November 12, 2021

In the Frame - Issue 10, Investor updates
Managing Director

Frame Futures Fund – October 21

Units of the Frame Futures Fund appreciated by +6.09%. Both strategies contributed positively to the monthly performance. The core strategy added +4.18%, while the trading strategy contributed +2.23%.

Fixed Income and Currency investments detracted approximately –0.49% and -0.03% respectively. Commodity and Equity investments contributed by +1.25% and +5.69% respectively.

Global equity markets rebounded aggressively following last month’s sell off. The S&P 500 & Nasdaq both rose +6.91% and +7.90%. The Australian share market underperformed relative to its peers. Yields across the globe continued to rise, especially the front end of the curve (the market is telling the various federal reserves that rates should be higher than they are now). The debate surrounding whether inflation is transitory or something more permanent is our key focus over the next three months. We have reduced our medium-term global equity exposure; however, we continue to be active when opportunities present themselves.

Largest contributors to the performance were our active trading strategies on the S&P/ASX 200 future contract (+1.55%), our investment in an ASX listed blockchain technology company (+2.05%) and our investment in Blackstone Minerals Ltd (+0.91%). Our investment in Fortescue Metals Group was the largest detractor to performance. 

In terms of fund activity, we added to our US Dollar Index position, took advantage of the volatility within the Natural Gas Futures market, and continued to accumulate listed Nickel explorers and producers, as stockpiles of Nickel continue to decline at an increasing rate.

At the conclusion of the month, the Fund held 22 investments.

The full report can be downloaded by clicking the image below.