‘Defensively positioned’: Only one Aussie equity fund made a return in March
Global conflict hit active Australian equity funds but longer-term returns remain positive.
Only one active Australian equities fund generated a positive return in March as the Iran war spooked markets during a brutal first quarter for fund managers.
Morningstar data, exclusively obtained by Capital Brief, reveals Atlantic Pacific Australian Equity Fund returned 0.86% during March and beat its S&P/ASX200 benchmark, which was a fall of 7.15%.
The war began at the end of February with the US and Israel launching strikes on Iran, which led to the closure of the Strait of Hormuz. The strait gives passage to 20% of the world’s oil and liquified natural gas. Equity markets took a beating, gold fell and oil prices soared.
According to Atlantic Pacific Australian Equity Fund’s factsheet from February, the fund increased its energy allocation the day after the war broke out by adding positions to Woodside Energy and Karoon Energy, and added an exposure to Santos.
