Overview: The Balanced Beam portfolio had a net return of +0.43% for the month of February 2023.

This was on the back of a challenging environment for growth assets reflecting the more defensive nature of the portfolio. The portfolio has performed +3.12% and +4.13% over 3 and 6 months respectively net of fees ending February 2023.

The macro-outlook is playing in line with the Investment Committee’s expectations. Especially within Asia, growth has picked up significantly since China’s easing of COVID restrictions. This will lead to strong consumption outcomes for the region over the medium to long term.

Furthermore, the consumption capability of China vs US is in an interesting position. As seen in the chart below, the US who are currently in net debt, means that for them to continue to grow they will have to borrow more, which would be difficult in an environment where inflation and interest rates are rising. Conversely, China is in a position to be able to deploy their savings more easily in investments and consumption.

The portfolio is well positioned for the volatility that lies ahead. The Investment committee has decided not to make any changes to the portfolio but there are two strategies – one in global growth equities as well as global infrastructure which are being monitored due to recent underperformance.