Global Strategy Fund: March 2023

Market Commentary:

• Global financial markets recorded a strong month despite volatility caused by panic in the banking sector following the collapse of Silicon Valley Bank and generally hawkish comments made by the US Fed. In Europe, Swiss authorities saw UBS acquire the embattled Credit Suisse, restoring calm in the global banking space. Most of the underlying equity sectors produced positive returns for March, with Technology leading the way by a large margin with a return of +11.1%. Global equities, as measured by the FTSE All-World Total Return Index returned +3.1% for March.
• Growth stocks outperformed value stocks by quite a healthy margin over the past month.
• Global bonds (as measured by The FTSE WorldBIG Index) once again had a positive month returning +3.3%.

   

  Fund Commentary:

• The Ashburton Global Strategy Fund priced for the last time in March, returning -3.9% between 22^nd February 2023 and the 29^th March 2023.

• The star performer for the month was the small exposure to Gold, which returned +8.2%.
• The US deep value manager, Conventum Lyrical followed value stocks lower during the past month losing -5.4% for the period.
• The concentrated equity manager, Mundane and the core equity manager, Epoch, recorded positive returns for the month of +1.5% and +0.7% respectively.
• Global bonds ended the month in the green; and the exposure via the Colchester Global Bond Fund followed bond markets higher and outperformed the index with a return of just under +4.0%, outperforming the Global Bond benchmark. The small exposure to Franklin Templeton also had a good month with a return of +3.9%.
• The fund’s exposure to China via the Cederberg Greater China Equity Fund had a positive month, returning +3.0%.
• 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 November 2022. The equities exposure was reduced from 65% to 61% and the fund is now at an underweight position to its SAA. The Cash exposure was increased to 4%.