The Mosaic Global Fund had a 0.12% return for the month of February.

Global stock markets started February by strong selling, but recovered most of these losses towards the end of the month. With a recovering oil price emerging market stocks are showing further signs of strengthening and ended the month mostly unchanged as a group (ETF: EMM). Gold had a very strong month, especially the first half, and are starting to look better, the question is of course if this is a start of a new sustained positive trend or if it is just another rally in Gold’s ongoing slide that started several years ago.

The ongoing discussion regarding a potential Brexit, that is the possibility for of Britain exiting the European Union, is receiving a lot of attention. This ongoing uncertainty has lead the British Pounds to slide to its lowest value versus the US-dollar in seven years. The Pound has also lost significantly to other major currencies.

The Mosaic Global Fund, came into February with a strong overweight in bonds. This lead to a strong performance for the first half of the month despite sell offs in the stock market. Bonds weakened in the second half of the month with stock markets staging a recovery. The Mosaic Global Fund had a 0.12% return for February with gains coming from our bond market positions.

Looking ahead we will continue with a high allocation towards bonds in both developed and emerging markets and we will continue with a slight stock market position in Europe. The coming weeks will give us an indication about if the ongoing stock market decline is starting to become more permanent or if we will again, as we have seen many times over the coming years, a stock market recovery driven by government continued stimulus.

Please reach out to us on this email, or give us a call on +352 202 033 27, to find out more about the Mosaic Global Fund and how the Fund is managed with our Trend and Momentum Filters. We look forward to speaking with you soon.

To Your Investment Success!

Per-Olov Jansson & the Cardea Investment Team


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