The Mosaic Global Fund’s lost an estimated 3.75% for the month of January, which brings the estimated year to date return to -3.75%.
Focus was mostly on China during January which ended up in the spot light due to rumors about the first ever Chinese trust bankruptcy. A lot was written about the doubtful banking industry which to a large extent has been built on selling high yielding products which has attracted investors in times of ultra-low interest rates. The risk that these guaranteed yields could be vanishing even started speculations about the risk of a Chinese credit crisis. The situation was solved in the last minute by a package which stipulates that investors will get the principle of their investment back which calmed the markets.
The turbulence in China created a situation where stocks sold off strongly in the later part of the month with interest rate moving lower. Emerging markets suffered from the turbulent situations in Ukraine, Thailand and Turkey which pushed their equity markets lower and also created a turbulent situation in the respective countries currencies. The month showed further strengthening in Gold, which might be on its way to reverse the trend and start to head higher.
During January the Mosaic Global Fund has completed and fully implemented our new Trend and Momentum Filter into the funds allocation. This, we believe, will substantially increase the possibility for the Fund to produce performance on today’s markets while keeping volatility in check. The uniqueness of these tools makes the Mosaic Global Fund a particularly attractive proposition for advisors and their clients looking to participate in the wealth creation of global markets with a solid investment framework.
During the month the Fund lost money in the stock market and with our trend following holdings while hedge funds and bonds did relatively well. The question is if this down trend in stocks could continue or if it will reverse and go higher again. Due to this sell off in riskier assets the Funds investment framework will dramatically reduce risk entering February.
Please get in touch for a presentation where we can explain more in detail how the Mosaic Global Funds new Trend and Momentum Filters can help you succeed in today’s complex investment world. Drop us an email on, email@example.com, or give us a call on, +352 202 033 27, to find out more. We look forward to speaking with you shortly.
To Your Investment Success!
Per-Olov Jansson & the Cardea Investment Team