MAY 2017

In the month of May, the fund JCI Capital Global Equity lost 0.51%, compared with a positive performance of the STOXX 600 (+1.63%) and positive returns (+1.41%) from the S&P 500. The fixed income market had a positive return of 0.41% during the month. The fund performed strongly in the first half of the month, following the performance on the main European indices, however it was unable to rebound following a correction mainly from Italian stocks in the second half of the month. Despite it being filled with more political tug and war, a slowing in economic data momentum and a stuttering month for commodity prices, the month of May was still another positive one for the vast majority of assets. The equity space highlights were in the European peripheral markets: Greek equities returned +9.3% on positive progress on bailout talks with creditors whilst Portugal also posted a notable 7.0% gain. Even Italian FTSE MIB (+1.9%) performance would have been sizable had it not been for a late month dip on concerns of a possible early election this autumn. Core equity markets were also positive with the Stoxx 600 +1.6% and DAX +1.4% despite European Banks being down 0.8%. In the UK, the FTSE 100 returned a nice +4.9% while US equities (S&P 500 +1.4%) did underperform but did not refrain from keep testing new record highs. Asia was in good shape (Nikkei +2.4%, Hang Seng +4.8%) and EM equities were also up (+3.0%) although at the bottom end of the leader board the Bovespa (-5.6%) stands out as political scandals dominated once again in Brazil. Throughout the month, the fund closed a number of positions due to heavy redemptions within the fund, leaving it exposed to high costs. Hedging to European markets remained null, whilst it was maintained for US markets. Around 75% of US Dollar exposure was also hedged whilst no other currencies were introduced.