Full Report: GWII Quarterly Report June 2022
Market commentary
Financial markets sharply declined as investors grappled with surging inflation, the actions of the U.S. Federal Reserve (the Fed), and a global economic slowdown throughout the quarter ended June 30, 2022. Inflation spiked to a staggering 9.1% year-over-year reading in June, the highest in over 40 years. Ongoing conflict in Ukraine, which has upended global
commodity markets and supply chains, contributed to the heightened food and gas prices. To combat inflation, the Fed raised interest rates 75 basis points in June, the largest hike since 1994. Equity markets responded poorly to the state of developments, and firmly entered into bear territory. While all sectors in the S&P 500 lost value, the declines were most significant in consumer discretionary, communication services, and information technology, and least pronounced in the energy, utilities, and consumer staples sectors.
For the quarter ended June 30, 2022 the GW Investment Institute Student Investment Funds in aggregate underperformed the benchmark with a return of -18.0% vs. -16.1% for the S&P 500, while slightly outperforming the benchmark in the calendar year-to-date -19.9% vs. -20.0% for the S&P 500. The long-term aggregate fund performance is a testament to the enduring diligence and commitment of our students, faculty, and alumni.
Samir Iqbal, Portfolio analyst, GW Phillips Student Investment Fund