Global Strategy Fund: December 2020

Summary

• Developed market indices once again benefitted from positive returns on the back of the post US election rally and the possible three Corona virus vaccines, that spurred a risk-on sentiment which had a positive effect on markets. It was also a month where global value stocks outperformed growth stocks.

• Global equities, as measured by the FTSE World Total Return Index returned 12.41%.

• Government bonds (FTSE WorldBIG Index), and global property, (as measured by the FTSE EPRA/NAREIT Developed Index), had a positive month returning 1.78% and 13.22% respectively. 

• The Ashburton Global Strategy Fund returned a satisfactory +5.07% for the month, (this is the NAV on NAV move between the 28 October 2020 and the 25 November 2020).

• Within the equity bucket, Lyrical outperformed the benchmark and was the best performer for the calendar month while Epoch and Mundane lagged and underperformed the benchmark.  

• The property manager, AB, had a positive return for November of 11.88%, underperforming its benchmark.

• Both fixed income funds, Franklin Templeton Global Total Return fund and Colchester Global Bond fund posted positive returns of 0.18% and 3.11% respectively, however only Colchester managed to outperform the benchmark.

• The Ashburton Global Strategy Fund reflects the macroeconomic house view of Ashburton Investments. From a tactical asset allocation perspective, changes were made during November; exposure to equities increased by 1%, resulting in the allocation to bonds decreasing.