Summary

• The Developed World Bond Fund returned -1.04% and the Bloomberg Global Aggregate Credit Index returned -0.48%.
• Fixed income markets moved from early-year optimism around declining inflation and prospective rate cuts to renewed concerns about inflation and geopolitical risk.
• Advances in agentic artificial intelligence workflows sparked selloffs across the software industry in February, with investors appearing to take a "shoot first" approach to AI disintermediation risk.
• The Developed World Bond Fund further reduced duration immediately following the U.S./Israel attacks on Iran given the implications for inflation and commodities.
• Central banks will spend the coming months assessing the scale of the resulting inflation shock and whether interest rate hikes will be needed as a result.

At a glance

Performance

The Fund returned -1.04% and the Bloomberg Global Aggregate Credit Index returned -0.48%.

Contributors/detractors

Duration exposure detracted from performance, as did an overweight position in corporate bonds and loans. An allocation to

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