Market Review
European stock markets led the way lower during April amid growing concern about Spain's ability to meet debt reduction targets. Worries about the financial stability of the country's banking sector also hit sentiment. Other markets performed slightly better, helped by corporate results. Corporate bonds also retreated.
Fund Performance
The Fund underperformed the sector average in April with the main impacts coming from the holdings in UK equities, overseas equities and real estate. The key positive contribution came from overseas high yield bonds.
Fund Positioning
Within the portfolio we have maintained a pro-risk stance with a modest overweight position in equities. Meanwhile, the Fund retains a comparative lack of exposure to government bonds, which still offer very little value at current levels.