Our weighted average return in May was +0.66%. Since 2015, we have generated a net return of +34.59%.

In terms of investment strategy performance, our weighted average net returns for May were (a) -0.91% for conservative strategies, (b) +0.04% for balanced strategies, and (c) +2.39% for aggressive strategies.

The dominant theme in May was the continued resurgence of the US dollar, which gained 3.5% versus the euro. The media attributed this move to political strife in Italy and Spain, but the fact of the matter is that the US economy is doing extremely well. First quarter earnings for the S&P 500 rose by 24% versus the same period last year and the flash manufacturing purchasing managers index also rose in May.

Unfortunately, turmoil in emerging markets such as Turkey and Brazil contributed to weakness in emerging market securities. The strong performance of the USD contributed to the general misery. As such, the MSCI Emerging Markets equity index declined 2.2% in May, while the JP Morgan Emerging Market Bond Index Global (EMBIG) was off 1.1%.

While ongoing weakness in fixed income securities continued to weigh on the performance of our conservative portfolios, our security selection and overweight allocation to the technology, materials and biotech sectors contributed to the strong performance in our aggressive portfolios.

Many of our equity positions have continued perform very well so far in June, and we have been taking profits in order to fund other opportunities.

Before I sign-off on this commentary, I would also like to take this chance to say how very proud we are of our analyst Krista Uzare. Recently, over a span of two weeks, Krista not only won two successive UIM-ABP Aquabike World Championship Grand Prix titles in Italy, but also achieved a phenomenal result defending her bachelor’s thesis. Congratulations Krista!

On behalf of our Client Portfolio Management team, I thank you for your continued trust and support!

FULL DISCLOSURE: Please note that the opinions expressed in this blog should in no way be considered as investment advice or a solicitation to buy or sell securities.