| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.81% | -4.93% | -4.93% |
The Royal London Global Equity Diversified Fund underperformed its benchmark in Q1 2026, returning -4.93% versus -1.65% for the MSCI World Index. Performance was impacted by geopolitical escalation in March that drove energy prices higher and renewed inflation concerns, leading to broad market rotation away from technology growth stocks. Energy holdings including Shell, Valero Energy, and Suncor Energy provided positive contributions, while AI infrastructure provider Vertiv and Samsung memory chips benefited from continued AI demand. However, Microsoft, Alphabet, and Constellation Software detracted as investors rotated away from highly valued mega-cap growth stocks amid valuation concerns. The fund actively repositioned capital toward structural themes, initiating positions in AMD and Royalty Pharma while building exposure to energy security through nuclear uranium supplier Cameco and solar power. Defense exposure was increased via Lockheed Martin reflecting structural defense spending increases. Industrial exposure was added through Hubbell and BorgWarner to capture electrification and infrastructure trends. The outlook remains dependent on geopolitical developments and inflation trajectory.
The fund maintains a diversified global equity approach focused on long-term value creation while adapting positioning to structural themes including energy security, defense spending, and infrastructure investment amid elevated geopolitical risks.
The team is continuing to navigate a complex and momentum-driven market with a disciplined yet adaptive approach. Strategic research prioritisation, risk-aware positioning, and a focus on long-term value creation remain central to the investment philosophy. The team is committed to refining its responsiveness to market signals and maintaining competitive performance.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 22 2026 | 2026 Q1 | 005930 KS, AMD, BWA, CCO, CRM, CSU.TO, GLEN.L, GOOGL, HUBG, JPM, LMT, MSFT, NOW, RELX.L, RPRX, SHEL.L, STLD, TSM, VRT | defense, Diversified, energy, Geopolitical, global, infrastructure, technology | - | Royal London Global Equity Diversified Fund underperformed in Q1 2026 as geopolitical escalation drove rotation from technology growth stocks to defensive sectors. The fund repositioned toward structural themes including energy security, defense spending, and infrastructure investment while trimming technology exposure. Energy and materials holdings provided positive contributions while mega-cap technology stocks detracted from performance. |
| Dec 31 2025 | 2025 Q4 | 7741.T, AAPL, AMZN, AVGO, BHP.AX, BRO, CPRT, GOOGL, HEIA.L, ITW, JPM, LLOY.L, LLY, LW, META, MSFT, MU, NVDA, RACE, V | AI, defense, Global Equity, healthcare, Quality, semiconductors, technology, Valuations |
GOOG LLY MU LW RACE ITW HAG GR |
Royal London Global Equity Diversified Fund outperformed in Q4 2025 through strong stock selection in AI leaders like Alphabet and healthcare giant Eli Lilly. The fund added Ferrari, Illinois Tool Work, and defense electronics firm Hensoldt while trimming positions. Management sees opportunity in quality companies trading at low relative valuations as AI concentration dominates markets. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIAI infrastructure demand drove strong performance for data center provider Vertiv and memory chip demand benefited Samsung. However, concerns about AI valuations and sustainability of earnings growth led to rotation away from highly valued US mega-cap growth stocks including Microsoft. |
Data Centers Memory Semiconductors Valuations |
Energy TransitionCapital was redeployed into energy security themes including nuclear energy via Cameco for uranium supply and renewables through solar power company NextPower. The fund views diversified energy systems as increasingly strategic assets amid current geopolitical trends. |
Nuclear Solar Uranium Energy Security | |
Defense SpendingThe fund continued to add to defense exposure via Lockheed Martin, reflecting the structural uplift in defense spending now evident across developed markets. Defense stocks provided pockets of relative strength during March market volatility. |
Defense Geopolitical Structural | |
GeopoliticalRising geopolitical risk and escalation in the Middle East led to deteriorating risk sentiment, higher energy prices, and renewed inflation concerns. Markets became highly dependent on geopolitical developments with elevated volatility expected to continue. |
Middle East Energy Inflation Volatility | |
Infrastructure SpendingThe fund built exposure to US industrials including Hubbell and BorgWarner where they see longer-cycle support from electrification, infrastructure spend and supply chain reconfiguration trends. |
Electrification Supply Chain Industrials | |
| 2025 Q4 |
AIAI continues to drive significant market performance with Alphabet benefiting from its differentiated positioning and Gemini 3 model release. The fund maintains bullish outlook on long-term AI opportunities despite some valuation concerns in parts of the market. |
Artificial Intelligence Gemini Technology Innovation |
GLP1Eli Lilly's dominant position in the fast-growing GLP-1 drug market drove exceptional performance with over $10 billion in quarterly sales from metabolic franchise. The company captured leading US market share in diabetes and obesity treatments. |
Pharmaceuticals Diabetes Obesity Healthcare | |
SemiconductorsMicron Technology continued positive contribution as memory market shows transformation due to AI workloads and tight supply. DRAM pricing rising sharply creates favorable environment enabling improved profitability. |
