FIMARGE Funds and SICAVs

In February, markets exhibited notable shifts across equities, bonds, and currencies. European equities outperformed their US counterparts, driven by optimism surrounding a potential ceasefire in Ukraine and a renewed focus on domestic production. The MSCI Europe ex-UK Index rose 3.4%, with European defense stocks delivering returns of 9.3%. In contrast, US equities faced challenges, particularly in the technology sector, leading to a 1.9% decline in the S&P 500. Bond markets experienced positive returns, with US Treasuries being the top-performing sector with returns of 2.2%, while global IG markets also rising.Longer-term bonds outgained short-term bonds as yields settled, reflecting uncertainty around US economic policy and the Fed's cautious stance on future inflation. As for currencies, the USD showed volatility due to recent US tariff announcements. The Fed maintained rates at 4.5%, while the ECB cut rates by 25 bps to 2.75% in January and is expected to cut again in early March.