Unlocking Growth: The Multi-Asset Income Fund's Strategic Advantage

Exceptional Performance in Q2 2026: Outperforming the Benchmark

For the second quarter of 2026, the Multi-Asset Income Fund delivered robust returns, with Institutional shares yielding 4.24% and Investor A shares (excluding sales charges) achieving 4.28%. These figures demonstrate a significant outperformance compared to its benchmark, a composite index comprising 33.34% MSCI World High Dividend Yield Index (Net) and 33.33% Bloomberg U.S. Corporate High Yield.

Equity Selection Drives Superior Returns

The fund's notable success during this period was largely attributed to its astute equity selection. Strategic investments in U.S. stocks and emerging markets proved particularly beneficial, as these segments experienced strong growth and contributed substantially to the overall portfolio's gains. This selective approach underscores the fund's ability to identify and capitalize on promising market opportunities.

Resilient U.S. Economy: A Foundation for Continued Growth

The U.S. economy displayed remarkable resilience, providing a strong backdrop for the fund's equity holdings. Key economic indicators, such as initial jobless claims remaining below their 12-month average, consistent payroll growth, and expansionary leading indicators in both the services and manufacturing sectors, painted a positive picture. This robust domestic environment reinforced the fund's constructive yet selective investment stance.

Strategic Overweighting in U.S. Growth Equities and Emerging Markets

A crucial element of the fund's strategy involved an overweight position in U.S. growth equities. This allocation was particularly advantageous given the burgeoning investments in artificial intelligence (AI) and the broadening market participation. Concurrently, strategic exposure to emerging markets further enhanced returns, as these regions benefited from global economic dynamics and specific growth catalysts.

Dynamic Asset Allocation: Adapting to Market Shifts

Looking ahead, the fund maintains a dynamic approach to asset allocation. It plans to increase its exposure to U.S. and Japanese equities, anticipating continued strong earnings performance and favorable fiscal policies in these regions. Conversely, it will reduce its broad international high-dividend exposure, reflecting a tactical adjustment to optimize the portfolio's risk-return profile amidst evolving market conditions.

Navigating Inflation and Federal Reserve Policy

The fund's outlook on inflation and monetary policy remains insightful. It anticipates a decline in core inflation as the effects of tariffs diminish and housing market pressures ease. This scenario suggests that the Federal Reserve might maintain its current policy stance for an extended period, potentially longer than market expectations. This perspective informs the fund's strategic decisions, aiming to position the portfolio advantageously in a fluid economic landscape.