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Global Strategy Fund: July 2022


  • Markets ended in the green at the of July, although weaker economic data forecast a global economic slowdown. Unchanged sentiments around the Russian and Ukraine conflict, policy concerns, coupled with higher interest rates increase the probability of a recession. All underlying sectors, excluding telecoms, produced positive returns for the month, with the best performer being the consumer discretionary sub-sector returning +11.5%. Global equities, as measured by the FTSE All-World Total Return Index returned +6.9% for July.

  • For the past month, growth stocks outperformed value stocks. However, on a year-to-date basis, value stocks outperform growth stocks.
  • After a negative return last month, global bonds (as measured by The FTSE World BIG Index), returned +2.2% for July.

  • The Ashburton Global Strategy Fund priced for the last time in July, returning +0.8% between 29 June and 27 July 2022. The fund outperformed its strategic asset allocation (SAA) for the month of July, which returned +0.7%.
  • With financial markets rebounding during July, the star performance for the month came from the deep value exposure via the Lyrical US Value Fund that returned a phenomenal +10.2%.

  • The concentrated equity manager, Mundane, also outperformed the equity benchmark with a return of +9.7% at month end.

  • The core equity manager, Epoch, albeit a positive return of +3.2%, underperformed the equity benchmark.

  • The alternatives hedge fund of funds manager, Aurum, returned +0.2% for the month.

  • Global property had a positive month, and the AB Global Real Estates Securities Fund returned +7.8%.
  • The bond exposure via the Colchester Global Bond Fund also had a positive return for July of just under 2%.

  • The Ashburton Global Strategy Fund reflects the macroeconomic house view of Ashburton Investments, and subsequently, the tactical asset allocation of the fund was changed in May 2022 (no new changes were made in June 2022). The equities exposure was reduced from 67% to 65% and the fund is now neutral to its SAA. The alternatives exposure was increased by 2% to 32%.