Insights

The US dollar outperformed all the other major currencies in December, turbocharging after the Fed scaled back their rate cut projections to indicate only two quarter-point reductions in 2025. The pound, although far behind the US dollar, was the second-best performer. The BoE held steady, and although three members voted for a cut, officials upgraded their inflation forecasts due to the latest budget announcement.

The euro suffered more as the ECB lowered borrowing costs by 25bps and signaled more to come. The political crises in Germany and France, as well as uncertainty surrounding Trump’s tariffs on European goods were also a headache for euro traders while the yen tumbled after the BoJ disappointed those expecting an immediate rate hike. Gold held steady, not surrendering to the dollar rally, as the PBOC resumed its purchases and as geopolitical concerns continued allowing some safe-haven buying.

December began on a challenging note for the IXI Fund, experiencing losses in the first week. However, these losses were swiftly recovered, and by mid-month, the strategy had turned positive. The gains were maintained throughout the remainder of the month, with only small daily variations. As December marks the final month of the year, we are pleased to report that the IXI Fund performed strongly in 2024.

This accomplishment reflects the dedication of our team and highlights the strength of our strategy, which navigated effectively the ever changing market conditions imposed by the economic and geopolitical global affairs of 2024. As we close out the year, the IXI team extends its warmest wishes for a healthy and prosperous 2025 to all our investors and partners. We remain focused and committed to delivering a great product, aiming to continue delivering value to our investors in the years to come.