|Number of Governed Portfolios outperforming benchmark||1 year||0/9|
|Number of Governed Portfolios within target volatility ranges||8/9|
|Number of GRIPs outperforming benchmark||1 year||35|
|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)|
Following market panic at the beginning of Q4, we began contrarian purchases of equities, funded from government bonds and cash, based on positive growth and risk outlooks. Investor sentiment remained in panic territory through November and as such our overweight equity allocation was expanded further. At the end of Q4 2018, we remained positive on equities, global high yield and corporate bonds. As volatility was expected to remain high we expanded the government bond allocation funded from commodities and cash.
The following funds were subject to action at the latest IAC meeting (27th February):
The fund finished behind the benchmark over Q4 2018,as well as 1, 3 and 5 years to the end of December 2018. Positive contributors over the year include the funds positioning in US equity markets with the Brown Advisory US Equity Growth Fund performing particularly strongly. Contribution from Europe was also positive over the year with the Jupiter European Income Fund being a particular highlight. However, both UK equity and Japan and Asia 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. Following a discussion with Rathbones over lack of look through and positioning they have proposed a change to the fund structure moving from a fund of funds approach to a mixture of directly held investments and a smaller number of OEICs. This was discussed as an individual agenda point at the latest IAC – Please see the full minutes for full details on this discussion.