Austral Capital's Equity Fund gained +0.74% in January, building on solid returns in late 2008 and bringing its 2009 financial year return to +3.66%.
The Fund remained heavily invested in cash for the month (46.5%), and continued only to hold or increase existing interest rate securities positions (CBA Perls 11, Macquarie Airports Tickets). The manager elected to maintain a low exposure to the market due to ongoing global volatility in the face of bank nationalisations and the threat of deflation, and regulatory uncertainty (particularly regarding the short selling ban).
