The start of 2021 brought an optimistic outlook, but the quarter ended up being somewhat disappointing as markets dipped on fears that inflation would increase in the future, as well as renewed lockdown in some places. Inflation could come as a result of increased economic activity as some normality returns to life following the pandemic, but we do not feel that this poses a risk to assets in the near future. We will continue to watch for signs of rising inflation in the future, however.
Coming out of lockdown, we are looking forward to and positioning for better economic times ahead. The forecasts, even based upon quite cautious criteria, show a return to normality that brings with it higher spending, more activity and a return to growth. While we are pleased to see such positive indicators, we also know that the financial support measures that are keeping the economy going must come to an end at some point and this will inevitably come with risks and volatility.
Looking further ahead, we will be looking to invest in assets that will provide stability during shorter-term volatility while contributing meaningfully to society in the long term. Industries related to electric cars, hydrogen, renewable energy infrastructure, 5G rollout, cloud computing and healthcare are all part of our portfolio and will be for some time to come.
For further details, please read our full Investment Market Review and Outlook at the links below. Performance sheets look at our Whole of Market, Passive, and Ethical Investment Model Portfolios over the last five years.