• US Treasurys were the best-performing fixed-interest segment, while emerging-market debt continued to sustain the deepest losses.
  • Lower expectations for next year could allow for upward revisions in analysts’ earnings estimates assuming, as we do, that the renormalisation of global economic growth gets back on track with wider vaccine distribution.

Global equities started November on promising footing. Shares advanced for the first week, then treaded water through mid-month before declining, modestly at first, and then sharply during the last week.

Developed-market shares continued to perform better than emerging markets. China, Hong Kong, the UK and Europe sustained sharp one-month drops. Japan’s losses were less severe, and the slide in US shares was mild compared to other major markets.

Government-bond rates declined across all maturities in the UK and eurozone; yields went negative on eurozone bonds with maturities all the way out to 30 years (negative yields were out to 12 years at the end of October). Short-term US Treasury rates increased, while intermediate-to-long-term rates declined, resulting in a flatter yield curve. Treasurys were the best-performing fixed-interest segment, while emerging-market debt continued to sustain the deepest losses1.

Commodity prices reversed lower in November. The Bloomberg Commodity Index was mostly flat until a selloff during the last week of the month, finishing November down 7.3%. Crude oil prices moved slightly lower throughout the month, and then similarly tumbled to end the month. The West Texas Intermediate crude oil price dropped 20.8% in November, while the price of Brent crude fell by 17.3%2.

Emergence of the omicron coronavirus variant in southern Africa was a key factor in rattling investors as November progressed3. Omicron appears to contain significantly more mutations than other variants, which could potentially make it more effective in sidestepping neutralisation by antibodies generated from earlier infections and vaccinations.

The US reported the highest country-level number of new COVID-19 infections per day at the end of November, followed by Germany, the UK, France and Russia. Daily deaths associated with COVID-19 were highest in Russia, then the US, Ukraine, India and Poland4.

Vaccination drives mirrored share performance in November: the UAE, Cuba and Chile have the highest population shares with at least one dose of vaccine5. The two best-performing country-level equity performances for the month were the UAE and Chile.

Keep reading. Download the full commentary.

1According to data from FactSet and Lipper. See Fixed-Income Performance chart on page 3.
2According to market data from The Wall Street Journal.
3“Classification of Omicron (B.1.1.529): SARS-CoV-2 Variant of Concern.” World Health Organization. 26 November 2021.
4“COVID-19 Global Tracker.” Reuters.

Legal Note

Important Information

Data refers to past performance. Past performance is not a reliable indicator of future results.

Investments in SEI Funds are generally medium- to long-term investments. The value of an investment and any income from it can go down as well as up. Investors may get back less than the original amount invested. Returns may increase or decrease as a result of currency fluctuations. Additionally, this investment may not be suitable for everyone. If you should have any doubt whether it is suitable for you, you should obtain expert advice.

No offer of any security is made hereby. Recipients of this information who intend to apply for shares in any SEI Fund are reminded that any such application may be made solely on the basis of the information contained in the Prospectus. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any stock in particular, nor should it be construed as a recommendation to purchase or sell a security, including futures contracts.

In addition to the normal risks associated with equity investing, international investments may involve risk of capital loss from unfavourable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. High yield bonds involve greater risks of default or downgrade and are more volatile than investment grade securities, due to the speculative nature of their investments. Narrowly focused investments and smaller companies typically exhibit higher volatility. SEI Funds may use derivative instruments such as futures, forwards, options, swaps, contracts for differences, credit derivatives, caps, floors and currency forward contracts. These instruments may be used for hedging purposes and/or investment purposes.

While considerable care has been taken to ensure the information contained within this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information and no liability is accepted for any errors or omissions in such information or any action taken on the basis of this information.

This information is issued by SEI Investments (Europe) Limited, 1st Floor, Alphabeta, 14-18 Finsbury Square, London EC2A 1BR which is authorised and regulated by the Financial Conduct Authority. Please refer to our latest Full Prospectus (which includes information in relation to the use of derivatives and the risks associated with the use of derivative instruments), Key Investor Information Documents and latest Annual or Semi-Annual Reports for more information on our funds. This information can be obtained by contacting your Financial Adviser or using the contact details shown above.

SEI sources data directly from FactSet, Lipper, and BlackRock, unless otherwise stated.

The opinions and views in this commentary are of SEI only and should not be construed as investment advice.