IQ-EQ Fund Performance Snapshot
Equity marks rebounded sharply during April, rising by 7.64% as measured by the MSCI World Index (net). The move took the year-to-date return back into positive territory, with the index having risen by 5.80% since the start of the year. Investor focus was squarely on events in the Middle East as expectations grew that the ceasefires would hold and a deal between the US and Iran could be worked out – despite skirmishes towards the end of the month. US macroeconomic data released during April was also supportive of equities, particularly trends in the US labour market.
The Information Technology sector was the strongest performer during April, rising by 15.5% and contributing over half of the total return for the month. Within this sector, hardware companies producing technology to enable the buildout of AI-related capacity, such as semiconductors and memory modules, were the standout winners in April. A strong performance from Google parent Alphabet drove the Communication Services sector higher during the month.
The Energy and Health Care sectors were the weakest during April. Both sectors saw profit taking following very strong performances over the previous six months. Despite the ongoing blockage of the Hormuz Strait, momentum in the oil price waned during the month.
At IQ-EQ Fund Management, we focus on profitable businesses which generate persistent returns and have high levels of protection combined with competent management. We define these as quality businesses, and we expect them to perform irrespective of market volatility. In the long run, we believe these characteristics will deliver outperformance for our clients.
April 2026 figures for the IQ-EQ range of Funds:
IQ EQ Global Equity Income Fund: April Ret. 7.77%, YTD 12.94% (Net of fees)
The Fund returned 7.77% compared with the MSCI World, which rose by 7.64%. Stock Selection and Currency effects were positive contributors to relative performance, while Sector Allocation detracted. The Stock Selection outcome was driven by holdings such as Intel and Corning. The positive Currency Effects were due to the fund’s underweight position in US dollars, which weakened during the month. The negative contribution from Sector Allocation came from the overweight position in Health Care and the underweight in Communications Services.
Key contributors during the period include:
+ Intel is a major global semiconductor company whose business centres on designing and manufacturing processors and related computing technologies. Its operations are organised into several product focused divisions, each targeting different computing markets. Intel’s core business is the design, manufacture, and sale of computer components, especially CPUs, which power most PCs and many servers worldwide. The company also produces chipsets, network interface controllers, GPUs, and memory-related technologies, serving both consumer and enterprise markets. The stock has performed very strongly in recent months, as analysts upgrade the company on surging demand for AI-related equipment. The earnings upgrades are underpinned by solid quarterly earnings reports from the company. Intel launched a $6.5bn bond sale in April to buy back a 49% stake in its Irish facility in Leixlip, Ireland from Apollo Global Management to meet rising demand for its product range.
+ Corning Inc. (GLW) is a global technology-based company producing optical fibre, cable, and photonic components for the telecommunications industry, as well as manufacturing glass panels, liquid crystal display glass, and projection video lens assemblies for the information display industry. GLW has several secular opportunities which outweigh the cyclical exposures that many manufacturing companies face. The company has also noted strong demand more generally for US-made components and equipment in light of the new US tariff regime. Meanwhile, the company is executing its strategic plan (“Springboard”), which had aimed to get operating margins to 20%, well ahead of schedule. GLW has been citing strong demand in its Optical division from AI-related business in recent quarters and announced in January that it had signed a deal to supply $6bn worth for optical products to Facebook parent Meta. The shares rose strongly on the news. The company was among the best performers in the portfolio during the quarter.
- Johnson & Johnson (JNJ) is a multinational healthcare corporation founded in 1886 and headquartered in New Brunswick, New Jersey. It employs roughly 140,000 people worldwide and is one of the world’s largest pharmaceuticals and medical‑technology companies. The company develops treatments for complex diseases and advanced medical technologies that improve patient outcomes. Since 2023, J&J has operated as a focused healthcare company, following the separation of its consumer‑health division (now Kenvue). The company now concentrates on prescription medicines and medical devices. JNJ shares drifted lower with the Health Care sector during April despite an earnings report mid-month that let to modest rises in earnings forecasts from analysts. Johnson & Johnson shares came under pressure early in the month after a judge rejected its proposed "prepackaged bankruptcy plan" for a subsidiary to settle thousands of claims alleging its baby powder and other talc products cause ovarian cancer.
