Global benchmarks/asset class returns

This is a high level overview of the month just gone. We leave our more detailed commentary to other notes.

Nearly everything made money, last month. Good for multi-asset portfolios. Property (AREITs) and Gold the standouts.

It is fair to say we do not expect to see another 6 months just like the last 6 months. That would probably require (particularly US) equity risk premia to compress to unduly tight (low) levels, similarly so for credit risk premia, which are already arguably too tight.

By region, European equities enjoyed a strong month, ahead of Asia, although you could argue the Nikkei has traded well enough both before, after and during the BoJ decision (rates up a touch for the first time in forever, however, from a market monetarist perspective, you’d conclude it was still in aggregate dovish relative to expectations heading in).

At the local level, utilities, property and energy stocks performed well. A-REITs have been driven by the “rates have peaked” narrative, and energy stocks are moving with the oil price, which in turn seems to be extrapolating OPEC+ cuts and quotas into the future, alongside generally resilient global growth assumptions.

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Please note that past performance is not a reliable indicator of future performance.

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