KNOWLEDGE CENTER

Knowledge Center Archive

Apr
18
2017

Q1 2017 Quarterly Review: Solid Results

 

SHOW/HIDE TRANSCRIPT

Hi,

I'm Kevin Barr, Head of SEI's Investment Management Unit. Over the next few minutes I will provide an overview of the global financial markets and our perspective on them.

The U.S. equity market rally that began last November continued into the New Year with record-setting gains in January and February.

While the advance stalled in March - as the Trump administration hit a roadblock in its healthcare reform efforts - results for the quarter were solid.

The S&P 500 closed up 5.5%. The MSCI All-Country World Index, a proxy for global equity markets, fared even better, up 6.4%. Bond yields generally finished the quarter a bit lower despite a widely expected quarter-point interest-rate increase from the U.S. Federal Reserve.

The drop in yields was largely in response to the Fed’s latest projection for future rate hikes. The forecast held firm in March, surprising market expectations for an increase.

Looking ahead, investors face domestic concerns about the pace of tax and regulatory reforms in addition to global concerns over geopoliticial events.

Despite these challenges, our outlook remains positive.
Until interest rates start to rise at a faster-than-anticipated pace, or the economy shows early signs of entering a recession, we expect global equities to continue their advance.

Of course, it is important to remember that markets do not always move forward in a steady fashion despite the relatively favorable conditions that we have been enjoying for quite some time.
Fits and starts are more normal than not, and short-term declines should be expected.

With that sentiment in mind, we have always believed that it’s not what happens in the market, but rather how investors respond, that distinguishes a well-thought-out investment program from market speculation.

We encourage everyone to keep that sentiment in mind in the days and months ahead. On behalf of everyone at SEI, thank you, as always, for your trust and confidence.

 

Chart Source: Bloomberg

S&P 500 Index

The S&P 500 Index is an unmanaged, market-capitalization weighted index that consists of the 500 largest publicly traded U.S. companies and is considered representative of the broad U.S. stock market.

MSCI All Country World Index

MSCI All Country World Index is a market capitalization weighted index composed of over 2,000 companies, and is representative of the market structure of 46 developed and emerging market countries in North and South America, Europe, Africa, and the Pacific Rim. The index is calculated with net dividends reinvested in U.S. dollars.

Disclosures

There are risks involved with investing, including loss of principal. Diversification may not protect against market loss.

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice and is intended for educational purposes only.
Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
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SEI Investments Management Corporation (SIMC) is the adviser to the SEI funds, which are distributed by SEI Investments Distribution Co (SIDCo). SIMC and SIDCo are wholly owned subsidiaries of SEI Investments Company.

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