15 Feb 2019
Product Director, Clive Emery and Portfolio Manager, Danielle Singer look at performance in 2018 and explain why they’re looking ahead with optimism.
The Invesco Global Targeted Returns Fund (UK) returned -3.01% gross in 2018 (-3.85% net). This performance was disappointing and meant our three-year annualized return was below our target. This was broadly driven by a low hit rate of ideas positively contributing over the year against what was a challenging backdrop with most asset types posting negative 2018 returns.
Markets were dynamic in 2018 with investors battling with a raft of geopolitical and economic contradictions. What started in January with one of the strongest US equity rallies in decades quickly turned to turmoil, with the beginning of February marking a return to volatility that continued throughout the year. By some definitions, equity markets were enjoying their longest ever bull run, however, the threat of an end to the era of extremely easy monetary policy meant progress was choppy. The stronger US dollar and higher US interest rates hurt sentiment in emerging markets and other risk markets, while further uncertainty was inspired by issues such as trade wars, Italian politics and the lurching Brexit process.
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