Performance review
Over the quarter, the Monthly Income and Monthly Income and Growth portfolios delivered positive returns of 3.4% and 4.5%, respectively. Despite US import tariffs being imposed at the start of August, the equity market remained buoyant, while bond markets delivered modest positive returns, led by high yield and emerging markets.
Both of the portfolios slightly lagged their performance comparators as AI stocks, which typically do not distribute income to shareholders and in several cases do not make profits either, led the equity market rally. Meanwhile, Japan was also a strong performer following a trade deal with the US, while China propelled emerging markets higher. Overall, our alternatives holdings were broadly flat as the drag from renewable energy investment trusts was netted out by other holdings.
