Contents
1 – CEO Confidential – Monthly views from your CEO
2 – Final figures – Overview of this month’s performance
3 – Trader’s Journal – Trading overview of this month and next
4 – Gilded Heights -Gold’s Meteoric Rise to Unprecedented Peaks
5 – Inside The Engine Room – A Quick Reflection from your COO
CEO Confidential
Monthly Insights from Your CEO
As I sit here on Monday, April 1st, at my office in Essex, resisting the temptation of Easter Eggs and fueled by my third cup of coffee, I’m fully immersed in strategic planning. While families across the U.K. indulge in Bank Holiday festivities, my focus remains steadfast; I put March firmly in the rearview and turn my attention to the challenges and opportunities ahead in April.
This month, my priorities revolve around three central themes: AUM (Assets Under Management), Brand Strengthening, and Expansion.
Firstly, my aim is to increase our AUM by an additional $2 million. With keen interest from both new investors, existing investors and hedge funds, I’m exploring partnerships and avenues that could potentially exceed this target. However, for now, let’s concentrate on reaching the challenging yet achievable milestone I set this month.
Secondly I’m committed to elevating our brand presence. Our initiatives encompass high-level PR strategies and a comprehensive branding effort. We’re aiming to contribute articles to reputable platforms such as Bloomberg, Financial Times, Yahoo News, and Forbes. While our operations remain invite-only, bolstering our online credibility is paramount. By strategically selecting the right publications, we not only enhance brand awareness but also anticipate potential growth in clientele and AUM.
Thirdly, alongside capital raising and brand development, I’m overseeing our expansion into the American market. Our new venture, Novus Black Atlantic, has already laid down the necessary legal and regulatory groundwork. If all proceeds as planned, we anticipate a launch around June. Novus Black Atlantic offers a slight shift in structure to be more in keeping with traditional funds in America to ensure investors are familiar with the format and it aligns with SEC guidelines.
Expanding into America promises not only potential profits but also resources to fortify our original fund, Novus Black. These endeavors, I believe, will contribute significantly to the growth and success of the Novus Black brand, benefiting all our clients.
Moreover, alongside these strategic endeavors, my agenda for April is packed with client meetings and the meticulous oversight of day-to-day operations. It seems destined to be another month filled with both busyness and promise, leaving little time for me to reunite with relaxation! Yet, the prospect of advancing Novus Black, buoyed by the backing of nearly 300 investors, fills me with immense excitement and further ignites my passion and commitment to continuous improvement.
Final Figures
Novus Black closes March with 3.6%
I doubt there’ll be any tears shed as we bid farewell to March, undoubtedly one of the tougher months in Novus Black’s career. Before we embrace the optimism of a new month, let’s reflect on March and evaluate what occurred and why.
Trader’s Journal
March Trading
After an exceedingly busy month, March’s focal point remained on central bank actions and inflation developments. Concerns regarding currency intervention were prominent, particularly evident in the Bank of Japan’s endeavours to mitigate excessive volatility in the JPY market. Despite these efforts, JPY bears remained active, though with some moderation in the latter part of the month. Similarly, the Swiss franc commenced the month on a weak footing following the SNB’s unexpected rate cut but managed to recuperate some ground subsequently.
Commodity-related currencies presented mixed performances. Both the Australian and New Zealand dollars grappled to secure sustained support despite the PBOC’s resolute stance on yuan fixing. Conversely, the Canadian dollar reaped benefits from higher crude oil prices and robust economic data from Canada.
Gold emerged as the black swan with its impervious attitude towards any economic data or news. With forecasts of gold reaching £2400, all FX traders could do was safeguard and await the anticipated downturn in the following month. Though we have not overexposed ourselves, we are holding onto some shorts in this market, rendering it impracticable to add further exposure and initiate new positions.
April Look Ahead
Throughout April, the opportunity to secure considerable returns is significantly influenced by anticipated adjustments in the market. Notably, a downward movement in Gold prices paired with an upward trajectory of the Yen could herald a bullish market phase. Despite the potential for these fluctuations, our strategy has been to engage cautiously, opting for smaller stakes across the primary foreign exchange (FX) pairs. This measured approach enhances our prospects of achieving profitability for the month of April.
The strategy not only mitigates risk but also positions us advantageously to capitalise on any significant market shifts that could occur. In the event of a substantial market correction—especially one aligning with our predictions regarding Gold and the Yen—April stands to be a rewarding month.
Currently, our analysis looks towards the release of key US information including the Non-Farm Payroll (NFP) data. This key economic indicator has the potential to significantly impact market sentiment and currency valuations. The NFP figures, reflecting changes in employment outside of the agricultural sector, serve as a barometer for economic health and can influence interest rate decisions and monetary policy, thereby affecting currency strength and market dynamics.
