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Fund commentaries

August 2014

Fixed Interest Trust: July 2014

During the month of July, the 10 year gilt yield fell from 2.82% to 2.72%.

Sterling Income Fund: July 2014

During the month of July, the 10 year gilt yield fell from 2.82% to 2.72%.

Managed Monthly Income Trust: July 2014

During the month of July, the 10 year gilt yield fell from 2.82% to 2.72%.

Navigating uncharted waters

Running a risk-targeted portfolio is a balancing act between the tried-and-tested long-term relationships between asset classes and making adjustments for the short-term risks that the market always throws at investors.

Managed Monthly Income Trust: Quarter 1 2013

Concerns over a potential end to US quantitative easing saw global bond markets fall in May. UK gilt yields rose and credit spreads ended the month wider over concerns that the US Federal Reserve talk of slowing the pace of asset purchases signalled the start of tighter monetary policy, which outweighed the earlier boost from Japan's QE programme.

Multi Manager Income Trust: June 2014

During June the Multi Manager Income Trust returned 0.73% against a return of -0.39% for its IMA sector median. (Source: Lipper, total return net of fees, R class Acc units, from 31 May 2014 to 30 June 2014).

Multi Manager Balanced Trust: June 2014

During June the Multi Manager Balanced Trust returned 0.91% against a return of -0.68% for its IMA sector median. (Source: Lipper, total return net of fees, R class Acc units, from 31 May 2014 to 30 June 2014).

Multi Manager Growth Trust: June 2014

During June the Multi Manager Growth Trust returned 1.21% against a return of -0.56% for its IMA sector median. (Source: Lipper, total return net of fees, R class Acc units, from 31 May 2014 to 30 June 2014).

Fixed Income Focus: Europe's simmering crisis

In the summer of 2012, European Central Bank (ECB) President Draghi promised to do ‘whatever it takes’ to preserve the euro. This triggered a rally in peripheral European credit risk. But apart from lower funding levels for stressed countries, it’s hard to see which problems have actually been solved.

July 2014

UK Equity Income: June 2014

In contrast to most overseas markets, June was a weak month for UK indices, not helped by earnings downgrades and an IPO-fatigued liquidity market.

Breaking down barriers

What we think about Europe, and our place in it, continues to be a controversial topic in the UK.

UK Property Fund: June 2014

The IPD Monthly Index for June showed 1.6% capital growth, the strongest since the recovery began in May 2013. This was still driven predominantly by yield compression, but the contribution of rental growth increased as the wider economy continued to strengthen.

US Index Trust: June 2014

US equities advanced to new record highs in June, buoyed by mounting evidence the economy had begun to improve after contracting during the first quarter due largely to the disruptive impact of severe winter weather.

UK Index Trust: June 2014

UK equities fell in June after Bank of England Governor Mark Carney cautioned that the first rise in interest rates could come sooner than the markets were expecting.

UK 100 Index Trust: June 2014.

UK equities fell in June after Bank of England Governor Mark Carney cautioned that the first rise in interest rates could come sooner than the markets were expecting.

Pacific Index Trust: June 2014

Asia Pacific equity markets advanced amid growing optimism about the region’s economic prospects.

Japan Index Trust: June 2014

After a disappointing start to 2014, Japanese equities have been making up lost ground in recent months.

International Index Trust: June 2014

Underpinned by a combination of strengthening economic data and loose monetary policy, international equity markets posted positive returns in local currency terms during June.

Global Technology Index Trust: June 2014

Following a relatively weak start, encouraging company newsflow subsequently helped technology shares to rally, ending the month ahead of wider global stock markets.

Global Health And Pharmaceuticals Index Trust: June 2014

Global healthcare equities rallied in June, extending their year-to-date outperformance of wider equities markets, buoyed by ongoing merger & acquisition hopes in Europe and the US.

Global Emerging Markets Index Fund: June 2014

Emerging-market equities gained ground last month, continuing their recent outperformance of developed markets.

