Key Takeaways
- • Nomura Asset Strategy Fund delivered negative absolute returns in Q1 2026 but outperformed the MSCI All Country World Index (net), demonstrating the portfolio's defensive positioning during equity market weakness.
- • Fixed income exposure served as a critical portfolio stabilizer during a difficult market environment characterized by escalating geopolitical tensions and widespread market disruption that emerged as Q1 progressed.
- • Geographic performance was mixed: the US, Singapore, and France were detractors, while Taiwan and Denmark provided performance offsets, indicating concentrated regional weakness during the period.
- • The Fund's diversified asset allocation strategy—blending equity and fixed income components—proved effective in mitigating downside risk relative to an all-equity benchmark despite challenging overall market conditions.
Summary
The Nomura Asset Strategy Fund reported negative absolute returns for the first quarter of 2026, though the Fund successfully outperformed its benchmark, the MSCI All Country World Index (net). The outperformance underscores the value of the Fund's multi-asset strategy during a period marked by significant market headwinds.
Global equity markets entered 2026 with cautious optimism that quickly dissipated as geopolitical tensions escalated and widespread market disruption took hold throughout the quarter. This shift in sentiment created a challenging environment for equities broadly. The Fund's fixed income allocation proved instrumental in offsetting equity weakness, providing the portfolio ballast that managers designed the strategy to deliver. Against an all-equity benchmark, the fixed income component's defensive characteristics were particularly evident during the difficult market conditions that characterized much of the period.
At the country level, performance varied considerably. US, Singapore, and France positions detracted from Fund returns during the quarter, reflecting broader equity market weakness in these geographies. This underperformance was partially offset by stronger results from Taiwan and Denmark holdings, which provided performance diversification. The regional variation highlights both the volatility within global equity markets and the Fund's exposure to different economic cycles and market drivers across geographies.
The Fund's relative outperformance despite negative absolute returns illustrates the effectiveness of its balanced approach during periods of market stress, positioning it favorably for investors seeking equity market exposure with downside mitigation through fixed income allocation.
Global equity markets entered 2026 with cautious optimism that quickly dissipated as geopolitical tensions escalated and widespread market disruption took hold throughout the quarter. This shift in sentiment created a challenging environment for equities broadly. The Fund's fixed income allocation proved instrumental in offsetting equity weakness, providing the portfolio ballast that managers designed the strategy to deliver. Against an all-equity benchmark, the fixed income component's defensive characteristics were particularly evident during the difficult market conditions that characterized much of the period.
At the country level, performance varied considerably. US, Singapore, and France positions detracted from Fund returns during the quarter, reflecting broader equity market weakness in these geographies. This underperformance was partially offset by stronger results from Taiwan and Denmark holdings, which provided performance diversification. The regional variation highlights both the volatility within global equity markets and the Fund's exposure to different economic cycles and market drivers across geographies.
The Fund's relative outperformance despite negative absolute returns illustrates the effectiveness of its balanced approach during periods of market stress, positioning it favorably for investors seeking equity market exposure with downside mitigation through fixed income allocation.
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