IFSL Evenlode Global Equity delivered a negative return in January, underperforming its comparator benchmark, the MSCI World Index. The main detractors from performance were data and information services holdings, including RELX, Wolters Kluwer, Experian and LSEG. In recent months, investor focus has centred on whether AI (generative or agentic) could disrupt data-rich industries that underpin large parts of the global economy. From software and information services to credit bureaux and exchanges, few data-intensive business models have avoided the broad market de-rating. The sell-off has been swift and indiscriminate, reflecting concerns that AI could erode long-standing competitive advantages. Over the past year, we have closely monitored company health metrics across these holdings. We remain confident that the fundamental health of the businesses is intact and that recent share price weakness has been driven primarily by multiple compression rather than any deterioration in underlying operating performance. The competitive moats of these companies remain well supported by several interlocking defences, including proprietary data ownership, global distribution networks, customer integration and regulatory frameworks. We believe the recent market dislocation has created attractive opportunities within this group of high-quality businesses.
It is still relatively early in the year-end earnings season, but the fundamentals reported by portfolio companies so far have been encouraging. Following several years of muted share price performance driven largely by persistent narrative concerns, Johnson & Johnson delivered robust results with strong growth across both its pharmaceutical and medical technology segments. This is a pattern we’ve seen before across many high-quality businesses, where periods of sentiment driven weakness are followed by a re-anchoring to fundamentals. Over the long-term, disciplined management execution, a strong balance sheet and consistent cash flow generation ultimately prevail in reinforcing confidence in the durability of these businesses.
IFSL Evenlode Global Equity delivered a negative return in January, underperforming its comparator benchmark, the MSCI World Index. The main detractors from performance were data and information services holdings, including RELX, Wolters Kluwer, Experian and LSEG. In recent months, investor focus has centred on whether AI (generative or agentic) could disrupt data-rich industries that underpin large parts of the global economy. From software and information services to credit bureaux and exchanges, few data-intensive business models have avoided the broad market de-rating. The sell-off has been swift and indiscriminate, reflecting concerns that AI could erode long-standing competitive advantages. Over the past year, we have closely monitored company health metrics across these holdings. We remain confident that the fundamental health of the businesses is intact and that recent share price weakness has been driven primarily by multiple compression rather than any deterioration in underlying operating performance. The competitive moats of these companies remain well supported by several interlocking defences, including proprietary data ownership, global distribution networks, customer integration and regulatory frameworks. We believe the recent market dislocation has created attractive opportunities within this group of high-quality businesses.
It is still relatively early in the year-end earnings season, but the fundamentals reported by portfolio companies so far have been encouraging. Following several years of muted share price performance driven largely by persistent narrative concerns, Johnson & Johnson delivered robust results with strong growth across both its pharmaceutical and medical technology segments. This is a pattern we’ve seen before across many high-quality businesses, where periods of sentiment driven weakness are followed by a re-anchoring to fundamentals. Over the long-term, disciplined management execution, a strong balance sheet and consistent cash flow generation ultimately prevail in reinforcing confidence in the durability of these businesses.