[vc_row][vc_column][vc_column_text]Prepared by Brandon Yee and Thomas Connelly
Commentary
Developed Markets Flat in August – In the month of August, U.S. equities outperformed international developed markets by 0.27%. The United Kingdom and Japan lagged the broader markets, dropping 0.77% and 0.05%, respectively.
Commentary
Emerging Markets Continue Strong Run – Emerging markets recorded a gain of 2.95% for the month. Russia and Brazil had the largest gains of 8.13% and 6.31%, respectively. Emerging markets have outperformed developed markets over the past year.
Commentary
Utilities Record Strong Month – Utilities and information technology posted the strongest global sector returns of 3.18% and 2.74%, respectively. Energy and financials had the toughest month, dropping 3.01% and 1.48%, respectively.
Commentary
Growth Outperformed Value – In August, domestic value indices underperformed their growth counterparts. Momentum recorded a strong return relative to the other styles.
Commentary
Emerging Small Cap Companies Edge Higher – In the international developed markets, value indices underperformed growth indices for the month. Emerging small cap equities posted a strong return of 1.92%.
Commentary
Money Market Yields Remain Low – Money market funds continue to have very low yields, performing in line with the 3 month T-Bill Index. One year money market returns are similar to their ten year annualized track record.
Commentary
Long-Term Government Bonds Post Solid Return – The returns of deflationary hedges were mostly positive for the month. Long-term government bonds and emerging market bonds recorded the strongest returns of 3.39% and 1.73%, respectively. High yield bonds and leveraged loans were flat for the month.
Commentary
Natural Gas Rebounds – Inflation-sensitive investment returns were mixed in August. The Alerian MLP and crude oil both fell by 4.94%. Natural gas rose 7.17%, rebounding from a tough July. Gold bullion posted a gain of 3.49%.
Commentary
Mexican Peso Gaining Ground on U.S. Dollar – The U.S. dollar depreciated against all major currencies over the past three months except for the Israeli Shekel. The Canadian Dollar and Australian appreciated the most versus the U.S. dollar. The Mexican Peso gained 4.46% versus the USD over the same time period.
[mk_fancy_text color=”#444444″ highlight_color=”#ffffff” highlight_opacity=”0.0″ size=”14″ line_height=”21″ font_weight=”inhert” margin_top=”0″ margin_bottom=”14″ font_family=”none” align=”left”]Disclosure: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Versant Capital Management, Inc.), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Versant Capital Management, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Versant Capital Management, Inc. is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. If you are a Versant Capital Management, Inc. client, please remember to contact Versant Capital Management, Inc., in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. A copy of the Versant Capital Management, Inc.’s current written disclosure statement discussing our advisory services and fees is available upon request[/mk_fancy_text][/vc_column_text][/vc_column][/vc_row]
