SNAPSHOT2 min read

Charity Responsible Multi-Asset Fund Update - Q1 2023

Tom Montagu-Pollock, Emilie Shaw and Matt Best provide an update on the first quarter of 2023 for the Responsible Multi-Asset Fund.

24/04/2023

Authors

Tom Montagu-Pollock
Co-Head of Charities and Fund Manager
Matt Best
Portfolio Manager
Emilie Shaw
Portfolio Director and Sustainable Investment Specialist

The Fund generated a return of +1.3% for the quarter, taking the return for the 12-month period to -2.2% compared with the peer group (ARC Steady Growth estimate) -4.6%.

The collapse of Silicon Valley Bank (SVB), followed shortly by further financial sector disruption in Europe, caused stocks to dip sharply in March before recovering to finish the quarter higher. The Federal Reserve expressed confidence in the resilience of the US banking system and raised the policy rate by a quarter of a percent in both February and March. This took borrowing costs to the highest point since 2007.

In terms of positioning, having entered the year with a record-high cash allocation in the fund, we have taken advantage of the volatility to put some of this cash to work but we remain underweight equities on a tactical basis. We remain focused on identifying high-quality companies with strong balance sheets. The intention will be to add when opportunities arise. We have been gradually increasing our exposure to government bonds, which should start to offer more defensive characteristics as inflation falls from very high levels.

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 and Fund Manager
Matt Best
Portfolio Manager
Emilie Shaw
Portfolio Director and Sustainable Investment Specialist

Topics

Charities
Charity Responsible Multi-Asset Fund

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.