In June 2016, the assets value of the WellMax investment portfolio increased by 1.19% in USD and EUR, which corresponds to 14.28% per annum. The annual yield of WellMax amounted to 16.44% in rubles and to 13.56% in yuans.

This review is issued a little bit later than usually - in the second half of the month. The reason is the situation involving Brexit. In order to make our review more topical, we made up to wait for two important events: formation of the new Cabinet of ministers in the UK and the first BOE meeting after the referendum. The both events took place. And they made no surprise for us.

But the same can't be said for the main June headline - the Brexit referendum and its results, which was a great surprise for everyone: both, supporters of UK exit from the EU, and its opponents, and experts, and analysts including IFC analysts. However, the situation allowed IFC to demonstrate the company's skill to earn from unexpectant events one more time.

As we know, markets reacted strongly to process and outcomes of the voting: first, there were wild swings, then a nasty fall and an active recovery growth followed the ups and downs splitting markets participants into those who earned from the referendum, and those who suffered losses. Knowledge of the markets and ability to quickly make decisions helped IFC to be among winners again.

In June, another driver of the WellMax investment portfolio growth was the situation in the precious metals market, first of all - silver. A significant quotation growth was observed there.

Brexit still remains a factor of unsteadiness for the world markets. The outcomes of the Brexit referendum are not legally binding and do not close the discussion for the supporters of integration with Europe in the splitted British society, and it means that the markets can not completely eliminate various possible scenarios. There is a possibility of unexpected actions from Scotland, Northern Ireland and Gibraltar, where the population has pro-European and separatist to the UK sentiments.

The first negative consequences of pro-Brexit voting, which are already perceived by the British consumers accustomed to stability, can enhance the voice of those, who support saving of the UK participation in the EU anyway. The sudden devaluation of the pound against USD resulted in the price growth for ETCs - from food to fuel. The increased prices for such a significant kind of goods become more noticeable in the British consumer market.

However, the personal composition of the Cabinet of ministers of Great Britain declared the day before is a very serious reason to think that Brexit will be achieved. No wonder that the position of the Minister of Foreign Affairs (key in this situation) was taken by one of the promoters of the Brexit idea, Boris Johnson, who is the active and charismatic ex-mayor of London.

First, the markets were shocked and had some hopes, which are being replaced now with a serious understanding of the reality of Brexit prospects. In particular, this is proved by more and more active exit of investors from the British real estate. It is putting more pressure on the pound, and the necessity to support it made up the decision of BOE not to lower the bank rate in the current situation. 

An outwardly calm position of the European Union regarding a future exit of Britain from the EU can be motivated by the fact that some certain inconveniences are leaving together with this difficult and intractable partner. The inconveniences related to the necessity to agree any significant decisions, including monetary ones, with a big independent player having its own currency, bank system and clearly defined interests. It seems to be that the EU has no fears related to the possible increase of centrifugal processes. Britain managed to initiate its exit from the EU because of the absence of credit liabilities in front of the Unit, while the majority of other members are reliably bound by such obligations.

At the same time, no doubt that the outcomes of the British referendum shocked the European assets, first - the bank sector. Dividing prospects of the banking systems dropped the shares of big European continental banks, whose state was not so comfortable even earlier due to the large volumes of “soft” assets (up to 600 billion euro, according to some estimates) in the conditions of long standing effect of ECB negative interest rates. Growing problems of the European banks increase the possibility of the weaker euro.

Growing expenses and uncertainty related to Brexit don`t add any optimism either to the general prospects of the world economy, and this is putting pressure on the raw materials markets. Correction of energy resources consumption forecast and oncoming decrease of hydrocarbon import to the PRC, investors leaving risky assets and USD strengthening, an expected drop after the summer high demand for road fuel in the US and Europe and easing of the situation with black gold supplies to the world markets - all these factors are pushing the prices for oil to the lowest border of the price range, which is 45-55 USD per Brent barrel. Even more, the Brexit situation enhances the prospect of ongoing oil drop which was reflected in our March review and which is still seems to be very possible.

The prospect of oil price drop below the level of USD 45 per Brent barrel is likely to be negative for the ruble and the Russian stock market. Weaker price trend for the main article of the Russian export will complicate existing serious problems with budget, while its deficit on results of the first half of 2016 exceeded 1.5 trillion rubles, or 20% of all charges.

Another escalation of the Ukrainian conflict also raises concerns. The escalation may be related to the recent inattention to the situation from the European participants of the Normandy 4, which are more involved in the domestic problems of Europe now. Being on the fringes of the Europeans` attention who played an important role in holding back one of the parts in this confrontation, the simmering Ukrainian conflict can easily return its hot state. For Russia it can result in a new wave of foreign investors exiting from the Russian assets. 

All this together with the end of divident and tax periods, which greatly supported the Russian ruble during last weeks, allows to wait for putting more pressure on the Russian national currency from late July - early August.

In the conditions of global uncertainty WellMax system becomes even more attractive for private and corporate participants, providing permanently high profitability (picture above) and giving 100% guarantee of invested funds return.