MARKET REPORT: April 2017

Prepared by Brandon Yee and Tom Connelly

 

Developed Markets

Foreign Developed Markets have a Strong Month- In the month of April, international developed markets posted a gain of 2.13%. Europe ex UK and the UK recorded the highest returns of 4.10% and 2.08%, respectively. The U.S. market moved up 1.05%.

 

Emerging Markets

Emerging Markets Continue to Advance – Emerging markets posted a gain of 1.91% for the month, with China contributing the largest gain of 2.67%. The Brazilian and Russian equity markets were flat, dropping 0.05% and 0.21%, respectively.

 

Global Sector

Energy Records a Loss in April- Information technology and industrials posted the strongest global sector returns of 2.83% and 2.81%, respectively. The energy and telecommunications sectors recorded losses of 2.18% and 1.40%.

 

Domestic Equity Factors

Small-Cap Value Maintains One Year Edge – In April, domestic growth indices outperformed their value counterparts. Over the past year, small-cap value has outperformed small-cap growth by approximately 3%. However, large-cap value has lagged large-cap growth over the same time period.

 

Foreign Equity Factors

International Growth Companies Outperform- In the international developed markets, growth indices outperformed value indices. Momentum recorded a monthly return of 1.54%

 

Liquidity Providers

Money Market Yields Remain Low- Money market funds continue to have very low yields, performing in line with the 3 month T-Bill Index. The Consumer Price Index dipped in March by 0.29%.

 

Disinflationary / Deflationary Hedges

Emerging Market Bonds Build on Strong Recent Performance – The returns of deflationary hedges were mostly positive for the month. Emerging market bonds and long-term government bonds recorded strong returns of 0.1.63% and 1.55%, respectively. The SwissRe Global Cat Bond index dropped by 0.58%.

 

Inflation-Sensitive Investments

Gold Records Gain in April- Inflation-sensitive investments had mixed results in April. International real estate and inflation-linked bonds recorded gains. Energy-related investments and U.S. real estate posted losses. Gold was up 1.74% for the month.

 

World Currencies

The Mexican Peso Climbs Back Versus USD- The Mexican Peso and Indian Rupee appreciated the most versus the U.S. dollar over the past three months. The Canadian Dollar and Australian Dollar depreciated by 3.88% and 0.84%, respectively, versus the USD over the same time period.

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