October update

10 nov. 2022

Dear investors

Equity markets ended the third quarter on a positive note as most broad indices recovered significantly in October. Developed markets recorded a return of about 6%. Their emerging market counterparts on the other hand continued their losing streak, with Asian equities falling by about 7% during the month. The Chinese rally we saw in early November obviously offset some of these losses, but Emerging Asia still has a long way to go before they perform on par with developed markets in 2022.

Our funds tend to invest a bit more in Asian equities than the benchmark, which was a headwind in October (-0.22% α) and indeed during much of the year. Nevertheless, our stock picking was very successful last month. We continued to add value by picking good performing companies within the consumer cyclical (+0.67% α), healthcare (+0.69% α) and technology (+0.52% α) sector.

As a result, Vector Navigator registered a nice return of 6.63% in October, beating our peers by 1.96% and our benchmark index by about 1.60%. This brings our global equity fund’s year-to-date outperformance to 7.8%. Our flexible allocation fund continues to reap the benefits of a low duration strategy and a decent alpha resulting from its stock picking component. Consequently, Vector Flexible was able to record a performance of 3.86% during the month, which compares very favourably with the category which only managed to gain 1.68% in October. This brings the year-to-date performance of the fund back into the positive territory (+0.12%), which is 12.32% higher than the Flexible Allocation – Global category.

Best regards,

Werner, Thierry & Nils