VAM Managed Funds (Lux) Commentaries

October 2021 (click here to download)

VAM Fund

The Fund enjoyed strong gains during October as all underlying Funds were positive for the month. Fears of early interest rate changes from the Federal Reserve were offset by broadly positive news from corporate earnings from the third quarter. US equities, rebounding from a difficult September, had their most positive month so far this year. The biggest gains of all were seen in the VAM US Mid Cap Growth, VAM US Small Cap Growth and VAM US Micro Cap Growth Funds which continue to perform well and should be less exposed to interest rate risks. October finished with a focus on climate change with the G20 meeting in Rome and the COP26 meeting in Glasgow. Few deny that climate change will be a primary driver to investment returns going forward, with a focus on technology and, more recently, infrastructure. The Fund is well-positioned to benefit from this over the long term.

VAM DISCRETIONARY FUNDS

VAM Cautious Fund

Equity markets stabilised in October after September’s pullback, and investors broadly welcomed the third quarter’s corporate earnings releases, which allowed share prices to recover. Government bonds also recovered some of their recent losses rising in tandem with equities. Investors seem to have become comfortable with the idea of globally tighter monetary policy and, so far, earnings growth has continued to support rich equity valuations.

Corporate news flow continued to highlight operational difficulties in securing raw materials, intermediate components and workers as the inflation created by government during the pandemic continues to seep into the real world through higher input costs and, ultimately, higher consumer prices. A wide range of companies indicated that they had increased prices and intended to do so again in the months ahead.

VAM Balanced Fund

Equity markets stabilised in October after September’s pullback, and investors broadly welcomed the third quarter’s corporate earnings releases, which allowed share prices to recover. Government bonds also recovered some of their recent losses rising in tandem with equities. Investors seem to have become comfortable with the idea of globally tighter monetary policy and, so far, earnings growth has continued to support rich equity valuations.

Corporate news flow continued to highlight operational difficulties in securing raw materials, intermediate components and workers as the inflation created by government during the pandemic continues to seep into the real world through higher input costs and, ultimately, higher consumer prices. A wide range of companies indicated that they had increased prices and intended to do so again in the months ahead.

VAM Growth Fund

Equity markets stabilised in October after September’s pullback, and investors broadly welcomed the third quarter’s corporate earnings releases, which allowed share prices to recover. Government bonds also recovered some of their recent losses rising in tandem with equities. Investors seem to have become comfortable with the idea of globally tighter monetary policy and, so far, earnings growth has continued to support rich equity valuations.

Corporate news flow continued to highlight operational difficulties in securing raw materials, intermediate components and workers as the inflation created by government during the pandemic continues to seep into the real world through higher input costs and, ultimately, higher consumer prices. A wide range of companies indicated that they had increased prices and intended to do so again in the months ahead.

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

Disclaimer

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

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