CHF (P): ISIN: LU0901047646; WKN: A1J9GP
EUR (P): ISIN: LU0459291166; WKN: A0YDDD
The Commodity Capital Global Mining Fund was able to gain slightly in the reporting month. The reporting month was dominated by the war between Russia and Ukraine and a sharp increase in volatility. The fund price rose slightly by 2.9% in February. In terms of raw materials, the sanctions against Russia should primarily affect the oil and gas sector, as well as palladium, potash, nickel, uranium and grain prices. Gold as a "safe haven" is certainly benefiting from the increased uncertainty, but it is also to be expected that Russia will or will have to fall back on the existing gold reserves to finance the war. We continue to have a high cash ratio and are currently awaiting the decision of the central bank regarding the turnaround in interest rates and a first rate hike in mid-March. Historically, the time after the first rate hike was an excellent opportunity to invest in gold mines, since the turnaround in interest rates was usually accompanied by a turn to a new gold bull market. We expect a similar scenario for the current interest rate turnaround, especially given that inflation remains high (February CPI in the US at 7.5%) and will remain so. Even a rise in interest rates to 2 or 3% would still mean extremely negative real interest rates and thus an ideal breeding ground for gold. On a positive note, the big majors are already beginning to recover, leading the gold price and juniors. As with any new gold bull market, it will be the majors who will perform positively first, before the junior and exploration companies catch up and start outperforming. Barrick Gold proved once again that the fundamentals for the mines are excellent, which launched a share buyback program for $1 billion .USD, as well as a dividend of up to 0.25 cents per quarter. We see the current time as the ideal time to position ourselves strategically and are eagerly awaiting the reactions of the markets to the upcoming central bank meeting.
WKN: A2AT4F ISIN: LU1510784512
The Structured Solutions SICAV – Resource Income Fund shone last month with an above-average performance for the bond sector. The decisive factor here was the good stock selection by the fund management. Even if the global interest rate markets will certainly continue to come under pressure due to rising inflationary pressure, we believe the fund is excellently positioned. We are expecting exciting new investments in the coming months that will give the fund renewed impetus.
STRUCTURED SOLUTIONS NEXT GENERATION RESOURCES FUND
WKN: HAFX4V ISIN: LU0470205575
The Next Generation Resources Fund was able to gain in the month under review. The lithium price has almost doubled since the beginning of this year alone, after the spectacular increase last year. So lithium stocks should currently be climbing from one high to the next and we expect this discrepancy to be resolved again in the coming months. The war in Ukraine and the associated sanctions currently have little impact on the lithium market. However, we anticipate an increase in delivery problems for electric cars, since, for example, suppliers of wiring harnesses from the Ukraine will not be able to continue production. We currently do not see any acute bottlenecks on the production side due to the sanctions, but we are closely monitoring developments in nickel in particular. We see the current consolidation in the lithium stocks as temporary, especially against the background that the lithium price has doubled again in the past 2 months alone, and see considerable potential in the lithium stocks. However, investors must always keep in mind that the companies have concluded long-term lithium contracts and that the current price increases will only be visible in sales and quarterly reports in 6 to 12 months.