Global market trends in December ensured positive performance for all Superfund funds at the close of 2007. Superfund A USD SICAV gained a profit of 2.30%, with positive returns of 3.93% and 5.46% for Superfund B USD SICAV and Superfund C USD SICAV respectively.
Strong trends in commodity markets
World stock indices ended 2007 with solid gains across the board despite disappointing results late in the year amid increasing concern over the U.S. sub prime crisis. Asian indices led the way as China’s meteoric rise supported economies from Australia to Korea. The German DAX and the U.S. Nasdaq each rallied over 18%, while Japanese indices suffered notable losses.
World bond and money markets spent most of the first half of the year declining amid growing inflation concerns and steady growth prospects. However, the U.S. sub prime crisis dominated the action in the second half of the year resulting in steady gains. The Dollar continued its historic decline against the vast majority of world currencies as investment flows sought the diversity and enticing returns provided by commodity-driven economies of the emerging and developed world.
Energy markets moved to all-time highs as growing geopolitical uncertainty combined with steady demand. Gold also benefited as investors sought shelter from profound Dollar weakness and rising inflation. Agricultural products, from wheat, corn and soybeans to cotton, cocoa, and coffee, advanced as expanding bio-fuel demand accounted for a greater percentage of arable land.