- Merck (MRK) is a US healthcare company best known for its cancer drug Keytruda, diabetes drugs Januvia and Janumet, and HPV vaccine Gardasil. In 2024, Keytruda gained FDA approval for an additional 3rd indication combination with chemoradiotherapy for cervical cancer from their phase 3 Keynote trial. MRK’s shares weakened last year on ongoing concerns about the prospects for its Gardasil drug, which prevents cancers by vaccinating against the human papillomavirus. More recently, the company, and its peers in the sector have been impacted by President Trump’s plans to get drug prices in the US down to levels in line with the lowest available cost globally. Merck continues to lead its peers in initiatives to improve access to healthcare particularly in developing countries where it has pricing policies based on affordability for 40 products in over 120 countries. In April the failure of the Phase 3 LITESPARK‑012 trial for advanced renal cell carcinoma was a setback for the company and resulted in share price weakness during the month.
IQ EQ Strategic: Global Quality Equity Fund*: April Ret. 6.66% (Net of fees)
The IQ EQ Strategic: Global Quality Equity Fund returned 6.66% over the month, compared with the MSCI World Index, which returned 7.64%. The Fund's underperformance was driven by Stock Selection, while Sector Allocation provided a positive contribution. Currency Effects had a negligible impact. The positive Sector Allocation outturn was driven primarily by sector overweight positioning in Information Technology as well as from Energy which remained underweight. The negative contribution from Stock Selection was due to the poor performance of stocks such as Wheaton Precious Metals and Shionogi & Co. The minor negative Currency Effect was due primarily to the Fund’s overweight position in USD, which weakened vs EUR during the month.
Key contributors during the period include:
+ Alphabet Inc. (GOOGL) is composed of Google and a collection of subsidiaries through which it provides web-based search, advertisements, mapping, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products. The company performed strongly in 2025 with earnings that showed broad-based strength in revenues across all divisions. Growth in its Search business was particularly strong. Alphabet followed that performance with strong reviews of its latest version of Gemini, the company’s AI model. Investors noted that the company ascribed the acceleration in search to the adoption of AI – a development that investors had seen as a potential threat to GOOGL as competitors, such as Microsoft, closed the gap in search. According to the company, AI is driving more search activity as users input more complicated searches confident in the knowledge that Google’s AI systems can produce accurate results. After a relatively weak start to 2026, Alphabet’s stock surged in April 2026 because its first quarter earnings beat expectations strongly, driven by 63% Google Cloud growth, a doubling of its AI infrastructure backlog, and analyst price‑target upgrades.
+ Monolithic Power Systems (MPWR) provides semiconductor-based power electronic solutions, including power management ICs, isolated gate drivers, power modules, battery and chargers, and motor drivers. The company serves customers worldwide across enterprise data, communications, automotive, and industrial end markets. In 2026, the company entered the year with strong momentum driven by accelerating AI infrastructure demand and expanding data centre buildouts. The stock surged 47.7% in April as analysts highlighted the company's broadening AI exposure beyond GPU customers and raised capacity expansion plans from $4 billion to $6 billion. On April 30, MPWR reported Q1 revenue of $804 million, up 26% YoY, and an Adjusted Earnings Per Share of $5.10, both beating estimates. The company guided Q2 revenue to $890-910 million, approximately 10% above consensus, driven by Enterprise Data growth of 85% YoY and Communications growth of 60% YoY. MPWR is well positioned to capture AI infrastructure demand with expanding system-level power solutions, though the stock trades at a premium valuation of approximately 63x 2027 EPS.
- Wheaton Precious Metals Corp. (WPM) operates as a precious metals streaming company, focusing mainly on gold and silver projects with a worldwide customer base. The company's portfolio consists of over 90% of production from assets in the lowest half of their respective cost curves, with over 30 years of proven and probable reserve mine life. In 2026, the company entered the year having completed the $4.3 billion Antamina stream acquisition from BHP, the largest precious metals stream ever executed. The stock declined 3.5% in April as analysts highlighted increased silver exposure and valuation convergence with peers following the transformative deal. The company is targeting over 30% gold-equivalent ounce volume growth by 2030, driven by diversified growth projects and the Antamina stream. WPM's portfolio of long-life, low-cost assets positions it for substantial earnings growth, though near-term performance remains sensitive to silver price volatility given its approximately 50% silver exposure.
