Dear Fintax Investor

Please find attached July’s fund fact sheets along with the MGIM commentary.

The Growth Fund delivered 0.7% and the Balanced Fund 1.5% in a month where global fixed income outperformed global equities. The Growth Fund has delivered 27.8% and the Balanced Fund 19.6% over the prior twelve months. It is early days, but the Growth Fund, with its new higher equity positioning, is delivering improved returns in line with the global equity market.

One change, not yet reflected in the fund fact sheets, is the replacement of the passive Japan position; Amundi ETF JPX-Nikkei 400 with Morant Wright, who are dedicated Japanese active specialists, managing a quality-value strategy. MGIM have kept the Japanese positions at their current weights (currently 1.5% in Balanced, 3.5% in Growth), but they have a positive view on Japanese equities and the Yen and are therefore considering increasing this exposure.

More about Morant Wright

Investment manager established in 1999. They seek to generate absolute returns by investing in undervalued Japanese companies that have strong balance sheets and sound business franchises, a key characteristic of the quality-value style. Their stock selection is based on fundamental analysis. They start with the balance sheet and emphasise Price to Book and Enterprise Value to Operating Profit ratios. They identify companies whose share prices offer potential for significant appreciation over the longer term, but without undue risk.

Investment manager website: https://www.morantwright.co.uk/

Please don’t hesitate to contact us should you have any comments or queries.