Optimal Fund Management's five absolute return funds all reported positive returns for April, with performance ranging from +0.73% to +4.75%.
The Optimal Japan Absolute Long Fund was the strongest performer, up +4.75%, however this was seen by the manager as disappointing as the Topix index rose by over 8%. Real estate stocks performed well, however some of the Fund's top positions, including Nintendo and Shinestu Chemical, ended the month down. The main drag on return however was the Fund's cash holding (approximately 40% of the portfolio), which benefited the Fund earlier in 2009 however is now offsetting positive performance. The manager is expecting to increase the Fund's exposure going forward, however is looking for lower entry points than current levels.
Regarding the other Optimal funds, the Optimal Asia Pacific Fund gained +3.46%, the Optimal Australia Absolute Trust rose +1.4%, the Optimal Japan Fund was up +0.73% and the Optimal Asia Fund posted a return of +1.9%.
