The Mosaic Global Fund’s estimated performance for the month of April is 3.23%, which brings the estimated year to date return to 4.30%.
The rallies in financial markets continued during the month of April. Our stock market and our bond holdings showed good returns supported by continued central banks’ balance sheet expansions and a strong earnings season. One of the strongest markets for the month was Japan, where their central bank continued to convince markets that their ambitious inflationary goals should be reached. US stock markets continued to show relentless strength and ended the month around all-time highs.
This month, we especially want to bring to your attention the performance of the Fund. What we would like to highlight is actually not the positive performance itself but rather that we managed to outperform the strong stock markets with an ultra-low stock market allocation (approximately 13%) and with very low risk in our portfolio. Most of our money this month was actually made in Bonds, Long-Term Treasury and Inflation Linked Bonds, together with some very strong returns in our Managed Futures holdings, in some cases as much as 7+%. We believe this is strong proof of a truly diversified and strongly built portfolio.
So why is this important? As investors Cardea International focuses on capital protection, true diversification and “intelligent decisions that grow your wealth”, which is our slogan. Our point here is that as investors we need to be able to handle all kinds of market climates.
Right now there is a huge focus on stocks because they are performing strongly. As always, this will not continue forever. When stock markets falter the next time, will you have a balanced enough portfolio to make money in those conditions? Will you have a large enough allocation towards long bonds or inflation linked investments protecting against inflation? Will you have a way to exit all commodity exposure because of signs of weakness when necessary, as we did in March? And will you be using sophisticated diversifiers like managed futures and hedge funds to further solidify your portfolio against market volatility?
We are certain that we will because of our three well tested strategies that are at work in the Fund and because of our focus on risk management. You can read a brief outline of these successful and practically tested strategies in our latest factsheet.
Are you interested in discussing our investment strategies in more detail? Please reply to this email and get in touch with us and we will revert immediately with a suggested time for an appointment.
We look forward to speaking with you shortly.
To Your Investment Success!
Per-Olov Jansson & the Cardea Investment Team