HYOP did not deliver the return that was targeted for November due to market concerns. Monthly results for November of minus -0.18 %, and total for the first 11 months of the year plus 5.26 % mean that we will not reach the target return of 7% for the full year 2021 but rather 5.5 %.
The new omikron virus has caused the stock markets to shake considerably and credit spreads to diverge, which leads to a decrease in returns in the fund when the portfolio is revalued. November has been the tumultuous month in a long time for global fixed income markets and there are also divided opinions on inflation expectations.
In general, inflation expectations have increased in both the US and Europe. The Riksbank's interest rate path shows an unchanged key rate for several years to come, but now an increase of around 25 points is discounted in 2022 and another around 30 in 2023. In the current uncertain market, giving a forecast is difficult as we have to wait and see where the new virus takes us and which implications it has on the world market on both interest rates and stocks as well as inflation.
Jan Lundquist Manager HYOP