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
April 2019 - Latest commentary
We are exposed to six equity markets in the growth momentum strategy. Elsewhere we 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 put options as downside hedges.
The recent positive market trend in equities continued but there were many mixed signals. Economic data released over the month showed US unemployment at the lowest level since 1960, but also rising new claimants. Other releases pointed to economic activity slowing in Germany and rising in China. The IMF reduced their global growth forecasts whilst around 75% of US companies reporting earnings beat market expectations. Despite the mixed messages equity markets posted strong returns for the month, with the Nikkei 225 and EuroStoxx 50 indices leading the way. Overall global equities as measured by the MSCI World index were up a little over 3%.
The Multi Strategy fund saw gains in synthetic equity, property, renewables, high yield bond, investment grade bonds, other alternatives, infrastructure and equity momentum. Unsurprisingly with markets rising strongly our hedge positions were the only detractors.
The mixed signals provide the perfect backdrop for markets to keep climbing the proverbial “wall of worry”. Whilst there are obvious risks on the political front, the current (albeit extended) cycle remains supported by accommodating policies and supportive measures. Navigating the path is unlikely to get easier any time soon. With this in mind we continue to believe that the Multi-Strategy fund is well positioned with the profile of a diversified convertible and favour 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.