VAM Managed Funds (Lux) Commentaries

December 2021 (click here to download)

VAM Fund

Market risk rose during the first half of December as fears over inflation and interest rates rose. In December, US Small, Mid and Micro Cap were the primary laggards in terms of performance but, over the year, have all added considerable value. In the final quarter, despite continued strength from US equities broadly, other developed markets, in particular Europe, began to catch up as some more value oriented sectors grew. The Manager expects that trend to continue and believes the diversification within the Fund will help reduce volatility going forward. Similarly, while Emerging Markets were the only overall negative contributor for the year, the Manager is positive for the outlook in those markets for 2022. With Central Banks likely to be less accommodating in 2022, there will be some challenges, but the diversification within the Fund and the addition of the VAM Global Infrastructure Fund should pay dividends and ensure continued growth.

VAM DISCRETIONARY FUNDS

VAM Cautious Fund

As the month progressed, the evidence built that Omicron has an increased risk of reinfection, but lower severity, and presents with milder symptoms. Consequently, despite short-term disruptions from workers off sick and increased travel restrictions, investor confidence increased given that Covid risks are 2021 problems more so than 2022 issues.

Attention instead turned towards the forthcoming rate hikes in 2022 and the hawkish shift of Central Banks. This took the shine off some of the faster-growing stocks and saw the start of a rotation into value stocks that stand to benefit from continued economic growth but higher inflation and interest rates.

VAM Balanced Fund

As the month progressed the evidence built that Omicron has an increased risk of reinfection but lower severity and presents with milder symptoms. Consequently, despite short-term disruptions from workers off sick and increased travel restrictions, investor confidence increased given that Covid risks are 2021 problems more so than 2022 issues.

Attention instead turned towards the forthcoming rate hikes in 2022 and the hawkish shift o f Central Banks. This took the shine off some of the faster-growing stocks and saw the start of a rotation into value stocks that stand to benefit from continued economic growth but higher inflation and interest rates.

VAM Growth Fund

As the month progressed the evidence built that Omicron has an increased risk of reinfection but lower severity and presents with milder symptoms. Consequently, despite short-term disruptions from workers off sick and increased travel restrictions, investor confidence increased given that Covid risks are 2021 problems more so than 2022 issues.

Attention instead turned towards the forthcoming rate hikes in 2022 and the hawkish shift o f Central Banks. This took the shine off some of the faster-growing stocks and saw the  start of a rotation into value stocks that stand to benefit from continued economic growth but higher inflation and interest rates.

Sources: Rivers Capital Management and Sanlam Private Wealth.
Sanlam Private Wealth is a trading name of Sanlam Private Investments (UK) Ltd.

Disclaimer

VAM Fund, Cautious, Balanced and Growth Funds are compartments of VAM Managed Funds (Lux).

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