EN - Report (page 2) - Flipbook - Page 9
Performance of asset classes
Bonds, meanwhile, largely struggled over the quarter, buffeted by
elevated inflation, hawkish central bank policy shifts to deal with
higher prices and the emergence of Omicron. UK gilts were among
the strongest performers, with yields dropping in early November
as the Bank of England (BoE) unexpectedly chose not to raise rates
although they climbed again the following month when the Bank
announced a small rise of 0.15 percentage points, to 0.25%.
After a difficult third quarter for equities, the last three months of
the year were much stronger, despite a range of macro concerns
continuing to bubble. As the chart shows, while global equities
(led by the US) had a good period, with the UK also performing
well, emerging markets struggled, partly due to China’s regulatory
pressures and slowing economy.
Asset class returns Q4 2021 (in local currency terms)
10%
7.9%
8%
6%
5.1%
4%
2.4%
2.1%
2%
1.5%
1.2%
0.1%
0%
ds
on
ba
lB
G
lo
Re
e
Ab
so
lut
G
tur
n
tE
ke
ar
M
ng
gi
Em
er
UK
nd
Fu
qu
ui
Eq
UK
ba
lo
G
s
s
tie
itie
s
ty
op
le
x
Pr
ui
Eq
UK
er
s
tie
s
itie
od
m
om
C
ilts
-1.3%
-2%
Source: Morningstar, 31.12.21
Liontrust Multi-Asset Portfolio Services Quarterly Report: Q4 2021 - 9
