The Headland Global Diversified Fund lost -3.90% in March, due mainly to the strong market rallies during the month.
Although the manager acknowledged that the positive performance of equity and commodity markets in March hurt the Fund's overall return, they still believe that a full recovery will take some time to achieve. As a result the Fund's asset allocation remained unchanged.
The announcement of quantitative easing procedures by central banks around the world offset the need for greater issuance to pay for government spending, resulting in mixed returns in bond markets. Currencies also rallied against the US dollar after it was announced the US was printing more money. As the Fund has an overweight position in bonds as well as positions in FX markets (CAD against USD), both sectors produces losses for the Fund. The most significant loss however came from commodities, where the Fund gave up recent gains as markets rallied from lows earlier in the year.
