Performance review
Equity markets continued to do well as companies, in general, reported decent trading during the second quarter. For UK-based investors, the reversal of the sustained US dollar weakness observed during the first half of the year was a major influence on returns during the month.
The Funds’ portfolio of fixed income investments performed broadly in line with their underlying markets, with the gilts holdings, in aggregate, producing a marginally negative return and the specialist credit holdings performing relatively well. The strongest performing holding was the Invesco AT1 Capital Bond ETF.
The Funds’ international equity holdings performed inline with the market. The Funds’ US holdings, in aggregate, modestly outperformed the strong underlying market as the Artemis US Select fund continued to power ahead. Linked to the underlying drivers of this performance, the L&G Global Technology fund also performed strongly.
Whilst the Funds’ real estate holdings retrenched from a breakneck period of outperformance during the first half of the year, the baton was picked up by the Funds’ infrastructure holdings (HICL Infrastructure, International Public Partnerships and Foresight Environmental Infrastructure), which produced good returns during the month.
Trading activity – Tesco
During the month, Tesco, the UK’s largest grocer, was purchased. Following years of retrenchment, the company is now a much simpler and more focussed business. The group has been gaining market share in the UK, largely at the expense of Morrison and Asda, both of which are saddled with debt and unable to compete effectively. By reinvesting some gross profits, Tesco is now competing on price with the discounters, eroding their competitive advantage. The business is very cash generative and relatively insensitive to the economic cycle.
Contact us
0203 418 0257
info@onekc.co.uk
References
Source: https://www.brooksmacdonald.com/resources/insights/cornelian-risk-managed-funds
Cornelian Risk Managed Funds
Performance review
Equity markets continued to do well as companies, in general, reported decent trading during the second quarter. For UK-based investors, the reversal of the sustained US dollar weakness observed during the first half of the year was a major influence on returns during the month.
The Funds’ portfolio of fixed income investments performed broadly in line with their underlying markets, with the gilts holdings, in aggregate, producing a marginally negative return and the specialist credit holdings performing relatively well. The strongest performing holding was the Invesco AT1 Capital Bond ETF.
The Funds’ international equity holdings performed inline with the market. The Funds’ US holdings, in aggregate, modestly outperformed the strong underlying market as the Artemis US Select fund continued to power ahead. Linked to the underlying drivers of this performance, the L&G Global Technology fund also performed strongly.
Whilst the Funds’ real estate holdings retrenched from a breakneck period of outperformance during the first half of the year, the baton was picked up by the Funds’ infrastructure holdings (HICL Infrastructure, International Public Partnerships and Foresight Environmental Infrastructure), which produced good returns during the month.
Trading activity – Tesco
During the month, Tesco, the UK’s largest grocer, was purchased. Following years of retrenchment, the company is now a much simpler and more focussed business. The group has been gaining market share in the UK, largely at the expense of Morrison and Asda, both of which are saddled with debt and unable to compete effectively. By reinvesting some gross profits, Tesco is now competing on price with the discounters, eroding their competitive advantage. The business is very cash generative and relatively insensitive to the economic cycle.
Contact us
0203 418 0257
info@onekc.co.uk
References
Source: https://www.brooksmacdonald.com/resources/insights/cornelian-risk-managed-funds
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