| Equities bounced higher in March (MSCI AC World +5.25% in dollar terms, +2.19 in euro terms), after “dovish” comments from US Fed chair Yellen prompted investors to scale back expectations over the pace and scale of future rate hikes. A further rally in oil prices together with improvement in US economic indicators and diminished fears of a hard landing in China also helped support investor confidence. The European Central Bank surpassed market expectations with significant easing measures but President Draghi disappointed when hinting that the ECB was done with cutting rates and acknowledging the limitations of negative rates on inflation expectations. This awkward communication drove the euro sharply higher against the dollar. Japanese equities also ended the month higher although the upside was limited by a continued yen appreciation triggering mounting concerns over Japanese companies’ earnings. The fall in the US dollar boosted dollar-sensitive commodity prices and emerging market stocks, with top regional contributions from China, Russia, and Brazil. Capital inflows into emerging assets recorded their highest increase in nearly two years. US high yield and investment grade corporate credits outperformed higher quality governments amid a continued “search for yield” and fading macroeconomic fears. European corporate credit markets benefitted from the ECB’s announced plans to increase the size and scope of the current QE program. The news that the ECB will buy corporate bonds led to significant spread tightening in both the European investment grade and high yield markets. UK sterling continued its decline against the dollar given the risk of the country voting to leave the EU in June’s referendum.
Please find attached the fact sheets of MC Bolero fund
Factsheet March 2016 – USD
Factsheet Mars 2016 – EUR
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