Europe in December 2015

BY WILLEM VINKE

Monthly Fund Commentary
18 Jan 2016

BY WILLEM VINKE

The Fund’s European benchmark was off 5.28% in December, although the benchmark traded more in line with US markets than in the previous month when it outperformed in the second half. US monetary policy continued to be a focus for investors and the FMOC increased US interest rates by 25 basis points to 0.5%. Worries on Oil inventories plus the decision by some producers to maintain production and the US’s decision to lift its 40 year ban on crude exports put further pressure on Brent with the price falling from $45 to $37. Gold had a volatile month but finished down just $3 at $1061. The German 10 year rose from 0.48% to 0.62% and the US 10 year rose less from 2.21% to 2.27%.

The Fund outperformed its benchmark by more than 3% in December. Healthcare, Information Technology and Utilities were the best sectors with Industrials, Materials & Energy the worst performing. The Fund’s top performers were Intertrust, Galenica, Cerved and Amadeus and the biggest losers BATS, Diageo, Bayer and Wolters Kluwer. During the month the Investment Adviser closed the position in Imperial Tobacco and a new position was established in Intercontinental.

The views and statements contained herein are those of Lofoten Asset Management in their capacity as Investment Adviser to the Fund as of 8/01/16 and are based on internal research and modelling.