p17n63qg7jmbh1r4fin71pds1p454.pdf

32
S&p 500 Index
exeCUtIVe DIreCtor’S Letter Unit Trust Corporation Annual Report 2012
along with new oil and gas finds.
In January 2013, the IMF revised its 2013
projection for world growth to 3.5 percent,
marginally lower than its October 2012 forecast
of 3.6 percent. World trade is expected
to decelerate further, expanding a pace of 3.8
percent in 2013 following 2.8 percent growth
in 2012. Commodity prices are also expected
to ease, while inflation should remain stable
in the developed economies though rising
slightly in the emerging market and developing
economies. Global economic growth
may achieve these estimates as long as major
crisis risks do not materialize, particularly
in the Euro-area and US. Any substantial deterioration
in economic conditions for either
of these economies would suggest negative
implications for global economic growth.
fInanCIal maRkets-nteRnatIOnal
equIty PeRfORmanCe
Equity markets posted solid returns in 2012,
outperforming fixed-income markets as investors
sought to purchase risk assets despite
the uncertainties of the economic issues
dominating the headlines. In north America,
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0
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S&p 500
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Figure 1: North American Equity Indices
S&p tSx Composite Index
12-Aug-12
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12-Oct-12
the US benchmark S&P 500 Index rose 13.41
percent for the year, compared to return of 0.0
percent in 2011. The Financials sector was the
year’s best performer returning 26.26 percent
followed by the Consumer Discretionary and
Healthcare sectors which saw gains of 21.87
percent and 15.19 percent respectively. The
sole US sector showing a negative return was
the Utilities sector, the worst performer for
the year. The Energy sector was the second
worst performer returning 2.33 percent.
Industries within the Energy sector exhibited
mixed performance with the best performer,
the S&P Oil and Gas Refining and Marketing
Index, rising a magnificent 80.07 percent
whereas the worst industry performer, the S&P
Coal and Consumable Fuels Index, declined
26.13 percent. Canada’s S&P/TSX Composite
Index increased 4.00 percent compared to
2011’s performance of negative 11.07 percent.
The S&P Euro 350 Index soared 13.75 per-
cent while the Uk’s FTSE 100 Index increased
5.84 percent, up from negative 10.64 percent
and negative 5.55 percent in the previous
year. Belgium and Denmark outperformed,
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Shanghai Se Composite ??????????? nikkel mSCI asia pacific
??????????? S&p LaC ???????????
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S&p tSx Composite Index
mSCI asia pacific Index
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ftSe
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ftSe mIB
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Dax
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Figure 2: European Equity Indices
Figure 3: Asian Equity Indices Figure 4: Latin American Equity Indices
advancing 33.99 percent and 28.09 percent,
with Europe largest economy, Germany, following
closely behind at 25.24 percent. Spain
posted the worst performance in the region
of negative 4.76 percent followed by Greece
which returned negative 2.35 percent and
Portugal with negative 2.22 percent.
The Emerging Markets also exhibited improved
equity performance with the MSCI
Asia Pacific Index providing returns of 13.61
percent, while the S&P Latin America 40 Index
posted comparatively weaker returns of
3.30 percent. These were, however, significantly
better than their 2011 performances
of negative 17.31 percent and negative 20.69
percent respectively. Asian markets were led
by the Philippines, India, Thailand and China
which posted returns of 34.70 percent, 27.86
percent, 26.87 percent and 18.73 percent
respectively. Malaysia showed the region’s
poorest performance at 6.84 percent. Latin
America saw Colombia outperforming
the pack with returns of 19.91 percent, with
Mexico and Peru following posting 18.24 percent
and 15.03 percent. Chile trailed behind
returning negative 2.67 percent followed by
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S&p 350 europe
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??????????? S&p 350 europe Index