Q4 2021 Update & Fund Commentary

As we have come to expect, portfolios ran beautifully for nearly 21 months right through to the end of 2021! They have come back slightly, specifically during the month of Jan. As covered before, this is something we expect all portfolios to repeatedly do and so our strategies cater for these events specifically. Our role is to ultimately manage risk. Targeting return is not risk-free and this is the price portfolios pay from time to time by participating in riskier growth assets.

The key to long term wealth management success is to build a resilient and sustainable strategy, let it do its work, and while it progresses, to not get too excited by its successes (overconfident) nor too shaken by its challenges (fear).

Please see the below detailed report from Brendan covering our analysis of the strong final quarter of 2021!

This piece was compiled by Brendan de Jongh, SA Head of Research at PortfolioMetrix.

The fourth quarter saw extremely strong performance from western developed equity markets on the back of expectation-beating corporate profit upgrades, with the US leading the way. Asian equities and emerging markets struggled, dragged down by China which continued to push ahead with industry reforms and regulatory crackdowns resulting in headwinds for economic growth and investor sentiment (particularly the international community). Bond markets struggled under multi-decade high inflation prints raising market participant fears of inflation running ahead of central bankers. The increase in bond yields resulted in capital losses for bonds. Despite this, real yields remain deeply negative in most developed markets when comparing year-on-year inflation numbers to longer term 10-year bond yields.

Local Fund Commentary

Provides a commentary on the past quarter, its events and their impacts; as well as more intimate commentary on each moving part within your portfolios.

Local Fund Commentary | Q4 2021