At first
sight, July was a calm month on the financial markets. Ten-year bond yields
climbed by 12 basis points in the US and 10 basis points in Germany. A slight
downturn was visible in the UK. Equity markets again noted gains, with emerging
markets displaying the biggest upturn, followed by the Pacific region, the US
and finally Europe. Spreads on credits tightened. Real estate and commodities
were up as well, with the increase in oil prices especially remarkable.
There
were considerable fluctuations throughout the month, however. For example, in
the first half of the month the lower rate of inflation pushed down US 10-year
bond yields from nearly 4% to 3.75%. Yet at the end of the month yields had
returned to 4% after the Fed raised interest rates and economic growth proved
to be stronger than expected. Please view our asset allocation outlook for August through the link below.
The highlights for this month are:
There’s a saying in Dutch, Kom verder, it means many things and it’s our business philosophy. It captures the way we work with clients but also the way we steer our investee companies to deliver shareholder value through active engagement.
Capital at risk. The value of investments and the income from them can fall as well as rise, and investors may not get back the amount originally invested. Past performance provides no guarantee for the future.