2020 was good for simple Balanced Funds. In 2021, we saw a catch up for the more diversified multi asset approach we favour with commodities beating all-comers and UK real estate posting strong double-digit returns.
Strong corporate earnings data, resilient macro data and adaptation to life with the virus saw equity markets record another strong year of returns. However, in contrast to recent years, the composition of stock market gains in 2021 was more broad-based, with value stocks outperforming over large parts of the year against a backdrop of rising bond yields.
Past performance is not a reliable indicator of future results. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. Portfolio characteristics and holdings are subject to change without notice. The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.