Dear Investor,
The Infusive Consumer Alpha Global Leaders Fund (Class A USD) returned -1.7% in February, bringing year-to-date performance to +0.1%. All returns referenced are net of fees.
Performance during the month was driven primarily by weakness across several large technology and China-exposed holdings as markets reassessed the scale of capital investment required to support the next phase of the AI cycle. This was partially offset by stronger performance from defensive and cash-generative businesses within the portfolio, particularly global consumer leaders benefiting from resilient demand and pricing power. The resulting performance broadly reflected the rotation dynamics seen across global equity markets during February.
Morningstar Risk Metrics on a 3-Year Basis, as of 28 February 2026:
Category: Sector Equity Consumer Goods & Services as of 28 Feb 2026 | Index: Morningstar Gbl Cons Cyc TME GR USD as of 28 Feb 2026. Source: Morningstar
Risk & Volatility Measures
| Capture Ratios | Fund | Category | Index |
|---|---|---|---|
| Upside | 76 | 90 | 94 |
| Downside | 80 | 113 | 140 |
| Drawdown | Fund % | Category % | Index % |
| Maximum | -8.80 | -14.05 | -12.34 |
| Risk & Return Metrics | Fund | Category | Index |
|---|---|---|---|
| Alpha | -1.79 | -3.31 | -7.23 |
| Beta | 0.82 | 1.03 | 1.20 |
| R2 | 79.03 | 58.37 | 71.36 |
| Sharpe Ratio | 0.51 | 0.37 | 0.69 |
| Standard Deviation | 10.13 | 15.28 | 15.05 |
| Exposure by Region (Headquarters) | |
|---|---|
| Headquarters | Fund |
| North America | 69% |
| Europe | 14% |
| Asia | 7% |
| Middle East / Africa | 0% |
| South America | 1% |
| Central America | 0% |
Allocations represent invested capital as a percentage of total AUM.
Market Backdrop
AI Disruption Meets Tariff Turbulence
February was best characterised as a rotation month rather than a deterioration in underlying economic conditions.
Markets began pricing the next phase of the AI cycle with greater nuance, shifting focus from infrastructure providers toward where the economic value of AI ultimately accrues.
At the same time, policy uncertainty returned to the forefront, particularly around tariffs and global trade. This contributed to increased volatility and sector rotation.
In the United States, headline index performance masked substantial internal dispersion. Technology leadership softened as investors reduced exposure to crowded positions and rotated toward companies with more immediate cash-flow visibility.
Europe extended a strong rally, supported by buybacks, improving inflation trends and diversification flows away from US mega-cap concentration.
North Asia was the strongest region, with Japan and Korea benefiting from enthusiasm around AI supply-chain exposure across semiconductors and advanced manufacturing.
Cross-Asset Signals
Cross-asset markets reinforced the rotation seen in equities.
US Treasury yields declined as investors added duration both as a hedge and as an asset class in a higher-dispersion environment. Credit markets remained broadly stable, with investment-grade flows strong while leveraged credit experienced modest outflows — suggesting selective de-risking rather than systemic stress.
Commodity markets reflected geopolitical developments more directly. Oil prices were supported by Iran-related risk premia, while precious metals experienced heightened volatility as investors sought hedges against geopolitical and policy risk.
The AI Investment Cycle Is Evolving
Markets increasingly distinguish between capital-intensive AI infrastructure investment and businesses capable of translating AI adoption into productivity gains.
Companies with strong platforms, distribution networks and large consumer ecosystems may be well positioned to capture these efficiencies through improvements in logistics, marketing, inventory management and customer personalisation. These developments can enhance margins and operating leverage without the same capital intensity associated with infrastructure build-outs.
As a result, investors are increasingly differentiating between innovation cycles requiring sustained capital investment and businesses capable of generating durable earnings growth.
Portfolio Performance Drivers
Several defensive and cash-generative companies performed strongly as investors rotated toward resilient earnings profiles.
Walmart rose following strong earnings and continued digital momentum, reinforcing confidence in its retail platform and growing e-commerce capabilities.
Procter & Gamble outperformed as investors rotated toward consumer staples companies with stable demand and pricing power.
Netflix rallied after withdrawing from the bidding process for Warner Bros. Discovery assets, with investors welcoming the decision to prioritise disciplined capital allocation.
By contrast, several technology and China-exposed companies underperformed as markets reassessed capital intensity and macro risk.
Amazon declined amid concerns that heavy investment in AI and data-centre infrastructure could pressure near-term profitability.
Meta Platforms weakened during the broader technology sector re-rating tied to AI investment concerns.
Alibaba fell alongside Chinese technology stocks as investors remained cautious regarding China’s economic outlook and regulatory environment.
Top & Bottom Contributors (February)
| Top Contributors | Bottom Contributors |
|---|---|
| Walmart Inc. | Amazon.com, Inc. |
| Procter & Gamble Company | Meta Platforms Inc Class A |
| Netflix, Inc. | Alibaba Group Holding Limited Sponsored ADR |
| Costco Wholesale Corporation | Alphabet Inc. Class A |
| Samsung Electronics Co., Ltd. Sponsored GDR | Booking Holdings Inc. |
Outlook
We expect market dispersion to remain elevated as investors continue reassessing technology valuations, policy risk and capital intensity across sectors.
Companies capable of generating durable earnings growth, strong cash flows and resilient demand are likely to remain important sources of stability within global equity markets.
Our focus remains on identifying businesses that can translate structural innovation and global demand into sustainable earnings growth over long periods, while maintaining discipline around valuation and risk.
A notable feature of the current environment is the widening gap between businesses requiring significant capital investment and those capable of generating durable earnings with relatively modest incremental capital. Many global consumer franchises fall into the latter category, combining scale, brand strength and recurring demand with the ability to benefit from technological progress. Over long periods, these characteristics have historically supported consistent compounding of shareholder value across market cycles.