SNAPSHOT2 min read

Charity Multi-Asset Fund Update – Q4 2023

Tom Montagu-Pollock and Adam Spring provide an update on the fourth quarter of 2023 for the Charity Multi-Asset Fund.

24/01/2024

Authors

Tom Montagu-Pollock
Co-Head of Charities
Adam Spring
Portfolio Director
Amelia Thornton
Portfolio Manager

It was a strong quarter for global markets, with 2023 turning out to be a much better year than many investors had anticipated. Shares were supported by softer inflation figures across the UK, eurozone and the US, which raised hopes that interest rates may not only have peaked, but that cuts could soon be on the way in 2024.

Against that backdrop, the fund generated a return of +4.4% for the quarter, taking the return for the year to +6.0%.

Portfolio activity over the quarter was guided by our view on equities which has become increasingly positive. The process of reducing the equity underweight started in September with our roadmap suggesting that we’d continue to add as we reached the peak in interest rates on the back of declining inflation prints.

To fund the equity purchases we have been reducing the alternatives and cash. While we still think gold has a role to play as a hedge against shocks, we are wary of current levels and a degree of profit taking felt prudent.

At a headline level we remain slightly overweight fixed income. We took advantage of the recent bond market rally to sell longer-dated Gilts, which were bought earlier in the year, with proceeds rotated into a global government bond tracker. This served to slightly shorten our duration exposure and to bring more diversification from a geographical perspective.

This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

Authors

Tom Montagu-Pollock
Co-Head of Charities
Adam Spring
Portfolio Director
Amelia Thornton
Portfolio Manager

Topics

Charity Multi-Asset Fund
Charities

The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.