Within the fixed income universe, corporate bonds delivered strong results as the market easily absorbed a torrent of new issuance. Positive vaccine news in November raised hopes for a return to normalcy in 2021 and boosted sectors that had been beaten down in the initial phases of the pandemic. Growth stocks significantly outpaced their value counterparts for the full year however, value shares rallied late in the period. Emerging markets outpaced developed markets, and Asian shares delivered strong results as China and other countries in the region proved relatively successful in containing the coronavirus. Despite a late rally, the energy sector trailed with significant losses due to a plunge in oil prices. Within the S&P 500, the technology and consumer discretionary sectors were the top performers, and communication services and materials stocks also outperformed. Large-cap information technology and internet-related firms helped lead the rebound as they benefited from the work-from-home environment and an acceleration in demand for online services. In the U.S., the large-cap Dow Jones Industrial Average and S&P 500 Index reached record highs, as did the technology-heavy Nasdaq Composite Index-a result that few would have predicted in late March after the benchmarks tumbled more than 30% as governments instituted lockdowns to try to halt the spread of the virus. Extraordinary fiscal and monetary support from global governments and central banks helped spur the rebound, although the pandemic continued to pose significant public health and economic challenges as the year came to an end. Nearly all major stock and bond indexes produced positive results during 2020 as markets recovered from the steep sell-off that resulted from the spread of the coronavirus. *Certain mutual fund accounts that are assessed an annual account service fee can also save money by switching to e-delivery. Log in to your account at for more information. We expect to see investor sentiment toward emerging markets local currency bonds remain positive in 2021 amid an improving growth backdrop and strong technical conditions. We increased the portfolio’s risk exposure mid-period to take advantage of bond and currency valuations that had reached attractive levels. Our active currency positioning, as well as our country allocation and exposure to interest rate changes, helped the portfolio’s relative performance. The Emerging Markets Local Multi-Sector Account Portfolio outperformed its benchmark for the 12 months ended December 31, 2020. ROWE PRICE EMERGING MARKETS LOCAL MULTI-SECTOR ACCOUNT PORTFOLIO
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