The Quarter in Brief - Q4 2016

The quarter started positively as equity markets rebounded post Brexit, returning 4.31% during July as measured by the MSCI AC World Index in local currency terms. This recovery however, did not continue during August and September as equity markets were anemic, returning +0.7% in aggregate. On the back of Brexit concerns, the British Pound fell to a 31-year low vs the Dollar, trading as low as $1.2721 - its weakest point since 1985. Investment grade corporate bonds returned +1.9% as investors kept looking for yield. Chinese equities rallied 10% on the back of positive Manufacturing PMI readings: 53.5 for August and 53.7 for September (A reading above the 50-point level  signals expansion in the manufacturing sector.)