Newsletter dated July 28, 2016

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Versus our last report two weeks ago interest rate levels have decreased around the world and most major equity indices incased. Crude oil prices have pulled back significantly and gold has taken the lead of all asset classes with a gain of 25% as of year-to-date. See our chart of the day for the Gold Spot price per Troy Ounce in US dollar. We will take a closer look at Gold investments in our next investment blog. At the same time Emerging Markets have come back and taken the lead among equities.

Financial news around the world are still driven by the UK Brexit. The US Treasury research department OFR expects the Brexit could undercut US financial stability for years. The Bank of England sees negative rates ahead. Accordingly Royal Bank of Scotland warns customers of possible charges on deposits in UK. Italy based UniCredit prepares asset sales and 5 billion euros share offer blaming Brexit for increasing capital needs. Hedge Funds suffered from 20.7B outflow after a big performance drop of -5% last month.

Erwin Lasshofer and his INNOVATIS team take advantage of arising opportunities from this uncertainty. We can use increased volatility to create Core Expresse Notes and Multi Express Return Notes with higher coupons and increased credit spreads for more attractive Credit Linked Notes – see sample at „product of the day”. For full access to our investments instruments you may want to check for our Managed Account.