Strong performance for most asset classes in Q1 2017
Many segments of the equity and fixed income markets have seen their valuations rise. By Ho Song Hui
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MARCH started off on a soft note for global markets, with some worries pertaining to future US rate hikes. Although financial assets recovered towards the end of March, some profit-taking on the last few days of the quarter was seen by market participants as they locked in a good quarter.
In March, global equities, as measured by the MSCI AC World index, posted a -0.5 per cent drop (led by soft US equities) while global bonds saw a drop in yields as the asset class posted a gain of 1.8 per cent on the back of some risk aversion towards the end of the month. While a simple benchmark of 70 per cent global equities and 30 per cent global bonds rose 0.2 per cent last month, the portfolio gained 1.1 per cent over the course of the month thanks to the overweight in Asia ex-Japan equities. The portfolio's performance for the month was driven by our Asia ex Japan, Europe and Latin America equity exposure, and our allocation to US high yield. Some weakness in US and Japan equities detracted from what was generally a good month across the board.
Since its creation on Oct 17, 2016, the portfolio has returned a total of 7.4 per cent as at April 7, 2017. (All returns in SGD terms, except for global bonds in USD).
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