In our Investment Market Review we discuss the continuing improvement in economic conditions globally. Over the quarter we saw a solidifying of equity markets that have performed strongly this past 12-months. This has been on the backdrop of several developments in current affairs: Emmanuel Macron becoming French President, the inclusion of Chinese domestic equities to the MSCI Emerging Markets Index, and a winding down of quantitative easing programmes.
Bond markets have also recovered somewhat, but by contrast remain fairly flat in the current environment. Our client education piece for this month is entitled “Understanding Bonds”. This article discusses the key levers of bond performance, which I hope will be a useful refresher for clients in understanding the influences behind the lack lustre bond returns of the past 9-months.