SNAPSHOT2 min read

Sustainable Multi-Asset Fund Update – Q1 2024

Tom Montagu-Pollock, Emilie Shaw and Matt Best provide an update on the first quarter of 2024 for the Sustainable Multi-Asset Fund.

22/04/2024

Authors

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

Global stock markets registered strong gains amid a resilient US economy and ongoing enthusiasm around Artificial Intelligence. Expectations of interest rate cuts also boosted shares although the pace of cuts is likely to be slower than the market had hoped for at the turn of the year.

Regionally, Japan was the best performing market over the quarter, with the Nikkei index reclaiming its 1989 peak. This was fuelled by increasing optimism over Japan's positive economic cycle, characterised by mild inflation and wage growth, as well as action taken by the Bank of Japan.  In the US, the S&P500 also reached an all-time high, benefitting from impressive corporate earnings. The "Magnificent Seven" posted earnings growth of 58% over 2023, across the other 493 companies earnings fell 2%.

While European equities were also positive, they continued to lag the US and Japan. UK stocks were impacted by the market's value bias and the underperformance of the UK economy. Emerging market equities continued to underperform their developed market counterparts, with China’s performance weighing on returns despite some targeted stimulus measures.

Whilst it was a positive quarter for equities, for fixed income investors it was a more challenging period. Initial expectations of quick interest rate cuts by central banks were swiftly scaled back as the quarter progressed. This weighed on performance with UK government bonds down around 2% over the quarter.

Against that backdrop, the fund generated a return of +4.0% for the quarter, taking the return for the twelve months to +10.2%.

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
Amelia Thornton
Portfolio Manager

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.