MAB-Quarterly-Review-Q2-2025-Cautious - Flipbook - Page 4
Portfolio changes
Complete sales
Lindsell Train UK Equity Fund:
Amundi Russell 1000 Growth ETF:
This fund was part of our UK equity blend and provided
exposure to a group of high-quality, primarily global
brands and businesses that happen to be listed on
the UK stock market. Although Lindsell Train’s recent
results had been disappointing, our decision to move
this exposure to the Evenlode UK Select Fund was
not primarily driven by performance, as Evenlode’s
recent results had also been challenged, but more by
the fact that we felt Evenlode’s extensive team were
implementing a very similar philosophy to Lindsell
Train’s but in a stronger and more robust research
and risk framework. As a result, we felt we could
implement an upgrade to this exposure without
giving up the proven bene昀椀ts of this strategy over
the longer term.
While this position provided targeted exposure to the
fastest growing areas of the US market, like technology
and AI, which have driven US market performance in
recent years, elevated valuation levels have increased
the overall risk pro昀椀le of this exposure. Valid questions
are beginning to emerge about the sustainability of
the pro昀椀t growth required to support these elevated
valuations. In addition, higher concentration within
the underlying Russell 1000 Growth index has added
an additional dimension of risk. As a result, we have
exited the position, which has been highly pro昀椀table
for the Fund, rotating the proceeds into the existing
Invesco S&P 500 ETF. Although many of these highgrowth companies are still held in the S&P 500 Index,
they are collectively held at a lower weight and, as
such, we believe the S&P 500 now provides a more
balanced way to access US growth opportunities
within a broader and more diversi昀椀ed framework.
Aberdeen Short Dated Global
Inflation Linked Bond:
Within MAB Cautious, the fund has performed well
and provided protection during recent periods of
rising in昀氀ation; however, market dynamics have
evolved. We believe that there is now a greater
opportunity to allocate towards exposures that may
offer better risk-adjusted returns for the long term,
such as Ellington’s Structured Credit Fund, which
presents attractive total return opportunities in the
current environment. We will receive diversi昀椀cation
through the “昀氀oating” interest rate nature of
Ellington’s exposure, which provides protection
against rising interest rates. This helps to balance the
high-quality treasury bonds exposure in our Fixed
Income blend.
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