No SAA changes were recommended for the Governed Portfolios or GRIPs.
|Number of Governed Portfolios outperforming benchmark||1 year||8/9|
|Number of Governed Portfolios within target volatility ranges||9/9|
|Number of GRIPs outperforming benchmark||1 year||5/5|
|Number of GRIPs within short-term risk measure||5/5|
|Number of GRIPS within long-term risk measure||5/5|
All GRIPs were within the tolerances for their income and fund value risk metrics.
*For more information on the risk metrics please see leaflet Managing Risk in GRIPs.
|Absolute Return Strategies (including cash)|
In March, investor sentiment seemed very optimistic. We continued to monitor Chinese stimulus measures and its effect on growth. As such, we continued to take profits from equity purchases made during market weakness early in the year and moved the proceeds into high yield bonds and cash. The overall position as at end March, was overweight Equities, High Yield and Corporate Bonds; underweight Absolute Return Strategies (inc. cash), Gilts and Commodities. Neutral positions were maintained across Property and Index Linked Bonds.
The following funds were subject to action at the latest IAC meeting (27th February):
The fund finished ahead of benchmark over Q1 2019, however was still behind benchmark over 1, 3 and 5 years to the end of March 2019. Positive contributors over the year include the funds positioning in US equity markets with the Brown Advisory US Equity Growth and Edgewood Select US Select Growth funds performing particularly strongly. Contribution from the UK was also positive over the year with the Lindsell Train UK Equity fund being a particular highlight. However, both Japan and Emerging Markets positioning detracted from performance over the year. Over the longer term, the Rathbone Investment Committee is already aware of the drag on performance from the fallout from the UK referendum, and the difficulties in reducing our small and midcap exposures in the UK within a fund of funds structure. This continues to affect both the 3 and 5 year numbers.