Markets were surprised in June when UK voters opted to leave the European Union. While risk assets recaptured much of their post-Brexit slide, euro and sterling risk assets underperformed the recovery experienced by much of the developed world, and emerging markets.
The Fund underperformed its primary benchmark and performed in line with its secondary benchmark.
We continue to contend with frail global growth prospects and weak credit fundamentals. Our defensive positioning reflects our view that markets can go only so far on accommodative monetary policy and little in the way of accelerated fundamentals.