April 2026 was an exceptional month for Umbra's MPS range, with all 28 core models finishing ahead of their respective ARC benchmarks. A powerful rally in artificial intelligence-related equities drove one of the strongest monthly advances across global markets in recent years, with the MSCI All Country World Index gaining +10.2%. Umbra's strategic positioning — including its skew toward international markets over the UK, both in equities and fixed income — proved highly additive, while strong alpha generation from active fund managers across Asia, Europe and the UK further enhanced returns. T
The dominant theme of April was an extraordinary re-rating of artificial intelligence-related equities, producing one of the strongest monthly advances in global markets in recent years. The Philadelphia Semiconductor Index rose close to 40%, while a robust US earnings season — with approximately four in five S&P 500 companies beating expectations and year-on-year earnings growth running at around 15-16% — provided strong fundamental underpinning. US equities reached new all-time highs, with the S&P 500 advancing +10.5% and the Nasdaq +15.3%.
These gains were achieved against a challenging geopolitical backdrop, with the Middle East conflict remaining unresolved and Brent Crude climbing above $110 per barrel as the Strait of Hormuz remained severely disrupted. Sentiment improved materially toward month-end after Iran indicated commercial traffic through the Strait would resume, prompting a partial retracement in energy prices and a recovery in broader risk appetite. The US dollar weakened modestly over the period, with the Dollar Index falling -1.8%.
Regional equity performance was heavily shaped by exposure to the AI and semiconductor theme. Emerging markets were the standout region, with Taiwan and South Korea — the two markets most critical to global semiconductor supply — delivering returns of +26.2% and +38.2% respectively, and the MSCI Emerging Markets Index rising +14.7%. Japan also performed strongly, with the Nikkei up +16.1%. By contrast, UK equities were the weakest major market, returning just +2.2%, with the index's composition in energy, financials and defensives offering little participation in what was a growth and technology-driven rally. Rising UK CPI to 3.3% added a further headwind, reinforcing expectations of additional Bank of England tightening.
Fixed income returns were mixed. Headline indices were modestly positive, with the Bloomberg Global Aggregate returning +1.3%, but this masked material divergence beneath the surface. UK Gilts and Japanese government bonds were among the weaker performers, weighed down by elevated oil prices and renewed inflation concerns. Umbra's material underweight to UK Gilts continued to prove additive; since the onset of the Middle East conflict, UK Gilts have been the worst performing bond market within the G7, reflecting the UK's energy vulnerabilities and deteriorating fiscal position. Credit markets fared better, with high yield returning +2.6% and emerging market debt also performing well, supported by dollar weakness and improving risk sentiment.
Within alternatives, gold gave back some of its recent gains in a month characterised by strong equity returns and a partial recovery in risk appetite. The medium-term investment case remains intact, however, with geopolitical uncertainty, fiscal pressures and sustained central bank demand continuing to support the precious metal. More broadly, the growing political appetite for higher defence spending across Western economies adds further pressure to sovereign balance sheets already under strain, a dynamic that warrants ongoing attention across asset allocation.
