During March the portfolio performed consistently positive with a result of more than 1.0%. Especially the core markets performed well. The additional markets like Pakistan, Eastern Europe and Taiwan were more volatile and trend consistent. Due to this we cut down our exposure to those markets. Also we decreased our China exposure due to inconsistent signals from different sub markets of China.
Unless all hostility in the diplomatic relationship between Turkey and European Countries the Turkey equity investors kept their heads calm. During March we didn’t see much volatility and we ended here almost 1% above the close of February.
March was the comeback of Russia, our investments gained about 2.5% over March. Interesting is the big difference between active investment strategies and passive ETF’s. It is one of the few markets in which active investment strategies are capable to outperform ETF Russia products. Also last month in which the index gained only 0.36% the top three active Russia investors (Prosperity, Pioneer and Parvest) gained all more than 2.8% over the same period. In this market we use the tracker products to trade the market but when we want to keep position for a longer period the active fund managers are our preferred access suppliers.
India is still going strong, also in February we were happy to be positioned in this market. The value of our India exposure rose by almost 3%. Especially our small cap investments in India performed strongly. Indian small caps rose by more than 3.7%.
The different markets of China moved into different directions. In any case the momentum of the China equity markets lost a bit momentum. This loss of momentum forced us to reduce our exposure to China. We still did not came back to Pakistan and Eastern Europe.
We took for a short period a position in Taiwan. Unfortunately the trend turned after two weeks and we sold our position with a marginal loss.