Markets continued to make progress through August, extending a long period of unusually low volatility. This might be put down to weak trading volumes in the summer period, but perhaps also to investors’ relatively cautious positioning: surveys revealed unusually high cash balances held by fund managers in their funds, keeping dry powder on the sidelines.
Stock markets generally rallied, led by Asia (with MSCI Asia ex Japan gaining 3.3%) and China in particular, with the HSCE index of Chinese shares listed in Hong Kong rising over 6%. While global bonds saw yields rise a little, gilts continued to rally, with the ten year gilt yield falling to around 0.6%. Gold weakened, down 3% as fears over the immediate post-referendum world continued to subside.
The 7IM Personal Injury Fund delivered further gains in August, returning 0.72% (B Acc) for the month: