MultiManager Growth Fund

Key points

• A multi-asset fund holding equities, bonds and cash with the additional option of investing in private equity, structured products and property
• Award-winning performance, winning Lipper and Moneywise “Best in Sector”, Global Growth Awards 2005
• A multi-manager fund adopting a high conviction ap­proach with a high performance objective
• Investment management responsibility for the fund has been with John Husselbee of North Investment Partners since July 2004
• Sector: IMA Global Growth

Current views

July was relatively uneventful but despite the quiet nature of mid-summer markets, equity markets moved upwards. The FTSE 100 rose 9.55%, the S&P 500 gained 3.57% while the MSCI Emerging Markets index rose 5.54%, all in sterling terms. The global risk environment improved during July. Consequently, global equity markets experienced a relief rally as the panic over peripheral Eurozone countries subsided due to progress on fiscal adjustment. Core Eurozone economies displayed strong economic data, including a surge in business confidence in Germany and a strong 2Q GDP report. However, the announcement of results following the relatively passive European bank stress tests failed to improve confidence in Europe’s banking system. While the question remains as to whether the UK can sustain economic growth without further stimulus, UK equity market valuations do not look stretched and inflation still looks unthreatening.

We remained unconvinced by corporate bonds and sovereign debt and instead favoured equities, particularly those in the developing nations. We made a new fund purchase, JP Morgan Consumers Trends Fund, managed by Peter Kirkman. Bridging the gap between developed and emerging markets, this fund allowed us to benefit from increasing consumption in the East.

We remain committed to positioning the fund across both cyclical and defensive assets as we feel sentiment will continue to actively swing between pessimism and optimism. However, as the fund and wider markets are experiencing a relatively quiet period we feel it is appropriate to slightly increase our risk exposure. Nonetheless, we are prepared to alter this strategy should market conditions change.

Asset allocation