Looking back on December 2021


Key points

  • The Fund was down 6.5% in December 2021
  • Fear is the dominant driver of markets right now - fear of Omicron, inflation, and interest rate rises
  • The Fund returned 15.4% through 2021, which meets our objective, but is a little disappointing

Our monthly update for December 2021 is now available.

December continued a slide that began in the last week of November. Many investors are worried that recent inflation will see central banks tighten away from the stimulatory posture they've had for nearly 13 years now. The current market environment is almost exactly the same as we saw in late-2018, when central banks made their most recent moves to raise interest rates.

The Fund returned 15.4% across the calendar year. That's in line with our 15% pa objective, but we're a little disappointed because the Fund did lag its benchmark. But we always expect there will be periods where the Fund's focus doesn't align with the market's prevailing mood and this is one of those periods. For us, as company pickers, we focus on whether the companies we choose for the Fund to invest in are meeting their goals and targets.

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