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.
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.