SNAPSHOT2 min read

Sustainable Multi-Asset Fund Update – H2 2023

Tom Montagu-Pollock, Emilie Shaw and Matt Best provide an update on the Sustainable Multi-Asset Fund.


2023 was an incredibly eventful year in markets, with plenty of forces for investors to navigate. By most accounts, stocks should have had a challenging year, yet US and European indexes closed out the year around all-time highs, while Japan’s stocks are at their highest in over four decades.

The world's leading tech firms propelled the Nasdaq 100 index to its best year in over a decade, as enthusiasm for AI outweighed concerns about the effects of higher interest rates in 2023. The seven biggest tech and internet-related stocks saw their combined weighting in the S&P 500 rise to a record 29% in November. Investors gravitated toward these companies, betting on their superior ability to leverage AI given their huge scale.

We remain neutral equities, having increased our allocation in the second half of 2023. Within bonds, we remain slightly overweight given they now provide attractive levels of income and could also help to protect the fund if economic growth slows significantly, and central banks cut interest rates to support growth. Higher interest rates require greater selectivity in alternatives. The market consensus from analysts and economists currently show that inflation and interest rates as well as the US presidential election will be the biggest drivers of global markets this year.

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.


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.