September 2016: Altaica EUR-Asia Emerging Fund: -0.21%

The political situation kept investors out of Turkey. However the country is stabilising internally and the ties with Russia are strengthened. With an improving economy in Europe the Turkish economy must be able to stabilise. Lots of fears are already priced in the current valuations. We see potential but stay very cautious. Under pressure of slipping metal prices the Russian equity market lost a little during September. The production cut decided by OPEC strengthened the oil prices. The OPEC agreement is remarkable when we take in consideration that Russia is still increasing its production. Russian oil producers have strong incentives to keep up the production. Firstly their production price is competitive, especially due to their cost base in Rouble. The weak Rouble gives Russia a strong advantage. With the soaring oil price we expect a strong return in our Russian part of the portfolio. The potential of this market is huge. Still the valuations are low as well are the expectations. This is the perfect cocktail for good profits. Based on those assumptions Russia does have the largest allocation in the portfolio. The Indian market was pretty stable. We declined our position by lacking potential. Next to India we added a Pakistan position, that gained a little last month. After a couple of months without direction the Pakistan equity market was able to start a new positive trend. Also China equity markets were lacking fireworks. Our selection however was able to produce small positive returns. Most of the profit came from Chinese stocks listed in Hong Kong.