Browsed by
Author: AV Management

China is investing in factories in eastern Europe, not because their labor costs are lower, but because they want to be closer to their markets – Michael Bloomberg

China is investing in factories in eastern Europe, not because their labor costs are lower, but because they want to be closer to their markets – Michael Bloomberg

Monthly management comment The objective of the Company is to achieve for the Shareholders an optimum return by undertaking directly or indirectly investments while reducing investment risk through diversification.The Sub-Fund will predominantly invest in a diversified portfolio of equities, government and corporate bonds, commodities (through financial derivative instruments), currencies, structured products and alternative investment products.The sub-Fund will allocate a significant portion of its equity allocation into international stocks. Macro & Politics: liquidity is the cure The ever-cheerful mood from 2019…

Read More Read More

We should be happier to have a job than to have our savings protected… I think that it is in this spirit that monetary policy has been decided by my predecessors and I think they made quite a beneficial choice. Christine Lagarde

We should be happier to have a job than to have our savings protected… I think that it is in this spirit that monetary policy has been decided by my predecessors and I think they made quite a beneficial choice. Christine Lagarde

Monthly management comment Macro & Politics: Trade war reloaded President Trump managed once again to disturb a market seemingly heading towards a smooth 2019 ending. New US tariffs were announced on Latin American countries and France while China tariffs are still due on December 15th.The US president also stressed there was no deadline to the China deal. These announcements have shaken investors sentiment, a few will probably log in profits. Fundamentally, nothing much has changed but staying on the side…

Read More Read More

Common sense is not so common” – Voltaire (1694-1778)

Common sense is not so common” – Voltaire (1694-1778)

Monthly management comment Macro & Politics: Investors sentiment boosted by the Fed and corporate earnings As expected, central banks delivered the well needed monetary medicine. Despite a less dovish tone, the Fed cut rates once again and still seems to be behind the yield curve. We foresee further US cuts, perhaps even reaching 0 as now mundane in Japan and Europe. The rate differential between USD and EUR or JPY has decreased substantially, and a weakening currency is probably great…

Read More Read More

The definition of insanity is doing the same thing over and over again and expecting a different result – Albert Einstein

The definition of insanity is doing the same thing over and over again and expecting a different result – Albert Einstein

Monthly management comment Wobbling confidence and shaky markets. Global indicators are showing an economical slowdown but so far, no recession. If manufactural climate remains sluggish, consumption and services are still very resilient. Central banks are once again on easing path in order to maximise the current expansion and try to minimise markets corrections. The US Fed, as expected, dropped by 25 basis points the repo rate early in the month and called it a “mid cycle adjustment “, but we feel more…

Read More Read More

“A government that robs Peter to pay Paul can always depend on the support of Paul” – George Bernard Shaw (1856-1950)

“A government that robs Peter to pay Paul can always depend on the support of Paul” – George Bernard Shaw (1856-1950)

Tumbling interest rates and manufacturing recession Bond yields continued to drop into unexplored territory, many of them in negative territory (German 10-year Bund now at -0.7%). The US yield curve is also dropping fast with a risk of an inversed bias (2-year bond at 1.55 vs 1.59 for the 10 year), usually indicating a forthcom- ing recession. Bond markets are anticipating trouble and the debate continues: will central banks save investors once again and can they keep things under control?…

Read More Read More

“ The Chinese nation is a great nation; it has been through hardships and adversity but remains indomitable ” – Xi Jinping

“ The Chinese nation is a great nation; it has been through hardships and adversity but remains indomitable ” – Xi Jinping

Monthly management comment Strategy & Investment Policy: Asset allocation fund The objective of the Company is to achieve for the Shareholders an optimum return by undertaking directly or indirectly investments while reducing investment risk through diversification.The Sub-Fund will predominantly invest in a diversified portfolio of equities, government and corporate bonds, commodities (through financial derivative instruments), currencies, structured products and alternative investment products.The sub-Fund will allocate a significant portion of its equity allocation into international stocks. The usual suspects have once again…

Read More Read More

“ It would be a sad day if we British stopped being cynical, but you sometimes wonder whether we overdo it” – Boris Johnson

“ It would be a sad day if we British stopped being cynical, but you sometimes wonder whether we overdo it” – Boris Johnson

Monthly management comment The objective of the Company is to achieve for the Shareholders an optimum return by undertaking directly or indirectly investments while reducing investment risk through diversification.The Sub-Fund will predominantly invest in a diversified portfolio of equities, government and corporate bonds, commodities (through financial derivative instruments), currencies, structured products and alternative investment products.The sub-Fund will allocate a significant portion of its equity allocation into international stocks. Markets rebounded strongly in June after a sluggish May, some of them…

Read More Read More

“ I’ve always won, and I’m going to continue to win. And that’s the way it is. ” – Donald Trump

“ I’ve always won, and I’m going to continue to win. And that’s the way it is. ” – Donald Trump

Strategy & Investment Policy: Asset allocation fund The objective of the Company is to achieve for the Shareholders an optimum return by undertaking directly or indirectly investments while reducing investment risk through diversification. The Sub-Fund will predominantly invest in a diversified portfolio of equities, government and corporate bonds, commodities (through financial derivative instruments), currencies, structured products and alternative investment products.The sub-Fund will allocate a significant portion of its equity allocation into international stocks. Monthly management comment Recent PMI data strongly…

Read More Read More

“God understands more about the financial markets than many who write about them” – Jean-Claude Juncker

“God understands more about the financial markets than many who write about them” – Jean-Claude Juncker

Monthly management comment Macro & Politics: “A slow-down but not a slump ” Recent US figures such as GDP and employment show continued strength without inflation. Europe is not as bad as some feared although Italy has entered a recession and Germany is struggling to gain steam. The endless Brexit saga is far from over but recent GBP strength show that the market seems to exclude a hard Brexit. We feel that whatever the outcome of many worrying issues is…

Read More Read More

The two most powerful warriors are patience and time – Leo Tolstoy

The two most powerful warriors are patience and time – Leo Tolstoy

Aulien S.C.A., SICAV – SIF Global Fund Monthly management comment Macro & Politics: “Trump does it again” President Trump could not help adding more trouble to a gloomy x-mas season by entering a bold power struggle on the financing of the Mexican wall. The US economy both ended the year and started the new one with a partial shut-down and quite a lot of uncertainty on how long this blockade could last. Inves-tors and public opinion seem tired of these…

Read More Read More