The broad equity markets have shown positive returns during the month of July. The US DOE (Department of Energy) Crude inventory level fell, giving further support to oil prices. Brent has increased from USD 41.25/barrel to USD 43.30 /barrel. Within energy oil majors had mixed 2nd quarter earnings results. Given increased government initiatives alternative energy stocks have rallied. Within the shipping segment increased iron ore demand from China has pushed-up Capesize- Rates to an average of USD 24.5 k/day during the month of July and thereby lifting dry bulk shipping stocks. Moreover, LPG freight rates have firmed up from USD 15k/day to USD 50k/day at the end of the month. The aviation sector was negatively affected by a new peak in COVID-19 infections in the US. Within the fund the overall exposure to the renewable sector was increased. The overall fund performance was positive for the USD-share class while the EUR share class was slightly negative as the USD has depreciated.
For more information you can find our latest Fact Sheet – July 2020 for the month of July 2020.
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