Resurgent US dollar favors stock market recovery
In April, equity markets rallied, helped by the company's good Q1 reports, as well as benefiting in Europe from the resurgent US dollar. On the bond markets, economic data also provided a recovery, benefiting corporate bonds in particular.
In this environment, the MCVM Basic Strategy Fund closed the month of March with + 2.08%, which means that the annual result is currently down 1.52%. The fund continues to be conservative, with a relatively low direct equity allocation of 33.06% and still a high number of put options on individual stocks.
The MCVM China Brands Fund (R) closed April -1.93%. The annual minus is therefore -2.33%. On the negative side of the market in April was the ongoing discussion on US-China tariffs. The economic data were largely in line with expectations. There were only a few with more deviations from market expectations, such as March consumer prices, which were significantly lower than expected. Within the fund, technology and pharmaceutical / healthcare stocks underperformed in March, with positive surprises also in the industries with Baidu and China Medical Systems.
For example, China International Travel and Kweichow Moutai also developed positively. For the remainder of the year, we are positive on the corporate results seen so far and also believe that China's increasingly important political role in many geopolitical conflicts (China's role in resolving the North Korea conflict, for example) is also becoming an increasingly important priority for the Chinese Shares in international indices and investors will lead.
The MCVM Global Brands Fund developed very positively in April with + 3.04%, so the year is only a minus of 1.68% to book. The shares of Lindt & Sprüngli, as well as the luxury goods sector for the shares of L'Oreal, Hermes and LVMH developed positively here. The US technology markets also performed well on average. Even the shares of Facebook, which were under pressure for the data scandal, developed positively. For example, the US stocks AT & T and Colgate Palmolive and Procter & Gamble contributed to their performance in April due to their corporate results. Again, we are positive in the medium term because of the good company results of most companies.