The Trust’s NAV decreased by 2.4%. It was a challenging quarter for the strategy with markets focused on artificial intelligence – both the hyperscaler platforms and increasingly the wider providers of infrastructure and hardware required to support them.
The gravitational pull of this theme sucked liquidity from other parts of the market. At a veneer level markets appeared to broaden, with Emerging Markets and Smaller Companies indices performing strongly, for example.
But in reality these were derivatives of the AI theme, with markets like South Korea and Taiwan dominated by companies that produce the semiconductors required to power datacentres.
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