The year ending August 2021 has seen rising equity markets, rising inflation expectations, increased economic growth risks, increased geopolitical risks, and volatile and rising global bond yields. The funds have underperformed over this period, but our conviction remains high that equities and global long term bonds carry substantial risk of capital loss in the short term.

Over the period the funds were positioned for falling equity markets and rising yields given our view that the inflation risks would dominate in 2021. The period saw continued risk asset growth, dominated by the large tech shares, and bond yields have remained much lower than our expectations.

More information is available here: Rezco Asset Management – Annual Investor Communication 2021