The Absolute Asian REIT Property Fund was down -4.27% (USD class) in January, while the Absolute Macro Diversified Fund was down -2.32% and the Absolute Trading 1 Fund -2.16%.
The Asian REIT market showed signs of decreased volatility for the second consecutive month, suggesting that the market is bottoming out, although prices were more mixed. The manager reduced exposure to Australian REITs, as they remain under pressure while the outlook for the Australian economy remains bleak.
The declining AUD affected returns for the Absolute Trading 1 Fund, however the manager will maintain a long position in AUD believing it has the scope to rise to $0.80 (USD) this year. They also added a short NZD position to the portfolio, expecting the NZD to lag the AUD in any recovery.
The Macro Diversified Fund continued to suffer from declining global equity and property markets, however did post a positive return with the Fund's gold position (over +5%) and soft commodities positions (+4%). This was more than offset however by losses in emerging markets equities and property.
