Liontrust MA Quarter In Review Q3-2022 15.11.22 (Spreads) - Flipbook - Page 11
Performance of asset classes
Equities, bonds and commodities struggle in tandem
Every asset class was in negative territory in Q3 except for hedge
funds. Bonds and equities both faltered in the face of rising interest
rates. The decline in global ex UK equities was less severe than its fall
last quarter but still worse than that of global bonds. Commodities,
which was the only asset class last quarter to make positive gains
as the oil price continued to rise and gold rose as a store of value,
fell on expectations of a slowing economy and the possibility of
a recession. Emerging markets struggled with the strengthening
dollar. The benefits of diversification were undermined again this
quarter as asset classes struggled in tandem with market stresses.
Gilts, usually seen as one of the safer asset classes, fell as markets
gave a poor reception to the new UK government’s mini Budget.
Asset class returns Q3 2022 (in local currency terms)
2%
0.2%
0%
-2%
-2.9%
-4%
-3.6%
-4.3%
-6%
-6.0%
-6.6%
-8%
-10%
-10.3%
-12%
-11.6%
G
UK
ts
ng
Em
er
gi
om
m
M
od
ar
ke
itie
s
ty
er
op
C
UK
x
le
ba
G
lo
Pr
ui
Eq
on
ba
lB
lo
n
tur
Re
e
lut
so
Ab
G
Fu
ui
Eq
UK
ty
ds
s
nd
s
tie
s
nd
Fu
ge
ed
H
ilts
-12.8%
-14%
Source: Morningstar, 30.09.22
Liontrust Multi-Asset Funds and Portfolios Quarterly Report: Q3 2022 - 11
