VAM Managed Funds (Lux) Commentaries

March 2019 (click to download)

VAM DRIEHAUS FUND

As proxies for larger, broad equity exposures, note that the MSCI All Country World Index was up 1.26% and the S&P 500 was up 1.94% for the full month. On a relative basis, the VAM Driehaus Fund’s returns were hindered by its exposure to US smaller capitalisation equities while its emerging markets exposures aided performance in the broad market.

 

The economic and market environment changed dramatically in the first three months of 2019. Many of the policy and economic issues that contributed to the market sell-off in late 2018 have seemingly flipped from headwinds to tailwinds. As the Investment Manager assesses the outlook moving forward, economic conditions and earnings remain choppy, but there are signs that earnings and economic data may improve. Monetary policy is largely dovish as inflation appears to be well contained. Nonetheless, investors should remain mindful of the economic and geopolitical uncertainties that persist around the globe and be prepared for equity market volatility.

VAM DISCRETIONARY FUNDS

VAM Close Brothers Cautious Fund

Both equities and fixed interest contributed to returns, whilst alternatives slightly detracted from performance. Within equities, notable performance came from the Blackrock European Income Fund, which was up 3.5%, ahead of its European benchmark which rose 2.5%. Elsewhere, the income-focussed and mid cap tilted active managers made absolute gains, but generally lagged the wider index moves, as larger cap stocks rose more than their smaller peers over the month.

 

Brexit worries continue and this meant that bonds also had a strong month with the flight to safety leading to the portfolio’s holding in UK government bonds to rise 3.1%. Elsewhere, core bond holdings such as Henderson Strategic Bond rose 2.4% and Blackrock Strategic Bond rose 1.3%. As mentioned, alternatives detracted from performance with, for instance, GCP Infrastructure down -1.9% and INPP Infrastructure down -3.2%.

VAM Close Brothers Balanced Fund

Both equities and fixed interest contributed to returns, whilst alternatives slightly detracted from performance. Within equities, notable performance came from the Brown Global Leaders Fund, which rose 4.6%, ahead of the global benchmark which rose 3.4%. In terms of detractors, the portfolio’s smaller cap managers struggled over the month with, for instance, Royce US Small Cap down -3.5%.

 

Brexit worries continue and this meant that bonds also had a strong month with the flight to safety leading to the portfolio’s holding in UK government bonds to rise 3.1%. Elsewhere, core bond holdings such as Nomura Dynamic Bond rose 1.2% and Blackrock Strategic Bond rose 1.3%. As mentioned, alternatives detracted from performance with, for instance, GCP Infrastructure down -1.9% and INPP Infrastructure down -3.2%.

VAM Close Brothers Growth Fund

Both equities and fixed interest contributed to returns, whilst alternatives slightly detracted from performance. Within equities, notable performance came from the Brown Global Leaders Fund, which rose 4.6%, ahead of the global benchmark which rose 3.4%. In terms of detractors, the portfolio’s smaller cap managers struggled over the month with, for instance, Royce US Small Cap down -3.5%.

 

Brexit worries continue and this meant that bonds also had a strong month with the flight to safety leading to the portfolio’s holding in UK government bonds to rise 3.1%. Elsewhere, core bond holdings such as Blackrock Strategic Bond rose 1.3%. As mentioned, alternatives detracted from performance with, for instance, GCP Infrastructure down -1.9% and INPP Infrastructure down -3.2%.

Sources: Driehaus Capital Management LLC and Close Brothers Asset Management.
Close Brothers Asset Management is a trading name for Close Asset Management Limited.

 

Disclaimer

VAM Driehaus, VAM Close Brothers 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