- The Fund’s USD I Class was up 1.75% in July; +11.12% year to date.
- China’s economic data robust, offshore renminbi up 0.75% against dollar
- Fed left rates and QE unchanged; balance sheet unwind to start ‘relatively soon’
- US data continues to broadly disappoint; IMF revises US growth forecasts lower
A broadly positive month witnessed a collapse in cross-asset volatility; the VIX index fell to all-time lows during the month, while the Merrill Lynch Move Index dived to its lowest level since it was first published in 1988. The Move Index measures the volatility on one-month UST options based on the 2,5,10 and 30-year benchmarks. Other big moves came from commodities: Brent crude rallied 9.87%, and copper traded up 7.28% over the month; off the back of better than expected China data.