The Austral Equity Fund made a small gain in March, up +0.57%, following on from similar returns in January and February. The Fund remained defensively positioned in equities due to ongoing volatility.
The manager noted global equity markets rallied in March, up around +7% with a notable decrease in capital raisings, which had previously held back market gains. The Fund will remain defensive in equities while economic conditions remain poor and while balance sheet and liquidity disclosures remain inadequate.
The Fund did however increase its exposure to credit markets, specifically to short duration corporate credit, while maintaining existing positions in Macquarie Airports Tickets. At month end the Fund had a 37.5% exposure to interest rate securities and a 60.3% cash position.
