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LCP Investment Summary - September 2022
LCP Investment Summary - September 2022

5 October, 2022 by Administrator

Equities Volatile market conditions...

LCP Investment Summary - August 2022
LCP Investment Summary - August 2022

6 September, 2022 by Administrator

Equities Following a ~10% recovery in...

LCP Investment Summary - July 2022
LCP Investment Summary - July 2022

4 August, 2022 by Administrator

Equities Global equity markets rose 10.3%...

LCP Investment Summary - June 2022
LCP Investment Summary - June 2022

5 July, 2022 by Administrator

Equities Global equity markets fell...

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LCP Investment Summary - July 2022

Posted on 4 August, 2022 by Administrator

LCP Investment Summary - July 2022

Equities

Global equity markets rose 10.3% in July (in € terms), the highest monthly performance since 2020. Markets recovered strongly in July, reversing some of the sharp losses experienced in the first half of the year. The main driver for performance was the fall in interest rate expectations. Several large technology firms such as Microsoft and Apple released stronger than expected earnings which also contributed to the market returns.

Tourism performed strongly in the Eurozone this summer and contributed to stronger than expected GDP growth. Eurozone inflation continued to climb reaching a new high of 8.9% in July. The continuation of the Russian invasion of Ukraine and post pandemic disruptions remained major issues for the Eurozone with the outlook of a recession still posed as a high risk.

Bonds

Longer-dated Eurozone bond prices rose 11.3% over the month, with the yield on the AAA Eurozone 15+ Year Index falling to 1.12% by month-end. The Euro Broad Sovereign 10+ Year Index rose 8.1%, with its yield falling to 1.99% by the end of July.

Eurozone bond yields fell over the month, the first monthly fall in yields since November ’21. The ECB made its first interest rate rise of 50bps which resulted in a move out of negative interest rate territory for the first time in 8 years. The ECB face many challenges ahead due to inflation and political uncertainty following the Italian Prime Minister’s resignation during the month.

Sample DC Schemes

Our three sample DC Strategies all rose as most asset classes were positive for the month.

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