The Fund rose 3.0% in October 2024 which gives a return year-to-date of 11.9%. Since launch (12 July 2017) the Fund has returned 50.0% (net of fees and costs), which compares with 40.3% from the Investment Association (IA) Flexible Sector which is a comparator benchmark.

The Fund is ranked in the 1st quartile over 3 & 5 years, and 2nd quartile over 1 year, out of all 620 funds in the four IA Mixed Asset Sectors (Flexible, 0-35% Shares, 20-60% Shares & 40-85% Shares).

The World Equity Index actually fell 0.9% in October in local price terms, ahead of the uncertainty over US Presidential election and diminished expectations of US rate cuts. However, in Sterling terms World Equities rose 2.3% in October due to the US Dollar which was strong generally and especially against Sterling which was weak ahead of the UK Budget. Performance of the Fund was helped by the allocation to Gold which rose 4.1% in US Dollar terms and 8.6% in Sterling terms.

During October, Communication Services (+5.7%), Financials (+5.0%), Energy (+4.5%) & Technology (+3.0%) outperformed the MSCI World Index. Our Sector selection was slightly dampened by being underweight in Energy and the end-of-month setback in Technology, although Technology still looks attractive.

The Fund had no exposure to Bond markets which were weak in October (Gilts fell 2.5% and US Treasuries fell 3.6% in Sterling terms).

Although Equities remain the largest allocation with the Fund, the allocation has been further reduced (from 84% at the end of September to 78%) because we are concerned about the expensive valuation (low Value Yield) for Equity markets. This is not yet extreme or a crisis but our rules-based approach automatically reduces the allocation as Equity markets creep into danger territory. A mitigating factor is that Equities are not as expensive as they have been sometimes in the past, nor are they expensive against Bond markets. 10 Yr Government Bond markets aren’t yet cheap but they are no longer expensive as they were before/during the inflation shock. Furthermore, Equities are still in a bull market, so only a modest reduction in the Equity allocation at this stage seems appropriate. If/when Equities start to fall, the poor valuation is likely to trigger a reduction in our Equity allocation quickly and significantly. In the meantime, we are happy to hold Gold and a small allocation to a Commodity basket, as an alternative to Equities, both of which are in an uptrend.

The main Equity overweights are in Technology, Communication Services and Financials. The main changes during October have been increases to Technology and Financials, and reductions in Industrials and Consumer Discretionary. We have no direct holdings in Energy, Materials, Healthcare or Real Estate ETFs.

This Fund provides a globally diversified portfolio with active selection of currently eleven ETFs. Implementation of this active strategy is via cheap, liquid specialist ETF trackers which provides minimal stock specific risk.