Corporate events

Element ONE


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

Element ONE Fund in April 2020 showed a result of -5.77%.

SP500

In April, the SP500 index showed an upward trend after a deep fall in February - March and grew by 13.36%. At the end of the month, the price of the index was $2906, near its monthly maximum. The growth took place against the backdrop of unprecedented incentive measures taken by the US government: in April, Donald Trump signed into law on a new $500 billion support package.

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Global demand for the USD is gradually declining. The US Dollar Index Futures is trading at $ 100.The rates of the central banks of the United States and the ECB are at near zero levels and are likely to remain so for a long time to come.

Fed: 0.25% (PRE 0 - 0.25%)
ECB: 0% (PRE 0 - 0%)
CBR: 5.50% (PRED 6%).

The Central Bank of the Russian Federation may reduce the key rate to 5% in the summer.

Despite all efforts, the situation in the real sector is difficult. Everywhere there is high unemployment, a drop in industrial production and a decline in world trade. All countries' PMIs are critically low.

The US unemployment rate in April was 14.7%.

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US unemployment forecast:

• 2 kV. 2020 G. = 14%;
• 3 kV. 2020 G. = 16%.

The UN predicts a reduction of 195 million jobs due to COVID-19 in the 2nd quarter. 2020 in the world.

US GDP for the first quarter of 2020 amounted to -4.8%.

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US GDP Forecast:

• 2 kV. 2020 G. = -39.6%;
• 2020 G. = -5.6%.

Key Comments in April


The head of the US Federal Reserve Jerome Powell:

• The Fed has an unlimited amount of money.
• The level of debt makes you worry, but not now - not during a pandemic.
• We will never run out of money.

WHO head Tedros Gebreyesus: “The pandemic is far from over.”

US and China Trade War

The US is considering new restrictions on the export of goods from China. In addition, the United States is investigating the source of the distribution of COVID-19 and trying to blame China. If the United States succeeds in providing evidence of these investigations, it will have an extremely negative impact on current agreements between the countries.

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Brent brand oil

In April, a historic event took place in the oil market. Against the background of high levels of world reserves and weak oil demand, WTI futures before expiration went far into the negative zone.

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The price of Brent fell to $ 15.99 per barrel, but then recovered. The total decrease over the month was 2.77%.

Gold

Amid a pandemic, a slowdown in the global economy and rampant printing of money, gold is still in demand as a protective asset.

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In April, gold continued to grow from $ 1,589 to $ 1,694, thereby adding 6.59% to the price. The maximum in the moment reached $ 1788.

The general commodity market, represented by the DBC ETF (Invesco DB Commodity Index Tracking Fund) showed a neutral trend, falling 1.89% from 11.11 to 10.90.

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COVID-19

The graphs show that in most countries the peak of infections has already been passed.

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Change in portfolio positions

A positive result was not achieved in April. The stock price decreased by $ 93.36 (-5.57%) and amounted to $ 1524.04.

USO is the largest ETF in the oil sector, tracking the dynamics of oil.

The fund closed with a fall of more than 40%, despite the fact that ETF is shifted to the futures of the next month 2 weeks before the expiration of the current one. In other words, the USO had no position during the fall of the May futures in the negative zone. However, the NAV fund has been hit hard by the June futures drawdown. At the moment, the USO has made changes to the investment strategy and distributed the positions as follows:

Commodity Interests Target Weight*
WTI CRUDE OIL Jul20 15%
WTI CRUDE OIL Aug20 15%
WTI CRUDE OIL Sep20 15%
WTI CRUDE OIL Oct20 15%
WTI CRUDE OIL Nov20 5%
WTI CRUDE OIL Dec20 25%
WTI CRUDE OIL Jun21 10%

The new structure will be much less correlated with the current oil price, however, it will continue to be an indicator of the oil market as a whole.

In addition, the freight index (BDRY), which at the moment shows a yield of more than 50% per position, closed with a result of -13% for the month.

Disney shares added more than 4%.

QSR, after buying on April 22 at $ 45, rose to $ 49.3, showing a result of more than 9% per week.
Dear customers!

Please consider that our Financial Institution will be closed on the following days due to upcoming state holidays:

01.05.2020 - 05.05.2020 - non-working days;

09.05.2020 - 11.05.2020 - non-working days.

All NAV calculations will be provided not later than 15th of May 2020.

Mining.VG


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

The total market capitalization of cryptocurrencies decreased by 27.70% from $244.78 billion to $179.04 billion.


BTC: -34,93%; 
ETF: -39,07%;
XRP: -24,35%;

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Source: coinmarketcap.

In March this year, the cryptocurrency market was extremely volatile. The price of bitcoin from 7741 EUR (March 1) fell in the moment to 3316.90 EUR, thereby reducing -57.15%. By the end of the month, the price recovered to 5841.57 EUR (+76.12% of the lower value).

