While still volatile, markets were less weak in February. Fears surrounding a devaluation of the Chinese Yuan have receded somewhat, while the bounce in the oil price over the second half of the month helped markets given the correlation between stock markets and the oil price that has so far been a feature of 2016.
Sterling weakness on heightened Brexit fears meant most bourses recorded positive returns in GBP terms. The broad-based MSCI AC World index was up +1.1% over the month in, driven by the US; Europe was weaker with the MSCI Europe index flat. Our benchmark, the MSCI AC World ex-US, registered a +0.7% gain.