Quarterly Review Q3 2024 - Cautious - 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%. 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 holding in Man GLG High Yield Opportunities
Fund also performed well (+5.7%).
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.
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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