Full Report: GWII Quarterly Report March 2022
Market commentary
The first quarter of 2022 saw financial markets plagued by volatility, caused first by the fast-spreading Omicron variant of the COVID-19 virus, and then by Russia’s unprovoked invasion of Ukraine. Throughout the quarter, the anticipation and implementation of interest rate hikes – as well as continued record-high inflation readings – did not help to ease the pain. The VIX, an index that measures volatility in financial markets, reached its highest level this quarter since January 2021. The Dow Jones Industrial Average recorded its largest-ever daily point gain in late February, after falling 4.5% during one week in January.
The S&P 500 Index was largely kept afloat by the Energy sector, which returned 33.5% during the quarter. Technology companies were hit hard during the quarter, with Meta Platforms (formerly Facebook), a GW Phillips Student Fund holding, falling over 25% in one day this February.
For the GW Investment Institute Student Investment Funds (GWII SIFs), returns during the first quarter were -4.0%, outperforming the S&P 500 Index, which returned -4.6%. The success of the GWII SIFs is a direct result of the continued hard work of students, faculty, staff, and alumni.
Andrew Salm, Portfolio analyst, GW Phillips Student Investment Fund