Quarterly Review Q3 2024 - Balanced - Flipbook - Page 5
Fixed income
Within the 昀椀xed income component, the Fund’s holding in long dated US Treasuries, through the iShares 20+
US Treasury ETF, rebounded strongly over the quarter, rising +6.9% and taking it into positive territory for the
year. A reduction in interest rate expectations is particularly positive for long dated bonds and if economic
data in the US shows more signs of deterioration, this position should continue to perform well going forward.
The modest holding in Man GLG High Yield Opportunities Fund also performed well (+5.7%).
The Eaton Vance Local Emerging Market Debt Fund, which invests in the government bonds of emerging
and frontier economies which are denominated in that country’s currency (rather than, for example the US
Dollar) also enjoyed a strong quarter, rising +8.7%. The manager’s portfolio continues to provide an attractive
double-digit yield and has been a bene昀椀ciary of a stronger environment for Emerging Markets and a weaker
US Dollar. The contribution to your Fund’s return was also enhanced by our decision to increase the allocation
to this fund earlier in the quarter.
Although still in positive territory, the Fund’s exposure to Chinese Government Bonds, via the JP Morgan
China Aggregate ETF (+1.2%), lagged global bond markets over the quarter. Although the Chinese economy
continues to be weak, which is generally good for high quality bonds, the economic stimulus measures
announced at the end of the quarter and the prospect of more to come weighed on Chinese government
bonds.
Property, real assets & absolute return
A number of the Fund’s diversifying strategies contributed positively over the quarter. The ClearBridge Global
Infrastructure Income Fund was up +11.9% as a more subdued interest rate environment was a positive for
their underlying infrastructure companies. Infrastructure companies, such as toll road, railway or electricity
network operators, tend to bene昀椀t from revenues that are in昀氀ation-linked so many are seeing their pro昀椀ts
and dividend payouts grow at a point where interest rates are now declining. The Sanlam Multi-Strategy Fund
(+4.4%) also bene昀椀tted from the strength of their infrastructure equity component as well as positive returns
from their short-dated bond exposures.
The Fulcrum Thematic Equity Market Neutral Fund endured a more dif昀椀cult quarter (-7.3%) but remains up
+6.5% year-to-date. A number of their positions focused on weight loss drug treatments as well as their
global technology and “AI” exposures, which have been positive contributors this year, endured some pro昀椀t
taking over the quarter.
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