Gary Potter and Rob Burdett

“Further concerns over Europe, compounded by the debt ceiling deadline in the US, created a macro shadow over the start of the Q2 corporate earnings season. The euro weakened significantly, particularly against the Yen which compounded positive returns from Japanese equities. The Melchior Japan Advantage fund was the best performer, with Janus US All Cap putting in a rare disappointing month as the worst. We remain constructive on markets due to strong corporate earnings in the US in particular, and believe central banks will resolve their issues in a ‘muddle through’ fashion.”