06/05/2025
April may have appeared uneventful, with the MSCI World Index ending the month up 0.75%. However, this headline figure conceals market volatility. The S&P 500 experienced a sharp 10% decline over just three daysโthe steepest drop since the pandemic selloff. This turmoil was triggered by Donald Trump's tariff plan. The proposal was broader than markets had anticipated, sparking uncertainty. Yields on U.S. Treasuries and gold surged in response.
Interestingly, the U.S. dollar, typically a beneficiary of market stress, weakened. In characteristic fashion, Trump moderated his stance, introducing a 90-day pause and removing tariffs on certain electronic products. While we donโt claim to have any particular insight into Trumpโs next moves or the ultimate impact of tariffs on the global economy and corporate earnings, itโs clear that valuations remain elevated, and uncertainty around trade policy has increased.
Amid the volatility, the fund took advantage of the panic to increase exposure to select holdings that had sold off sharply, including Broadcom and Meta Platforms. These positions have already rebounded strongly, with gains of up to 20% in some cases. We continue to hold a higher-than-usual cash balanceโabove 5%โin anticipation of further opportunities as the year progresses.
๐ฉ Read our latest factsheet here:
Our seasoned team of investment professionals brings together a wealth of experience and a deep understanding of global markets, allowing us to curate a robust Global Equity Fund that stands out in terms of performance and reliability.
