|In January 2020, the world financial markets were rocked by the Wuhan Coronavirus, a pandemic that has now contaminated 25’000 people, caused in excess of 500 death and sealed off entire regions of China during the Lunar New year Holidays.|
Chinese assets sold-off heavily with the main domestic equity index falling by nearly 10 % and the Hong-Kong listed H-share index falling by -8.75 %. The Yuan lost 1.7 % against the US Dollar in the last two weeks of January.
During that volatile period the EFG GLOBAL YUAN PORTFOLIO that we manage gained +1.45 % in Yuan and +0.94% in US Dollars as we were fully hedged going into the events.
Since inception 11 months ago, the EFG GLOBAL YUAN PORTFOLIO returned +23.23% net in Yuan and + 18.04 % net in US Dollars.
The EFG GLOBAL YUAN PORTFOLIO Index Certificate is a Swiss Security that was created with EFG to allow investors to build their global exposure to the Chinese currency through a highly diversified, actively managed portfolio of quality Chinese securities.
“Black Swan” events like the Wuhan Coronavirus of January 2020 are the type of unexpected events that test the quality of any management and we ate proud to have protected our investors’ assets and performances over this volatile period.
Our in-depth knowledge of China and our highly diversified portfolio of deep value securities, together with our risk management techniques have demonstrated their worth.
We see the Coronavirus as a temporary event that will shave about 2 % of Chinese GDP growth in the 1st quarter of 2020 but that should fade away by the summer. It will most probably force the Chinese authorities to open the spigots of monetary and fiscal stimulus to counter its deflationary effects, sending an undervalued currency and even more undervalued equity market higher in the future. As our readers know, we expect the 202s to be the decade of the Chinese Financial markets.
The EFG GLOBAL YUAN PORTFOLIO Index Certificate is the perfect instrument to enable you to take advantage of this temporary weakness to build your exposure to China for the long term.
We can only encourage you to download the January 2020 Factsheet of the product by clicking HERE.
EFG GLOBAL YUAN PORTFOLIO Index Certificate is a Swiss Security issued by EFG in Switzerland, denominated in US Dollars and with daily liquidity.
You can download its official TERM SHEET by clicking HERE
Below are the detailed monthly performances of the Product since inception.
Download the January 2020 Factsheet
DISCLAIMER Mechelany Advisors FZE or www.mechelanyadvisors.com, is not a registered investment advisor, nor a capital management firm or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. Mechelany Advisors FZE operates as a private advisory and research company where we provide consulting services to pension funds, investments funds and private clients. Our analyses and conclusions are ours and they only clarify and highlight the investment rationale behind our own investment decisions. The analysts and employees or affiliates of Company may - and usually do - hold positions in the stocks or industries discussed here. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. You understand and acknowledge that there is a very high degree of risk involved in trading securities. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns. The indicators, strategies, columns, articles and all other features of Company’s products are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company’s website are for educational purposes only. Such examples are not solicitations of any order to buy or sell securities, commodities, investment products or engage into any kind of trading activities. Accordingly, you should not rely solely on the Information provided in making any investment decision. Rather, you should use the Information provided only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment. By navigating on our website or remaining on our subscription lists, you accept our terms and conditions and discharge us irrevocably form all responsibility.