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.

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.

What happens when conflicts far from Europe result in strikes on the continent and threaten European citizens, defence, companies and supply chains? With Iran’s drone attack on a British base in Cyprus, this recent escalation of the conflict demonstrates that Europe can be a target and that the continent’s economic footprint abroad carries direct security consequences. As geopolitical tensions increase and spread, defence continues to move to the centre of Europe’s strategic agenda.