Acumen Portfolio Performance YTD 2022

 

* Index = MSCI ACWI Total Return €

 

 

Commentary on Portfolio Performance – February 2022

Market sentiment was dominated by fears that Russia would invade Ukraine and equity markets sold off heavily, and in the final few days of February that fear became the stark reality. As a result, markets sought the refuge of commodity safe havens such as gold while selling riskier assets.

Yields on government bonds moved higher again as markets anticipated interest rate hikes from the Fed are coming in March. The German 10-year yield ended the month at 0.16% p.a. up 0.14% in the month. Although well flagged interest rate rises are now less likely in light of the Ukraine crisis.

The economic consequences from the war in Ukraine and from the ensuing sanctions are still evolving and the outlook is extremely unclear, thus underlining the benefits of having a diversified portfolio with exposure to uncorrelated assets such as gold, alternatives and infrastructure.