The equity markets correction of June was also visible in the Altaica Eur Asia portfolio. Within the markets the differences in
performance were significant. The market in which we were havily overweighted, China, performed the best. Chinese equity markets
gained about 3% during June 2017. Next to China, also India was performing well with a gain of more than 1,5%.
Russian equity markets were the opposite of China. The impact of declining prices for most basic materials was the main reason of the
loss of 5,2% over the last month. This brings the total loss over 2017 above the 11,7%. By this our portfolio was outperforming the
index by more than 5%. At the start of July trends in the prices of basic resources are turning. Also the Russian equity markets found
its bottom. We expect that this market can outperform during the next 12 months. This due to the well performing economies in
Europe, China and the USA. This only can result in a higher demand for basis resources. Next to this many analysts are pointing the
under investments in oil exploration. This underinvestment’s will have as consequence a decline in production. This decline will be
visible start 2018 and cannot be easy corrected. Some analyst even expect an explosive development of the oil price. The big question
is about sustainable energy, is this market quickly enough to replace the demand. Till now the numbers of sustainable energy sector
sounds promising. However the growth rate is impressive in absolute numbers it is not a game changer for the global energy markets.