Global equity markets fell sharply in February, with a marked rise in volatility. The catalyst came with the release of higher than expected earnings growth data in the US, which triggered concerns over the outlook for inflation and the risk that the Federal Reserve would be forced to raise interest rates at a faster pace than had been previously signalled. At the sector level, energy stocks were weakest on concerns that rising shale production in the US would derail the recovery in the oil price. Investors continued to favour technology stocks, based on strong earnings momentum in the US. UK equities underperformed the World Index as the Bank of England signalled interest rates may need to rise more rapidly than anticipated to return inflation to its 2% target. Exposure to technology stocks contributed to fund performance. Cisco Systems was the main contributor as the US maker of internet communications equipment reported quarterly earnings ahead of expectations and announced a $25 billion share buyback programme. Our holding in Broadcom, which raised its takeover offer for rival chipmaker Qualcomm, also performed well. Amongst consumer stocks, holdings in Home Depot and McDonalds detracted. Home Depot lost ground despite the DIY retailer reporting fourth quarter sales ahead of forecasts. McDonalds weakened on concerns over the company’s first quarter revenues after the fast food chain launched a range of discounted burgers and drinks to boost sales.