By integrating the forthcoming NFP data with our existing market analysis, we aim to refine our investment strategy further. This approach ensures that our actions are grounded in a comprehensive understanding of market conditions, allowing us to navigate with informed confidence. As such, while we maintain a cautious optimism for reporting positive financial outcomes in April, we are also acutely aware of the potential for significant market corrections to amplify our returns. Our readiness to adapt to new information and market trends is a testament to our strategic approach to investment, prioritising both risk management and the pursuit of profits.
Gilded Heights
Gold’s Meteoric Rise to Unprecedented Peaks
During March, the trading floors at Novus Black have been bustling with activity, far surpassing our usual pace. Every team member has been working gruelling 18-hour days, closely monitoring the markets, and particularly paying attention to the bullish rallies in gold, propelling it to new all-time highs.
This remarkable ascent is fuelled by a blend of factors, including robust safe-haven demand, expectations of U.S. interest rate cuts, substantial central bank purchases, and geopolitical and conflict-based tensions. XAU/USD has soared by an astounding 8%, marking a second consecutive quarterly increase. Last week, XAU/USD settled at a robust $2233.12, registering a staggering $67.81 increase or a +3.13% surge.
We foresee further escalations at Novus Black as central banks escalate their bullion purchases. However, before this next upward movement, we anticipate a correction and retracement to a lower level, offering a strategic entry point. This adjustment phase is a natural part of market cycles, providing a momentary dip before the anticipated climb. It’s crucial to recognise and respect the pivotal role central banks play in this trend, persisting in their voracious buying spree despite sky-high interest rates and a resilient dollar.
Amid persistent inflation signs, speculation abounds at Novus Black about a potential rate cut by the U.S. Federal Reserve. Gold prices typically move inversely to interest rates, rendering them more attractive as rates decline. Market conditions and analysis predict a climb to $2,300 per ounce in the latter half of 2024, hinging on Federal Reserve rate cuts.
But who is buying all gold? At the moment, China reigns supreme, driven by substantial individual investments amidst economic and real estate uncertainties. Meanwhile, Poland is the second-largest net consumer, impacted by the Russia-Ukraine conflict, closely followed by Singapore. These purchases reflect a strategic manoeuvre by central banks amid escalating geopolitical risks.
On the retail front, purchases of jewellery, bars, and coins continue to fortify the gold market. Once again, China leads in retail gold acquisitions, while India’s consumer appetite, particularly during the wedding season, is significant. Despite the potential impact of higher gold prices on India’s jewellery demand, investment in gold bars and coins remains resilient.
Inside The Engine Room
A Quick Reflection
As we close another chapter with the end of March, I wish to share with you the strides we have made and the vision we carry forward. Despite the challenges encountered last month, our dedication to navigating the markets with precision and care remains true. Our commitment is, as always, to uphold the highest standards of service and innovation for you, our esteemed investors.
App Improvements on the Horizon
We’re excited to announce that we are in the process of significantly enhancing our app. Understanding the complexity of managing multiple investment accounts, we are introducing a new feature that consolidates all your investments into a single, streamlined view. This update aims to enhance the visibility of your investment performance and facilitate easier communication with our team. Our goal is to empower you with comprehensive control and insights, enabling informed decision-making.
Revamping Our Website for Enhanced Accessibility
Recognising that some of our investors have a preference for web over app usage, we are also embarking on a complete overhaul of our website. This initiative is focused on mirroring the ease of use provided by our app, ensuring that every investor enjoys seamless access to their investments, regardless of their platform preference. The forthcoming improvements will make navigating our services more intuitive, providing you with an enriched online experience.
Future Expansions and Strategic Enhancements
Looking ahead, as outlined by Steve in this newsletter, our ambitions for expansion are robust. A pivotal part of this expansion strategy involves bolstering our cyber security measures. In today’s digital age, the security of your investment and personal data is our top priority. We are investing in advanced technology and best practices to safeguard your assets against evolving cyber threats.
Additionally, we are streamlining our processes to enhance efficiency and service delivery. This move is designed to not only meet but exceed your expectations, ensuring a responsive and superior investment experience.
Forming and strengthening strategic partnerships also plays a crucial role in our growth strategy. These collaborations will enable us to broaden our offerings and reach, offering you more opportunities and diversity in your investment portfolio.
Closing Thoughts
March tested our resilience, but it also reinforced our resolve. We are moving ahead with renewed focus and energy, driven by our mission to deliver excellence in service and investment opportunities to you. I extend my deepest appreciation for your continued trust and partnership with us.
Together, we are not only navigating the present but also building a prosperous and secure future for all our investors.
