Volatility returned to markets as Omicron, a new Covid-19 variant, spooked investors. With 50 alterations, including 33 on the spike protein, markets were left scrambling for clues regarding its contagiousness, its lethality and the efficacy of vaccines and treatments. Several countries reinstated travel bans, increasing downside risks to growth. In a year where performance has been very robust, this heightened uncertainty drove a rapid adjustment in portfolios, as managers strove to preserve annual return figures.
Read Florence Barjou's full analysis in our latest CIO Monthly.