Fund Return 2020-2021

Fund return to 31 December 2020

Fund

Performance

 

1 month

Scheme Year to Date

1 Year

 

 

 

CERS Multi Asset Fund

1.6%

10.1%

5.3 %

CERS Bond Fund

0.1%

6.4%

8.1%

CERS Cash Fund

-0.1%

-0.5%

-0.9%

CERS Equity Fund

2.9%

19.0%

8.3%

CERS Property Fund

0.0%

-1.4%

0.4%

CERS Alternative Asset Fund

1.3%

6.6%

2.8%


Investment Commentary

Provided by Mercer - CERS Investment Adviser

 

Market Developments  

Over December, vaccine roll-outs and another fiscal stimulus package in the US offset bad news on the virus front and another lockdown-induced global economic slowdown. Restrictions went back to levels last seen in June in many countries as new COVID-19 cases across the developed world surged with a new COVID-19 strain starting to spread globally.

Equity markets looked beyond this, pricing a strong recovery in 2021 as vaccination programs reach a critical mass. With the US election yielding a centrist government and Brexit now resolved, major political tail risks that could have held back the recovery have receded for now. Global equity markets posted solid mid-single digit returns.

Major central banks also reassured markets about their willingness to offer a backstop should short term obstacles to the recovery emerge. The Federal Reserve committed to maintaining the pace of its asset purchase programs until the recovery has clearly taken hold while the European Central Bank increased its asset purchase program. China’s central bank implied a fair balance between slowing credit growth without tightening prematurely. This assured investors of the limited downside in risk assets and kept the equity bull run going through to the end of the year, in spite of the numerous setbacks during December.

 

Outlook

Entering 2021, forecasting the exact profile of the growth path ahead is difficult, but we expect the global economy to continue to grow strongly and make up lost ground, especially as a large-scale vaccination effort looks increasingly likely. Governments are likely to continue with their support measures, aiding both consumers and businesses. Central banks are expected to be supportive for as far as the eye can see, underpinning economic activity via easy financial conditions.

One of the big uncertainties concerns whether those economies will get back to where they would have been had the virus never hit. In other words, will there be any permanent damage to developed world economies? It is too early to tell. Increased debt may potentially hold back the economy for years to come, while accelerated technology use and development may ultimately boost the economy. Regardless of whether there is permanent damage, when those economies do recover they will look different, with some sectors and businesses winning, and some losing. One long term effect of the COVID-19 shutdowns will be an acceleration in some structural changes.   

NOTES

Scheme Year to date performance is the period from 1 June 2020 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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