FMG (EU) Combo Fund gained 3.5% in the 2nd Quarter of 2017

The FMG Combo Fund registered a strong gain for the 2nd quarter of 2017. We were very bullish going into the year and remain so going into the 2nd half of the year. We have been tilted towards overweighting EM and this was the correct call given that EM was the best performer. There were no significant events that in Q2 other than a priced-in Fed rate hike, a continuation of the BREXIT talks and the MSCI inclusion (0.7%) of China A shares in the MSCI EM Index. Developed markets continued rallying hard with a particular focus on the implementation of the US Congress legislations. Going forward, we do not see any dramatic or significant changes to how the equity markets are trading, but are slightly concerned with the low volatility being exhibited in equity markets. Our concern lies with the fact that markets may be becoming a tad complacent and so our strategy is to continue to look for opportunities that can bring alpha to the Fund.