Profitability Reports of our clients from September 2015

Profitability Reports of our clients from September 2015


Equity Markets

European equities were the asset that presented the worst performance in October, ending with cuts of -3.53%, below its monthly average and accumulating a quarterly decline of -13%. Although these drops were moderate compared last month, volatility remains high (around 6%).

In spite of the deep cuts suffered from the month of August in the equity markets, the annual returns remained positive in the Euro Zone, reaching increases about + 5%.

Fixed Income Markets
Convertible bonds shared the negative trend of the equity due to their high correlation. Monthly losses eased over the month of August, still higher than the -1% and falling below its monthly average. Quarterly return was -2%, while the annual remains positive and represents a 7%.

Very similarly, corporate income suffered losses close to -1%. The quarterly return was also negative at around -1%, while the cumulative annual return was less than +3%. Corporate income was the financial asset that contributed less to the annual performance following the public debt with maturity of 1-3 years. 

In contrast, public debt across all maturities performed well, scoring a + 0.80% return for the month of September, higher than the monthly average value. The quarterly and annual yields also remained positive, at around + 2% and + 3.80% respectively. The returns on government bonds remained flat 1-3 years and close to its average.

In the quarterly figure it is where we have found greater disparity, placing the greatest loss of corporate assets in convertible debt and equities following. Contrary, Public debt had a positive performance exceeding the quarterly average.

Foreign exchange
During recent days, the exchange rate EUR/USD has suffered constant fluctuations following numerous statements by various members of the Fed as well as the final decision announced by Janet Yellen to keep interest rates unchanged, and the publication of important macroeconomic data both in America and in Europe.