30 November 2022
The Fund posted a return of 5.34% for November, outperforming the sector average return of 3.54%.
November proved a strong month for equity markets in general, with most major indices posting a positive return. One of the star performers was the Hang Seng. The index drove higher as China started to relax the strict Covid policy legislation which had to date hampered the full reopening of the economy. Elsewhere it was European and UK equities which led the charge, mid-cap stocks in particular within the latter. With a recession either upon us or just around the corner, the debate continues to rumble as to whether this was merely a bear market rally or the start of something more meaningful. The outlook for corporate earnings is likely to prove key moving into 2023.
The UK bond market rally which established itself in the second half of October continued into November. Gains were particularly strong in investment grade credit, benefitting from a general fall in bond yields, along with a tightening in the spread over gilts. The higher yield available attracted investors back into the asset class after something of a hiatus by some who had previously favoured alternative income producing asset classes.
During the month there was a fund switch implemented within the European equity allocation. The position in the Jupiter European fund was exited in favour of Lightman European. The latter favours stocks which produce a high free cash flow yield, have a low valuation, coupled with positive operational momentum. This tends to give the fund a value style bias, although the focus on cash flow means that the companies typically have strong balance sheets.
This article is for information purposes only and should not be construed as advice. We strongly suggest you seek independent financial advice prior to taking any course of action.
The value of this investment can fall as well as rise and investors may get back less than they originally invested. Past performance is not necessarily a guide to future performance.
The Fund is suitable for investors who are seeking to achieve long term capital growth.
The tax treatment of investments depends on the individual circumstances of each client and may be subject to change in the future. The above is in relation to a UK domiciled investor only and would be different for those domiciled outside the UK. We strongly suggest you seek independent tax advice prior to taking any course of action.
Past performance is not a guide to future performance.