The Austral Equity Fund recorded a small loss of -0.04% in February, following on from a +0.74% gain in January. Due to poor interim company reports and a lack of forward guidance, as well as often misleading disclosures regarding capital raisings, the Fund remained lightly invested.
During February the Fund held significant amounts in cash (69%) and short term investment grade corporate credit. More specifically, the Fund continued to hold Macquarie Airport Tickets, which fell later in the month, while the proceeds from its CBA Perls II will be received shortly.
