FIMARGE Funds and SICAVs

Both US and EZ shares ended lower in October. The presidential election, the ongoing doubts about the path of interest rates and some disappointing quarterly updates for some largest companies weighted on market returns, specially through luxury goods and carmakers. Shares in China also experienced sharp declines in the month after stimulus measures by the Chinese government failed to bolster investor sentiment. October was also a challenging period for fixed income. Despite the latest inflation release was slightly below expected, most of the major government bonds were sold off over the month, since it was supposed that a Republican victory could mean the likely implementation of more inflationary policies. However, on the credit front, the majority of Euro and USD tranches outperformed, with Euro HY delivering the best total return over the month. As for commodities, precious metals and energy were the best performing components.