BY WILLEM VINKE
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.
The German 10y treasury yield decreased by 33.4% to finish the month at 0.361%, while the Swiss 10y treasury yield decreased by 395.71% to close at -0.138%. The UK 10y gilt yield dropped by 15.88%, ending the month at 1.034% as pressures mounted on the UK Government due to the lack of clarity and progress being made regarding Brexit negotiations.
Gold increased by 4.10% to finish the month at $1,321.43 as investors looked for safe haven assets. Silver increased by 4.47% to finish the month at $17.5791. Throughout the month, the Euro strengthened, finishing at 1.1910 against the US$ (up 0.57%) and closing at 0.9211 against the Sterling (up 2.79%).
The Fund’s benchmark* returned -0.78% in August. The Fund underperformed its benchmark by 0.36%. Utilities, Materials and Real Estate were the best performing sectors in the benchmark, while the worst performing were Financials, Telecoms and Consumer Staples.
The Fund’s top performing stocks were Wirecard, Danone and Sophos, while the worst performing were Shire, Grandvision and Pandora.
During the month the Investment Adviser exited positions in Barclays and Ahold. Ahold was sold following changes in the investment case and Barclays due to concerns relating to the macro-economy and the UK consumer.
* EUR I Class.
The views and statements contained herein are those of Lofoten Asset Management in their capacity as Investment Adviser to the Fund as of 14/09/17 and are based on internal research and modelling.