Reflecting on the lessons of 2016
It was a year of great uncertainty and volatility, and reminded investors of the perils that greed and panic can bring.
IN the last month of 2016, traders, investors and asset prices were greeted with a visit from Santa, as global markets generally saw a rise in prices. Global equities, as measured by the MSCI AC World index, posted a 3.2 per cent rise while global bonds saw yields rise (bond prices are inversely related to bond yields) although with a strengthening US dollar, global bonds returned 0.6 per cent in December.
The portfolio fared better than a 70 per cent equities, 30 per cent bonds composite that would have gained 1.6 per cent. Our portfolio rose 3.7 per cent in December, driven by our Europe, Latin America equity and Japan holdings as well as exposure to the Emerging Europe, Middle East and Africa region.
Since its creation on Oct 17, 2016, to end-December, the portfolio has gained 2.8 per cent.
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