The Indian region and especially Pakistan were responsible for the negative result in August. All other markets performed positively.
We closed our position in Turkey. Markets conditions were unstable and our indicator turned into negative territory. We also lowered our position in the Russian market. The long-term buy signal is troubled by the latest drawdowns. We kept one third of our position by keeping our stake in Prosperity Russia. This year this fund outperformed the Russian equity index massively. In August this fund gained more than 10%.
The Indian markets lost 3% of their value. Not withstanding this loss we didn’t change our position. The cruel market correction of almost 15% of Pakistan came as an unpleasant surprise. The worsening of the fragile relationship between Pakistan and the USA was the main trouble maker. We expect a more China oriented course from the Pakistan government. This is worrisome for India, the main reginal power competitor of China. Both Pakistan and China have some borderline issues with China.
The Chinese equity markets continued their solid performance path. Our China positions gained about 3%.