MAB Quarterly Review Q1 2025 - Growth - Flipbook - Page 5
Global equity markets were collectively down over the quarter, although the Fund’s strategy of always
maintaining broad diversi昀椀cation across different regions and styles was undoubtedly helpful, particularly
with the previously dominant US equity market delivering some of the largest declines. Within the US equity
component, the Amundi Russell 1000 Growth ETF, which has the largest exposure to US technology companies,
endured a dif昀椀cult quarter returning -12.7%. The smaller company-focused Neuberger Berman US Small
Value Fund also had a challenging quarter, declining -12.0%. However, the Fund’s active managers within the
global equity component are collectively underweight US equities which helped it to outperform its global
equity index comparator. The Pzena Global Value Fund’s +1.6% quarterly return was particularly notable.
Although the Global Emerging Market Index was marginally down over the quarter, two of the three active
managers the Fund utilises in this component were able to deliver positive returns. The Paci昀椀c North of South
EM All Cap Fund’s value approach and signi昀椀cant allocation to China helped it to post a +3.2% return over
the quarter. Despite being meaningfully underweight to China, the Skerryvore Global Emerging Markets Fund
(+1.3%) was also able to generate a positive return with its emphasis on quality companies and management
teams serving it well as it often does during a more dif昀椀cult backdrop.
In Europe, the Fund’s growth-oriented manager, the BlackRock Continental European Fund, had a challenging
quarter, falling -4.0% as its tech and semiconductor related holdings dropped sharply in the more uncertain
environment for AI. However, the Lansdowne European Special Situations Fund which adopts a much more
idiosyncratic and style-agnostic approach, rose +8.4% over the quarter, helped by its exposure to European
banks and defence-related companies. Once again, this balance of different styles proved its worth to the
Fund.
Fixed income
The Fund’s 昀椀xed income component enjoyed a strong quarter, with a number of the Fund’s tactical global
exposures posting results that surpassed the +1.2% rise in the Bloomberg Global Aggregate Index. A
sustained weakening in the US Dollar as well as some adept bond selection from the manager saw the Morgan
Stanley Emerging Market Local Income Fund deliver a return of +5.2% over the quarter. The Man High Yield
Opportunities Fund, also produced a strong quarter, returning +2.9%.
With growing concerns over the strength of the US economy, there was a downward shift in expectations for
US in昀氀ation and interest rates. This was helpful to the Fund’s holding in the iShares 20+ Year US Treasury ETF
that rose +3.5% over the quarter.
Property, real assets & absolute return
The other diversifying strategies delivered a very strong quarter of returns, reinforcing the bene昀椀ts of these
lower correlation strategies in our Multi-Asset Blend portfolios.
In the Property & Real Assets component, the ClearBridge Global Infrastructure Income Fund rose +6.6% over
the quarter as the stable, in昀氀ation linked cash昀氀ows that emanate from the underlying infrastructure companies
look highly attractive in a less stable environment. The Fund’s commodity exposure, gained through the UBS
BCOM CMCI ETF was also helpful, gaining +8.8% over the quarter, boosted by resurgent demand for safe
haven assets like gold as well as a weakening in the US Dollar.
Within the Absolute Return component, the Fulcrum Thematic Equity Market Neutral Fund continued its
strong run returning +5.2% over the quarter, having adeptly moved more negative towards the US, and
speci昀椀cally technology and AI-related companies, as well as bene昀椀tting from exposure to the resurgent
European defence companies. The Paci昀椀c G10 Macro Rates Fund returned +2.7% over the quarter, continuing
its pattern of delivering slow and steady positive results with very little volatility. Also in this component, the
Sanlam Multi Strategy Fund returned -0.5%, a result that was not entirely unexpected, given this strategy does
have some modest equity market exposure.
Pg 56
