The first quarter of 2023 was marred by significant market volatility and fluctuating investor sentiment in the midst of an uncertain macroeconomic environment. The quarter started on an upbeat note, with positive inflation and economic data from major global economies boosting sentiment. Consequently, both equities and bonds posted record high returns in January. However, disappointing inflation reports, bank failures in the US and Europe, and central banks decisions during the course of the quarter saw major financial benchmarks trimming most of their January gains. Despite this, major asset classes finished the quarter higher after a last-minute recovery towards the end of March as bank concerns subsided. There was a notable increase in inflows in to bonds, but the lion’s share of inflows went to equities.