The Mosaic Global Fund had and estimated -0.50% performance for the month of June.
June showed an unexpected downward revision of the US GDP data, the latest number is in fact the weakest since 2009. The US equity markets did not react to this, at least not in the short term, but instead continued to be strong during the month. The European Equity markets continued to show signs of weakening and were flat to minus for the month. The European Central Bank declared that they will take further action to ease monetary conditions. Immediate actions included cutting interest rates down to 0.15% as well as extending its unlimited short-term funding programs.
The Mosaic Global Fund had positive performance in our Emerging Market and US equity holdings but showed losses in non-US equity holdings and in longer dated bonds. This together with our managed futures positions resulted in a slight negative performance for the month.
Per the end of June most of the Mosaic Global Fund’s managed futures and hedge fund holdings have been sold and Cardea is now allocating capital using almost exclusively our own internally developed Trend Filter and Momentum Filter. We have taken this decision after evaluating the performance of external managers versus our own strategies. The result is that our own strategies are showing better results with lower risk which is why we have now taken this step. The benefits for investors in the Mosaic Global Fund is of course also that Cardea in its management of the Fund only deploys capital with ETFs which results in drastically reduced costs compared to using a more traditional fund of fund approach. Together with our new strategies this will give investors in the Mosaic Global Fund a solid ground for performing well in both good and bad times.
Give us a chance to tell you more about our new investment techniques and how we can make help you succeed. Please get in touch 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 soon.
To Your Investment Success!
Per-Olov Jansson & the Cardea Investment Team