We are at the end of Novus Black’s 11 month of trading and this month has been a challenging one. We wanted to take this opportunity to update you on July’s market conditions and future plans for the company.
Firstly, the good news is that Novus Black will again report no losses for July and, despite unfavourable market conditions, we have still ensured all clients have made a profit for the month.
Early projections for July looked positive to achieve in excess of 7% profit, but due to economic and political developments we have closed the month on 3.25% over all broker accounts, this means investors will receive 1.25% this month. Potentially, we could have attempted to add 2%-3% extra profit, but we are not willing to take unnecessary risks with our clients’ capital. Novus Black was never created to be an overly risky investment, it’s intended goal will always be to give transparency and sustainable growth with capital protection at the forefront of our focus.
Despite lower than expected profits, a very positive outcome of July is that the overall drawdown has been reduced by 25% and the fund is currently sitting at 13.2% with aims of further reductions by the end of August.
Although July has been a little disappointing, we are proud to have proved that the Novus Black model can be profitable even in the harshest of financial environments. In the FOREX industry, there have been reports this month of other similar funds suffering losses of -2% to -5% with some larger funds ceasing all trading until conditions stabilize. As such, Novus Black is still leading the way by still being able to generate profit and protect capital.
Trading Performance Overview
As I’m sure we are all aware, there has been a great deal of political unrest that has been created as a result of the Russian invasion of Ukraine. This political unrest has directly impacted the movements of foreign currency pair prices. In June and July we have seen unprecedented FX trading conditions on the global market; market prices are sitting at 10-year highs and lows and the typical standard seasonal patterns that FX traders can normally rely on have been overturned. Currently, the market is presenting a volatility drought which means it is particularly difficult to generate profit as price fluctuations are uncharacteristically minimal. These abnormal market conditions have been stimulated by movements across all global markets, particularly crude oil.
It is important for Novus Black clients to understand the correlation that The FX Market has with other markets like Indices and Commodities. The easy way to understand this is that all markets directly affect Forex and that Macroeconomic statistics (Study of the behaviour of a national or regional economy), such as inflation, have the greatest impact on this. Any significant movements in Stock, Bond, Commodity, and other capital markets will have a strong influence on exchange rates which again links back to Forex. There are other deciding factors like International trade numbers, such as trade deficits and surpluses, which all play a vital role in the forex markets. Certain conjunctive movements in all global markets are the reason why the last 8 weeks have been extremely tough for all traders and Hedge Funds.
Future Projection
Novus Black is now managing close to $2m and looking to grow to $5m by the end of the year. We have worked extremely hard to make improvements to the company and operations that ultimately offer a safer opportunity for clients to grow their capital.
Over the last six months we have focused on increasing the operational efficiency of the fund and achieving regulatory approval in the UK. In May we were approved by the FCA to operate as an AIFM and have also added an FCA approved cash custodian to hold client assets. These enhancements to our operational structure and addition of experienced staff in the field of regulatory compliance will provide additional security to investors.
Market conditions look to be improving which indicates August could prove to be a better month than July. We hope market conditions continue to improve and we can return to the high returns of previous months.
Should you have any questions regarding any of the points in this update, please feel free to email us at info@novusblack.co.uk, or phone us on 020 8187 8287.
We would like to sincerely thank you for your ongoing support with Novus Black and look forward to a prosperous future.
