Cirilium quarterly commentary – Review of Q2 2026

How our equity holdings performed

Risk sentiment rebounds

A ceasefire announcement to the US-Iran conflict made in early April allowed markets to focus on corporate earnings reports through April and May. Overall, markets were able to enjoy strong performance as earnings delivery remained robust. Accordingly, higher growth holdings like the Sands Capital US Select Growth Fund outperformed their own growth-focused benchmarks, while value-oriented holdings like the Quilter Investors Global Equity Value Fund underperformed.

AI fever hits Asia

US companies were not the only AI beneficiary with South Korean stocks Samsung and SK Hynix among the big winners in the second quarter. This helped drive returns in the Pacific North of South EM All Cap Equity Fund, which was up by 24.5% over the quarter. Japanese equity managers were also able to benefit, with the M&G Japan Fund generating a 20.6% return, well ahead of the 13.5% of the broad Japanese equity market.

Style rotation

It was a different story for the UK and developed Pacific ex Japan equities, which were laggards over the second quarter. The Invesco UK Opportunities and J O Hambro UK Dynamic funds did manage to outperform their benchmarks but given the lack of tech names in the region, they only returned 4.6% and 7.9%, respectively. UK quality growth managers remained on the back foot, with Finsbury Growth & Income Trust continuing to lag the broader market.

How our fixed-income holdings performed

Rate repricing

Our fixed income holdings delivered positive returns overall, led by UK-focused strategies as falling gilt yields boosted bond prices. Globally, returns were more mixed, with yields rising in the US and Japan as markets priced in the prospect of further interest rate increases. Despite this headwind, the Amundi Core Global Government Bond ETF still delivered a modest positive return. Corporate bonds fared better, as improving investor sentiment drove credit spreads tighter, resulting in particularly strong performance from the Schroder Strategic Bond Fund.

How our alternatives holdings performed

Stock pickers drive returns

Our alternatives holdings were up over the quarter, led by our allocation to long/short equity managers. The dispersion of returns (both positive and negative) across different sectors and companies provided a strong backdrop for stock pickers, with the Cooper Creek North America Long Short Equity Fund standing out with a return of 15.3% over the quarter. Elsewhere, performance was more mixed. Inflation-linked strategies detracted as falling commodity prices weighed on returns from the L&G Multi-Strategy Enhanced Commodities Fund and the iShares Physical Gold ETC. However, our infrastructure holdings, International Public Partnerships Limited and Pantheon Infrastructure, offset this with strong returns.