MAB Quarterly Review Q1 2026 - Adventurous - Flipbook - Page 5
Performance commentary
Market
The 昀椀rst quarter of 2026 can best be described as
a strong start followed by a sharp setback.
In January and February, markets moved steadily
higher. Economic data were generally stable,
company earnings were holding up well, and
investors were becoming more con昀椀dent that
in昀氀ation was under control. This was particularly
helpful for markets outside the US. Emerging
Markets and Japan performed very strongly,
supported by improving investor con昀椀dence and,
in the case of Emerging Markets, a weaker US
Dollar which tends to make investing in those
regions more attractive.
As a result, both shares and bonds fell during
the month. Importantly, this was not because
companies were suddenly doing badly, but because
expectations for the future had changed.
Looking across the whole quarter, markets were
mixed. Early gains were partly given back, but assets
that tend to do well when in昀氀ation rises, such as
commodities, helped offset some of the weakness.
This is a good example of why diversi昀椀cation
remains so important.
Commodities also played an important role early in
the quarter. Gold and silver rose strongly, re昀氀ecting
continued demand for diversi昀椀cation away from
US assets. Overall, this created a positive backdrop
for diversi昀椀ed portfolios.
However, this changed quite suddenly in March.
Rising tensions in the Middle East disrupted key oil
supply routes, causing oil prices to spike sharply.
This had a knock-on effect across markets, as
investors began to worry that higher energy prices
could push in昀氀ation back up again.
This matters because in昀氀ation and interest rates
are closely linked. Earlier in the year, markets had
expected central banks to start cutting interest
rates. By March, those expectations had shifted,
with investors now considering the possibility that
rates might stay higher for longer.
Total fund
The Multi-Asset Blend Adventurous Fund (“the Fund”) was down -1.1% over
the 昀椀rst quarter, outperforming the -1.4% return of its IA Flexible Investment
performance comparator.
Since your Fund’s inception on 6th October 2022, your Fund has generated a
cumulative return of +43.0%, over 12% ahead of its IA sector comparator.
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