Julien Moutier

“Over the past month our equity investments contributed positively as global markets recovered. Risk aversion decreased slightly, and positions in government bonds and volatility suffered from profit taking. In view of the cheap valuations, Fed action and credit spread tightening, we have increased equity assets by 5 per cent through a defensive bet on the US (via the Franklin Mutual Beacon fund). This fund invests in distressed securities but also in bonds and cash. We believe that our convertible bet will deliver results in the near future, as it is favoured by low implied volatility and a high credit spread.”