Global stock markets started December positively, but then fell back in the second half of the month. Investors worried that the speed of interest rate reductions in 2025 may be slower than previously expected, with the Federal Reserve’s December meeting suggesting some caution on rate cuts - not least due to US trade tariff and fiscal policy uncertainty. In the UK, sentiment remained muted, not helped by rising government bond yields.
Evenlode Income fell -1.5% compared to a fall of -1.4% for the IA UK All Companies Sector and -1.2% for the FTSE All-Share. The most negative contributors during the month were Experian, Bunzl and Integrafin. Bunzl’s pre-close statement highlighted a strong profit increase but that deflationary trends in some products lines would be more persistent. IntegraFin released strong full year results, but highlighted cost growth would be higher than normal in 2025 due to technology investments. Experian decreased on no specific news. The most positive contributors were Diageo, Victrex and LVMH. Diageo’s competitor, Brown Forman, released interim results highlighting weak but improving sales trends in the US. Victrex reported lower profits in 2024 but encouragingly returned to revenue growth in the second half. LVMH’s share price was boosted by more positive sentiment towards the Chinese economy, a significant market for the group.
For the year as a whole, Evenlode Income’s net asset value rose +4.1%* compared to a rise of +7.9% for the IA UK All Companies sector +9.5% for the FTSE All-Share. Since launch in October 2009, the fund has now risen +329% compared to +169% for the IA UK All Companies and +182% for the FTSE All-Share. Though it has been a disappointing year for relative performance, the portfolio is composed of a diverse and resilient list of market leading companies, with highly cash generative business models and good aggregate growth potential. Balance sheets are strong, and valuations are unusually attractive. The fund’s free cash flow yield now stands at 5.8% for this year and 6.3% for next. This is the highest start-of-year free cash flow yield since the very early days of the fund (i.e. the 2009-2011 period). We will review 2024 and discuss the 2025 outlook in more detail in the Evenlode Income January Investment View.
Global stock markets started December positively, but then fell back in the second half of the month. Investors worried that the speed of interest rate reductions in 2025 may be slower than previously expected, with the Federal Reserve’s December meeting suggesting some caution on rate cuts - not least due to US trade tariff and fiscal policy uncertainty. In the UK, sentiment remained muted, not helped by rising government bond yields.
Evenlode Income fell -1.5% compared to a fall of -1.4% for the IA UK All Companies Sector and -1.2% for the FTSE All-Share. The most negative contributors during the month were Experian, Bunzl and Integrafin. Bunzl’s pre-close statement highlighted a strong profit increase but that deflationary trends in some products lines would be more persistent. IntegraFin released strong full year results, but highlighted cost growth would be higher than normal in 2025 due to technology investments. Experian decreased on no specific news. The most positive contributors were Diageo, Victrex and LVMH. Diageo’s competitor, Brown Forman, released interim results highlighting weak but improving sales trends in the US. Victrex reported lower profits in 2024 but encouragingly returned to revenue growth in the second half. LVMH’s share price was boosted by more positive sentiment towards the Chinese economy, a significant market for the group.
For the year as a whole, Evenlode Income’s net asset value rose +4.1%* compared to a rise of +7.9% for the IA UK All Companies sector +9.5% for the FTSE All-Share. Since launch in October 2009, the fund has now risen +329% compared to +169% for the IA UK All Companies and +182% for the FTSE All-Share. Though it has been a disappointing year for relative performance, the portfolio is composed of a diverse and resilient list of market leading companies, with highly cash generative business models and good aggregate growth potential. Balance sheets are strong, and valuations are unusually attractive. The fund’s free cash flow yield now stands at 5.8% for this year and 6.3% for next. This is the highest start-of-year free cash flow yield since the very early days of the fund (i.e. the 2009-2011 period). We will review 2024 and discuss the 2025 outlook in more detail in the Evenlode Income January Investment View.
*+3.5% on a swing-price basis.