Global Strategy Fund: November 2020

Summary

• Developed market indices suffered a consecutive month of negative returns during October. This can be attributed to a surge in COVID-19 cases in the US and Europe, and the markets negative reaction to the possibility of new lockdowns, accompanied by the re-emergence of BREXIT and uncertainties around the US elections. 

• Global equities as measured by the FTSE World Total Return Index returned -2.46%.

• Government bonds, as measured by the FTSE World Broad Investment-Grade Bond Index WorldBIG®, had a negative month returning -0.14%.

• The Ashburton Global Strategy Fund returned +2.42% for October, this is the movement measured between 30 September and 28 October. 

• Within the equity bucket, Lyrical outperformed the benchmark and was the best performer for the calendar month while Epoch and Mundane lagged and underperformed the benchmark.  

• The property manager, AB, had a negative return for October of -3.09%, however still managed to outperform its benchmark.

• Both fixed income funds, Franklin Templeton Global Total Return fund and Colchester Global Bond fund posted positive returns of 0.19% and 0.03% respectively and outperformed the benchmark.

• The Ashburton Global Strategy Fund reflects the macroeconomic house view of Ashburton Investments. From a tactical asset allocation perspective, there were no changes made during October, however the fund remains overweight in equities compared to its long-term strategic asset allocation, resulting in the exposure to cash decreasing.