MGTS Qualis Funds – Performance Update
The MGTS Qualis Funds entered 2026 with strong momentum following an impressive 2025. A defining theme across both portfolios has been disciplined diversification, with performance driven by a broad range of uncorrelated positions rather than dependence on any single macroeconomic call.
In MGTS Qualis Defensive, that approach delivered an 8.28% return in 2025, beating its benchmark by 0.26%, while also achieving the lowest drawdown in its sector. Returns were driven by a combination of flexible credit exposure, carefully selected alternatives and a cautious stance on government bonds, where fiscal uncertainty kept the portfolio underweight duration-sensitive sovereign risk.
That same resilience has carried into 2026. By the end of February 2026, Qualis Defensive was up 2.48%, marginally behind its equity-heavier sector benchmark. Alternatives have been especially important, with YFS Argonaut Absolute Return and YFS Kernow Equity Navigator both making strong contributions, while Man Global Credit Value has added to returns from the bond sleeve. The fund remains positioned for resilience as volatility persists.
MGTS Qualis Growth has followed a similarly deliberate path, but through regional equity positioning. In 2025 the fund returned 14.74%, outperforming the IA Global sector by 3.92%. The main drivers were an underweight to expensive, concentrated US equities, a reduced exposure to the US dollar for sterling investors, and overweights to regions with stronger valuation support, including Emerging Markets, Europe and Japan.
That positioning has remained beneficial in early 2026, as ex-US markets have led global returns. By the end of February, Qualis Growth was up 6.72%, outperforming its benchmark by 2.47% and ranking in the first quartile both year to date and over the prior 12 months. Across both strategies, active allocations, valuation discipline and genuine diversification continue to drive outcomes.
Disclaimer
This article does not constitute investment advice or an offer to sell or a solicitation of an offer to buy the products described within. You should consult your financial adviser before making any decisions.
Please note that any performance figures are provided for information purposes only and are not a guide to future returns. The performance of your own investments may deviate due to a number of factors, including product charges, the timing of contributions & withdrawals and portfolio rebalancing.
Important information
As always with investments, your capital is at risk. The value of investments is not guaranteed and the income from them can fall as well as rise. Investors may not get back the amount originally invested. Past performance is not a reliable indicator of current or future results and should not be the sole consideration when selecting a product. The basis of taxation may also change from time to time. We have not considered the suitability of these investments against your individual objectives and risk tolerance. This article is intended for information purposes only.
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