Although June delivered negative returns for most asset classes, some positives were noted for the quarter as a whole. The global MSCI appreciated bt 4.2% while the MSCI Emerging Market Index appreciated by 5.4%. Emerging markets were something of a mixed bag with China and Russia down 7.5 and 12.2% respectively. Commodity prices declined across the board as did the trade-weighted US dollar. Oil, in particular, declined sharply as shale gas production reentered the mix and surplus oil stocks needed to be traded out in light of falling prices. On domestic markets, resource stocks mirrored the decline in commodity prices while bonds eked out a meagre return for the quarter.Apart from industrial stocks which were up 3.4%, cash was the next best performing asset class at + 1.7%. Looking ahead to the next six months we see the possibility of higher global economic growth and the potential for slightly higher inflation in the US. SA growth remains bogged down in policies about policies with very little in the form of concrete steps needed to solve the SA growth conundrum. Our analysis suggests that the %cause of the problem has more to do with capital allocation than ''monopoly capital.'' Sadly the political rhetoric overwhelms the real and much-needed debate.

The primary focus during the quarter was raising cash to 25% of fund value to protect downside risk. Our focus now shifts to the second half where we are looking to increase an element of risk exposure by focussing on those stocks that have the potential to benefit from the cyclical increase in global economic growth.

The MI-PLAN IP Global Macro Fund will change it's name to Mi-PLAN IP Global Macro Fund, effective from 19 July 2017

Your fund has enjoyed a strong start to 2017. During the first quarter, a number of technology stocks surged ahead with returns more than 20% in dollar terms. NetEase, Adobe Systems, Facebook, Apple and Amazon all delivered strong returns. Part of the reason for this is that this segment of the market continues to enjoy strong earnings growth with companies such as Adobe and Amazon rolling out new products and developing new revenue streams on an ongoing basis. On the negative side Bristol-Myers lost 15% as their flagship product failed to excite the market.

Overall economic data in the US and Europe improved during the quarter as did data ex China. But the incumbent US President is not having things all his own way. Understandably, the US equity market lost a little momentum as a result as did the dollar. Having enjoyed solid gains since inception of the fund, we raised cash a little as a short-term risk management position.