Multi-Asset Fund Range Update July 2026
In this video, James Mee, Co-Head of Multi-Asset and Matthew Parkinson, Fund Manager, provide an update on the performance of the Multi-Asset Fund Range over Q2 and share their outlook for the second half of the year.
They explain how markets transitioned from "Gridlock" to "GoGo" during the quarter, as geopolitical tensions surrounding Iran initially drove sharp volatility in oil markets before easing, while stronger-than-expected corporate earnings and continued investment in AI and broader industrial capital expenditure supported a powerful equity rally. Despite elevated valuations in parts of the market, the managers believe the macroeconomic backdrop remains constructive, underpinned by resilient consumer demand, improving business confidence, strong liquidity and expanding investment beyond the AI theme.
Throughout the quarter, the team remained active, covering its S&P 500 short position, increasing equity exposure as conditions improved, rotating towards more cyclical businesses, reducing gilt duration, trimming gold, and adding to battery storage through Gresham House Energy Storage (GRID). The strongest contributors were semiconductor holdings AMD and TSMC, while weaker performance came from CME, Intercontinental Exchange and Shell, reflecting softer energy prices.
Overall, the funds delivered returns of between 4.9% and 9% during Q2, leaving them ahead of or in line with their peer groups over one year and year to date. Looking ahead, the managers remain modestly overweight equities, underweight fixed income and continue to focus on identifying high-quality businesses with sustainable competitive advantages that can benefit from long-term themes including AI, electrification, infrastructure investment and defence.
Key takeaways
- Markets proved resilient despite geopolitical disruption
Oil-price volatility and geopolitical tensions created uncertainty, but strong US economic growth, robust corporate earnings and continued investment in AI helped equities rally during the quarter. - Investment opportunities are broadening beyond AI
While AI-related companies remain important market drivers, accelerating investment in manufacturing, energy infrastructure, defence and onshoring is creating opportunities across a wider range of industries. - The Funds enter Q3 with a cautiously positive outlook
An improving macroeconomic backdrop and strong earnings momentum have supported a slightly overweight position in equities, while the Funds remain underweight fixed income and overweight alternatives, with a preference for real assets
Glossary
Capital expenditure (CapEx): Money invested by a business in long-term assets, infrastructure or technology to support its operations and future growth.
Index concentration: The extent to which a small number of large companies account for a significant proportion of an investment index’s value and performance.
Duration: A measure of how sensitive a bond or fixed-income investment is to changes in interest rates. Generally, the longer the duration, the more its price may move when rates change.
Past performance is not a reliable indicator of future results. The value of investments and the income derived from them may rise as well as fall, and investors may not get back the amount originally invested. Capital security is not guaranteed.
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