Current Market Views

Investment Update

We would like to keep you up to date with our thinking in this period of extreme volatility and give you a quick update on our funds at QUAERO CAPITAL. In the fog of war, it is extremely hazardous to make any prediction and invariably, these tend to be highly contextual or misguided in a shock such as the one we have experienced this quarter.

We can however make a number of observations that we hope will be useful to our clients.

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Infrastructure demonstrates its defensive ability

Copyright: Austrini. CC BY 2.0

Performance

The strategy has now been running for 77 months.  November provided some breathing space to markets after a very challenging October. The strategy rebounded, up 1.7% for the month, in-line with US stocks, but well ahead of the Eurostoxx 50 which was down 0.8% for the month. The S&P Global Infrastructure Index, the Infrastructure ETF’s and the major competitors all performed similarly to the strategy, gaining around 1.5%. Investment grade bonds were up 0.5%, and interest rate sensitive stocks gained, with the iShares International REIT ETF up 3.2% and the Dow Jones Total Market Utilities Index up 3.3%.  Year to date, the strategy is down -2.6%, whilst the average of the 7 largest competitors is -6.7%, the S&P Infrastructure index is -10%, the Stoxx50 is -9.4%, the S&P 500 is up 2.7% and the MSCI World LC is -2.3%.

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