Global Strategy Fund: June 2021

Summary

• Global equity markets had another reasonable month, as economic data was positive, developed markets reopened and a positive sentiment ensued as the rollout of COVID-19 vaccines continued.

• Value stocks once again performed better in May, outperforming growth stocks.

• Global equities, as measured by the FTSE World Total Return Index returned 1.65% for the month.

• It was another positive month for global bonds after a tough start to the year, with government bonds (as measured by the FTSE WorldBIG Index), ending the month with a return of 0.8%.

• The Ashburton Global Strategy Fund priced for the month of May, returned 1.65% (this is the NAV on NAV move between the 28 April ‘21 and 26 May ’21).

• All the underlying exposures within the Fund, except for the Cederberg Greater China Equity Fund, posted positive returns for the month.
• Within the equity allocation, the deep value exposure via Lyrical and the core equity exposure via Epoch had a decent month, returning 3.7% and 3% respectively, while the exposure to the Mundane World Leaders Fund underperformed the equity index.
• Chinese equities had a strong start to the year, but this performance was reversed from February and Cederberg Greater China Equity Fund ended May with a negative return of -2.4%.

• Global bonds have produced positive performance for May, resulting in the Colchester Global Bond Fund returning 0.7%.

• The Franklin Templeton Global Total Return Fund remains low duration and had a positive performance of 1.2% for the month.

• The Ashburton Global Strategy Fund reflects the macroeconomic house view of Ashburton Investments and post the implementation of the new Strategic Asset Allocation in January 2021, there have been no changes made from a tactical asset allocation perspective.