Corporate events

Element ONE


Issuer: ELEMENT ONE LTD 
ISIN Number: VGG299771086
Issue Description: USD CL B SHS
ISO CFI: CICXXX

September has passed with moderately negative indicators; however, S&P500 has performed a 1,72% increase.

On the 6th of September, the US Labor Department has revealed a monthly report. Even though nonfarm payrolls rose by just 136,000 instead of 150,000 expected, the jobless rate unexpectedly dropped to 3.5%, the lowest since December 1969, from 3.7%.

On the 12th of Septemeber, ECB has decreased the bank deposit rate by 10 basis point down to -0,5%. Moreover, the ECB will resume buying up eurozone government bonds at a rate of €20 billion as from November, "for as long as necessary," it said. What encouraged the massive wave of sells.

On the 18th of September, the Fed also decided to cut the interest rate. From now on it will range from 1,75% to 2%. Market was expecting this move; therefore, there was no reaction to it.

EUR/USD exchange rate has decreased to May '17 levels and in one point was as low as 1,087 Dollars p/Euro.

German industrial sector has underperformed market expectations. Manufacturing sector PMI index was far too low compared to the expected number and more moderate than it was in August. As the German economy is highly dependent on export to China, with €93 billion exported in 2018, the US-China trade war is playing its damaging role. On top of that, the fast-track Brexit deal would harm Germany manufacturing sector. Nevertheless, 10-year German bonds yield has decreased only by -0,61%

In early Septemeber, Gold has broke through US$ 1,557/oz. With bulls At the end of September, we have added Vmware (NYSE: VMW) shares to our portfolio at the price of $146,19 p/share. We anticipate the growth of the company basing on product uniqueness and enlargement of the partnership base, the full version of our analysis you could find here. During the last trading session in September, Vmware shares were valued at $150 p/share.

Element One fund has performed +2% growth in capitalisation, beating the USA market index by more than 15%.

Mining.VG


Issuer: RAM Data Technologies INVT LTD
CUSIP Number: G7369L 106
ISIN Number: VGG7369L1067
Issue Description: EUR CL C SHS
ISO CFI: CICJMS

During September, the cryptocurrency market didn't experience any significant changes as it was in August. Bitcoin mining difficulty is continuing to rise, for the last month, it has increased from 10,1835Т to 12,7598Т. Ethereum mining difficulty has also dramatically increased, delta for it was 0,0413Р in August, while in September it became 0,2335P. Bitcoin exchange rate has continued to fall down to $8298, while Ethereum has increased by +5,51% at $181 at the end of the month.

The most profitable algorithms were Cuckatoo31 for "green" and Ethash for "red" miming. Despite the fact that our machinery was working on the following algorithms, hiking difficulty and decreasing exchange rate negatively affected the final result (including automatic conversion of mined currencies to BTC). Mining VG share prices were following negative dynamics - 1% decrease, taking into account accumulated and paid coupons. Nevertheless, we assume that the Bitcoin price is going to appreciate in the mid-term perspective due to upcoming halving. Therefore major part of our assets we plan to keep in BTC.

September is closing the third quarter, however, coupon payments are planed for October.

Element ONE


Issuer: ELEMENT ONE LTD 
ISIN Number: VGG299771086
Issue Description: USD CL B SHS
ISO CFI: CICXXX

On the 1st of August 2019, World Gold Council published a Gold Demand Trends report for the first two quarters of the current year. The report indicates highly active purchase activity conducted by Central Banks (foremost Russia, China and Poland). In August prices for gold have recovered to the level of April ’13 and broke through US$ 1,550/oz.

Despite FED official statements on the temporary cut of the interest rate, Central Banks and market participants decided to hedge the risk against rescission and Trade War between the US and China. As a reminder, the US Dollar to Chinese Yen pair exceeded $7 per Yen for the first time in a decade, whcih led to devaluationby 4% of Chinese national currency during last month. China made it crystal clear that even under manipulations with currency exchange rates, it would stand for its national interests.

Besides, British private financial institutions invested in Gold ETFs as much as three-quarters of total US ETF supply with gold as underlying. The main objective is to protect GBP assets in case of no-deal Brexit.

EURUSD pair sank to the level lower than 1.10, due to ECB announcement of cutting its main interest rate, the deposit facility, by ten basis points to -0.50% and the restart of its bond-buying program (20 billion EUR p/month) at the start of November.

S&P500 Index performance in August was following the downtrend, decreased by 1.81%. At the same time, our Element ONE fund boosted NAV indicator by 2%, with the help of short positions in the portfolio. As an example, one of the positions was short on Interactive Brokers (IEX: IBKR) shares, which was closed at $46.5. Deal return rate — 9.64% for 24-day duration or 146.6% of annual rates of return.

In spite of global economic uncertainty, our fund plans to close a number of short positions till the end of September’ 19 and accumulate several oversold securities.

Mining.VG


Issuer: RAM Data Technologies INVT LTD
CUSIP Number: G7369L 106
ISIN Number: VGG7369L1067
Issue Description: EUR CL C SHS
ISO CFI: CICJMS

During August, cryptocurrency market was comparatively stable, continuing the correction movement since June high. Etherium mining difficulty was following the upward trend and vary between 2.15P and 2.34P, while the exchange rate of second largest coin has fallen from $218 to $172 in the end of the month.


