The assets value of the WellMax investment portfolio in dollars and euros in May 2016 increased by 1.13%, which corresponds to 13.5% profitability per annum. WellMax profitability in rubles amounted to 15.72% per annum, in yuans - 12.84% per annum.

A significant contribution to the profitability of the WellMax portfolio in May was brought by quite risky assets – primarily, raw materials and food segments. As we predicted in our October review, the food market was influenced by climatic factors associated with the new cycle of the natural phenomenon El Nino, which determines the weather conditions in the equatorial Pacific and South America. Increasing prices for sugar, together with the positive dynamics of oil prices were the main drivers for WellMax profitability in the last month of spring.

What seemed unlikely for many experts and analysts in April, has happened: oil has firmly entrenched in the middle of the 45-55  USD range per barrel of Brent. That means that we were right again. Recall that WellMax team gave this forecast on oil prices in the late spring - early summer at the beginning of April. We are glad that the accuracy of our forecasts allows you to earn more!

We maintain a moderately positive forecast for the oil market during the next two months. We believe that the most likely price range, that was indicated by us, is 45 - $ 55 with a tendency to smooth growth of quotations to its upper border. Support for oil prices will be provided by both: factors of consumption and the factors of production: there is a seasonal increase in demand for gasoline in the United States; production in Saudi Arabia, Russia, and Iran is at a maximum and the possibility of its significant increase seems unlikely.

A further increase in oil prices is possible in the second half of the year due to the decline in production caused by the massive suspension of investment programs in 2014 - 2015 years. The resumption of active shale projects will be the limiting factor in the growth, while increasing its profitability at higher price levels.

The signals from the US Federal ReserveSystem regarding  the prospects of tightening of monetary policy have been and remain to be an important factor affecting the state of the markets. In May, the protocols of April Federal Reserve System`s meeting were published as well as the statements of officials of the Federal Reserve, allowing more likely to expect an increase in key interest rates in the United States in the next two months. In response to the information from the United States came a serious weakening of the yuan in May, returning the value of the Chinese currency to the level of early 2011. The devaluation of the yuan, which we did not rule out in our previous review because of the high level of China's total debt, continues to be a real prospect in terms of capital outflows from emerging markets against the backdrop of the expected increase in US interest rates.

In the current situation, we expect the growth of profitability in the category of debt securities, the basis of the WellMax investment portfolio.