• The Fund’s IDUSD Class gained 0.64% in April
• Sino-US trade relationship sentiment improves
• US data disappoints, while China’s economy remains resilient
• Sovereign holdings in the Middle East outperform along with US Treasuries
• Futures markets pricing in a US rate hike in June
A broadly mixed month across asset classes saw the yield on the 10-year Treasury fall to year lows of 2.169% during the month on the back of heightened global geopolitical concerns, however market sentiment improved into month-end and the benchmark eventually closed at 2.28%, 11bps lower on the month. Oil prices remained volatile once again in April, with Brent crude climbing to highs above $56.60 mid-month and falling back below $52; down over 2% over the month. Meanwhile equity markets continued their rally with the likes of the DAX index racing to all-time highs, while the VIX Index, a measure of volatility spiked to 5 month highs above 16, ending the month at 10 year lows.