Strong investment returns at the start of the quarter faltered after the Federal Reserve signalled that it may slow down its asset purchase programme amid improving economic data, a statement that reverberated through global markets.
Fixed income products felt the full force of market uncertainty, losing the most ground over the second quarter of the year, according to Camradata’s Q2 Investment Products Report (IQ Scores for Pension Fund Universes). Against this backdrop, Scout Investments displayed genuine skill to top the global fixed income universe.
Equities did not escape unscathed as market contortions hit performance. Despite the FTSE All Share falling by five per cent in June from an all-time high in May, top managers rode out this particular market squall. Liontrust swapped places with Lindsell Train to lead the UK Equity All Cap universe, posting strong returns against relatively low risk.
Question marks continued to hang over European equities, with the European Central Bank’s interest rate cut to 0.5 per cent and limp economic data contributing to a marginal, positive return overall. Comgest’s downside protection and steady, strong returns meant they headed this asset class.
In a new class, multi-asset seeking to outperform cash by three to seven per cent, Invesco Perpetual took top billing, again showing effective downside protection amidst market upheaval.
Steve Butler (pictured), founder and managing director, Camradata, says: “Camradata continues to be a compass for institutional investors to navigate a stormy landscape. There is the odd shaft of sunlight but our latest report helps to map out the havens where your assets can be sheltered from the economic elements.”