Navigating Volatility: A Comprehensive Look at Q1 2026 Fund Dynamics

Q1 2026 Performance Overview: Decoding the Decline

During the first quarter of 2026, the fund experienced a 20.15% reduction in its value when measured in US dollars. This performance lagged behind the established benchmark by 252 basis points. Key sectors contributing to this underperformance included energy, consumer discretionary, and healthcare, where specific stock selections proved detrimental to overall returns.

Energy Sector Headwinds: The Impact of Geopolitical Tensions

In the energy sector, the fund's investment in Aegis Vopak faced significant challenges. Concerns over potential disruptions to liquefied petroleum gas supplies, arising from tensions between the US and Iran, negatively impacted the stock's performance. This highlights the vulnerability of energy investments to geopolitical events and their ripple effects on global supply chains.

Strategic Portfolio Adjustments: Acquiring Central Depository Services

Amidst the quarter's activities, a notable strategic move was the acquisition of shares in Central Depository Services. This entity is one of India's two leading depositories responsible for holding securities in electronic form. This investment underscores the fund's commitment to capitalizing on essential financial infrastructure within the Indian market.