The quarter will always be remembered as the time when we started to face up to the unknown enemy of coronavirus. With the world responding to the global pandemic, investors have been trying to quantify the financial impact on the global economy. Combined with a dispute between OPEC and Russia, this has caused huge volatility in financial markets, with equity markets and oil prices suffering the biggest impact.
The NOW: Pensions Diversified Growth Fund (DGF) has a balanced investment approach which has helped the portfolio to navigate through the uncertainty.
While some assets such as equities and inflation struggled over the quarter, others such as the rates factor,which invests in government bonds,hav delivered strong returns.By the end of the quarter,the DGF had registered a negative return of -12% which compares against a negative return from the FTSE100 of -24%.