Global equity markets delivered a strong rebound over the period driven by the announced ceasefire between the US/Israel and Iran calming energy markets and raising hopes of a reopening of the straights of Hormuz. The MSCI World Index rose 9.45%, while the S&P 500 gained 10.42%. Technology-led performance drove the Nasdaq higher by 15.29%. In the UK, equities also recovered, albeit more modestly at the large-cap end, with the FTSE100 up 1.99%. Encouragingly, broader market participation improved, with the FTSE250 up by 5.95% and the FTSE Small Cap and AIM indices advancing 7.19% and 10.86% respectively. Our portfolio performance rebounded in April, increasing by 6.52% while the portfolio NAV increased by 0.83% for the month, after providing for all fees, expenses and a final dividend of 7.6p. During the month, we trimmed our holding in PayPoint and MONY Group Plc.

The US economy remains resilient, with growth modestly positive and improving into early 2026, supported by government spending and strong business investment, particularly in AI, as compared to Europe where growth remains subdued. GDP rose by just 0.1% in Q1 2026 as energy disruptions weighed on activity. The UK economy remains weak, with GDP also growing by just 0.1% in Q4 2025 and 1.0% year-on-year. Growth was driven by manufacturing, while services stagnated and construction contracted. Business investment declined, and trade detracted from growth as exports fell and imports rose, reflecting weak underlying demand. Inflation has risen to 3.3% and is expected to increase further as higher energy costs feed through, although softer labour market conditions and tighter financial conditions may help contain pressures. The Bank of England held rates at 3.75%, but the split vote and hawkish tone suggest policymakers remain concerned about inflation risks.

Many portfolio companies reported results or trading updates during April. AJ Bell continues to perform strongly, adding 50,000 (+22% y/y), with AUA up 20% and net inflows rising ~40%. Growth remains driven by Direct-to-Consumer acquisition and brand investment. Wise remains a standout, with cross-border volumes up 27% to £49.4bn, active customers rising 21% to 18.9m, and balances up 37% to £29.4bn. Underlying income grew 24% in Q4 and ~18–19% for the year, with margins at the top end of guidance. Cake Box delivered strong growth, with FY26 revenue expected at ~£61.2m (+43% y/y), or ~£46.7m (+12%) excluding Ambala. Growth is driven by store expansion (37 new sites to 310) and increasing online sales.

Dunelm reported modest growth, with Q3 sales up 2.1% and margins improving, though FY26 profit is expected toward the lower end of ~£210–£217m amid weak demand. Digital now accounts for 43% of sales, supported by a new app and store expansion. Impax Asset Management saw AUM fall 8% to £22.3bn due to £2.0bn of net outflows, with FY revenue guidance reduced to £109m–£113m. Cost measures are underway despite intact long-term structural demand. S&U plc delivered strong profit growth (PBT +32% to £31.8m, EPS 195.2p) despite lower revenue, with loan growth driving higher receivables. Gearing has risen to 97%, increasing financial risk.

The largest contributors to performance during the month were PayPoint, MONY Group, AEW UK, and AJ Bell while Impax Asset Management, NWF Group and Dunelm were the largest detractors from performance.