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LCP Investment Summary - December 2020
LCP Investment Summary - December 2020

6 January, 2021 by Administrator

Equities Global equity markets rose 2.4%...

LCP Investment Summary -  November 2020
LCP Investment Summary - November 2020

1 December, 2020 by Administrator

Equities Global equity markets rose...

LCP Investment Summary October 2020
LCP Investment Summary October 2020

3 November, 2020 by Administrator

Equities Global equity markets fell 2.3%...

LCP Investment Summary September 2020
LCP Investment Summary September 2020

2 October, 2020 by Administrator

Equities Global equity markets fell 1.3%...

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LCP Investment Summary October 2020

Posted on 3 November, 2020 by Administrator

LCP Investment Summary October 2020

Equities

Global equity markets fell 2.3% (in € terms) in October. It was a mixed month for equity investors, with strong gains in the first full week of the month over encouraging signs of a U.S. fiscal stimulus agreement being reached and also some progress in Brexit negotiations. However, the mood soured when it became apparent that any fiscal deal would have to wait until after the U.S. Presidential election. Covid-19 cases continued to rise globally leading to tighter restrictions in many parts of Europe, particularly in France and Germany. As a result, equity markets fell sharply in the last week of October.

The big U.S. technology stocks, which have helped drive equity markets higher since the sharp falls seen in February and March, released quarterly earnings that generally beat expectations but some investors were left disappointed with their outlook for the rest of 2020 and into 2021.

Bonds

Longer-dated Eurozone bond prices rose 2.2% over the month, with the yield on the AAA Eurozone 15+ Year Index falling to -0.32% by month-end. The Euro Broad Sovereign 10+ Year Index rose by 1.9% with its yield falling to 0.31%.

Like equity markets, longer-dated AAA bonds had a mixed month with yields initially rising over the proposed U.S. fiscal stimulus deal but then falling back for the rest of the month as the stimulus deal stalled and Covid-19 cases continued to rise globally, leading to a tightening of restrictions in many European countries which will hinder economic activity.

Sample DC Schemes

The sample High and Medium Risk Strategies both fell due to their large holdings of growth assets.

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