SRI 30% Portfolio Performance

Following a brief pullback in April – the result of concerns over stronger-than-expected economic data and the prospect of stickier inflation – equities continued to see further gains in the latter part of H1 as those concerns subsided. Mega-cap US technology companies in particular remained a key driver behind the rally. Our investment framework ERAA®'s allocations to the tech sector and broad US equities contributed to our portfolios’ solid gains over that period, which have higher exposure to equities. 

Beyond the US, ERAA®'s overweight positioning to India following our re-optimisation in late April contributed to our portfolios’ relative gains. That also came despite a brief bout of volatility during the country’s national election in early June – during which we advocated staying invested.

ERAA®'s overweight allocations to gold supported our portfolios’ performance in H1. This was driven by a combination of factors, including demand due to geopolitical tensions and global central banks’ purchases.

In fixed income, ERAA®'s allocations to ultra-short-dated US Treasury bonds – especially in our lower and medium-risk portfolios – helped to offset the drag from longer-dated US bonds, which have been weighed down by sticky inflation and expectations of US rate cuts being pushed further out.

Our framework’s allocations to global bonds – especially in emerging markets (EMs) and some pockets of developed markets (DMs) – also aided our portfolios’ performance, as a number of central banks have kicked off their rate cut cycles.

For a deep dive into the details, here’s our full commentary.