IASF – Seasonal Reflections – November 2019

• Last valuation date in October (31.) showed mixed results compared to the last September valuation (26.): EUR-D -0.34%, USD-D +0.15%, CHF-D -0.22% (The different results are due to FX impacts, i.e. hedging cost (EUR into CHF and USD) and degree (USD and CHF units are slightly underhedged).
• AuM were EUR 34.315m (approx. USD / CHF 38m), due to small inflows last month.
• Please allow me to point out that most of the advance in the FTSE Global 100 shown in the NAV graphs on page 9 of the report took place over the first four weeks following IASF’s setup, when the fund was in asset gathering mode and had little equity exposure to participate in the June rally. I would like to emphasize that this is not meant as excuse for the gap between overall equity market performance (as this is not what IASF tries to deliver, anyway), but merely to point out that traction to overall risk asset market development has been far better since July. Performance between valuation date July 4 and October 31 have been:
  • for EUR-D +0.24% vs +1.91% for FTSE Global (EUR)
  • for USD-D +0.96% vs +0.71% for FTSE Global (USD)
  • for CHF-D -0.57% vs +0.84% for FTSE Global (CHF).

Ultimately, the comparison for IASF units is against the risk-free rate in the respective currency, and there the fund is tracking above the reference return numbers at a gap that I expect will widen over time.