VAM Managed Funds (Lux) Commentaries

April 2019 (click to download)

VAM DRIEHAUS FUND

As proxies for larger, broad equity exposures, note that the MSCI All Country World Index was up 3.38% and the S&P 500 was up 4.05% for the full month. On a relative basis, the VAM Driehaus Fund’s returns were constrained by its underperforming exposures to US and global smaller capitalisation equities and emerging market equities.

 

The macro narrative of improving economic growth, policy easing in China and a dovish US Federal Reserve pivot has brought strong year-to-date performance for most major indices. While the Investment Manager continues to observe a strong opportunity set across many economies, it is watching the degree to which a broadening out of economic growth occurs in the months ahead, as the scope of the economic recovery thus far has lacked synchronisation. It also remains attentive to the direction of US monetary policy in addition to US-China trade negotiations, as both carry implications for currencies and sector performance. While there remains potential for a reflationary policy to unfold, it is also fair to consider whether such monetary easing would occur in an environment in which US equities are back to their 2018 highs. Investors should be mindful of the economic and geopolitical uncertainties that persist around the globe and be prepared for equity market volatility.

VAM DISCRETIONARY FUNDS

VAM Cautious Fund

On 23rd April, Sanlam Private Wealth took over effective management of the VAM Discretionary Funds from Close Brothers Asset Management. During the first week of take-on, the portfolios were transitioned from a funds of funds’ approach to the new directly invested investment philosophy adopted by Sanlam. These changes were concluded by 3rd May.

 

The recent positive market trend in equities continued in April, but there were many mixed signals. Economic data released over the month showed US unemployment at the lowest level since 1960, but also rising new claimants. Other releases pointed to economic activity slowing in Germany and rising in China. The IMF reduced its global growth forecasts whilst around 75% of US companies reporting earnings beat market expectations. Despite the mixed messages, equity markets posted strong returns for the month with Japanese and European indices leading the way. Overall, global equities, as measured by the MSCI World Index, were up a little over 3%.

 

The UK 10-year yield, started the month at 1% and finished close to 1.2%. Corporate credit for investment grade and high yield investors posted positive returns, up around half a percent, as credit spreads continued to narrow and corporations continue to face an attractive financing environment.

VAM Balanced Fund

On 23rd April, Sanlam Private Wealth took over effective management of the VAM Discretionary Funds from Close Brothers Asset Management. During the first week of take-on, the portfolios were transitioned from a funds of funds’ approach to the new directly invested investment philosophy adopted by Sanlam. These changes were concluded by 3rd May.

 

The recent positive market trend in equities continued in April, but there were many mixed signals. Economic data released over the month showed US unemployment at the lowest level since 1960, but also rising new claimants. Other releases pointed to economic activity slowing in Germany and rising in China. The IMF reduced its global growth forecasts whilst around 75% of US companies reporting earnings beat market expectations. Despite the mixed messages, equity markets posted strong returns for the month with Japanese and European indices leading the way. Overall, global equities, as measured by the MSCI World Index, were up a little over 3%.

 

The UK 10-year yield, started the month at 1% and finished close to 1.2%. Corporate credit for investment grade and high yield investors posted positive returns, up around half a percent, as credit spreads continued to narrow and corporations continue to face an attractive financing environment.

VAM Growth Fund

On 23rd April, Sanlam Private Wealth took over effective management of the VAM Discretionary Funds from Close Brothers Asset Management. During the first week of take-on, the portfolios were transitioned from a funds of funds’ approach to the new directly invested investment philosophy adopted by Sanlam. These changes were concluded by 3rd May.

 

The recent positive market trend in equities continued in April, but there were many mixed signals. Economic data released over the month showed US unemployment at the lowest level since 1960, but also rising new claimants. Other releases pointed to economic activity slowing in Germany and rising in China. The IMF reduced its global growth forecasts whilst around 75% of US companies reporting earnings beat market expectations. Despite the mixed messages, equity markets posted strong returns for the month with Japanese and European indices leading the way. Overall, global equities, as measured by the MSCI World Index, were up a little over 3%.

 

The UK 10-year yield, started the month at 1% and finished close to 1.2%. Corporate credit for investment grade and high yield investors posted positive returns, up around half a percent, as credit spreads continued to narrow and corporations continue to face an attractive financing environment.

Sources: Driehaus Capital Management LLC and Sanlam Private Wealth.
Sanlam Private Wealth is a trading name of Sanlam Private Investments (UK) Ltd.

 

Disclaimer

VAM Driehaus, VAM Cautious, Balanced and Growth Funds are compartments of VAM Managed Funds (Lux).

This document is intended for use by professional financial advisers only. The distribution of VAM Funds and the offering of the shares may be restricted in certain jurisdictions. Private investors should contact their financial adviser for more details on any of the products featured. It is the responsibility of any person in possession of this document to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdictions. Prospective applicants for shares should inform themselves as to the legal requirements and consequences of applying for, holding and disposing of shares and any applicable exchange control regulations and taxes in the countries of their respective citizenship, residence or domicile. Click for Important Information