factors in market conditions.
