After two successful months, the Superfund trading systems posted a slight loss in April. Nevertheless, strong results from the start of 2008 confirmed a positive outlook for Superfund investors.
By the end of April, the Superfund funds returned an annual performance, from January 2008, of +9.9% (Superfund A EUR SICAV), +14.6% (Superfund B EUR SICAV) and 17.2% (Superfund C EUR SICAV). The new Superfund Gold Funds out-performed the underlying strategies with the Superfund Gold A USD SICAV returning a satisfying 13.17% for Superfund investors (Jan - April 2008).
Resurgent stock markets, rising commodity prices and a gold price of $850 per ounce.
World stock indices rebounded in April as the aggressive Fed action of March appeared to provide a short term respite from credit crisis turmoil. Asian indices led the way again with Japan, China, and the Hang Seng posting significant gains. U.S. stocks found support from another rate cut and solid technology earnings, while European economic data held steady, leading to solid returns. World bond and money markets continued to move lower as inflation readings rose with energy prices.
U.S. rate cut expectations declined as the Fed signaled its desire to await the results of previous policy moves. The Dollar moved lower throughout most of the month before reversing ground to finish slightly higher on the less aggressive rate cut expectations. Australia, Brazil and Canada reasserted themselves with the continued benefit of elevated commodity markets. World energy markets moved to all time highs once again amid rising violence in Nigeria and tightening profit margins in distillates. Gold and silver sold off during the latter half of April as a result of changing rate cut expectations in the U.S. and a recovery in equities. Corn rallied on diminishing acreage expectations, while wheat continued to lose ground due to rising planting estimates. Hogs rose amid rising exports to China and Russia.
Gold futures rose in the first half of April, as on-going dollar weakness and rising global inflation fuelled recovery from month-end lows in March. On news of less aggressive rate cuts by the US Central Bank, gold listings fell again to end the month 6.1% down. By close of month, the combined strengthening dollar and resurgent stock markets encouraged investors to sell off the precious metal which consequently returned to its former market high of $850/ounce.