The Mosaic Global Fund had a -0.21% return for the month of May.

May was filled with market driven information where investors were trying to evaluate how continued quantitative easing could support markets in general. More specifically we have been facing increased worries in regards to Greeceā€™s ability to meet their payments to the IMF which has led to a weakening Euro during the month. The oil price has shown signs of stabilising, at least temporarily, which has reduced worries for further downward pressure on inflation.

In the US continued strong economic data has helped the stock market back to their all-time highs again. This also helped European stocks to gain back some of their previous losses. We also saw very strong performance for the Japanese stock market during the month. Another effect of the strong data coming out of the US economy is that bond prices has been pushed sharply lower and correspondingly yields rising, while market participants are expecting a sooner than expected rise in interest rates by the FED.

The Mosaic Global Fund had a slightly negative month making money in stocks, particularly stocks in the Far East and Europe while losing money in our bond positions. Our Trend and Momentum filters, while continuing to favor stocks, has during the month shifted its focus dramatically from European companies to instead going back to allocating the lion part of the equity holdings back into the US markets.

We have also initiated an allocated towards emerging market bonds, ETF VWOB, which has gradually strengthened over the last few months, as discussed in previous reports. The, in earlier month, promising emerging market stock markets have weakened substantially yet again during the month and have therefore lost its appeal for us, at least in the short term.

We have seen another flat month for Gold which have now, similar to the stock market in the US, been mostly consolidating for around 7 months. We are following this with interest since what normally happens is that the longer we see these type of consolidations the bigger the move will be afterwards. Following the same train of thought this is something that we should also expect in stock markets in the US but also in other places. It is very normal for periods of less activity in markets to be followed by strong trends.

We are as usual employing a systematic approach to investing and will be ready to take advantage of any sustained move when we get it. In the meantime we will have to be patient and continue to without hesitation execute on our investment plan.

Please reach out to us on this email info@cardeainternational.com, 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

www.cardeainternational.com

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