Series B:
Net results for the quarter ended August 31, 2018, were a loss of (1.1)% in net asset value compared to the preceding quarter end. In this period, Series B experienced a net decrease in net assets from operations of $46,344. This decrease consisted of investment income of $1,288, trading gain of $14,840 and total expenses of $62,472 . Expenses included $14,312 in management fees, $1,160 in operating expenses, $30,945 in selling commissions, and $16,055 in brokerage commissions. At September 30, 2018 and December 31, 2017, the net asset value per Unit of Series B was $1,139.61 and $1,359.98 respectively.
Fund results for 3rd Quarter 2018:
In September, the fund experienced subpar performance with overall returns of-3.70%. These returns were primarily due to positions held in the Energy sector, which attributed-1.21% to the aggregate total. Amongst energy markets, NYMEX Natural Gas and TOCOM Gasoline contributed the most to the fund’s negative returns at-0.78% and-0.27% respectively, as oil prices fell in response to rising U.S. inventories and concerns with demand from emerging markets. Agricultural markets proved to be the second largest negative contributor for the fund with returns of-0.78%, after ample supply in most agricultural markets caused prices to decline. Furthermore, Grains reported a performance of-0.72 % due to bearish correction in markets, caused by the ongoing trade dispute between the U.S. and China. The Bond sector also created downward pressure of-0.47 % on the fund’s performance, following the announcement of the U.S interest rate hike which sent global bond prices lower and treasury yield higher. Subsequently, the fund’s two top performers were the CBT5-Year Treasury Note and CBT10-Year Treasury Note. Amongst all the sectors Metals was the only outlier with small gains of 0.02%.
In August, the fund ended the month with returns of-2.57%, as all invested sectors except Agricultural Markets performed unsatisfactory. Amongst these sectors, Stock Indices weighed the most on the fund’s performance with returns of-0.70%. The Eurex DJEurostox proved to be the second worst performing market with returns of-0.3046%, as its long positions suffered with the poor performance of the EuroStoxx, which experienced returns of approximately-3.80% in August on a strengthening of separatist movements in major European countries. LME Aluminum at-0.33% was the fund’s lowest performing market, as metals prices proved volatile throughout the month on the continued tariff war between the US and China. Despite the poor overall performance of the Stock Indices sector this month, the CME_mRussel2k_IX was a top performing market at 0.28%, as the US stocks remain on the path to enter its longest ever bull-market, which can be attributed to strong US economic growth and renewed strength in corporate earnings.
In July, buoyed by strong returns in the Metals and Stock Indices sector the Fund saw moderate gains of 0.99% for the month of July 2018. Short position held in December Comex Gold benefited as Gold prices hit1-year low after hawkish comments from Fed’s Powell indicated that the central bank will continue to raise borrowing costs gradually, pushing the Dollar higher while diminishing the appeal ofnon-interest-bearing assets like bullions. Strong US second quarter Gross domestic product (GDP) growth of 4.1 percent, together with impressive strength of corporate earnings saw many global indices jumping to new heights allowing long stock positions to capitalize on the upswing in indices prices. Not to be outdone both the Grains and Agricultural Market sectors provided strong support of 0.39 and 0.28% respectively helping to neutralize the negative performance realized in the Bonds and Energy Sectors. Long positions held in the Eurex EuroSchatz suffered most as yields dipped as expectations for rate hikes were pushed back until at least summer 2019.
Three Months Ended June 30, 2018
Series A:
Net results for the quarter ended June 30, 2018, were a loss of (0.1)% in net asset value compared to the preceding quarter end. In this period, Series A experienced a net decrease in net assets from operations of $17,988. This decrease consisted of investment income of $846, trading gains of $31,407 and total expenses of $50,241. Expenses included $15,448 in management fees, $1,253 in operating expenses, $33,401 in selling commissions and $139 in other expenses. At March 31, 2018 and December 31, 2017, the net asset value per Unit of Series A was $1,094.09 and $1,099.78, respectively.
Series B:
Net results for the quarter ended June 30, 2018, were a loss of (2.7)% in net asset value compared to the preceding quarter end. In this period, Series B experienced a net decrease in net assets from operations of $132,751. This decrease consisted of investment income of $1,209, trading loss of $52,407 and total expenses of $81,553. Expenses included $24,978 in management fees, $2,025 in operating expenses, $54,006 in selling commissions and $544 in other expenses. At March 31, 2018 and December 31, 2017, the net asset value per Unit of Series B was $1,325.56 and $1,359.98 respectively.
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