A few months ago, we wrote an article discussing the state of the semiconductor cycle. In that piece, we argued that the cycle had been driven almost entirely by AI, while outside of AI the broader cyclical recovery remained anaemic. Looking across the different parts of the industry, we believed the recovery would continue, supported by ongoing AI build-out as well as improving conditions in more mainstream segments such as smartphones, personal computers, industrial equipment and automotive applications. We also argued that the semiconductor equipment space was set to participate in that cyclical recovery.

A new supply shock has arrived. Here’s what it means for markets.

The recent market environment has been shaped by geopolitical tensions, sector rotations and shifting growth expectations. As a result, global equity strategies with a growth bias have experienced a more challenging period in terms of relative performance. However, the current environment may create a combination of structural growth and more attractive valuations. We take a short look at how our DPAM B Equities NEWGEMS Sustainable actively managed fund has fared and discuss our perspective on its outlook.