The Fund fell 0.4% in September 2024, which is broadly in line with the MSCI World Index which fell 0.2%, and which gives a return of 9.0% year-to-date. Since launch on 7th November 2022 the Fund has returned 24.1% (net of fees and costs), which is behind the MSCI World Index (29.4%) but ahead of the Investment Association Global sector (21.9%). Since inception the Fund is in the second quartile of the Investment Association Global sector.

There has been a mixed bag in terms of Sector rotation in recent months. Energy has performed poorly all year, while Utilities and Financials have generally continued to outperform. Technology has not yet made a strong recovery after the steep underperformance in July. Consumer Discretionary and Communication Services have both done better than in previous months having previously underperformed. The recovery in Consumer Staples and Healthcare has faded.

The performance of the Fund has not yet recovered in relative terms from the negative impact of the overweight in Technology which fell significantly in July, but it is in line with our model which has every chance of doing well long term.

Equity markets have in recent months moved away from the previous pattern of Growth Sectors generally outperforming and Defensive Sectors underperforming. The Equity market setback in July and the significant underperformance of Technology has resulted in a more mixed pattern. Technology has stabilised in relative terms but is not yet back into a clear outperformance trend, whereas other Growth Sectors such as Communication Services and Consumer Discretionary are outperforming. More defensive Sectors such as Consumer Staples and Healthcare recovered for a while but have fallen back. Financials and Utilities look firm with continued good momentum. Meanwhile, there are events coming up which could change the mood of Equity markets either way. For example, the Fed and other Central Banks are likely to cut rates further, possibly significantly. On the other hand, there continues to be geopolitical tensions and also rising concerns about loss of control over government debt. All of these can be expected to change the leadership of Equity markets at the Sector level. Our model seeks to pick up on new trends as they occur, subject to checking for valuation risk/opportunity and overbought situations.