During January, our net asset value return was 0.9% and shareholder returns were -0.3% in comparison to the FTSE All World return of 1.0%.

Global equity markets gained in January, with investors shifting away from growth and mega-cap technology stocks and toward value and emerging markets. Headline gains masked considerable volatility beneath the surface. Geopolitical events in Venezuela, Iran, and Greenland drove sharp moves in commodities and currencies, with Brent crude gaining 16.2% and gold rising by 13.3% in its strongest monthly performance since September 1999.

Regional equity markets reflected a continuing shift in leadership. Emerging markets led performance, with the MSCI Emerging Markets Index gaining 6.7% in sterling terms. UK equities (3.0%) and Japanese equities (4.2%) also advanced, despite the Japanese 10-year government bond yield reaching its highest level since 1999. European markets gained 2.4% in sterling terms, supported by lower-than-expected inflation of 1.9% in December and higher-than-expected fourth-quarter GDP growth of 0.3%. The US proved the exception, with the S&P 500 declining -0.6% in sterling terms as technology sector weakness dragged on returns. The Russell 1000 Value Index outperformed its growth equivalent by 6.1% over the month, underscoring the shift away from mega-cap technology names.

The macroeconomic environment saw differences in central bank policy and mixed signals in the US economy. The Federal Reserve held its benchmark rate in the 3.50-3.75% range, though significant internal debate emerged about the appropriate policy path. US economic data presented conflicting signals, with lower-than-expected monthly core consumer price data bolstering the case for rate cuts and reinforcing expectations for a Fed cut by June, whilst monthly producer price inflation increased by more than forecast. The Bank of Japan held its policy rate at 0.75% but raised its inflation outlook, leaving room for its next rate increase. Sterling strengthened significantly against the US dollar during January, appreciating approximately 2.0% as the dollar weakened against every G10 currency. The move reflected investor caution toward the world’s reserve currency amid less predictable policymaking from the US administration.

The overweight position in Applied Materials (22.9%), a supplier of equipment, services and software for manufacturing semiconductor chips, was the top contributor to relative returns in the Trust. Applied Materials was boosted by strong industry tailwinds in semiconductor equipment, with capital-spending targets signalling strong demand. The overweight position in Qualcomm (-13.1%) detracted from performance. Shares in Qualcomm declined following concerns about the smartphone industry’s outlook. The handset segment, which constitutes over 60% of sales, faces headwinds as Apple continues to shift towards internal modems.

We ended the month at a discount of 8.0%, widening from 6.7% in December.

As at 31 January 2026