Anchor Pacific’s March 2020 investment scorecard. See asset class performance, 3-year asset class risk and return, macro summary (key index levels and rates), and yield curves.
To download the complete Monthly Investment Scorecard, please click on the link below:
Commentary
Absolutely no bright spots performance-wise excepting US Treasuries, USD, and duration. The COVID-19 situation is unprecedented and the economic outcomes are highly uncertain with respect to timing and what things will look like after stabilization and the workforce returns. This sell-off has been the swiftest on record and absent emergency rate cuts, central bank liquidity, and a massive stimulus plan – things would have been much worse in both equities and bonds. The energy-related complex has been decimated, and the entire credit universe went no bid for most of the month as the post-crisis challenges with bond market liquidity came full circle. There was a massive unwind of leveraged positions as a result of blow-ups in risk parity trades and margin calls for holders of RMBS and CMBS. Owners of equities face highly uncertain near-term outcomes, with now the time to take a hard look at asset allocations, measure true liquidity within portfolios, and critically assess existing private strategies. The good news is that there is going to be a significant opportunity to achieve equity-like gains in many areas of the credit markets, especially in the structured markets where future distressed selling is likely to take place as more leverage gets unwound – we have significant experience with these sectors and are presently preparing to position client portfolios accordingly.
Summary of Returns
Month-over-Month
Positive returns for 1 of 20 asset classes
Top 3
US L-T Treasury Bonds +6.38% | Gold -0.22% | US Total Bond Market -0.53%
Bottom 3
Commodities -30.39% | US Small Cap Equities -21.48% | US REITs -19.39%
Canadian Markets
Equities -17.68% | Bonds -3.33% | IG Credit -7.28% | CAD -4.62%
Past 3 Months
Positive returns for 4 of 20 asset classes
Top 3
US L-T Treasury Bonds +22.15% | Gold +3.60% | US Total Bond Market +3.10%
Bottom 3
Commodities -42.63% | US Small Cap Equities -30.64% | Emerging Markets -24.42%
Canadian Markets
Equities -21.08% | Bonds -0.24% | IG Credit -4.99% | CAD -7.68%
Past 12 Months
Positive returns for 6 of 20 asset classes
Top 3
US L-T Treasury Bonds +33.38% | Gold +21.34% | US Total Bond Market +8.63%
Bottom 3
Commodities -41.69% | US Small Cap Equities -24.14% | Emerging Markets Broad -18.34%
Canadian Markets
Equities -14.39% | Bonds +2.87% | IG Credit -1.55% | CAD -4.44%
Macro Summary (Key Index Levels and Rates)
US Yields
10 year Government 0.70% (43 bp lower)
30 year Government 1.35% (30 bp lower)
Yield Curve (2-30) 112 bp (steeper by 33 bp)
High Yield spread 877 bp (wider by 373 bp)
Volatility (VIX): 53.54 (33.48% M-O-M, 288.53% from 3 months ago)
Oil: $20.48 (-54.24% M-O-M, -66.46% from 3 months ago)
Gold: $1604.65 (-1.33% M-O-M, 5.36% from 3 months ago)
USD / Euro: €0.91 (Euro stronger by 0.04% M-O-M, weaker by 1.64% from 3 months ago)
USD / Yen: ¥107.54 (Yen stronger by 0.50% M-O-M, stronger by 0.99% from 3 months ago)
Download the complete Monthly Investment Scorecard here:
Anchor Pacific Investment Management Corp. (“Anchor Pacific”) is a Vancouver, BC-based portfolio management firm, which leverages process, technology, and infrastructure to democratize the process of managing endowment and pension style investment portfolios to deliver innovative, high-touch, and transparent investment programs across the full spectrum of asset owners and investment consumers.
To learn more about how Anchor Pacific can help you shelter, protect, and grow your money, contact us at 604-336-9080 or info@anchorpacificgroup.com
