March was a volatile month for the market. With renewed concerns over tariffs, inflation and US government spending cuts, our comparator benchmark, the MSCI World Index, declined 4.5% in dollar terms. Against this challenging backdrop, we’re pleased that the fund has been resilient year-to-date and outperformed its benchmark meaningfully in March.

Throughout the month we’ve seen significant headlines around tariffs, as the Trump administration announced or hinted at trade measures targeting various countries. Most tariffs were paused until 2 April, dubbed “Liberation Day”. At the time of writing, no announcement has been made. It remains to be seen for how long and to what extent these tariffs will take place. We do not aim to position the portfolio for one outcome or the other and continue to invest in companies with strong pricing power that we believe can compound capital over time.

This month, we replaced our holding in Airbnb with a new position in Booking.com as part of our overall travel exposure. Following strong year-end results and improving business fundamentals (including increased direct bookings, success in alternative accommodation and a reduced need for marketing spend), Booking is a structurally stronger business and represents a better return opportunity. We also initiated a small position in The New York Times, which benefits from increasing demand for high-quality digital news and is well positioned to capitalise on the ongoing shift from print to digital - a transition that brings structurally higher margins and a more scalable business model.

Looking ahead, we would caution that, whatever tariff announcements are in store, the macro picture remains uncertain with likely further retaliation and ongoing negotiations. As a result, consumer, business and investor confidence may be slow to rebuild. Our focus remains on applying our risk management framework to protect and grow client capital over the long term.