ANDREAS WUEGER 10 April 2017

Dear Investor,

We are pleased to highlight the results of our 'Multi Asset Index' and our 'Dividend Yield Equity Index' for the first quarter 2017. They are part of most of our client's investment strategies:

Performance Q1 2017

LAPIS Core Portfolio TR Index - USD 2.21%
Underlying Indexes
MSCI All Country Index 6.95%
UBS Bloomberg CMCI Composite TR Index -0.87%
FTSE EPRA/NAREIT Global Index 2.21%
USD Government 3 - 5 Years Term Index 0.56%
LAPIS Top 25 Dividend Yield TR Index - USD 4.29%
LAPIS MidCap 50 Dividend Yield TR Index - USD 3.00%
Benchmark
MSCI All Country World Index 6.95%

Market comments about Q1-2017

Q1-2017 was a very good quarter for the equity market. Growth stocks, emerging markets and even small cap companies participated positively. During these 'bull markets' value companies/solid dividend yield paying companies usually underperform broader indexes.

We have added a chart issued by 'Star Capital' on page 2 that shows as follow:

  1. Value Stocks have outperformed the Growth Stocks most of the time

  2. We have had now the longest period of Growth Stocks outperforming Value Stocks for the last 100 years.

2016 was already a good year for the LAPIS Top 25 Dividend Yield TR Index which outperformed the MSCI All Country World Index by about 3 %.

Value vs Growth

Market Outlook

As mentioned during our last investor letter we believe that the global fear factor is still very much in investor's heads. The slight increase of the long term interest rates around the world makes already important headlines. We would like to highlight that most countries like Italy or Spain are able to refinance their debts at much lower rates than their maturing bonds. This brings an immediate saving effect to the interests that need to be paid to the investors.

The financial markets are still healthy and we are looking forward to a good year for the equity markets in particular.

Andreas Wueger
CEO

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