Global stock markets blithely continued their upward trend at the beginning of the quarter. However, investor sentiment was no longer quite as exuberant as before and definitely tipped into negative territory in September. Emerging inflation concerns are increasingly putting central banks under pressure to rein in their ultra-loose monetary policy. For the time being, it is only a matter of reducing the monthly liquidity injections (an interest rate hike is not expected for another year), but this was enough to spoil the mood of investors. In particular, stocks with high valuations lost ground towards the end of Q3. In parallel, risk indicators also rose somewhat.
Initially rising, then falling prices and some volatility flaring up again and again ensured a positive return for our risk-based strategies in Q3 - slightly ahead or behind the benchmark, depending on the fund and share class. Overall, market risk indicators rose only marginally and remain below the long-term average. The fact that a larger outperformance could not be achieved in negative September was mainly due to the fact that investors did not significantly increase their exposure to more defensive stocks despite increased market risks.
With the exception of the USD, most major currencies depreciated somewhat against the CHF in Q3. As a result, share classes with currency hedging ended the quarter with a higher return than those without hedging.