BY WILLEM VINKE
The Fund’s benchmark was up 0.70% in August. NYMEX WTI CRUDE was up 7.45% on the month following speculation of possible production freezes from an informal OPEC meeting. Post Brexit economic news showed that things economically, so far, had not been as bad as expected or forecast by those favouring a remain result for the UK.
The US 10year treasury yield increased from 1.45% to finish the month at 1.58%, having hit 1.63%. The German 10year yield increased from -0.121% to finish the month at -0.066%. The Swiss 10year yield rose from -0.598% to finish the month at -0.502%. The UK 10year gilt yield fell from 0.684% to finish the month at 0.642%. Gold traded down 3.13% on the month to finish at $1308.97 with Silver trading down 8.27% to finish the month at $18.655. The Euro fell slightly over the month against the US$ from 1.1174 to 1.1158 and gained against sterling from 0.84462 to 0.84922.
The Fund underperformed its benchmark by 96bps in August*. Financials, Industrials and Materials were the best performing sectors in the benchmark whilst the worst performing were Healthcare, Utilities and Consumer Staples. The Fund’s top contributing stocks were Livanova and Paysafe and the worst were Galenica and Red Electrica. During the month the Fund re-established a position in Wirecard.
*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 7/09/16 and are based on internal research and modelling.