- Most major indices posted positive returns during the second quarter. The equity markets represented by the S&P 500 (US equities) and MSCI ACWI (Global equities) indices posted second quarter returns of +8.5%, and +7.5%, respectively.
- Bond markets, represented by the Bloomberg Barclays US Aggregate Bond Index, posted a quarterly return of +1.83%.
- We see a world that fully re-opens with wider vaccine adoption and falling mortality rates from the virus. The pent-up demand will likely continue to face constrained supply chains, and we expect that inflationary pressures are here to persist longer than yields current imply.
- Alternative portfolio performance during the second quarter helped cement our bull case for alternative strategies and assets.
- Real estate and private credit exposures continued to perform well in this economic backdrop. These exposures offer high-income potential and are likely to outperform traditional bonds in an environment of higher inflation.