The fund was launched in January 2013 to provide investors with access to our multi-strategy capability. It is a diversified fund that combines thematic and systematic investment strategies aimed at absolute positive return and income distribution.
The fund:
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Brings together a diverse range of asset classes focused on absolute return
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Is structured to participate when markets are rising while offering protection in falling markets
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Is managed by a highly experienced team with an award winning track record
June 2019 - Latest commentary
We have no exposure to equity markets in the growth momentum strategy. Elsewhere we are remain active in nine areas; Synthetic equity options, Global Infrastructure, Renewables, Property, Active Alpha, corporate bonds (short dated), government bonds, alternatives and opportunistic. We continue to hold equity index options as upside and downside hedges.
The statement released following the latest meeting of the US Federal Reserve pointed to a shift in policy. In dropping the word “patient” the latest statement signalled that the next move in interest rates is likely to be downwards and may come sooner than previously expected. Hopes for progress on US/China trade talks were also raised ahead of the G20 meeting with Presidents Trump and Jinping scheduled to meet in Osaka. In Europe the political scene remains the centre of attention with leaders struggling to agree candidates for the EU top jobs whilst in the UK we now know that either Boris Johnson or Jeremy Hunt will replace Theresa May as Prime Minister.
The softer tone on interest rates and hopes on trade talks gave the markets a boost and most recovered all of the losses from May. The S&P 500 index led the way with a 7% gain for the month and the Nikkei 225 index brought up the rear with a gain of 3.4%; this contrasted with losses of 6% and 7% respectively last month. Bond yields continued to tighten in most markets, indeed 10 year government yields in France, Sweden and The Netherlands all turned negative in the month.
The Multi Strategy fund saw gains in synthetic equity, renewables, high yield bond, invest grade bonds, infrastructure and opportunistic. The fund saw negative contributions from property, other alternatives, midcap alpha and hedges. The first half of 2019 has produced positive returns in most asset classes, but not without a significant dose of volatility. The mixed messages from equity and bond markets are unlikely to make the second half any easier, but we remain confident that we are well positioned with our current profile of a diversified convertible favouring option based equity exposure (rather than pure directional investments) alongside income producing real assets and short duration bonds.
Previous months’ commentaries are contained within the fund factsheets.