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Equity markets around the world finished the month of July in the red. Index MSCI World (measured in EUR) lost 1,01%, while Europe was the only market with positive returns.

Euro has gained a lot in the past few months, partially because of expectations that ECB will join the Fed in increasing interest rates. Rising euro has negatively effected Fund’s performance (for about 1% in the past quarter) since most investments are spread across the world.

Global macroeconomic data is currently still in an uptrend, euro-area has the strongest growth in leading indicators while other economies show a mixed picture. US economy is loosing its momentum as data is starting to point to a possible slowdown. Emerging market leading macro data is also slowly turning downwards. In that kind of environment its pays to be careful because further deterioration in economic activity can cause fast drawdown in the markets. If the data turns down for US and Europe in the next few months we will start to decrease Fund’s exposure to equity markets and increase exposure to safe government bonds and cash.

The Fund lost 1,12% in July.