Global 100 Index Trust: June 2014

Global equity markets posted positive returns in local currency terms during June, although the strength of the pound on the foreign exchange markets meant returns were flat in sterling terms.

European Index Trust: June 2014

European stocks rose initially as investors welcomed the European Central Bank’s (ECB) announcement of a stimulus plan designed to shore up the Eurozone’s economic recovery.

All Stocks Index Linked Gilt Index Trust: June 2014

With the firm tone of some economic data, notably in the US and the UK, raising the prospect that interest rates could rise earlier than expected, global bond yields rose in June.

UK Active Opportunities Trust: June 2014

Central bank policy and geopolitical risk took centre stage once more in June.

Asian Income Trust: June 2014

Following the major political events in May, Asian markets were steadier in June. The FTSE All World Asia Pacific ex Japan Index finished the month down 0.15% in sterling terms.

Multi Index Fund 3: June 2014

June was another month dominated by central bank policy. In the UK economic data remained robust, albeit with doubts over the amount of slack in the labour market.

Multi Index Fund 4: June 2014

June was another month dominated by central bank policy. In the UK economic data remained robust, albeit with doubts over the amount of slack in the labour market.

Multi Index Fund 5: June 2014

June was another month dominated by central bank policy. In the UK economic data remained robust, albeit with doubts over the amount of slack in the labour market.

Multi Index Fund 6: June 2014

June was another month dominated by central bank policy. In the UK economic data remained robust, albeit with doubts over the amount of slack in the labour market.

Multi Index Fund 7: June 2014

June was another month dominated by central bank policy. In the UK economic data remained robust, albeit with doubts over the amount of slack in the labour market.

UK Special Situations Trust: June 2014

Central bank policy and geopolitical risk took centre stage once more in June.

UK Smaller Companies Trust: June 2014

Central bank policy and geopolitical risk took centre stage once more in June.

Growth Trust: June 2014

Central bank policy and geopolitical risk took centre stage once more in June.

European Trust: June 2014

In June, European ex-UK equity markets were driven lower by geopolitical concerns in Iraq, which subsequently pushed up the price of oil and had a negative impact on airline and travel stocks.

UK Alpha Trust: June 2014

In contrast to most overseas markets, June was a weak month for UK equities as earnings downgrades, a fatigued IPO market and sterling strength hampered returns for domestic investors.

Fixed Interest Trust: June 2014

Gilt yields rose this month as UK house prices reached record levels.

Managed Monthly Income Trust: June 2014

Gilt yields rose this month as UK house prices reached record levels.

Sterling Income Fund: June 2014

Gilt yields rose this month as UK house prices reached record levels.

Dynamic Bond Trust: June 2014

The Dynamic Bond Trust returned 0.89% during June, ranking it in the first decile of the IMA £ Strategic Bond sector over that period. Returns year to date are now 4.84% (I class Acc units).

High Income Trust: June 2014

The High Income Trust returned 1.30% during June (I class Inc units), bringing year to date performance to 6.81%. (Source: Lipper).

Fixed Income Focus: Is there any value left in corporate bonds?

Before making an investment decision, it’s important to consider what compensation you are receiving for taking on risks.

June 2014

All Stocks Index Linked Gilt Index Trust: May 2014

Gilt prices followed their global peers higher during May amid hopes that interest rates can stay ‘lower for longer’.

European Index Trust: May 2014

European stock markets ended the month just below a six-year peak with the FTSE World Europe ex UK Index returning 3.0% in local currencies, or 2.0% in sterling.

Global 100 Index Trust: May 2014

Global equity markets posted positive returns in May, despite concerns over potential deflationary trends in China and Europe.

Global Emerging Markets Index Fund: May 2014

Emerging markets rallied strongly last month with the MSCI Emerging Markets index gaining 2.9% in local currency terms, translating into a gain of 4.2% in sterling terms, outperforming the World indices.

Global Health And Pharmaceuticals Index Trust: May 2014

Healthcare equities generally made progress in May, broadly outpacing the positive returns delivered by wider global stock markets.

