“The most significant negative impacts on relative performance were from stock selection in IT and the overweight in consumer discretionary. IT was negatively affected by its holding of j2 Global (-29 per cent), the second lowest contributor to portfolio return during the [year to date] period.”
Mr Sanders acknowledges the unusually quiet summer in US markets and notes third quarter earnings expectations have declined.
“Slow global economic growth, the strong dollar, low energy prices and consumer weakness continue to weigh on expected results. It remains challenging to identify new investment opportunities with the attractive combination of conviction, discount and yield required. We do not expect this period of low volatility to be sustained in the run-up to the US election, and our outlook for the remainder of the year is tempered.”
