Objective and Strategy: The portfolio aims to achieve returns in excess of UK CPI + 3% p.a. over rolling three year periods. Over any three year rolling period the portfolio should always deliver a positive return. Portfolio returns will be generated through interest income, dividend income and capital growth. The portfolio benchmark is the EAA Fund GBP Cautious Allocation category. The portfolio is a multi-manager portfolio ideally comprising at least two underlying funds and not more than six. Fund selection will be bias towards high Sortino ratios, low downside standard deviation and to managers and funds that have successfully navigated sustained negative market conditions. Where possible underlying funds will be given as many of the asset allocation decisions as possible. Underlying investments will be held in multiple first world currencies, however, all performance and risk statistics will be in GBP.
Investment Objective and Strategy
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Cumulative Growth Since Inception (GBP)
Trailing Returns (GBP)
Risk Measures
| Risk Metrics | IZA Global Stable Model Portfolio |
Benchmark |
|---|---|---|
| Standard Deviation* | 6.65 | 6.85 |
| Sharpe Ratio* | 1.04 | 0.53 |
| Sortino Ratio* | 0.67 | 0.30 |
*Annualised
Periodic Returns (GBP)
| Period | Iza Global Stable Portfolio GBP | EAA Fund GBP Allocation 40-60% Equity |
|---|---|---|
| 1 Month | -0.32 | -1.20 |
| 3 Months | 1.41 | -0.02 |
| 6 Months | 2.89 | 2.58 |
| YTD | 7.76 | 6.65 |
| 1 Year | 7.76 | 6.65 |
| 3 Years | -0.13 | 0.82 |
| 5 Years | 3.24 | 2.68 |
Asset Allocation
Monthly Portfolio Net Returns (GBP)
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | B-Mark | — | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 0.24 | 1.00 | 2.44 | -1.26 | 0.89 | 1.25 | 0.59 | 0.44 | 0.41 | 0.45 | 1.29 | -0.32 | 7.76 | 6.65 | — |
| 2023 | 2.77 | -0.76 | -0.53 | 0.51 | -0.46 | 0.01 | 1.80 | -0.74 | -0.72 | -1.17 | 3.64 | 3.37 | 7.76 | — | — |
| 2022 | -5.71 | -2.58 | 1.21 | -2.98 | -2.63 | -4.04 | 4.97 | -1.97 | -4.41 | 0.73 | 2.51 | -0.65 | -14.96 | -10.62 | 13.71 |
| 2021 | -0.25 | -1.64 | 0.58 | 2.53 | -0.45 | 1.90 | 0.55 | 1.00 | -0.50 | 0.70 | 0.20 | -0.38 | 4.25 | 2.34 | 8.30 |
| 2020 | 0.58 | -3.22 | -5.41 | 4.99 | 2.65 | 1.52 | 0.84 | 1.96 | 0.49 | -0.74 | 3.30 | 2.24 | 9.11 | 4.09 | 3.59 |
| 2019 | 2.5 | 1.7 | 2.4 | 1.3 | -0.6 | 2.2 | 2.27 | -0.67 | -0.66 | -0.73 | 1.15 | 0.25 | 11.59 | 8.34 | 4.30 |
| 2018 | 0.1 | -0.5 | -1.6 | 1.4 | 1.7 | 0.6 | 1.3 | 0.8 | -0.6 | -2.7 | 0.4 | -3.1 | -2.4 | -2.75 | 5.10 |
Commentary
2024 was a year defined by exceptional returns in U.S. large-cap technology stocks and a resurgent U.S. dollar, particularly in Q4 following Donald Trump’s re-election. The U.S. economy maintained strong momentum, with GDP growth averaging 2.6% annualized, driven by fiscal stimulus expectations and robust consumer spending. However, while the headline performance of developed markets was impressive, it masked significant underperformance in broader segments of the market. Small- and mid-cap stocks, as well as value-oriented names, faced persistent challenges for much of the year, with only brief periods of reprieve in Q3 and early Q4.
The Iza portfolios navigated this narrow market environment with a balanced and proactive approach. The decision to gradually increase USD exposure starting in September was well-timed, helping to cushion the impact of the dollar’s surge in Q4 and aligning both funds with their global peers. Despite the currency-related headwinds during the final quarter, the funds delivered robust performances, benefiting from strong contributions from core holdings in growth, value, and quality-focused strategies.
Returns are based on the strategic underlying weightings of the funds and will not exactly reflect individual client returns. All returns are net of fund management fees, but exclude advice and administration fees. Prior to portfolio launch date, the performance is pro-forma using the actual underlying fund performances and is net of all fees and expenses.
*The performance information is based on the back-tested performance of hypothetical investments over the time periods indicated. “Back-testing” is a process of objec-tively simulating historical investment returns by applying a set of rules for buying and selling securities, and other assets, backward in time, testing those rules, and hypo-thetically investing in the securities and other assets that are chosen. Back-testing is designed to allow investors to understand and evaluate certain strategies by seeing how they would have performed hypothetically during certain time periods. While back-testing results reflect rigorous application of the investment strategy selected, back-tested results have certain limitations and should not be considered indica-tive of future results. The results achieved in our simulations do not guarantee future investment results.
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