We remain cautious about the returns for global equity markets, as supportive monetary and fiscal policy that helped propel equities last year continues to fade. Developed market consumption expenditure is expected to be more muted amid lower savings rates, subsiding government transfer payments, and as real disposable income is eroded by inflationary pressures. Accordingly, we continue to lower the overall fund beta to be less exposed to market risk. However, we have recently added more country exposures to China and Hong Kong regions in the multi-asset funds, amid attractive valuations and supportive liquidity dynamics. There has been a notable turnaround in the credit impulse and well-contained levels of inflation are underpinning a more upbeat macroeconomic backdrop. While global inflation will likely remain elevated, we continue to believe that price pressures will dissipate in 2H22, as we assume supply chain bottlenecks will likely unwind as trading conditions normalise. Increasing headwinds for consumer demand will also likely add to disinflationary pressures, as high staple prices such as food and energy erode real consumption expenditure prospects. Moreover, favourable base effects will likely assist in lowering year-on-year CPI prints.
The USD Global Growth and Balanced Funds fell 5.1% and 3.6% respectively, although better than their Morningstar peer groups which fell by 6.3% and 5.3% for each respective fund. Both Funds remain in the first quartile relative to their Morningstar peer groups year-to-date and on a one-year basis. A stronger dollar, a geographical tilt toward China and Hong Kong, as well as our relatively high cash positioning were likely among the primary reasons for the relative outperformance over the month. Our most defensive Fund, the Sterling Asset Management Fund contracted 3.8%. We continue to remain vigilant by keeping the overall fund beta at lower levels compared to the majority of last year amid a highly volatile and uncertain economic environment.
 All performance metrics are stated in I Class terms.
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