MAB Growth Quarterly Review Q4 2025 - Flipbook - Page 7
Fixed Income
Your Fund’s mix of Fixed Income managers made
a positive return over the quarter as bond markets
recovered. The Morgan Stanley Local Emerging
Market Debt Fund bene昀椀ted from the strong recovery
in Emerging Markets (+6.1%), while the Man High
Yield Opportunities Fund was helped by improving
conditions for bonds issued by companies (+3.0%).
Property, Real Assets & Absolute Return
After being the stars of the 昀椀rst quarter, your Real
Assets and Absolute Return holdings had a quieter,
more mixed second quarter. This is another good
example of diversi昀椀cation working in both directions.
The Real Assets mix is designed to protect your
Fund when in昀氀ation rises sharply. As those in昀氀ation
fears faded and commodity prices fell back this
quarter (commodity markets were down around
-8% over the period), it gave back some of the
strong gains it had made earlier in the year. The
main drag was the UBS Bloomberg Commodity
ETF, though at -4.5% it held up better than the
broader commodity market. This was cushioned by
listed infrastructure through the ClearBridge Global
Infrastructure Income Fund, which rose +3.1% as
interest rate expectations fell, and by our European
Carbon Allowance exposure, which rose +9.8% over
the quarter.
The Absolute Return mix is designed to make steady
returns, whatever is happening in markets, and it
did so again. It made a positive return, a little
ahead of UK cash, helped by the Fulcrum Thematic
Equity Market Neutral Fund (+1.5%) and the Ortler
Multi-Strategy Fund (+4.5%).
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