The current selloff is self-made by Central Banks. In this regard, it is quite different to the previous ones we have seen in the last twenty years.
In June 2022, following requests from IFA firms, Fusion Asset Management LLP has added two new MPS ranges: Fusion Passive range and Fusion Champions range.
Recovery is heading in the right direction but at a slower pace than was expected as the global economic recovery hit some speed bumps in Q3. The Delta variant delayed some economic activity from Q3 into Q4 and 2022, while supply chain bottlenecks and higher prices dampened real growth.
The second quarter brought a flow of good news despite a sizable drawdown related to the peak of inflation fear in the middle of May. Overall, portfolios achieved positive returns close to 1.7% across all series and risk levels.
Global equity markets climbed to new highs in the first quarter of 2021. Income growth, record household net worth and high private savings point to support for consumer spending as the pandemic constraints subside.
In 2020, despite the pandemic shortfall, the portfolios performance has remained strong year-on-year, both in absolute terms and relative to the corresponding benchmarks. In the last four quarters, we have seen around 10% return in Active portfolios and 7% in Optima, with an outperformance compared to the benchmark of 9% and 6% respectively.
Since the previous rebalance in July, all Fusion portfolios have delivered steady positive returns, varying between +1% for low risk portfolios to +2.6% for the risky ones despite close to zero returns of the corresponding benchmarks as the markets were mostly moving sideways.
Since the previous rebalance in April all Fusion portfolios delivered strong returns between 5% and 11% in line with their corresponding benchmarks performance, following the recent markets recovery.
In this note we review the performance of Fusion Model Portfolios (MPS), both Optima and Active ranges, after the unprecedented market moves during the first quarter of 2020, comparing it against selected benchmarks and wider industry offerings.
Since the last update on the 15th of March, global markets fell even further down before starting to rebound in the last week of March. At their lowest points, equity indices were down between -30% and -40% from the start of the selloff, with both corporate bonds and commodities also in disarray.