Charity Multi-Asset Fund update
Watch our latest Charity Multi-Asset Fund update with Tom Montagu-Pollock, Fund Manager, Ahmet Feridun, Deputy Chief Investment Officer and Harry Hitchcock.
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Tom Montagu-Pollock, Fund Manager, Ahmet Feridun, Deputy Chief Investment Officer, Harry Hitchcock and Naomi Morris provide an update on the Charity Multi-Asset Fund.
The Fund has generated a return of -6% for the first 9 months of 2022 compared with Global equities -10%, UK Government Bonds -25% and the peer group -13%.
We expect that higher interest rates will lead to recessions in the UK, US and Eurozone. In this environment, we remain underweight equity, with a clear preference for higher-quality companies. Before adding back to equities, we want to see the prospect of recession reflected in earnings estimates. We are also looking for weakening of labour markets, which could be a signal that interest rates are at or near a peak. We recently upgraded our view on fixed income to neutral and are gradually increasing our exposure to government bonds. We also continue to favour alternative assets, including commodities. Historically, they have helped to protect from inflation shocks. Metals should also benefit from strong demand as a result of electrification and energy transition. High levels of inflation in the UK have made meeting inflation plus return targets more challenging in the shorter term. Despite this, we remain confident in the ability to meet inflation plus targets over the longer term.
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.
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