The Mosaic Global Fund’s estimated performance for the month of June is -1.38%, which brings the estimated year to date return to -1.73%.

The focus of the month was U.S. Federal Reserve Chairman Bernanke addressing the latest developments in the U.S. quantitative easing programs. He indicated that the easing might be terminated earlier than previously expected. This announcement was not received well by financial industry and markets fell across the board with bonds and inflation linked bonds showing large losses for the second month in a row. It is interesting to follow current market action in bonds since recent activities could signal a long term low for interest rates. Looking back at the previous thirty plus year bull market that took interest rates from high teens down to current levels, a reversal of this trend would of course dramatically change the economic landscape, with increased borrowing costs for both governments, corporations as well as individuals as a result.

Gold and silver continued to be volatile and both commodities continued their slides, and are now trading at levels going back as far as 2009. Gold has given up around 3 years of gains in less than 9 months. Emerging market equities is also struggling and the global indices are now down at 3-year lows, at levels seen in 2010.

During the month, our trend following holdings continued to struggle performance wise. Our stock market holdings, which are still geared towards the strong US stock markets, showed minor losses and our bond holdings also showed negative returns, which led to the overall negative performance of the portfolio for the month. Having had two really weak months for trend followers we expect them to bounce back in the coming months. We are also expecting a continued move up in stocks after the monetary easing discussion has been digested.

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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