Key news for March:

• The German Federal Financial Supervisory Authority (BaFin) has classified digital assets as financial instruments;
• The Marshall Islands will issue digital currency on the Algorand blockchain, which will be put into circulation through the pre-sale of tokens during this year;
• The South Korean government legalized cryptocurrencies;
• A court in France has classified bitcoin as a currency. The Central Bank of France launches a program for the study of interbank settlements based on digital euro with further plans to issue its own digital currency (CBDC);
• The Investigative Committee of Belarus is preparing to consolidate the process of seizing cryptocurrencies at the legislative level;
• In the US, there was a propose to define bitcoin as a commodity;
• Since the beginning of 2020, the volume of venture investments in the crypto industry has decreased by about 40%;
• Central Bank of the Russian Federation: a new version of the draft CFA bill introduces a ban on the issuance and circulation of cryptocurrencies;
• Bakkt platform raised $300 million in a new round of financing. In March, the physical supply of bitcoin on the Bakkt platform increased by 44%;
• The Central Bank of China criticized Bitcoin amid instability in the global economy, stressing that the asset is not protective. Bank representatives also urge consumers to abandon bitcoin trading because of the associated risks;
• The largest manufacturer of mining equipment Bitmain announced the launch of sales of new Antminer S19 and S19 Pro devices;
• A court in New York issued a temporary ban on Telegram issuing Gram tokens;
• Binance Cryptocurrency Exchange has announced the release of the Binance Card, which will allow you to make purchases in BTC and BNB in 46 million retail outlets in 200 countries.

The fund showed a negative dynamic of -1.37% in March, so since the beginning of the year, the price of the stock, taking into account the coupon paid, has shown a dynamic of -0.23%. The equipment of the fund continued to work on the most profitable algorithm - Ethash.

Major cryptocurrency rates showed a negative trend in March, losing about a third of the cost. Ethereum fell from a value of 197.26 EUR to 121.36 EUR, Bitcoin at an initial price of 7741 EUR, lost 1899.43 EUR and stopped at around 5841.57 EUR.

Additionally, by the end of the quarter, a coupon was paid to investors.
Dear shareholders!

Due to the situation in Russia and the world caused by the pandemic, letting our employees work from home is followed with some difficulties in work processes, NAV calculation for the RAM DTI fund will be provided with a slight delay. We remind you that quarterly coupons will also be paid this month.

We apologize for the inconvenience.

Element ONE


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

Element ONE Fund in March 2020 showed a result of +0.41%, with the S & P500 index falling by 12.51%.

COVID-19

All the necessary measures are taken around the world to curb the spread of the virus. Quarantines are entered, borders are closed. Presumably, such restrictions will be valid until May-June. These measures are necessary and will certainly give positive results.

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The rate of infection in the world.

Moreover, improvements can be observed today, in particular in China. In this country, the number of infections is on the decline and today (07.04) for the first time since January there have been no deaths. China plans to open Wuhan on April 8. Most enterprises in China have already reinstated. US and EU enterprises plan to partially resume their work from the end of April. We anticipate that the peak of the epidemic will be passed in the coming months.

SP500

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In March, the SP500 index fell to the level of November 2016, and in the moment, was priced below $2200. The economic consequences of the pandemic will be quite severe, but the market has discounted a lot in February and March. We are also seeing huge cash injections from major central banks, which have never been before. At the end of the month, the index won back a significant part of the losses and closed near the level of $2600. Over the next quarter, we admit increased volatility due to the beginning of the reporting season and are preparing to buy resold at the time of the company.

Oil

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The oil market has also been shocked. In addition to breaking the agreement to reduce oil production in the OPEC + format, Goldman Sachs estimates that oil demand will fall by 4 million barrels per day in February-April 2020 due to a pandemic. In March, the price of Brent crude oil fell below $ 22 per barrel. The situation in the oil market is really very difficult. Oversupply amid catastrophically low demand lowered the price of oil by more than 50% in March alone. On April 9, a meeting of OPEC is planned with the participation of the USA, Russia, Norway, Britain, Brazil and other countries. The price on expectations of agreements to reduce production exceeded $35.

Gold

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In March, gold acted as a protective asset, showing the highest value since January 2013. At its peak, the value of gold exceeded $1700.

Gold growth is primarily due to the inability to assess the risks associated with the consequences of the epidemic on the global economy. In addition, central banks carried out serious cash injections, in effect, depreciating the currencies themselves.

Change in portfolio positions

A positive result in March was achieved thanks to an active search and implementation of ideas within a month. The cost of the stock increased by $6.67 (+ 0.41%) and amounted to $1617.40. On Boeing shares, we managed to earn more than 20% within a month, the idea for BDRY brought more than 25% in position. Once again, Docusign shares showed a positive result. These positions allowed to block the negative impact from the correction of other securities. Over the next quarter, we admit increased volatility in the securities market due to the beginning of the reporting season and are preparing to buy resold companies at the time.