Global Technology Index Trust: May 2014

Technology shares ended the month higher, outperforming wider global equity markets.

International Index Trust: June 2014

International equity markets posted positive returns in May, despite concerns over potential deflationary trends in China and Europe.

Japan Index Trust: May 2014

Japanese stocks secured their first monthly advance of 2014 in May, with the FTSE World Japan index returning 3.8% in local currency terms, translating a 4.9% gain in sterling terms.

Multi Index Fund 3: May 2014

May’s economic outlook saw a distinct improvement, boosting hope of a sustained recovery in the second quarter as central banks re-emphasised their monetary stance.

Pacific Index Trust: May 2014

Asian stock markets gained further ground last month as investors became more optimistic on the outlook for the region. The FTSE World Pacific ex Japan index rose by 1.7% in local currency terms, translating into a gain of 2.9% in sterling.

UK 100 Index Trust: May 2014.

UK stocks gained ground last month with the FTSE 100 Index returning 1.4%.

UK Index Trust: May 2014

UK stocks gained ground last month with the FTSE All Share Index returning 1.4%.

US Index Trust: May 2014

US equities made further progress last month with the FTSE USA index returning 2.4% in US dollar terms, translating into a 3.1% gain in sterling.

Multi Index Fund 4: May 2014

May’s economic outlook saw a distinct improvement, boosting hope of a sustained recovery in the second quarter as central banks re-emphasised their monetary stance.

Multi Index Fund 5: May 2014

May’s economic outlook saw a distinct improvement, boosting hope of a sustained recovery in the second quarter as central banks re-emphasised their monetary stance.

Multi Index Fund 6: May 2014

May’s economic outlook saw a distinct improvement, boosting hope of a sustained recovery in the second quarter as central banks re-emphasised their monetary stance.

Multi Index Fund 7: May 2014

May’s economic outlook saw a distinct improvement, boosting hope of a sustained recovery in the second quarter as central banks re-emphasised their monetary stance.

UK Active Opportunities Trust: May 2014

Global equity markets pushed higher in May as corporate news flow was broadly positive and merger and acquisition activity gathered pace. Furthermore, recent macroeconomic data from the UK has continued its recent positive trends.

UK Smaller Companies Trust: May 2014

Global equity markets pushed higher in May as corporate news flow was broadly positive and merger and acquisition activity gathered pace. Furthermore, recent macroeconomic data from the UK has continued its recent positive trends.

UK Alpha Trust: May 2014

Global equity markets pushed higher in May as corporate news flow was broadly positive and merger and acquisition activity gathered pace. Furthermore, recent macroeconomic data from the UK has continued its recent positive trends.

UK Special Situations Trust: May 2014

Global equity markets pushed higher in May as corporate news flow was broadly positive and merger and acquisition activity gathered pace. Furthermore, recent macroeconomic data from the UK has continued its recent positive trends.

European Trust: May 2014

European (ex-UK) equity markets grew steadily over the month. Corporate activity - in the form of mergers and acquisitions and initial public offerings - continued at a high pace.

Asian Income Trust: May 2014

Asian politics were in the spotlight globally in May, particularly in India and Thailand.

High Income Trust: May 2014

The High Income Trust returned 1.26% during May (I class Inc units), outperforming its composite benchmark of 95% BofAML BB-B Global High Yield Non-Financial Constrained Index (hedged to sterling) and 5% cash.

Dynamic Bond Trust: May 2014

The Dynamic Bond Trust returned 0.65% during May, taking YTD returns to 4.22% (I class Acc units).

UK Property Fund: May 2014

The commercial property market continues to move forward at pace.

Fixed Interest Trust: May 2014

May saw government bond yields fall as expectations grew that major central banks would keep interest rates low for longer to support economic growth.

Sterling Income Fund: May 2014

May saw government bond yields fall as expectations grew that major central banks would keep interest rates low for longer to support economic growth.

European Index Trust: April 2014

European stock markets fell over the first half of April but soon recovered these losses to end the month in positive territory.

