PAM MFSP Weekly Update – 6 March 2026

Performance Overview

As of 6 March 2026, MFSP A and B posted weekly performances of -4.98% and -5.14%, respectively. Month-to-date returns stood at -4.98% and -5.14%, while year-to-date returns 2.14% and 1.64%.

Sector Analysis and Attribution

Fixed Income: The Interest Rates sector was the primary drag on the portfolio. Broad long positions in global sovereign debt and short-term rates suffered significant losses, with the Canadian overnight repo rate, Long gilt, 3-month sonia, and Us 10-yr t-note acting as the largest individual detractors. Long positions in 3-month saron, Euribor, and Euro-schatz also weighed heavily on returns. Conversely, short positions in European debt provided some cushion, with the Eurobund and Eurobuxl contributing positively.

Metals: The Metals sector showed divergent results. A long position in Aluminium performed well, but this was largely offset by a long position in Platinum.

Energy: The Energy sector delivered strong positive contributions. Broad long exposure across petroleum-related products was highly rewarding. Low sulphur gasoil and Ny harbor ulsd both delivered positive return, while Brent crude oil and Wti light sweet crude oil also posted robust gains.

Foreign Exchange: Long position in Usd/korean won was the top individual performing market for the period.

Agriculturals: The sector showed strength, driven primarily by long positions in the soy complex. Soybean oil was a top performer, while a long position in Soybeans also performed well.

Equities: Longs in U.S. and Taiwan posed significant losses of the week. Conflict between Iran and the U.S. imposed short term influence to global markets.


Conclusion and outlooks: The ongoing developments in the Middle East conflict are not only affecting the supply-demand balance in energy markets, but the resulting imported inflationary pressures may also disrupt the future rate-cut paths of central banks globally. This is potentially one of the underlying reasons for the headwinds experienced by global fixed-income markets and the significant volatility in government bond yields this week. In the face of a rapidly changing political and economic landscape, the team will continue to leverage a systematic trend-following strategy to closely monitor geopolitical developments and their ripple effects across various asset classes, maintaining a high degree of flexibility to robustly navigate future market volatility.