Looking back on February 2022


Key points

  • The Fund fell 0.4% in February
  • In the first half of the month the Fund was up, on strong earnings results from its investee companies
  • But then Russia invaded Ukraine, which pushed markets lower overall

Our monthly update for February 2022 is now available.

The start of February continued the earnings season for the quarter ended on 31 December 2021. All of the companies the Fund is invested in beat earnings expectations, and about a third of them raised earnings guidance for the quarter and year ahead. That's a good outcome in any quarter, let alone with this current bear-ish mood on Wall Street. By mid-February the Fund was up.

But then financial markets slid as Russia invaded Ukraine. The Fund has no Russian investments, and very little exposure to the Russian economy, so the direct impact on the Fund is negligible. But the broader effect is that nearly all share prices have fallen, and the Fund couldn't escape that fall.

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