Acumen Portfolio Performance YTD 2021
Commentary on Portfolio Performance – April 2021
The Acumen and Trust portfolios continued their advance in April. Volatility also fell to lows not seen since February 2020. Joe Biden launched his Infrastructure Bill which will target transport, non-defence Research and Development and end subsidies for fossil fuel companies and this has set a dynamic tone. The programme will need to be paid for by tax of course and proposals for a new global minimum Corporate tax rate could have implications for Ireland. Overall though, developed economies have been buoyed by optimism of robust economic growth for 2021 and into 2022 driven particularly by the US where strong Corporate earnings of many of their largest multi-nationals were above expectations and by far the strongest quarterly GDP figures since 1984.
Corporate profits, vaccine progress, and support from the US Federal Reserve and European Central Bank sustained the year-long rally in Equities. US yields bond yields fell back but longer term European yields held onto recent highs making it a tough time for European Bonds. Commodities continue to perform well in response to strong industrial and house building materials demand.