The Attunga Enviro Opportunities Fund was down -4.61% in February, down on its +11.12% return in January. Attunga’s Agricultural Trading Fund was also down on its January result, up +0.18% after gaining +4.98% last month.
Cooler weather, apart from one hot day in Victoria, kept electricity prices and volatility low during February, which was the main factor in the Enviro Opportunities Fund’s negative result. February also saw renewed interest in the proposed emissions trading scheme, with opposition parties in the Senate announcing an enquiry into the scheme a week after the Government’s enquiry was cancelled. The manager believes this regulatory uncertainty will create volatility, and therefore opportunity, in power markets throughout 2009.
The lack of significant fundamental news on agricultural markets in February drove the Agricultural Trading Fund’s flat result. Gains were made on cross commodity spreads on soft and hard wheat, as well as carry trades in canola and wheat. Mark to market losses were made on volatility spreads between canola, bean oil and corn.
