The macroeconomic environment in June was obviously dominated by the vote of Brexit on 23 June. Before the vote, it must be admitted that the statistics were pretty good overall. In Europe, GDP growth was positive and the PMI above 50. In the US, statistics were somewhat more mixed, particularly in terms of employment. Also, it seems increasingly likely that the Fed maintains the current rates for a while given the outlook for growth and inflation. In Japan, most of the macro data were above the expectations especially in regards with the figures of GDP growth. This suggests that the Japanese economy is in better shape than expected. Once the result of Brexit known, the total opposite of bookmakers and market expectations, uncertainty generated massive sales and a big markets correction. The unknown that surrounds the implementation of this decision will likely involve many economic and political consequences for all parties involved and a lot of volatility. Added to this is in addition to other fears such as the risk of contagion or the problem of Italian banks. In this environment, the Global Strategy Fund did not bet neither upward nor downward on the outcome of the vote. Equity exposure was reduced previously and the Fund therefore has suffered virtually no correction. Instead, it helped to make some purchases of European trackers at attractive levels. The summer will be however crucial for the evolution of the performance and the lack of liquidity in the market makes it a perilous exercise.
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