Global 100 Index Trust: April 2014

Global equity markets made modest progress in April. The S&P Global 100 Index returned 0.7% in local currencies, translating into a -0.2% return in sterling terms.

Global Emerging Markets Index Fund: April 2014

Emerging markets were broadly flat over April. Although US economic releases were broadly encouraging, worries about decelerating economic activity in China, and Russia’s involvement in eastern Ukraine, depressed investor sentiment.

Global Health And Pharmaceuticals Index Trust: April 2014

Healthcare shares delivered positive returns in April, extending their positive year-to-date performance relative to wider global equities.

International Index Trust: April 2014

Global equity markets made modest progress in April. The FTSE World Index returned 0.7% in local currencies, translating into a -0.2% return in sterling terms.

Japan Index Trust: April 2014

Japanese stocks under-performed other major markets last month as concern grew that April’s hike in the national sales tax could hit domestic consumption at a time when the strength of the yen threatens to depress exports and corporate profits.

Pacific Index Trust: April 2014

Asian stock markets gained ground last month, as more recent US economic releases suggested the first quarter slowdown was largely attributable to one-off factors and outweighed evidence that growth was decelerating in China.

UK 100 Index Trust: April 2014.

Merger and acquisition activity drove UK equities higher last month with the FTSE 100 Index returning 3.1%. The pharmaceutical sector was focal point of attention, with AstraZeneca the standout performer after US group Pfizer launched a £59 billion takeover bid which, if accepted, would be the largest ever foreign takeover of a UK company.

Multi Index Fund 3: April 2014

There were no material changes to the asset allocation of the funds during April, as the broad scope of our views stayed consistent with the previous month.

Multi Index Fund 4: April 2014

There were no material changes to the asset allocation of the funds during April, as the broad scope of our views stayed consistent with the previous month.

Multi Index Fund 5: April 2014

There were no material changes to the asset allocation of the funds during April, as the broad scope of our views stayed consistent with the previous month.

Multi Index Fund 6: April 2014

There were no material changes to the asset allocation of the funds during April, as the broad scope of our views stayed consistent with the previous month.

Multi Index Fund 7: April 2014

There were no material changes to the asset allocation of the funds during April, as the broad scope of our views stayed consistent with the previous month.

May 2014

Fixed Income Focus: Will interest rates ever go up?

Many people expect bond yields to rise in the coming months and have positioned themselves that way. But yields have been low for so long that such a prospect may have significant consequences.

High Income Trust: April 2014

The High Income Trust returned 0.85% during April (I class Inc units), slightly outperforming its composite benchmark of 95% BofAML BBB Global High Yield Non-Financial Constrained Index (hedged to sterling) and 5% cash. This takes the fund’s year-to-date returns to 4.13%.

UK Alpha Trust: April 2014

European equity markets were broadly firmer in April, helped by reassuring comments from Mario Draghi on the European Central Bank’s commitment to combat low inflation risk.

UK Absolute: April 2014

The UK economy accelerated further last month, as the latest unemployment data improved and consumer confidence grew to its highest level for seven years, providing investors with fresh optimism for UK growth.

European Trust: April 2014

Although the European ex-UK equity markets in April posted a decline of just 0.1% (in sterling terms) the index suffered a sharp 4% drop followed by an equally fast recovery over the month. Ukraine remained a feature of the geopolitical news flow, particularly as unrest grew more violent in eastern Ukraine.

UK Equity Income: April 2014

Following a weak and volatile first quarter, the UK market recovered somewhat in April, albeit with great disparity of returns between sectors. The dispersion was driven by a market backdrop dominated by the divergent paths of monetary policy between the Bank of England and the European Central Bank (ECB).

UK Special Situations Trust: April 2014

European equity markets were broadly firmer in April, helped by reassuring comments from Mario Draghi on the European Central Bank’s commitment to combat low inflation risk.

Asian Income Trust: Quarter 1 2014

The FTSE All World Asia Pacific ex Japan Index was flat in local currency terms (0.03%) during the first quarter of 2014. 

