The gradual economic and market recovery from the Covid pandemic was never going to be straightforward.
The effects of a combination of significant central bank stimulus and government support through wider fiscal support mechanisms such as furlough schemes were always going to be difficult.
However, no one could have reasonably predicted the significant changes in geopolitical and economic conditions that we have seen over the past year, with material increases in actual and expected inflation levels and interest rates, and elevated market volatility. Given the interlinkage between interest rates, inflation and valuations of riskier assets such as equities, this environment has impacted returns on all investments. AFM (Association of Financial Mutuals) members have not been immune from this.
The views expressed are those of RLAM at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.