The three years since the start of the Covid-19 pandemic have been a rollercoaster ride for investors. However, 2022 stands out as the most difficult, not least because it began with war being raged by Russia in Ukraine. If the global economy survived Covid-19 through huge monetary and government spending interventions, then 2022 was when ‘the piper began to be paid’, and that payment came in the form of inflation of a kind not seen in forty years.
In this latest update, Kevin Quinn, Chief Investment Strategist with Investment Markets, looks back at 2022 and identifies the key trends that drove equity and bond returns. While the year will be remembered most for the human tragedy of the war in Ukraine, it was inflation that dominated returns from financial markets in the latter part of the year. Kevin looks at how this unfolded, its impact and where we may now be at.
What can we expect in 2023?
Turning to 2023, Kevin explains why he believes that it will be a better year for investors than its predecessor, although he also explains why markets are likely to continue to experience volatility in the near-term.
View Kevin Quinn’s 6 minute video by clicking on the image below.
2022 strong fund performance
While 2022 was a challenging year for investors, in general, when we look under the bonnet the experience was different for investors in a number of New Ireland funds.
Risk managed funds
In 2022, we saw New Ireland’s suite of risk managed funds deliver for many of your clients – Goodbody GDI funds, PRIME Funds, iFunds/iFunds Alpha – managing market risk to deliver smoother and more consistent investment journeys for your clients. As Kevin outlines, it is likely that this key feature will be just as important in 2023.
Value style funds
Over 2022, value style investing performed better and we saw a number of our funds benefit strongly from this – the High Yield Equity Fund and Spotlight – providing an important source of return, when held as part of a portfolio.
To find out more about the strong performance of New Ireland’s funds in 2022, visit our Fund Centre here or talk to your New Ireland Account Manager.