Dear participants and beneficiaries:
This week we have seen the second quarter GDP data for both Europe and the US and the figures are overwhelming. The fall in quarterly data for the US economy is 32,9% (the fall in December 2008 was 8,4%) and for the German economy it is 10,1% (compared to a peak fall in the 2008 crisis of 4,7%). In the world’s leading economy, moreover, the sources of uncertainty are increasing: the virus seems far from being under control with Texas, Florida and Arizona recording record numbers of deaths, the chairman of the Federal Reserve stated on Wednesday that the evolution of the economy will depend, to a large extent, on the control of the virus and, as if all this were not enough, President Trump suggested the possibility of delaying the November elections, alluding to possible fraud in the postal vote. All this news has led to a return to safe-haven assets with sovereign bond yields falling (the yield on the German ten-year is already at -0,53%) and further rises in gold, which is now around USD 2000/oz. This time, however, the US currency has depreciated sharply against the EUR, perhaps because of the feeling that the disease seems to be more under control in the old continent and because Democrats and Republicans in the US still cannot agree on a recovery aid package. In Europe, in line with the publication of macroeconomic data, falls were around 3,5%, while in the US, after the excellent results of the big technology companies, they managed to slow down the blow and the SP appreciated by around 1%.
As of 29 July 2020, the fund’s annualised return over the last 5 years was 2,56% and the corresponding year-to-date return was -0,44%.
PC30, as a signatory to the Montreal Carbon Pledge, is committed to publishing the carbon footprint of its portfolio every year. This week you can find the news on this website in which we explain that during 2019, the fund’s footprint was reduced by 30%. Today’s publication brings to an end the regular communications on the coronavirus crisis. The volatility of the NAV, although still high, has normalised quite a bit and from now on we will address our members when there is an event that we believe may be of interest to them.
| Period | Profitability |
|---|---|
| Annual from start | 3,74% |
| Annual ult. 15 years | 3,91% |
| Annual ult. 10 years | 5,25% |
| Annual ult. 5 years | 2,56% |
| Annual ult. 3 years | 3,74% |
| Last 12 months |
Have a good summer, everyone.
Comisión de Control PC30 y Plan de Pensiones de Empleo de CaixaBank, S.A.
Barcelona, August 2020.