Ayaltis Funds - June 2018 Performance Estimate

 

Dear Investor,

We are pleased to send you the estimated NAVs & Performances for June 2018 with a performance of +0.10% in USD for Class B.

June 2018 Flash Commentary
The normalisation of the US monetary policy that began at the end of 2015 is starting to have an impact on risky assets. The wind has turned, and financial markets are clearly showing signs of nervousness. The “monetary put” that central banks have sold to investors is coming to maturity while the expansionary fiscal policy of Trump’s administration will translate into outright economic divergence.
 
Financial markets struggled in June: The tariff war had a deeper impact on the exporting countries like China and Germany leaving the German stock market down 2.3%. The centre of market movements was however more tilted towards emerging markets. Turkish lira, Brazilian real and India rupee are particularly weak, and the Chinese equity market has lost 25% from its peak. Inside the G7 group, the Italian CDS surged more than 100bps in a few days. Also, US credit indices were impacted: The CDX high yield widened by 10bps and the CDX investment grade 3bps.

We closed the month flat. The slightly positive performance of Event Driven and Discretionary Relative Value managers was offset by small losses from Systematic Relative Value managers. Event Driven managers were able to capitalize on the more positive sentiment at the beginning of the month. Pro-active, fundamental biased relative value equities trading added to the returns. However, the landscape is not the same anymore: The growth of generic ETFs and funds has radically changed the trading environment in the equity space and has brought new risks but also opportunities. Recent market developments are a warning sign against market stability.

Looking forward, we expect more of the same erratic market behavior while being comfortable with the attractive yet diversified performance profile that our fund pursues. We are optimistic that divergence of key market factors is strongly expanding our relative value opportunity set going forward and we are confident that our portfolio represents a very attractive alternative to over-priced financial markets and a potential shelter from the storm.

Estimated NAVs and Performance
as of June 30, 2018

June

YTD 2018

NAV

2017

2016

2015

12 Months Rolling Return

12 Months Rolling Volatility

Liquidity

PDF

Areca Value Discovery B USD

0.10%

-1.35%

123.83

7.72%

-2.57%

2.30%

3.36%

4.01%

Quarterly

Link

Areca Value Discovery B CHF

-0.19%

-2.96%

115.31

5.45%

-4.56%

0.71%

0.79%

4.10%

Quarterly

Areca Value Discovery B EUR

-0.14%

-2.75%

117.27

5.99%

-4.01%

1.76%

1.30%

4.21%

Quarterly

 

 

 

 

 

 

 

 

 

 

 

Areca Azure C USD

0.33%

-0.90%

103.65

5.48%

-0.84%

-

-

-

Monthly

Link

 

 

 

 

 

 

 

 

 

 

 

Narrapuno SPC - Spectrum A USD
(formerly Acantias Offshore Fund)

0.52%

-1.35%

1,496.67

8.27%

-1.67%

3.72%

3.57%

4.52%

Quarterly

Link

Narrapuno SPC - Spectrum A CHF
(formerly Acantias Offshore Fund)

0.23%

-2.98%

1,344.38

5.53%

-3.82%

2.16%

0.51%

4.50%

Quarterly

 

 

 

 

 

 

 

 

 

 

 

This month’s cut-off date for subscriptions is 24 July 2018 at 3pm.
As always, we reiterate our gratitude for your continued trust, support and patience.
                  
Best regards,
Son Nguyen


Son Nguyen
CEO & Managing Partner

Ayaltis AG
Bleicherweg 19
8002 Zürich
Switzerland
Direct: +41 43 501 37 62
Mobile: +41 78 610 65 00
Email: nguyen@ayaltis.com