Quarter in Review Q1 2022

Key themes

Russia-Ukraine crisis – volatility in financial markets

Energy shock – spike in crude oil and natural gas

Inflation – “transitory” no more

Markets snapshot

The MSCI AC World equity index fell -4.6% (-3.2% in €).

The US fell -5.2% (-3.1% in €).

Europe fell -8.1% (-7.8% in €), underperforming as its proximity to the war in Ukraine and its exposure to Russian energy exports led to growth downgrades and higher inflation.

Emerging markets were down -6.1% (-4.9% in €), the benchmark negatively impacted by its exposure to Russian assets.

The ICE BofA Merrill Lynch Eurozone > 5-year sovereign bond benchmark fell -7.2% over the quarter, the selloff following rising inflation readings and more inflation-focused central bank policy guidance.

The euro fell to 1.1082 against the US dollar.

Commodities rose 33.1% (36.1% in €). Crude oil prices are up 33.3% year to date, Brent crude oil having peaked close to $140/bbl as the US and UK placed an embargo on Russian oil imports. European gas prices also spiked through the quarter, given Europe’s heavy reliance on Russia for gas imports.

Gold rose 5.9% and was supported by safe-haven demand.

Latest

Insights

Latest Weekly Market Review

ILIM Weekly Market Review - Week 46 2022

Each week, our Retail Investment Manager, Cian O'Mahony, looks at the main stories in the Irish and global investment markets.

Read more Download

Insights

Property Reports

Pension Irish Property Fund - Quarter 3 2022

Property performance in the third quarter began to reflect the broader market decline seen across other asset classes throughout 2022, as higher interest rates, risk premia and the denominator impact were reflected in valuations through higher yields. The large portfolio held by the Fund reflected this adjustment; however, the annualised performance to the third quarter remained positive at +3.2%. This compares to a longer-term annualised return of +9.6% (10 years).

Read more Download
See all insights