Options Portfolio results for April 2010

[ Tuesday, 11 May 2010 ]

A steady month
Options Portfolio results

                                                            

 

Options Portfolio results for April

 

The Options Portfolio continued the “slow but steady” trends of recent months, with 1.17% after
tax for April.

For the year it returned 22.64% after tax, 3 years 7.36% pa and since inception 9.56% pa.

During the month the US 10-year rate fluctuated between 4% early in the month, trending down to around 3.65%. There were two main reasons for this:

Firstly, the US was the beneficiary of the well-publicised debt problems in the EU and in particular Greece. Spain’s credit rating also dropped and there is the potential for debt problems with Spain
and Portugal. As a result there was a “flight to quality” by nervous investors, seeking a safe haven in US debt markets. This increased demand resulted in yields dropping.

The second factor was more US-specific. During April the US Federal Reserve in effect said that it had no plans to push up interest rates anytime soon because they did not view inflation as a
problem. This took the pressure off short-term rates. As a result longer-term bonds started looking more attractive, again stimulating demand for them and reducing the yield.

Tyndall expects these themes to continue through May.

Options portfolio - how it works
Options portfolio - performance graph


 

 

 

11 May 2010

This email was sent by Fidelity Life Assurance Company Limited, 81 Carlton Gore Road, Newmarket, Auckland 1023.
 
While Fidelity Life Assurance Company Limited (Fidelity Life) has made its best endeavours to ensure the information in this Marketing Flash is accurate, neither Fidelity Life nor any company or person associated with the document takes any responsibility for any incorrect or outdated information contained herein or for actions taken as a result.  In preparing the email, the author has not taken any individual investor's personal circumstances into account and this email should not be relied upon as the basis for an investment decision.  This email is intended for Fidelity Life advisers only and is not to be distributed to members of the public.  This email is not a recommendation or an offer of securities under the Securities Act 1978.  Investments will be accepted only on the application form in the investment statement, a copy of which can be obtained free of charge from Fidelity Life. No part of this email can be copied or reproduced without the prior permission of Fidelity Life.
 
 Back to latest news