Executive Summary
In September, the markets finally entered a consolidation phase with weak performance that included declines for bonds and equities. That came amidst jitters over Evergrande, rising energy prices and hence inflationary pressures, as well as a hawkish turn from multiple central banks. Investors cast increasing doubt on the sustainability of current valuations. So, the markets ended September 2021 in a notable risk-off manner, and the major equity indices fell back for the first time since January. The key highlights for September:

  • Inflation expectations were at a multi-year high

  • Inflation was higher than expected and economic data was lower than expected

  • There were more central bank hikes than cuts

  • In the 1st week of October 2021, the Bloomberg Commodity Spot Index finally exceeded its 2011 high. This brings the index's gains since the post-pandemic low in March 2020 to +95%.

The Technology of the Future Fund had a -4.22% return in September, in line with other major equity indexes, slightly outperforming the benchmark MSCI World Index (USD), which had a return of -4.29% .