A major market rally in the last two months of 2023, in both the equity and bond markets, has left the impression that it had been a good year for financial assets. But without these two months, the results would have been quite lacklustre. Many investors are nevertheless now showing considerable enthusiasm for 2024, anticipating that central banks will soon begin a series of interest rate cuts. But we have our doubts.
Our results for 2023 reflect a prudent approach at a time when the markets lacked direction and were highly volatile. In this way, we successfully protected capital, but this defensive approach, and a few negative outcomes in the M&A and convertible bond segments left the fund flat for the year. In response, we have undertaken a number of initiatives to drive better results in 2024.