Fund Return 2019-2020

Fund return to 31 August 2019


Fund

Performance

 

1 month

Scheme Year to Date

1 Year

 

 

 

CERS Multi Asset Fund

-0.6%

3.4%

2.0%

CERS Bond Fund

4.2%

10.9%

19.0%

CERS Cash Fund

-0.1%

-0.2%

-0.8%

CERS Equity Fund

-1.9%

4.5%

1.7%

CERS Property Fund

0.5%

0.6%

4.0%

CERS Alternative Asset Fund

0.3%

2.8%

0.9%


Investment Commentary


Provided by Mercer - CERS Investment Adviser

Market Developments

August was a volatile month for financial markets. On the first day of the month, in a surprise move, the US President announced that his administration would impose 10% tariffs on previously untouched $300bn Chinese imports. That triggered retaliatory measures from China, which announced on August 23rd it would impose tariffs on $75bn of US imports such as cars and agriculture. Despite some conciliatory remarks at the end of the month, it seems that the tit-for-tat trade war is in full force. The re-escalation proved detrimental to the equity markets as both the developed and emerging world markets were down over the month (developed market equities fell by 2% while emerging market equities lost 5% in US dollar terms). Emerging market bonds and lower quality developed market bonds did not escape the sell-off, falling by 3.4% and 1.6% respectively. Developed market government bonds rose sharply, as did other safe-haven assets such as the Japanese Yen and Gold (up 2.8% and 6.7% respectively).

Economic Data

The global economy has slowed. The US economy, however, is still in reasonable shape. US consumer confidence is still elevated because the economy continues to create new jobs, wages are rising and inflation is at moderate levels. In the Eurozone, we continue to see sharp weakness in the manufacturing sector but that is offset to some extent by the services sector which continues to do well. The labour market is in good shape with unemployment at 7.5%, the lowest since 2008. In the UK, economic growth remained soft because of Brexit uncertainty. In fact, some economic activity indicators already suggest the UK economy is in recession. However, the UK labour market is strong, with the unemployment rate at 3.9%, close to lowest in 40 years. The Japanese economy continues to struggle, as shown by sluggish industrial production growth. That is partially balanced by low unemployment (2.2%) which should continue to support wage growth in turn aiding consumer spending. In the emerging world, Chinese data has been weaker recently with July retail sales and industrial production slowing. Taiwan and South Korea continued to struggle because of the trade tensions, as shown by poor export data and weak growth in manufacturing sector.

 

NOTES

Scheme Year to date performance is the period from 1 June 2019 to the most recent month shown.

1 Year performance is the cumulative performance of the last 12 months to the most recent month shown.

Multi Asset Fund performance assumes no lifestyling.

Performance shown is net of annual management charge.

The investment choices offered by the Trustee will be regularly reviewed and may be varied from time to time.

Before you choose a fund we recommend that you speak to an Independent Financial Adviser. The CERS Trustee preferred Independent Financial Adviser is Milestone Advisory DAC. You can contact them or your own independent financial adviser to assist you to review your investment choices. You can contact Milestone Advisory DAC at Canal House, Canal Road, Dublin 6, at info@milestoneadvisory.ie or call them on 01 4068020. Their website is www.milestoneadvisory.ie .

If you require further information please contact the CERS Team at info@cers.ie

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