Summary

• Most global indices recorded negative returns for September, ending the positive rally experienced since March 2020. The US markets were in the red as a result of increased COVID-19 concerns, coupled with the build-up to the US elections in November 
• Global equities, as measured by the FTSE All-World Total Return index, returned -3.18% 
• Government bonds (FTSE World BIG Index) returned had a negative month returning -0.40% for September
• The Ashburton Global Strategy Fund recorded -1.48% for September. Both Lyrical and Epoch returned -2.4%, AB outperformed its benchmark with a return of -2.93%, while Franklin Templeton Global Total Return Fund recorded a positive return of 0.07% and Colchester Global Bond Fund a negative -1.24%.


Over the course of September, most global indices recorded negative returns, ending the positive rally experienced since March 2020. Global equities, as measured by the FTSE All-World Total Return index, returned -3.18%. Government bonds (as measured by the FTSE World BIG Index) also experienced a negative month, returning -0.40%.

Notably, the US markets were in the red over the period as a result of heightened COVID-19 concerns and with the US elections in November fast approaching. 

Against this backdrop, the Ashburton Global Strategy Fund returned -1.48% for September. This figure represents the movement between the net asset value as at 26 August up until 30 September.  

As a result of all the equity sub-sectors having a negative return for September (with energy being the worst performer), so too did our underlying managers record a negative month. Within the equities bucket, both Lyrical and Epoch returned -2.4% for the month and were joint best performers. 

The Property manager AB had a negative return for September, however still managed to slightly outperform its benchmark with a return of -2.93%.

For the calendar month, Franklin Templeton Global Total Return Fund had a positive return of 0.07%, while Colchester Global Bond Fund reported a negative month with a return of -1.24%.

The Ashburton Global Strategy Fund reflects the macroeconomic house view of Ashburton Investments. From a tactical asset allocation perspective, no changes were made during September, however, the fund remains overweight equities compared to its long-term strategic asset allocation. This resulted in the fund’s exposure to cash decreasing during the period.