Mining.VG fund share price performed in a slightly negative manner, with -0.82% loss including accumulated coupons and payoffs. As for today, our team is actively testing the new mining pool Ezil.me, which allows to earn Zilla coin in addition to Etherium. We assume the change in mining pool will increase return p/RIG indicator. In August, the majority of RIGs worked on Nicehash with periodical change in algorithms, switching from Ethas to Cuckatoo31.
Financial company On Capital (https://oncapital.us), which specializes in IPO investments and corporate bond market, was acquired by British holding Raison Global. The purchase price is not disclosed. During September On Capital will be integrated into the business processes of Raison Asset Management, the investment infrastructure will be provided by this company. In the future, On Capital is going for rebranding - services in the retail market will be provided under the new name Amaday.

«Our company has been working in the field of providing asset management services in Europe and the CIS countries for more than five years. We will do our best to make the process of company unification easy and enjoyable for our new customers and so that they only experience the benefits of this event. Investment protection will become even more reliable as our investment management company works in accordance with the requirements of the most influential market regulators, and On Capital’s successful management strategies and technologies will be preserved.» - says Alexander Zaycev, managing director of Raison Asset Management.

Raison Asset Management is licensed by BVI Financial Services Commission (FSC) and registered by the US Securities and Exchange Commission (SEC) as investment advisor, meets the requirements of the European Securities and Markets Authority (ESMA) and is a member of FINRA.

Element ONE


Issuer: ELEMENT ONE LTD 
ISIN Number: VGG299771086
Issue Description: USD CL B SHS
ISO CFI: CICXXX

In early July, the U.S. Department of Labor published a strong labor market report for June 2019. Non-farm sector employment grew by 224,000 over the month, hourly average wages rose by 3.1% in annual terms.

On July 10, the SPX index for the first time in history exceeded the mark of 3,000 points in anticipation of a rate reduction.

On July 19, gold futures began to consolidate above the $1,450 per ounce, returning to May 2013 values. The tension of the trade conflict is forcing investors to shift into defensive assets.

On July 31, the Federal Reserve System lowered the rate by 0.25% for the first time since 2008, but Fed Chairman Powell emphasized in his statement that this rate reduction is not the beginning of a new cycle of reduction the cost of borrowed capital.

The Element ONE fund in July showed a negative result - the share price fell 3.07% to $1,496.5. In the middle of the month, we opened a short position on Interactive Brokers (IEX:IBKR) for hedging longs. On July 19, we added a long VMware stock position (NYSE:VMW) to the portfolio, breaking through the moving average (50), which, in our opinion, has every chance to end the year with a result above $195 per share. Unfortunately, half of the securities had to be closed with a stop-loss at a price of $165 per share. However, we are looking at the company's unique decisions with positive eyes and plan to average the position in September.

Mining.VG


Issuer: RAM Data Technologies INVT LTD
CUSIP Number: G7369L 106
ISIN Number: VGG7369L1067
Issue Description: EUR CL C SHS
ISO CFI: CICJMS

In July 2019, bitcoin was not so volatile compared to previous periods - its price ranged from $9,000 to $13,000, only once breaking the upper limit of the specified price range. By the end of the month, BTC fell in price by just over 6% of the month’s opening, ending the month in the region of 10,000 US dollars.

The month turned out to be not the richest in bright events - the regulators' claims to Facebook were mainly discussed regarding their crypto project Libra. A number of local and international companies informed about the start of using BTC to accept payment for services and products, as well as their participation in the creation of exchanges, wallets or cryprtocurrencies. For example, Norwegian Air will sell tickets for bitcoin, Daimler AG (which includes the Mercedes-Benz concern) is developing a cryptocurrency wallet for cars, and Roma, Juventus, PSG football clubs plan to launch their own cryptocurrencies.

In July 2019, Mining.VG, like the cryptocurrency market, showed a negative trend compared to June 2019 - minus 1.53%, taking into account accumulated and paid coupons. In July 2019, the mining fund added the Cuckatoo31 algorithm for 1080ti video cards, which allowed to increase revenue for this type of cards by 10-15% relative to bitcoin. However, the negative trend of the ETHBTC pair did not allow to derive the proper benefit from a partial transition to the specified algorithm. The fact is that a large amount of equipment runs on the ethash algorithm and sells this power for Ethereum mining, getting Bitcoin for it. Thus, with a drop in the cost of Ethereum relative to Bitcoin, the profitability of video cards decreases, in July the decrease in the ETHBTC pair amounted to more than 30%. In addition, in July, the Ethereum mining difficulty increased by 5% from 2.1P to 2.2P, which at constant power yielded a reduction in remuneration. All this was reflected in a decrease in mining remuneration in euro equivalent from 12.8 thousand euros in June to 9.7 thousand euros in July 2019.

At the same time, we see the completion of the corrective movement of cryptocurrencies, which began at the end of June. The fund continues to store major reserves in BTC, which is a stabilizing factor in the medium term.

We also made minor technical improvements on the website and now we display the fund’s yield chart taking into account the accumulated and paid coupons for the convenience of fund’s investors.
RAISON ASSET MANAGEMENT temporarily stops sending monthly newsletter to customers' emails due to the change of service provider as well as the switching to a new scalable service for greater coverage and better fault tolerance compared to the previous provider.

We plan to resume sending monthly newsletter in September 2019. We also invite you to take part in a short poll:

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