Insights

The month of May marked a change of fortunes for the US dollar, which staged a sharp recovery as investors started betting on a higher-for-longer scenario for interest rates. Another winner was the British pound, through its close correlation with euphoric stock markets and expectations that the Bank of England will be forced to raise rates further.

Losing the most ground was the euro, after incoming data showed that Germany entered a technical recession as the problems in the manufacturing sector intensified. Over in the commodity complex, gold prices rallied to almost touch new record highs, but reversed course and closed the month lower overall, dragged down by the resurgence in real yields and the dollar.

The IXI Grow Fund gained significantly during May, capitalising on some solid price movements and the pertinent market volatility.The strategy achieved robust mid-month gains which were maintained until the end of the month, despite the market’s indecisiveness towards the end of it.