Equities, Convertibles, and High Yield Advance; Significant Growth Potential Ahead
The three asset classes utilized in the Income and Growth strategy – U.S. equities, convertible securities, and high-yield bonds – all advanced in the first quarter. The Russell 1000® Growth Index returned 0.9%. The ICE BofA U.S. Convertibles Index and ICE BofA U.S. High Yield Index returned 2.9% and 0.9%, respectively. By way of comparison, the 10-year U.S. Treasury fell 7.1% and the S&P 500® Index gained 6.2%.
Factors influencing markets included better-than-expected earnings, rising interest rates and a steepening yield curve, additional fiscal stimulus, ongoing Federal Reserve accommodation, vaccine rollout momentum, and economic strength.
The commentary is the opinion of the subadviser. This material has been prepared using sources of information generally believed to be reliable; however, its accuracy is not guaranteed. Opinions represented are subject to change and should not be considered investment advice or an offer of securities.
All investments carry a certain degree of risk, including possible loss of principal.
Past performance is not indicative of future results.