November delivered broadly positive relative results for Umbra’s MPS range, with portfolios proving resilient despite renewed market volatility. A more conservative stance toward US equities, especially Technology, helped protect returns during sharp growth-factor rotations. Value and Quality exposures added incremental outperformance, led by Japanese Value holdings and a Quality tilt in US equities. The overweight to Global Health Care was also additive, with the sector rebounding strongly as US drug-pricing concerns eased.
Global markets lost momentum as mixed data, policy uncertainty, and questions around the sustainability of AI-driven earnings tempered risk appetite. The end of the longest-ever US government shutdown removed some uncertainty, but also left investors with patchy economic data. Weak labour indicators, declining consumer confidence, and fading momentum increased expectations for a December US rate cut, prompting Treasury yields to move lower. AI-linked names remained central to volatility: despite another strong quarter from Nvidia and ongoing upgrades across the Magnificent Seven, markets struggled to reward elevated expectations, driving weakness in growth and technology stocks and encouraging rotation into defensives such as healthcare and consumer staples.
Regional equity performance diverged. Europe ex-UK posted modest gains (+1.1%), benefiting from robust 2026 earnings expectations and a more balanced sector profile, while UK equities fluctuated sharply ahead of the Chancellor’s Budget. Relief around banking-sector taxation supported financials, though leisure and gambling names lagged after new duties were announced. The FTSE 100 nonetheless reached a fresh high, helped by rising precious-metal prices and pockets of industrial strength. Japan continued to advance (+1.4%) on yen weakness and improving sentiment across the semiconductor supply chain, whereas Asia ex-Japan lagged as investors locked in profits following a strong year and as Korean and Taiwanese tech indices softened before recovering late in the month.
Fixed income delivered mild gains, supported by softer US data and rising expectations for Fed easing. Global bonds rose +0.3%, while US Treasury yields declined on signs of weakening labour-market momentum. JGBs underperformed (–1.3%) amid concerns about fiscal sustainability, whereas gilts traded broadly sideways with moderating inflation offset by pre-Budget uncertainty. Eurozone sovereigns weakened due to upwardly revised borrowing projections. Emerging Market debt edged higher, though Asian High Yield came under pressure as regional equity volatility spilled into credit markets.
Alternative assets strengthened meaningfully in November. Gold rose +5.5%, extending its exceptional year-to-date rally to +60%, supported by elevated volatility and expectations of looser global monetary policy. Property (+1.3%) and Infrastructure (+2.3%) also benefitted from improving rate-sensitive sentiment.
Overall, Umbra’s MPS models navigated November’s uneven market environment effectively. Defensive factor tilts, diversified exposures, and disciplined risk positioning helped preserve relative performance at a time when style rotations and policy uncertainty proved challenging for many peers.
