MAB Quarterly Review Q1 2025 - Cautious - Flipbook - Page 6
Performance commentary
Market
The third quarter of 2025 once again highlighted the importance of patience and diversi昀椀cation in investing.
After the 昀椀reworks of Q2, this quarter was calmer overall, though markets continued to absorb a steady
stream of political and economic headlines.
Global equities delivered another positive period. The MSCI All Country World Index (a broad measure of
global stock markets) advanced further, reaching fresh record highs at the end of September. From the
perspective of a GBP-based investor, the global nature of the returns were notable and illustrative of the
bene昀椀ts of strong global diversi昀椀cation. Emerging Market equities led the way (returning +12.9%), driven by
very strong performance from the Chinese equity market (+22.9%) after many years in the doldrums. We also
witnessed double-digit gains from the Japanese and US markets (each returning +10.1% over the quarter).
Returns from UK and Continental European markets were positive, but more sedate over the quarter.
Fixed Income markets also contributed meaningfully to the returns of MAB Cautious over the quarter.
This was boosted by in昀氀ation data remaining subdued and labour market weakness becoming more apparent
in both the US and UK. This boosted government bond prices, while credit markets (lending to companies)
also held 昀椀rm, supported by still-attractive yields. Emerging Market Local Currency Debt continued its strong
run, helped by US Dollar weakness and better-than-expected growth and in昀氀ation across parts of Asia and
Latin America.
Diversifying assets again played an important role in the returns of MAB Cautious, given its high allocation
to these sorts of strategies. Our blend of Absolute Return strategies, designed to deliver steady returns
independent of equity markets, rose +2.0% over the quarter and is now up +7.7% year to date, more than
doubling the returns of being in Cash. Our Property & Real Asset manager blend, which tends to bene昀椀t more
in higher-in昀氀ation environments, also had an exceptionally strong quarter by returning +5.1 %, bringing the
year-to-date return to +12.4% while maintaining a highly diversi昀椀ed set of return drivers.
Overall, Q3 reinforced a simple but powerful lesson: by staying invested across a balanced mix of equities,
bonds, and diversi昀椀ers, investors can capture opportunities even in an environment of ongoing uncertainty.
Total fund
The Multi-Asset Blend Cautious Fund (“the Fund”) rose +3.7% over the third quarter, comfortably
outperforming the +2.8% return of its IA Mixed Investment 0-35% Shares performance comparator.
Since the Fund’s inception on 17th October 2022, the Fund has generated a cumulative return
of +23.4%.
Equities
Our Tactical Asset Allocation positioning in equities was positive for the quarter, with the negative impact
from our underweight to the rallying European ex-UK equity more than offset by the positive impact from our
overweight to the Japanese market and our modest overweight to the UK equity market.
Among your underlying Fund Managers, outperformance was very diverse over the quarter. The largest
outperformance was driven by the Neuberger Berman US Small Cap Intrinsic Value Fund, returning +18.7%
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