Insights

  • MONTHLY FUND COMMENTARY

In September, Chinese equities kept trending up, with the MSCI China Index returning 0.84%. Compared to previous bull markets, investors currently find themselves in uncharted waters after nine consecutive positive months.

  • MONTHLY FUND COMMENTARY

In September, investors and the Federal Reserve were faced with noisy economic data releases as Hurricanes Harvey, Irma, and Maria affected the economic landscape. Nonetheless, the minutes from the Federal Open Market Committee (FOMC) meeting in September included remarks on the near-term effects of these natural disasters, revealing broadly unaltered views on the underlying pace of growth and inflation (in line with market responses).

  • MONTHLY FUND COMMENTARY

After a short-lived decline at the beginning of September leading the MSCI Europe Index to reach its monthly low of 126.12 points, the European stock market rebounded strongly. Starting from its monthly low, two corrections took place, culminating in a monthly high and closing price of 131.01. This gain indicated a strong come back from the negative market trend observed throughout the summer.

  • MONTHLY FUND COMMENTARY

​At the beginning of September, the Japanese market declined due to threats associated with North Korea and the uncertainty surrounding the diplomatic solution of the geopolitical tensions.

  • MONTHLY FUND COMMENTARY

September was a strong month for the Fund, which reported a gain of +4.74% on an absolute basis. Overall, the Fund has posted a positive return of +21.85% on an absolute basis YTD 2017, increasing its outperformance of its benchmark to +11.90%.

  • MONTHLY FUND COMMENTARY

In September, US macroeconomic data (apart from the Institute for Supply Management’s (ISM) manufacturing data) disappointed: data releases indicated decreasing retail sales and consumer confidence.

  • MONTHLY FUND COMMENTARY

In September, the Japanese stock market returned a solid performance. Early in the month, the market pulled back following increasing concerns and negative reactions regarding the risk posed by North Korea, but later surged again following the strength of the US dollar, rising hopes regarding the general election and the announcement of a tax reform plan in the US. The Nikkei 225 closed the month at 20,356.3, up 3.6% MoM, while the TOPIX ended the month at 1,674.8, up 3.6% MoM.

  • MONTHLY FUND COMMENTARY

Over the course of August, investors had to digest the usual slur of economic data releases alongside a trifecta of uncertainties (natural disasters, geo-political tensions, and fiscal policy complications). As such, the S&P500 declined by approximately 2% till mid August, but later recovered lost ground as economic data remained supportive.

  • MONTHLY FUND COMMENTARY

The European stock market rebounded in the first eight days of August, followed by two corrections – a short-lived correction around the middle of the month and a subsequent longer-lasting decline. The last two days of the month saw a strong revival, taking the MSCI Europe Index back to 126.

  • MONTHLY FUND COMMENTARY

In August, the Japanese market was shaken again by geopolitical problems. Poor dialogue between North Korea and the United States continued, creating a sense of insecurity for people in Japan. 

During August, the Fund lost -1.13% on an absolute basis. Year to date 2017, the Fund posted a positive return of +16.33% on an absolute basis, outperforming its benchmark by +10.51%.

  • MONTHLY FUND COMMENTARY

Despite some good news from both sides of the Atlantic (strong unemployment figures and retail sales in the US, as well as stronger growth in the Eurozone, inflation was still a concern and potentially a source for nightmares on the part of central bankers in August.

  • MONTHLY FUND COMMENTARY

In August, the Japanese stock market started the month on a better note due to favourable earnings announcements. However, it later lost ground amid geopolitical risks surrounding North Korea and political turmoil in the US. The Nikkei 225 declined 1.4% MoM, finishing at 19,646.2, while the TOPIX lost 0.1%, finishing the month at 1,617.4.

  • MONTHLY FUND COMMENTARY

Ignoring the ongoing political standoff between the US and North Korea, Chinese equities simply went from strength to strength in August. The MSCI China Index increased 4%, making August the eighth consecutive positive month this year. The last time such a long winning streak occurred was back in 2007, the year of a super bull market.

  • MONTHLY FUND COMMENTARY

​In August, NYMEX WTI CRUDE declined by 5.86% MoM, finishing the month at $47.23. The US 10y treasury yield decreased 7.72% to close the month at 2.12%, following political worries regarding North Korea’s missile launches and the developing rhetoric between the leaders of the United States and North Korea. 

  • MONTHLY FUND COMMENTARY

In July, the Japanese stock market initially rallied due to a weaker yen against the background of differing monetary policies in Japan and the US. The market however later stagnated due to the strengthening of the yen and political uncertainty in these markets. The Nikkei 225 closed the month at 19,925.2 (down 0.5% MoM) and the TOPIX at 1,618.6 (up 0.4% MoM).

 
  • MONTHLY FUND COMMENTARY

With 2017’s second quarter earnings season almost completed, this report will include: (1) a look at the overall results and how the market reacted, and (2) a closer dive into the results of the Fund’s holdings. 

  • MONTHLY FUND COMMENTARY

In July, the European stock market moved sideways, with weak and short-lived rebounds and a continuation of the slide, which had previously characterized June. In the first half of July, the MSCI Europe Index posted a high of 131.56, followed by a correction which made the market return to its previous lows (near 127.50). 

In July, US economic data continued to be positive. However, GDP, employment and home prices have still not completely recovered in all states, despite nine years of economic expansion. On the soft data side, the Institute for Supply Management (ISM) reported that factory activity accelerated at the fastest pace in almost three years and was accompanied by an increase in orders and higher employment.

  • MONTHLY FUND COMMENTARY

During July, the Fund outperformed its benchmark by +0.38% and managed to report a small gain of +0.03% on an absolute basis. Year to date, the Fund posted a positive return of +17.66% on an absolute basis, outperforming its benchmark by +10.99%.

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