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March Performance Update: Trends and Observations

We are pleased to announce that we made changes to our monthly performance and risk data update for a selection of multi-asset funds. As part of our commitment to providing actionable insights for charity management teams and trustees, we are sending this update to our distribution list (please let us know if you would like to receive it) and now also publish it on our Knowledge Hub on our website.  


This month we put together some observations about the data set and as usual will welcome your feedback and thoughts. This monthly update is a part of our ongoing effort to empower informed decision-making through a clear understanding of the market landscape. If you would like to discuss your particular investment portfolio, please do get in touch.  

 

March Highlights:

  • Across the board, March was a positive month for fund returns, continuing the generally positive momentum seen over previous months. 

  • This month our 70/30 benchmark of global equities and UK short-dated gilts surpassed CPI+4% on a 5 year rolling basis, as inflationary pressures continue to subside. Actively managed growth funds, on average, still lag behind CPI + 4% over the same period.

  • In March, select growth strategies outperformed the 70/30 benchmark. However, it's important to acknowledge that, over the trailing 3, 6, and 12 months, all funds in our list have lagged behind the benchmark. This highlights the nuanced and often challenging nature of achieving consistent outperformance.

  • The disparity in performance among growth funds is notable, with a significant range in returns that underscores the importance of careful manager selection and regular monitoring.

  • The comparison between growth and diversified strategies in March revealed mixed outcomes. Some lower-risk diversified strategies achieved better returns, although most have seen lower performance over the last year compared to their growth counterparts. On a longer timeline, however, certain diversified strategies have offered competitive returns with less volatility, indicating stronger risk-adjusted performance.

  • Our update also includes the assessment of ESG risks, where sustainably managed growth strategies show lower risks compared to a conventional 70/30 benchmark. This is a critical consideration for investors aiming to align their portfolios with sustainable investment principles.


Disclaimer:

The information presented is intended for organisations and individuals with professional investment experience. Portfolio Manager Consultancy Ltd is committed to serving professional clients, ensuring our advice and insights align with the sophisticated needs of this group. We encourage those who do not have professional investment experience to seek advice before making any investment decisions based on this update. For a full understanding of our terms and the scope of our advice, please consult the disclaimer provided.

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