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Global Strategy Fund: October 2022


  • After a big sell-off in markets during September, developed markets gained some momentum and ended the month of October in the green although geopolitical risks remained in the forefront of investor sentiment. The Russia and Ukraine war escalated further but some reprieve was felt as global supply chain tensions began to ease.
  •  All underlying sectors besides Real Estate produced positive returns for October, Energy being the best performer with a stellar return of +17.63%. Global equities, as measured by the FTSE All-World Total Return Index, rose by +5.96% over the same period.
  • Over the past month, value stocks outperformed growth stocks and is also ahead on a year-to-date basis.
    • Global bonds (as measured by The FTSE WorldBIG Index) had another negative month returning -0.47% for October.
    • The Ashburton Global Strategy Fund priced for the last time in October, returning +2.35% between 28th September 2022 and 26th October 2022.
  • The star performer for October was the deep value equity manager, Lyrical with a return of +12.19%.
  • The core equity manager, Epoch, outperformed the benchmark as measured by the FTSE All World Equity Index, returning +8.66 for the month.
  • The concentrated equity manager, Mundane had a positive return for October although underperforming the benchmark with a return of +2.25%.
  • China was once again under immense pressure during October and the small exposure to China via the Cederberg China Fund fell by -21.61%
  • The exposure to global property via the AB Global Real Estates Securities Fund had a positive return and outperformed the property index with a return of +3.24% for the month.
  • While global bonds had a negative month, the global bonds exposure in the fund via the Colchester Global Bond Fund had a positive return of 0.62% for the period.
  • 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 September 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%.