February 2024 saw the global equity market continue its recent pattern with share price momentum and companies with higher growth rates providing better performance. Index returns continue to be driven by the narrow number of companies delivering great earnings growth.

Overall financial conditions in the United States have not changed much despite headline tightening. Volatility has remained surprisingly low. Investors appear to envision that pro-business policies will emerge from a new Republican Government, despite the lack of tangible policy proposals. There have been announcements from large technology firms about layoffs, but they represent a small fraction of overall employment which in aggregate has continued to be buoyant.

The FTSE All World High Dividend Index (USD) gained 1.7%, while the Global Equity Income Portfolio added1%

The best performing stocks held in the portfolio were Diversified Energy 8.9%, JPMorgan 6.7% and Hannover Re 6.4%. The worst performers were Legal & General 5.7%, Imperial Brands 8.3% and Roche 8.6%, who all posted declines.

With the current market so narrow active global equity managers seem to be in one of two camps; either they have AI exposed stocks and are outperforming or keeping up with the global index, or they have little of these and are experiencing underperformance. Amid the areas of the market that seem obvious to avoid, such as US regional banks, we are conscious that opportunities might arise. However, we are unconvinced that this is the right time to take risk in these areas.

Waystone Management Company (Lux) S.A. is regulated by the Commission de Surveillance du Secteur Financier (CSSF) (ref A00000395 & S00000734), Waystone Management Company (Lux) S.A. is a company located in Luxembourg, L-1273 Luxembourg at 19, Rue de Bitbourg. This document is Issued by Ashburton Fund Managers (Pty) Limited (The Investment Manager) authorised financial services provider (FSP number 40169), registered with the Financial Sector Conduct Authority (FSCA). In South Africa, the Fund(s) is/are approved for promotion under section 65 of the Collective Investment Schemes Control Act 2002. The Fund Prospectus, and further information including pricing and changes, may be viewed at the Fund’s representative office in South Africa: Ashburton Management Company (RF) Proprietary Limited (“Ashburton CIS”), of the same address. Ashburton CIS is an approved collective investment schemes manager regulated by the Financial Sector Conduct Authority and a full member of the Association of Saving and Investments South Africa. In the event a potential investor requires material risks disclosures for the foreign securities included in a portfolio, the manager will upon request provide such potential investor with a document, outlining potential constraints on liquidity & repatriation of funds; Macroeconomics risk; Political risk; Foreign Exchange risk; Tax risk; Settlement risk; and Potential limitations on the availability of market information. The value of participatory interests and the income from them may go down as well as up and is not guaranteed. Past performance is not necessarily a guide to the future performance. Where an investment involves exposure to a currency other than that in which it is denominated, changes in rates of exchange may cause the value of the investment to go up or down. CIS portfolios are traded at ruling prices and can engage in borrowing and scrip lending. A full detailed schedule of fees, charges and commissions is available from Ashburton on request and incentives may be paid and if so, would be included in the overall costs. The manager does not provide any guarantee either with respect to the capital or the return of a portfolio. The manager has a right to close the portfolio to new investors in order to manage the portfolio more efficiently in accordance with its mandate. This is a marketing communication. Additional information about this product, can be obtained from the Manager, free of charge, and from the website: www.ashburtoninvestments.com.