Europe in March 2017

BY WILLEM VINKE

Monthly Fund Commentary
21 Apr 2017

BY WILLEM VINKE

The Fund’s benchmark returned 3.34% in March. NYMEX WTI CRUDE was down 6.31% on the month to finish at $50.60. The US 10year treasury yield was unchanged, finishing the month at 2.39% after President Trump failed to get his initial healthcare reforms through and as concerns arose that not all his budget reforms would get approved.

The German 10year treasury yield increased 12bps to finish the month 0.33% and the Swiss 10year treasury yield also increased by 14bps to finish the month at -0.09%. The UK 10year gilt yield decreased by 1bp to finish the month at 1.14% as speculation emerged regarding the details of what would be included in the letter from the UK Government to the EU to start the Brexit discussions. Gold and Silver were practically unchanged at $1,249 and $18.27 respectively. The Euro strengthened over the month against the US$ up 72bps at 1.065 and weakened against sterling, down 0.67% to 0.85.

The Fund underperformed its benchmark by 0.55% in March*. Financials, Consumer Discretionary and Industrials were the top contributing sectors in the benchmark whilst the worst were Real Estate, Energy & Telecommunication Services. The Fund’s top contributing stocks were Wirecard, BATS and WorldPay whilst the main detractors were Shire, Grandvision & Sage.

During the month the Fund exited the position in SES which was sold as part of a broader rebalancing of the portfolio.

 

* 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 13/04/17 and are based on internal research and modelling.