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Issue 5 July 2013		www.vfsint.com

	VFS VFSI Market Commentary July 2013
	The equity markets have shown strong gains year to date although the second quarter was mixed. New highs were reached in the US on 21st May 2013, fuelled by continuing large central bank injections of liquidity and an improving global economy. However, on 22nd May, the Chairman of the US Federal Reserve announced that the process of Quantitative Easing, the Fed’s purchases of bonds and mortgage instruments to	boost the American economy, might be tapered later in the year and ceased altogether in 2014. Despite the announcement being based on signs of improvements in the US economy, the market reacted negatively to this announcement, creating a sharp rise in bond yields globally and thus driving prices down. Unfortunately, equities were not spared either so that the month of June 2013 proved to be a month of either negative...

	VAM Growth stocks now out performing value stocks
					Mauritius a growing offshore financial services jurisdiction
	After a prolonged period of underperformance, there is recent evidence in the US and other developed markets that growth stocks are now enjoying a cyclical rebound against so-called value stocks. With interest rates low, investors have until recently sought the higher yields...				Mauritius, though geographically one of the larger offshore jurisdictions, has remained off the radar for many in the offshore world. Once regarded as a key territory for the great European maritime powers of Britain, France and the Netherlands, Mauritius has since become a...

	Interest rates and bond markets
					Genuity wealth management
	In May, Apple issued a 30 year bond. Unsuspecting investors might have considered lending money to one of the biggest companies in the world, selling ubiquitous products and holding $145bn of cash on its balance sheet to be a sure-fire safe...				Low yields for prime issuers – high yields in the European peripheral counries.The yields of the European Government bonds developed this year again very differently. 10-year yields of those countries considered as safe...

	Inheritance Tax - Non Domicile Spouse Update
					Life plan for Children
	From the 6 April 2013, new legislation will take effect which will change the inheritance tax treatment of transfers between UK-domiciled individuals and their non-UK domiciled spouse or civil partners. Domicile is a common law...				Sanjay has been recently blessed with a grandson. He has decided that he wants to set up a policy for his grandson that he can pay for over 20 years, and that would grow over his grandson’s life time. When setting up a LifePlan, we do not...

	Money Markets
	Quarter to 30th June 2013 and Year to date
	Key Statistics	Quarter to 30th June 2013	Year to 30th June 2013	Trend for Quarter 2013
	Gold - average price per ounce ($)	1 391	1 484	Down
	Oil WTI - average price per barrel ($)	94.5	95.1	Down
	Bonds
	US 10 year treasury (%)	2.10	2.00	Down
	JP Morgan Bond Index	-3.30%	-7.20%	Down
	Currencies
	Dollar Index	+2.60%	+7.50%	Up
	Equities
	US S&P 500 Index	+2.40%	+12.60%	Up
	European - FT-SE Euro First	-2.50%	-0.25%	Down
	World - MSCI ACWI	-1.30%	+5.40%	Down
	UK - FTSE 100 Index	-3.10%	+5.40%	Down
	Source: Financial Times
	Figures are calculated by taking the average of month ends for the gold, oil and treasury bill figures and actual quarter end for the equity figures

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