Market Commentary

The Mosaic Global Fund’s estimated performance for the month of April is -4.26%, which brings the estimated year to date return to -0.16%.

Market participants spent a large part of the month deciphering actions from central banks around the world. Interest rates were cut in the Euro zone and discussions were again held in regards to further actions to improve the liquidity situation on the continent. Stock markets in both Europe and the US continued higher but in Japan a strong reversal brought this particular stock market to a lower close for the month. Bond markets sold off strongly during the month and longer-term bonds in the US closed around to 12-month lows, pushing yields higher.  Long-term inflation linked bonds were some of the biggest losers and declined close to 10% for the month.

The financial press pundits are constantly discussing strong inflationary pressure in many locations; however, it is clear that market participants have a different view. Since we know that markets are forward looking, we find it highly important to note the weakness in inflation linked bonds. Inflation linked bonds have historically performed the worst during periods of falling inflationary pressure.

The Mosaic Global Fund made money in equity related holdings during the month but suffered from the declines in both traditional as well as inflation linked bonds. Our hedge fund holdings on average did well; however, the trend followers had a difficult month and gave back earlier gains. We maintain a zero allocation towards commodities, which are still in negative territory and are for now showing continued weakness. In addition to the discussion above on inflation linked bonds, it is important to reflect that a weakness in commodities also normally comes during periods of falling inflation.

We encourage you to take a look through our updated factsheet layout.   Our new factsheet briefly outlines the three main strategies that we apply in the fund. We hope that you find this explanatory information helpful.  We are of course available to you should you have further questions.  For a personal meeting or phone call, please reply to this email or send me an email at: perolov.jansson@cardeainternational.com

We look forward to speaking with you shortly.

To Your Investment Success!

Per-Olov Jansson & the Cardea Investment Team

www.cardeainternational.com

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