Memory DRAM Technology Supply | |
DefenseInitiated position in Hensoldt, a European defense electronics company, benefiting from heightened demand amid increased European defense spending. Strong positioning in sensor solutions and electronic warfare with robust order book. |
Defense Electronics European Defense Sensors Warfare |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | Fund Letters | Paul Schofield | LLY | Eli Lilly and Company | Health Care | Pharmaceuticals | Bull | New York Stock Exchange | Diabetes, Glp1, growth, Obesity, pharmaceuticals | Login |
| Dec 31, 2025 | Fund Letters | Paul Schofield | MU | Micron Technology, Inc. | Information Technology | Semiconductors | Bull | NASDAQ | AI, Cyclicality, DRAM, Memory, semiconductors | Login |
| Dec 31, 2025 | Fund Letters | Paul Schofield | LW | Lamb Weston Holdings, Inc. | Consumer Staples | Packaged Foods & Meats | Bear | New York Stock Exchange | Food, inflation, Margins, Staples, Volumes | Login |
| Dec 31, 2025 | Fund Letters | Paul Schofield | RACE | Ferrari N.V. | Consumer Discretionary | Automobile Manufacturers | Bull | New York Stock Exchange | Brand, Luxury, Margins, Pricing, Scarcity | Login |
| Dec 31, 2025 | Fund Letters | Paul Schofield | ITW | Illinois Tool Works Inc. | Industrials | Industrial Machinery | Bull | New York Stock Exchange | capital allocation, Cyclicality, Industrials, Margins, Pricing | Login |
| Dec 31, 2025 | Fund Letters | Paul Schofield | HAG GR | HENSOLDT AG | Industrials | Aerospace & Defense | Bull | Xetra | backlog, Defence, Geopolitics, Radar, Sensors | Login |
| Dec 31, 2025 | Fund Letters | Paul Schofield | GOOG | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cloud, compounder, platform | Login |
| TICKER | COMMENTARY |
|---|---|
| SHEL.L | The position in Shell was positive for performance, capturing the tailwind of rising prices in the energy sector. |
| GLEN.L | The holding in Glencore was a positive contributor as commodity prices surged, benefiting companies in the materials sector. |
| VRT | Data centre infrastructure provider Vertiv moved very much into the AI winners camp. Its shares experienced a strong rise in February, reflecting robust order growth tied to AI data-centre investment with rising demand for high-density power and cooling solutions. Its shares suffered in March amid the rotation away from stocks with high geopolitical exposure and towards more defensive parts of the market, but still produced positive returns over the quarter. |
| 005930.KS | The holding in Samsung benefited from booming demand for AI-related memory chips. Memory is usually a very cyclical business and while we have reason to believe this cycle might be a little stronger for longer, position sizes have grown and we started bringing down the size of the holding. |
| MSFT | The holding in Microsoft suffered from the shift in market leadership away from highly valued US mega-cap growth stocks, particularly toward the end of the review period. This rotation was linked to concerns about technology-sector valuations and sustainability of earnings growth. |
| CSU.TO | The holding in Constellation Software also detracted from returns. Investors were concerned that the rise in AI adoption might lead to a fall in demand for its services. |
| GOOGL | The holding in Alphabet detracted from relative returns following a period of strong multi-year performance. The share price reached an all-time high in February, before falling back more than 20%. At the start of the year, Alphabet announced capital expenditure that was ahead of expectations, fuelling concerns about the effects on profit margins. This overshadowed results that were very encouraging. |
| AMD | We initiated a position in Advanced Micro Devices, a leading semiconductor designer with a strong competitive position. The company is well positioned to benefit from an expanding market driven by data centre investment, high performance computing, and AI workloads. |
| RPRX | We also added Royalty Pharma, a differentiated life sciences company that acquires royalty interests in high quality biopharmaceutical assets. |
| CRM | Within the technology sector, we continued to consolidate software exposure, exiting Salesforce. |
| RELX.L | We modestly increased positions in higher-conviction names such as RELX. This reflects a preference for companies that supply business-critical services that are not at imminent threat of AI disruption. |
| NOW | We modestly increased positions in higher-conviction names such as ServiceNow. This reflects a preference for companies that supply business-critical services that are not at imminent threat of AI disruption. |
| TSM | We trimmed positions in strong performers, including TSMC, both to crystallise gains and to manage concentration risk following a period of outperformance. |
| STLD | We trimmed positions in strong performers, including Steel Dynamics, both to crystallise gains and to manage concentration risk following a period of outperformance. |
| CCO | We initiated exposure to nuclear energy via Cameco, which supplies uranium for nuclear power generation. |
| HUBG | We built exposure to US industrials, including Hubbell, where we see longer-cycle support from electrification, infrastructure spend and supply chain reconfiguration. |
| BWA | We built exposure to US industrials, including BorgWarner, where we see longer-cycle support from electrification, infrastructure spend and supply chain reconfiguration. |
| LMT | We continued to add to defence exposure via Lockheed Martin, reflecting the structural uplift in defence spending now evident across developed markets. |
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