Specialists in frontier and emerging markets
Fact sheets derivative funds published

Fact sheets derivative funds published

Published on January 18, 2017

On a monthly basis the Japanese Nikkei index went up by 2.7 percent in euro in December. The fund price of the Japan fund increased by 3.3 percent. The yen, which often serves as a proxy for the ... Read more

Market Monitor

Market Monitor

Published on January 18, 2017

The Market Monitor provides fundamental and technical data about the markets in which the Derivative Funds are active. Read more

Fact sheets derivative funds published

Fact sheets derivative funds published

Published on December 15, 2016

In the month of November the HSCEI index went up 6.4 percent in euro terms. The price of the China fund rose by 4.4 percent. The value of the Hong Kong dollar rose 3.3 percent. The trading m... Read more

Fact sheets derivative funds published

Fact sheets derivative funds published

Published on November 15, 2016

The Intereffekt Active Leverage Brazil fund increased by 88.9% this year until October. A nice increase but given the level of leverage the fund runs a bit behind. The reason for this is that the trad... Read more

Fact sheets derivative funds published

Fact sheets derivative funds published

Published on October 14, 2016

In September the HSCEI index went up 0.2 percent in euro terms. The fund price of the China fund increased by 0.6 percent. The value of the Hong Kong dollar fell 0.6 percent. The trading model re... Read more

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Derivative fund China

Fund profile

Intereffekt China Warrants is called Intereffekt Active Leverage China from 2 November 2015.

Intereffekt Active Leverage China invests in derivatives on the financial markets in China. The fund is aiming at a leverage of 2 to 3 times the return on the underlying values. Its investment policy will be aimed primarily at achieving capital growth (the fund will not pay any dividends). The risk profile is high, due to investments being channeled into derivatives and the emerging markets of China. The manager will not use a benchmark as a gauge for the purposes of determining investment policy or comparing the results achieved by the fund.

Intereffekt Active Leverage China is a subsidiary fund of Intereffekt Investment Funds N.V. (IIF), established with a so-called umbrella structure.

Fund performance

grafiek china dec

The Fund Manager writes

In the month of December the HSCEI index went down 4.0 percent in euro terms. The fund price fell 9.1 percent. The value of the Hong Kong dollar rose 0.5 percent. The trading model has generated several signals in December, so the leverage has been modified several times.

During the first trading day of the month the HSCEI index reached the level of 10,000 points, which also was the highest point of the month. From this level a decrease of 9 percent followed down to the level of 9,150 points, where a bottom was formed. The index recovered slightly, but on balance it was a bad month in China. Also, compared to other world indices the HSCEI index underperformed due to various causes.

For example, investors expect interest rates will rise in the US. The Fed has already fulfilled a part of this expectation on December 15, by raising rates with 25 basis points from 0.50 to 0.75 percent. In response, the HSCEI index fell nearly 3 percent. The fact that the HK dollar is pegged to the US dollar means that the interest rates will go up in Hong Kong. With the skyrocketing real estate prices in HK, it is the question to what extent this will have impact.
In addition, investors look to the weakening yuan that creates a flight of capital from the country. The Chinese currency has not fallen so hard for over 20 years in 2016. In the first ten months of 2016 nearly $ 700 billion in capital fled. The Chinese central bank only had $ 3.1 trillion in currency reserves in November, the lowest level in six years. Foreign investors and Chinese savers are worried about their assets and rather keep these out of China. For example, the 50% increase in 2016 of the Bitcoin is mainly due to Chinese who buy this digital currency.

However, the value of the yuan has also advantages. Exports from China grew slightly in November, for the first time after seven months of decline. In addition, the Chinese industry is also doing better. The purchasing managers index rose for December from 50.9 to 51.9. The figures point to a stabilization of the growth rate.

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Latest factsheet
Factsheet China 2016-12

Factsheets archive
Factsheet China 2016-11
Factsheet China 2016-10
Factsheet China 2016-09
Factsheet China 2016-08
Factsheet China 2016-07
Factsheet China 2016-06
Factsheet China 2016-05
Factsheet China 2016-04
Factsheet China 2016-03
Factsheet China 2016-02
Factsheet China 2016-01
Factsheet China 2015-12

Market Monitor / Trading model
Latest Market Monitor

Legal information
Key Investor Information Document
Change of conditions 2016-12
IIF semi-annual report 2016
Trustus conflict of interest policy 2016-07
Trustus annual report 2015
IIF annual report 2015
Change of conditions 2015-11
Name change funds 2015-10
Certificate of Incorporation TRUSTUS
Certificate of Incorporation Intereffekt
Prospectus
Licence

Disclaimer

No rights may be derived from this publication. You are referred to the prospectus and Key Investor Information Document for the fund's terms and conditions. These documents may be obtained from the website or the address mentioned below. The manager of IIF has obtained a licence for this fund from the Netherlands Authority for the Financial Markets in accordance with the provisions of the Financial Supervision.