In July 2016, the assets value of the WellMax investment portfolio increased by 1.15% in USD and EUR, which corresponds to 13.8% per annum. The annual yield of WellMax amounted to 15.36% in rubles and 13.68% in yuans.

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What provided profitability of WellMax in July? In addition to the traditionally successful for IFC activities in the segment of highly reliable instruments (such as bonds), we should emphasize the commodity markets, where price fluctuations contributed significantly to the profitability of WellMax portfolio last month. Moreover, we were able to earn both: on the growth and the fall in the prices.

As we predicted in our June economic survey, the price of a barrel of Brent oil, which began the July on the marks above $ 50, soon went to the lower boundary of the corridor, designated by us in the beginning of the year - 45-55 $. At the end of the month, oil has overcome this limit, dropping to levels, that were last seen in the 10th of April, and brought WellMax clients extra income.

Unlike oil, palladium quotes were actively growing in July. The precious metal of the platinum group used in the production of automobile catalysts, reacted to data of global car sales, which were better than expected. Prospects for the automobile market and expectations of a further tightening of environmental requirements for vehicles in many countries helped palladium rise in July by more than 10%, reaching multi-month highs. Palladium has grown alongside WellMax profitability, due to well-timed openingpositions in this metal.

Ruble showed quite expected dynamics in July too. After reaching the yearly highs in the middle of the month, on the 20^th of July Russian currency began to weaken noticeably, actively sinking seven trading sessions in a row. That coincided with the presented in the June forecast by IFC survey regarding ruble at the end of July. As we predicted in our previous review, the end of tax and dividend payments period and weakening oil increased the pressure on the ruble.

In August - September, we expect divergent movements on the oil market. The seasonal factors of reducing  motor fuel consumption in Europe and the United States will operate to decrease quotations after the peak of summer travel, the planned closure of the oil refineries for repair, the growth of world production. Expectations of increasing consumption will support quotes, among other things thanks to the growth of car sales in China and Europe. In the absence of severe market idea, the fluctuation of oil prices will continue to be influenced by often conflicting factors of information environment: opinions and forecasts of authoritative sources, event flow, a weekly industry statistics (primarily from the US: the state of oil and oil products stocks, the number of employees rigs, etc).

The formation of a new corridor of price fluctuations in the oil market is also likely, where the lower quotes will be limited to the growth of consumption of cheapen oil, and on top - the growing cost of increasing production. However, during this period, we do not exclude the downward momentum in oil prices, but do not see any reasons for their dramatic decline.

In August - September, we expect a decline in natural gas prices, which to a large extent, also be due to factors of seasonal consumption, the most notable of which will be the end of the US air-conditioning period.

At low levels of oil prices we cannot exclude a significant weakening of the Russian ruble, which is more likely will happen in September, after the elections to the State Duma.

End of summer is a period of low business activity. Transactions become smaller, many residents of the City of London (including, of course, and some IFC staff) come on vacation. This state of the market has its advantages for experienced professionals. In August, we expect once again to earn good money for our customers.