March 1, 2021

In the Frame – Issue 2, Investor updates
Managing Director

Frame Futures Fund – Feb 21

Units of the Frame Futures Fund appreciated by +2.21%. The core strategy contributed +2.81% to performance, whilst the trading strategy detracted -0.34%.

Equities contributed strongly, adding +3.66%. Currency, Fixed Income and Commodity investments declined by -0.29%, -0.64% and –0.31% respectively.

Most global equity markets rallied, however were choppy over the course of the month, as yields of 10 & 30-year United States (US) Treasuries increased. This increase in yields provided some uncertainty to investors that the US Federal Reserve may be too accommodative with their monetary policies.

The Australian share market also experienced volatility during the month. Our local market benefited from having large weightings in banks, who are generally thought to benefit from rising rates. During February, ANZ, NAB & WBC rose +9.06%, +3.592% and +12.27% respectively. CBA was the laggard, dropping -3.45%.

Largest contributors to the performance were our investments in listed cryptocurrency businesses (+1.01%), copper explorers and producers (+0.53%) and battery material producers & explorers (+1.33%). Largest detractors to performance were our investments in China A50 equity markets (-0.89%) and our investments in listed gold producers and explorers (-0.50%).

In terms of fund activity, we continued to build positions in a selection of global cannabis businesses. We also took advantage of some erratic price action in some of our small cap investments (ID8, PAM, DCC).

At the conclusion of the month, the Fund holds 47 investments.

To read the full report, click here