Fund Return 2023-2024
Fund return to 31 May 2024
Fund
|
Performance
|
|
1 month
|
Scheme Year to Date
|
1 Year
|
|
|
|
|
CERS Multi Asset
Fund
|
1.4%
|
9.0%
|
9.0%
|
CERS Bond Fund
|
-0.6
%
|
-0.6%
|
-0.6%
|
CERS Cash Fund
|
0.3%
|
3.3%
|
3.3%
|
CERS Equity Fund
|
2.8%
|
20.3%
|
20.3%
|
CERS Property Fund
|
0.8%
|
-4.8%
|
-4.8
%
|
CERS Alternative
Asset Fund
|
0.5%
|
3.8%
|
3.8%
|
Returns to 31.05.2024 - coming soon
For now please click here to see a graphical illustration of funds to 31.05.2023
Investment Commentary
Provided by Mercer - CERS Investment Adviser
Market Developments
Global equities and
fixed income posted positive returns in May. US equities outperformed both
international and emerging market equities. International equities outperformed
emerging markets. Growth significantly outperformed value during the month.
Investor sentiment
improved during the month following the risk off market in April. Inflation
continued to ease in developed markets, reducing fears of a higher for longer
scenario. Notably, inflation in the US declined in line with market
expectations after it surprised to the upside for three consecutive readings in
2024Q1. Nonfarm payrolls for April and Q1 GDP growth indicate that the US
economy is slowing albeit it remains robust overall which raised investors’
hopes for softer growth that reduces inflation without triggering a recession.
Yields fell across the curve in the US as this scenario rekindled hopes of at
least some rate cuts later this year, which helped propel equities and fixed
income higher. Solid corporate earnings were another tailwind.
Forward looking
purchasing manager indicators continue to be in expansionary territory in
developed markets, with the US composite PMI climbing to its highest level
since April 2022. Europe and Japan also saw PMIs increase, albeit less than in
the US, while the UK’s fell and came in below expectations. Within emerging
markets, China and India PMIs continued to strengthen. China unveiled new
measures aimed at stimulating growth in the struggling property sector, leading
to solid equity returns in May. Overall, economic data continues to show a
resilient global economy.
The Fed kept interest
rates unchanged while the minutes from their May meeting suggested that the
disinflation process could take longer than previously thought. With that said,
US headline inflation eased to 3.4% while core inflation fell to 3.6%, both
were in line with expectations and helped provide some support for risk assets.
Elsewhere, inflation in developed markets continues to trend downward while the
Bank of England left interest rates unchanged. Inflation in China rose in April
and came in above expectations following last year’s deflationary period as the
economy continues to recover.
Trade tensions between
the US and China increased as the US raised tariffs on Chinese electric
vehicles to 100% and implemented higher tariffs on Chinese semiconductors and
solar cells. Additionally, the State Department of Commerce withdrew export
licenses from major semiconductor companies, aimed at preventing supply to
Chinese telecom company Huawei. A general election for July was called in the
UK. The overall market impact from geopolitical events was muted.
The US dollar weakened
against most major currencies. Global REITs underperformed broader equities.
While still posting positive absolute returns in May, commodities
underperformed broad equities as crude oil declined following strong
performance earlier in the year. Gold continued to climb and hit new record
highs during the month, supported by falling yields.
Outlook
Over Q1 2024 developed
and emerging equity markets had positive returns, leading to higher valuations
and lower projected forward returns. Expected returns for bonds on the other
hand increased as yields rose materially over the quarter, especially on the
longer end, as markets reset their expectations on the timing and scale of rate
cuts for this year.
Economic data continues
to confirm the trend of falling inflation in developed countries even if it has
remained resilient in the US at around 3.5% as of March 2024. Economic growth
also remains resilient. A soft landing is still the most likely outcome for the
global economy with inflation to decline towards central bank targets in the
medium term.
Economic
growth expectations for the next two years are expected to remain close to or
slightly below trend in
developed countries, in
line with the soft-landing base case. Inflation is declining and normalizing
and projected to settle at or slightly above target in most developed economies
throughout 2024.
Major developed market
central banks have communicated that they are at the end of this tightening
cycle, and we may be at the cusp of a cutting cycle even though this may not
occur as soon and as fast as markets were hoping at the end of 2023.
Notes
Scheme Year to date performance is the period from 1 June 2023 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 a financial adviser. The CERS Trustee preferred financial adviser is Milestone Advisory DAC. You can contact them or your own financial adviser to assist you to review your investment choices. You can contact Milestone Advisory DAC via the website (www.milestoneadvisory.ie), by post: Linden House, 4 Clonskeagh Square, Clonskeagh Road, Dublin 14, D14 FH90, by email (info@milestoneadvisory.ie), or by phone (01) 406 8020. Milestone Advisory DAC t/a Milestone Advisory is regulated by the Central Bank of Ireland.
If you require further information please contact the CERS Team at info@cers.ie