Quarterly Review Q1 2024 - Cautious Final - Flipbook - Page 4
Performance commentary
Market
Equity markets started the year on a strong footing with the MSCI All Country World Index of global
equities up +9.3% for the quarter in Sterling terms. The U.S. equity market, as measured by the S&P
500 Index, was again a key driver, up +11.6%, but it was Japan that led the way, up +12.2% for the
quarter in Sterling terms. Japan’s stock market continues to attract global investors’ attention due to
the positive backdrop of a strengthening economy, accelerating earnings growth and transformative
corporate governance reforms. Emerging Market equities were the laggards, up +3.4% for the quarter,
held back by China’s ongoing economic struggles which led its equity market to decline over the period.
From a style perspective, Momentum was a clear winner over the quarter globally. Conversely, strategies
focused on mid and smaller sized companies and value-oriented strategies typically underperformed.
Global 昀椀xed income markets were generally more lacklustre with the GBP hedged Bloomberg Global
Aggregate Index of high-quality 昀椀xed income securities down -0.1% over the quarter. As investors
digested robust U.S. economic data that suggested that interest rates may have to stay higher for
longer, longer dated bonds fell most heavily. However, high yield bonds reacted positively to this
stronger economic data and bene昀椀tted from further compression in the yield spread available over
government bonds, helping Bloomberg Global High Yield Corporate Bond Index to deliver a +1.9%
quarterly return in GBP hedged terms.
Total Fund
The Multi-Asset Blend Cautious Fund (“the Fund”) was up +2.6% over the 昀椀rst quarter, outpacing the
+1.5% return of its IA Mixed Investment 0-35% Shares performance comparator. Since the Fund’s
inception on 17th October 2022, the Fund is up a highly attractive +11.5%, in line with its IA comparator.
It is also worth noting that the Fund’s return has been achieved with lower volatility and drawdowns
than the IA comparator.
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