NHS Sicav -NOVACAP Global Strategy fund – September 2015

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September saw a continuation of recent trends that have made the last few months a very turbulent period for investors. The adage “Sell in May and go away” was confirmed for this year 2015! The key element of September was the decision of Mrs. Yellen to postpone the interest rates hike because of the FED’s concerns about the low level of inflation, the global level of growth and the recent events in emerging economies (devaluation of the CNY and threats on China’s growth).On this basis, most asset classes suffered, apart from the cash, the bond market being also under strong pressure. In the US, several industry news also weighed on prices, mainly in the biotech and pharma industries. The S&P500 ended the month at -2.64%. In Europe, the Eurostoxx 50 ended with a performance of – 5.17%. The scandal of Volkswagen’s CO2 emissions and the worries about for the solvency of Glencore came and strengthened this volatility. In Japan, the Nikkei was – 7.95% in September. Reducing exposure to long only equity and increasing the level of cash enabled the Global Strategy Fund to significantly outperform its benchmarks. The markets being in expectation of new measures from the central banks, it seems unprofitable to increase the weight of risky assets in the portfolio. However if a trend would appear on favorable results based during the month of October, equity exposure will automatically be increased. Please find attached the Fact-sheet of NOVACAP Gobal Strategy fund :

http://www.novacap-am.com/img/pdf/NGSF_FS_ENG_SerieA-3.PDF

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Laurent Van Den Eynde

Laurent Van Den Eynde

Co-Manager of Global Strategy fund

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