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Global Strategy Fund: August 2022

  • Higher interest rates are increasing the probability of a recession and a slowdown in economic activities. Energy prices are still at elevated levels as the war between Russia and Ukraine continues. Global equity markets ended the month in the red, giving back some of the gains experienced in July.
  • All underlying sectors, besides Energy produced negative returns for August returning +1.47%. Global equities, as measured by the FTSE All-World Total Return Index returned -3.57% over the same period.
  • For the past month, value stocks outperformed growth stocks and on a year-to-date basis, value stocks are ahead.
  • After a positive return last month, global bonds (as measured by The FTSE WorldBIG Index), returned -4.10% for August.
  • The Ashburton Global Strategy Fund priced for the last time in August, returning +0.65% between 27th July 2022 and 31st August 2022.
  • The star performer for August was the alternatives hedge fund of funds manager, Aurum, that returned a solid performance of +1.3% for the month.
  • The core equity manager, Epoch, performed in-line with the benchmark as measured by the FTSE All World Equity Index, returning -3.6% for August.
  • Both the concentrated equity fund, Mundane World Leaders and deep value equity manager, Lyrical, returned -4.1% for the month under review.
  • Global property had a negative month giving away all the gains from July; the AB Global Real Estates Securities Fund returned -7.1%.
  • The global bonds exposure via the Colchester Global Bond Fund also had a negative return of -4.3% for the month.
  • 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 strategic asset allocation. The Alternatives exposure was increased by 2%, to 32%.