Over the quarter, the Monthly Income and Monthly Income and Growth Portfolios delivered returns of 3.1% and 2.7%, respectively, with both portfolios ahead of their respective Investment Association (IA) performance comparators.
Bonds were a big contributor to returns due to the growing expectation of additional interest rate cuts over the coming year. This explains the better performance from the lower-risk Monthly Income Portfolio, which has a greater allocation to bonds. It wasn’t a bad period for equity markets either, but the strength of the pound offset returns from US and European equity holdings for sterling-based investors. Meanwhile, Asian markets enjoyed a sharp bounce in late September after Chinese policymakers announced several economic and equity market stimulus measures.
