The first signs of spring may be in the air but there has been no evidence of brighter times ahead for global stock markets.

War worries continued to hang heavily over equity markets worldwide through February, leading five of the six fund managers in the Rehab Great Investment Race to rack up losses last month.

Only KBC Asset Management didn't lose money, turning in a flat performance to earn the number one spot for February.

Overall its fund, which is 75 per cent invested in cash and fixed interest, lies in third place with a gain of 2.6 per cent.

According to KBC's Mr Noel O'Halloran, capital preservation has been the watchword in the management of the fund to date. But KBC remains on the lookout for opportunities to move into equities in order to make a greater return on its capital though Mr O'Halloran cautions it is in no rush.

Meanwhile, Bank of Ireland Asset Management (BIAM), which holds just one stock, remains in the lead overall despite running up the heaviest losses last month.

The fund manager incurred a 6.8 per cent loss on its holding in Greencore in February but its original €100,000 investment is still worth 12.4 per cent more than at the outset of the race last October.

BIAM's Mr Chris Reilly is not tempted to abandon Greencore, however, or to extend his portfolio further. "It's a safe enough stock," he says of the food group.

In second place overall lies Irish Life Investment Managers (ILIM) with a gain of 5.7 per cent despite losing 1.8 per cent last month.

Mr Seamus Magner remains an active trader of the fund, having dealt in a number of stocks, including Grafton, Fyffes, Ryanair, Paddy Power and McInerney last month.

In the bottom half of the table lies Hibernian whose fund shed 3 per cent last month to leave it up by just 1.7 per cent overall.

The fund manager moved out of technology and back into cash early last month, which led to the 3 per cent hit. It is now fully invested in cash.

"We are looking for opportunities to invest but markets are so uncertain and so volatile that we have decided to hang fire for now," says Hibernian's Mr Dara Fitzgerald.

Both Montgomery Oppenheim and Setanta Asset Management sank deeper into the red last month, losing 2.1 per cent and 2.7 per cent respectively, to bring up the rear of the table.

Setanta suffered after it cut its cash holding from around 65 per cent last month to just over 40 per cent. Although the company sold its shares in Aventis, it bought Irish Life & Permanent, not a good performer of late. By the end of February, its fund was worth €91,296, 8.7 per cent less than at the start of the race.

Montgomery Oppenheim also remains exposed to equity markets through its global equity fund, leaving its fund down by 9 per cent overall.

But with seven months of the race left to run, there is still plenty of time for markets to turn around and for the fund managers to make the money back for Rehab.

jmosullivan@irish-times.ie