Compass Partner Tom Licciardello offers our Investment Update and Outlook for the 1st Quarter 2011.This video presentation by Tom will provide you with an update on the financial markets and their impact to your investment strategies as well as guidance on our expectations for the remainder of the year.
Dear Clients and friends of the firm,
Looking back to the first quarter of 2011, global equities continued to move forward despite a host of challenges. With the exception of government-sponsored debt, fixed-income markets also moved ahead.
What’s happening in the market?
• In U.S. dollar terms, the MSCI All Country World Index, which serves as a proxy for global equity markets, was up 4.8% for the quarter. Its fixed-income counterpart, the Barclays Capital Global Aggregate Bond Index, rose 1.24% for the quarter. Overall, major equity and corporate fixed-income markets continued the trend from last year and closed in positive territory.
What’s the impact to SEI’s Strategies?
• In the first quarter of 2011, the term “eventful” would be an understatement given the magnitude of both the geopolitical changes and the tragedy in Japan. Yet, with the main exceptions of Japanese and emerging-market equities, financial markets managed through the bad news. This impressive resiliency can be attributed to the underlying strength of the global economy and to the fact that equity valuations are still in a reasonable range.
• In our opinion, the odds still favor continued growth in the global economy. The unexpected events of the past quarter, however, underscore the need for vigilance. Equities are not yet expensive, but they are not cheap either.
SEI Outlook and Perspective:
• Oil, of course, is a major concern. Demand for fossil fuels in the developing countries has matched the demand in developed countries and is projected to rise. If geopolitical developments lead to a further oil-price jump our outlook could change. The possibility that central banks in the developed world join their emerging-market counterparts in significantly tightening monetary policy is another risk to our outlook.
• At this point, however, we are cautiously optimistic that global growth will continue. We will continue to monitor the markets and manage our investment strategies accordingly.
Following our philosophy of active management, we will continue to closely monitor economic data and developments such as quantitative easing and the upcoming elections and will adjust our portfolios accordingly.
If you have any questions or would like to discuss this report further, please feel free to give me a call.
Click here for the forward looking SEI Economic Outlook Video
CEO and Chief Investment Strategist
Compass Capital Corporation
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any stock in particular, nor should it be construed as a recommendation to purchase or sell a security, including futures contracts. There is no assurance as of the date of this material that the securities mentioned remain in or out of SEI funds.
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