With all the turbulence in financial markets so far this year, we decided to do things a little differently this quarter and take you through a small presentation to review some key data points year-to-date, how the market is positioned, and where we see opportunities looking ahead.
There is an old Wall Street saying, “Don't Fight the Fed”. While sweet-sounding in its simplicity, we find this statement to be seriously misleading, especially in the long term.
2022 has begun with a dramatic shift in the mindset of the market. While the war in Ukraine was a shocking new input into our framework, its impact seems to be a continuation of factors started by the onset of the pandemic.
While volatility continued to persist throughout Q4, client accounts finished up 2.7% in the quarter and 17% for the year based on our Balanced Composite, the highest annual return since inception.
After a calm summer for global markets, we were reminded again in September that stock markets don’t always go up. Despite a volatile final month to the quarter, client accounts finished up 0.9% in Q3-21 and are up 13.8% YTD based on our Balanced Composite.
It was a strong Q2 for the Aventine strategies as equity markets continued to benefit from both accelerating growth and inflation as we marked the anniversary of the economic low point of the pandemic.
It was a strong start to the year as we continued to experience gains across all our strategies. The Aventine Canadian Equity Fund (“ACE Fund”) closed the first quarter up 15.8%. The portfolio’s positive correlation to the economic recovery, along with the realization of some stock-specific catalysts, helped drive a record quarter.
As we close out another year and look forward to 2020 many of the key themes that have been in place since early 2019 are still present; low interest rates, a sluggish global economy and accommodative central banks.