Glacier Int Multi-Currency Comment- Sep 07 - Fund Manager Comment19 Nov 2007
Performance review
The portfolio fell by 2.08% for the month under performing its benchmark, which returned 1.84%. The portfolio currently invests in all maturities in the very short end of the yield curve on all deposits. The portfolio provides investors with an ideal hedge against rand depreciation and access to a well-diversified portfolio of developed market currencies.
Market review
On the money market the USD 3 month deposit rates decreased from 5.57% to 5.05% on the back of the FOMC decision to cut interest rates from 5.25% to 4.75%. Looking forward the market expects that the FOMC will cut again with 25 basis points on the next meeting-taking place on the 31st of October. All maturities are reinvested in the 3-month area of the yield curve.
EUR 3 month deposit rates increased from 4.36% to 4.64% during the month. The ECB left the lending rate unchanged at 4% on the 6th of September. The next meeting will take place on the 4th of October. Market expectations are that the ECB will keep interest rates unchanged at 4%. The current 3-month forward rates expect interest rates to trend sideways. Currently we invest all maturities in the very short end of the yield curve.
The GBP 3 month deposit rates decreased from 6.50% to 6.00% during the month. BOE decided to keep the lending rate unchanged at 5.75%. The next meeting will take place on the 4th of October. We expect that the ECB would leave interest rates unchanged. Currently we invest all maturities in the 3-month area of the yield curve.
Name Change - Official Announcement27 Sep 2007
The Innofin International Multi-Currency Fund changed its name to the Glacier International Multi-Currency Fund on 07/08/2007.
Innofin Multi-Currency comment - Jun 07 - Fund Manager Comment18 Sep 2007
Performance review
The portfolio declined by 0.38% for the month under performing its benchmark, which declined by 0.34%. The portfolio currently invests in all maturities in the very short end of the yield curve on all deposits. The portfolio provides investors with an ideal hedge against rand depreciation and access to a well-diversified portfolio of developed market currencies.
Market review
On the money market the USD 3 month deposit rates traded in a narrow range between 5.25% and 5.28%. The FOMC decided to keep the Fed Funds rate unchanged on the 28th of June. Currently money market forwards suggest that the Fed will stay on hold. EUR 3 month deposit rates steadily increased from 4.01% to 4.06% during the month. The ECB increased the lending rate from 3.75% to 4% on the 6th of June. Their next meeting will take place on the 5th of July. Market expectations are that the ECB will keep rates unchanged. The GBP 3 month deposit rates increased slightly from 5.70% and 5.76%. The BOE decided to keep interest rates unchanged at 5% in June.
Innofin Multi-Currency comment - Mar 07 - Fund Manager Comment28 May 2007
Performance review:
The portfolio returned 0.64% for the month ahead of its benchmark. All USD maturities are reinvested in the 3 month area of the yield curve. The portfolio currently invests in all maturities in the very short end of the yield curve on EUR deposits while all GBP maturities are invested in the 3 month area of the curve. The portfolio provides investors with an ideal hedge against rand depreciation and access to a well diversified portfolio of developed market currencies.
Market review:
The USD 3 month deposit rates traded in a narrow range between 5.20% and 5.26%. The FOMC decided to keep the Fed Fund target rate unchanged at 5.25%. Currently money market forwards suggest that the FED will stay on hold and could even consider cutting rates going forward. All maturities are reinvested in the 3 month area of the yield curve.