Managed Monthly Income Trust: Quarter 1 2014

At quarter end credit markets were, on aggregate, reasonably calm. 

Fixed Interest Trust: Quarter 1 2014

At quarter end credit markets were, on aggregate, reasonably calm. 

Q1 High Income Trust

The Legal & General High Income Trust returned 3.10% over the quarter, outperforming both the IMA £ High Yield sector median and the fund’s composite benchmark (95% BofAML BB-B Global High Yield Non-Financial 2% Issuer Constrained Index, hedged to sterling and 5% cash).

Dynamic Bond Trust: Quarter 1 2014

Investors pulled back from riskier assets including equities and corporate bonds, particularly in emerging markets (EM), and sought safe havens in developed market government bonds. 

Dynamic Bond Trust: April 2014

The Dynamic Bond Trust returned 0.97% during April, taking YTD returns to 3.31% (R class Acc units).

Views and insights

August 2014

Fixed Income Focus: Europe's simmering crisis

In the summer of 2012, European Central Bank (ECB) President Draghi promised to do ‘whatever it takes’ to preserve the euro. This triggered a rally in peripheral European credit risk. But apart from lower funding levels for stressed countries, it’s hard to see which problems have actually been solved.

July 2014

Equity Insight: Waiting for Yellen’s Carney Moment

We have long identified the first Fed rate hike as one of the key tactical risks on the equity horizon that would warrant us reducing or reversing our longstanding bullish position in equities.

Fixed Income Focus: Is there any value left in corporate bonds?

Before making an investment decision, it’s important to consider what compensation you are receiving for taking on risks.

June 2014

In it for the long term

If you’re a superstitious person then you’ll probably choose your ‘lucky’ lottery numbers each week and will try to avoid walking under ladders or scheduling important events for Friday 13th.

May 2014

Index Intelligence: May 2014

What does stock lending entail, and what are the relative merits and risks involved? Stock lending is an accepted market practice that should not be rejected out of hand, nor accepted without question.

Fixed Income Focus: Will interest rates ever go up?

Many people expect bond yields to rise in the coming months and have positioned themselves that way. But yields have been low for so long that such a prospect may have significant consequences.

Index Intelligence: April 2014

The general premise behind investing is simple: the greater and more efficient the return on an initial investment, the better. Isolating and exploiting the drivers of return through index-based 'factor investing' has increasingly gained traction and in this Index Intelligence, we question its place in the portfolios of institutional investors.

Equity Insight: Germany or France? Still Germany.

It's not surprising that some investors have become interested and even somewhat optimistic about French reform announcements, especially relative to Germany, where things appear to be moving in the opposite direction. But we think it's too early to switch preferences from the DAX to the CAC.

Index-Tracking


Have a look and see what we have been up to over the last 25 years. Find out more.

Economic views

Macro insight

August 2014

Asset Allocation: August 2014

After a prolonged period of benign market volatility, there was a notable spike in risk aversion in the final days of July. 

July 2014

Asset Allocation: July 2014

In the first half of 2014, central bank policy actions have helped investors to shrug off an unexpected slowdown in the US, the unanticipated fall in bond yields and various bouts of geopolitical tension. 

Macro Snapshot - Lazy Summer

Now that we have had a little more time to digest the measures implemented by both the European Central Bank and People’s Bank of China, we have a clearer insight into the likely implications ahead. Generally, it’s good news. 

June 2014

Macro Matters: A new Tulip Mania

Market news over the last couple of weeks has been important in a couple of respects: downside risks in China and Europe have softened somewhat with policy action, an Iraqi black swan has flown into view, and the Bank of England has set itself on a path towards relatively imminent rate hikes.

Macro Snapshot - World Up

Since the last snapshot, the European Central Bank (ECB) announced a new stimulus package, China announced mild policy easing measures and there was a welcome leadership change in the Ukraine and India. 

Asset Allocation: June 2014

The team retains a core view that the global economic outlook is supportive for risky assets.

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