In summary

• No new purchases or outright sales were made during the month
• Emerging markets and technology related holdings drove Fund performance over the month (L&G Global Technology Index Trust ,+7.5%; Vanguard Emerging Markets Stock Fund, +7.3%; JP Morgan Emerging Market Income Fund, +6.3%)
• Computacenter (+17.8%) significantly outperformed the UK stockmarket as a result of good second quarter results and a stronger than expected outlook statement

Equity markets performed well during September (MSCI World ex UK NR GBP Index, +3.7%) as sentiment was buoyed by good trading updates, combined with increased optimism that interest rates in the US would fall further. The Emerging market and Asian ex Japan regions led the markets higher (MSCI Emerging Markets NR GBP Index, +7.5%; MSCI Asia ex Japan NR GBP Index, +7.2%) as Chinese economic growth during the first half of the year was better than expected and the share prices of the regions’ Artificial Intelligence related stocks, which had been somewhat overlooked, outperformed. 

International equities

The Funds’ international equity holdings produced a decent return with the L&G Global Technology Index Trust (+7.5%) and the Vanguard Emerging Markets Stock Fund (+7.3%) leading the way. Other strong performers included the JP Morgan Emerging Market Income fund (+6.3%) and the Polar Capital Global Convertible Fund (+5.9%). 

UK equities

The UK equity market produced a positive return (MSCI UK IMI NR Index, +1.8%) but lagged international equity markets. The Funds’ direct UK equity holdings, in aggregate, modestly underperformed the UK market. Computacenter (+17.8%) was the standout performer over the month following the company’s half year results announcement, which included a more constructive outlook for trading in each of its three major geographic regions (UK, Germany and USA) than many expected. 

Fixed income

The Funds’ portfolio of fixed income investments produced a performance in line with the fixed income market as a whole (Bloomberg UK Government All Bonds Total Return, +0.7%). The variability of returns across the Funds’ fixed income holdings was low. 

Diversifying assets

The share price of Tritax Big Box (+4.1%), the industrials and logistics Real Estate Investment Trust (REIT), benefited from a broker’s positive recommendation following the firm’s combination with UK Commercial Property REIT. International Public Partnerships (+4.3%) was also a good performer on the back of results showing good operational execution and accretive disposals. 

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References

Source: https://www.brooksmacdonald.com/resources/insights/cornelian-risk-managed-funds