Performance commentaryMarketEquity markets were modestly positive over the quarter, with the MSCI All Country World Index of globalequities up +0.6% in GBP. Any hopes of a quiet summer were scuppered by some weaker US economic datareleased over August that coincided with a poorly communicated interest rate hike in Japan and which sentequity markets into a short, sharp tailspin. However, markets quickly rebounded as investors took solace ingreater con昀椀dence that the weaker economic data in the US would result in a more aggressive path of interestrate cuts by the Federal Reserve.The quarter ended on a positive note as the People’s Bank of China announced a series of measures tosupport their economy and China’s ailing property market. Their goal was to also boost consumer con昀椀denceand help achieve their ambitious target of 5% annual GDP growth in 2024. In one fell swoop, this helped theMSCI China Index to an astonishing +16.5% return for the quarter, taking it to +23.2% for the year in GBPterms. China went from being one of the year’s worst performing major equity markets globally to the bestperformer, boosting Emerging Market indices and Commodities in the process.Fixed Income returns were also positive over the quarter, with the Bloomberg Global Aggregate Index of highquality global bonds returning +4.1% in GBP hedged terms. The increased expectations for lower interestrates in the US was a positive for bonds (when yields fall bond prices go up) and particularly for longer datedbonds which bene昀椀t most from interest rate reductions.EquitiesOur Tactical Asset Allocation in equities was positive for the quarter as the strong performance from ouroverweight to the UK equity market was supplemented by our underweight to weaker performing ContinentalEuropean equities. This was partially offset by our overweight to Japanese equities which detracted as Japaneseequities posted marginally negative returns over the quarter.Within the Fund’s equity component, it was notable that after a prolonged period of a narrow group oflarge AI and technology related companies leading markets higher, markets broadened out and cheapervalue stocks were back in favour this quarter. In this regard, the Pzena Global Value Fund, the Invesco UKOpportunities Fund and the Polar UK Value Opportunities Fund outperformed their respective benchmarksover the quarter. We also observed strong performance from one of our Japanese equity managers, the GSAMJapan Equity Partners Fund, which was up +5.8% over the quarter, aided by continued corporate governanceimprovements in a number of their key holdings.Conversely, managers like the Lindsell Train UK Equity Fund, the Baillie Gifford Paci昀椀c Fund and the BlackRockContinental European Fund, that are more focused on high growth companies in their respective geographies,lagged. Once again, this demonstrated the bene昀椀t of retaining a balance of different investment styles withinthe equity portfolio.Total fundThe Multi-Asset Blend Balanced Fund (“the Fund”) was up +1.6% over the third quarter, trailing the +2.3%return of its IA Mixed Investment 20-60% Shares performance comparator. The Fund’s +6.7% return over theyear-to-date remains comfortably ahead of the IA comparator. And since the Fund’s inception on 22nd July2019, the Fund is up a highly attractive +25.4%, well ahead of its IA comparator.Pg 3
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