Fixed income, equities and real assets reporting for February
MONTHLY MARKET COMMENTARY |
High yield continued to perform well, outpacing most fixed income markets. The yield on the 10-year U.S. Treasury was marginally lower for the month as the market digested various announcements from Federal Reserve members. Despite the headwind of a stronger dollar, emerging markets debt was still the best performing fixed income asset class.
Positive returns were led by health care which experienced strong gains despite rhetoric surrounding the potential changes to the Affordable Care Act. Within developed international markets, Europe broadly underperformed developed Asia and Latin America. Emerging markets continued to move higher as performance outside of Russia was strong.
Both domestic and global real estate investment trusts performed well against the backdrop of higher global growth. Commodities remained relatively flat for the year as slightly positive metals markets balanced slightly negative energy markets. Master limited partnerships maintained a strong start to the year despite a relatively muted return during the month of February.