July was an excellent month for Umbra MPS, with all portfolios finishing comfortably ahead of ARC benchmarks. Performance was broad-based, supported by equities, fixed income, and alternatives, and aided by sterling’s –3.8% fall against the dollar. Global equities advanced, led by US large-cap tech, UK banks and miners, and emerging market semiconductor names, while bonds faced renewed fiscal pressures. Alternatives also gained, helped by infrastructure exposure to AI-driven demand. Umbra portfolios remain diversified and positioned for resilience amid ongoing political and economic uncertaint
July delivered strong returns across the Umbra MPS range, with all models outperforming their ARC benchmarks. Performance was supported by equities, credit, and alternatives, with the depreciation of sterling versus the dollar enhancing returns from international bonds.
Global equities gained +1.4% (MSCI ACWI), bringing year-to-date gains to +11.5%. US markets reached new highs, with the S&P 500 +2.2% and Nasdaq 100 +3.7%, led by resilient earnings from large-cap technology stocks. Valuations remain elevated, however, with the S&P 500 trading above long-term averages. European equities were flat as strength in healthcare and financials was offset by weaker technology, notably ASML. UK equities advanced, with banks and miners driving the FTSE 100 above 9,000 for the first time. Emerging markets outperformed (+2.0%), led by Taiwan and South Korea on AI-related investment, while China rose +4.4% on easing US restrictions and 5.1% GDP growth.
Bond markets faced renewed yield pressures, with the Citigroup World Government Bond Index down –1.8% in July. US Treasuries sold off following the passage of the “Big Beautiful Bill,” viewed as fiscally expansionary. In Japan, concerns over fiscal sustainability weighed on bonds ahead of elections. UK gilts were volatile amid policy reversals and political uncertainty. Credit markets were steadier, with investment grade and high yield posting modest gains.
Alternatives added value across the board. Infrastructure performed particularly strongly (+3.9%), supported by AI-driven investment in data centres and power supply chains.
Umbra MPS portfolios captured gains across asset classes, with equity-biased models delivering +4–5% in July and more defensive models up +2–3%. All models significantly outpaced ARC benchmarks. Returns were driven by international equity exposure, positive credit performance, and alternatives, while currency weakness amplified global bond returns. Looking forward, Umbra expects volatility to persist given political and fiscal risks, but diversified positioning and long-term focus continue to underpin resilience.