- Shionogi & Co., Ltd. (4507) is a pharmaceutical company that develops prescription and over-the-counter drugs and diagnostics. The company serves customers globally with a focus on infectious diseases and specialty medicines. In 2026, the company entered the year with momentum from recent acquisitions and partnerships. The stock declined 8.6% in April as the company announced strategic initiatives including a merger with wholly owned subsidiary Torii Pharmaceutical effective April 2027 and raised its dividend forecast from JPY 66 to JPY 71. On April 8, Shionogi received a US government contract through BARDA's Project BioShield for up to $482 million to support domestic production of the antibiotic Fetroja. Analysts expect FY2026 guidance to show significant growth driven by consolidation of recent deals. Shionogi is positioned for growth through its infectious disease portfolio and US manufacturing expansion, though near-term operating profit growth may face headwinds from depreciation and integration costs.
IQ EQ Global Focus Fund: April Ret. 5.53% YTD 2.94%% (Net of fees)
The IQ EQ Global Focus Fund returned 5.53% during the month. The equity portfolio returned 8.72%, while the bond portfolio returned -1.99%. Within the equity portfolio, holdings such as Cummins and TSMC were among the strongest contributors to performance during the month, while Tractor Supply and Merck detracted from performance.
Key contributors during the period include:
+ Cummins Inc. (CMI) manufactures and sells a wide range of diesel, natural gas, and hybrid engines, power generators and alternators. Its ability to improve the efficiency of its power solutions enables it to deliver double-digit margins. Innovation is also positioning the company for the transition to electric powertrains. This has resulted in strong ESG credentials, highlighting its role as a leader in low emissions technologies. The Engine division has been relatively weak since US Environmental Protection Agency (EPA) announced earlier this year that it might row back on legislation tightening emissions, which is due to come into effect in 2027. The laws were expected to result in a strong market for trucks in the run-up to the introduction of the legislation. This is now at risk due to the EPA review. However, the company has recently reported strong performance in its data centre back-up power business, which it gets from the deployment of AI-related services. Meanwhile, the company’s Accelera unit, which is focused on zero-emissions vehicles and technologies, is experiencing good revenue growth and a strong backlog in its hydrogen technologies. The shares rebounded during April on a more positive outlook for the US truck markets and continued demand for the company’s datacentre-related auxiliary power products.
+ Taiwan Semiconductor Manufacturing Company (TSM) is a multinational semiconductor production and development company headquartered in Hsinchu, Taiwan. TSM manufactures semiconductors for corporations such as Apple, Nvidia, AMD and Qualcomm. The company has become the dominant global microchip manufacturer due to its adoption of the “pure-play foundry” model, allowing it to focus on making chips that other companies design. TSM has become the primary chip supplier to the “Magnificent 7”. Despite ongoing concerns about tariffs and American relations with China, the company has confirmed that it will increase investment in the current year. TSM has excellent sustainability credentials, operating with an exceptionally strong competitive moat, allowing them to pay 70% of free cash flow in dividends each year. The company released its fourth-quarter earnings report and outlook in mid-January that was well ahead of investor expectations. Management cited resilient long-term, AI-driven growth and said it was investing in new capacity in Taiwan and the US. Momentum in the shares continued through April as investors focused on the hardware providers within the AI ecosystem.
- Merck (MRK) is a US healthcare company best known for its cancer drug Keytruda, diabetes drugs Januvia and Janumet, and HPV vaccine Gardasil. In 2024, Keytruda gained FDA approval for an additional 3rd indication combination with chemoradiotherapy for cervical cancer from their phase 3 Keynote trial. MRK’s shares weakened last year on ongoing concerns about the prospects for its Gardasil drug, which prevents cancers by vaccinating against the human papillomavirus. More recently, the company, and its peers in the sector have been impacted by President Trump’s plans to get drug prices in the US down to levels in line with the lowest available cost globally. Merck continues to lead its peers in initiatives to improve access to healthcare particularly in developing countries where it has pricing policies based on affordability for 40 products in over 120 countries. In April the failure of the Phase 3 LITESPARK‑012 trial for advanced renal cell carcinoma was a setback for the company and resulted in share price weakness during the month.
- Tractor Supply Company (TSCO) is a high-quality omnichannel U.S. rural lifestyle retailer, serving recreational farmers, ranchers, tradespeople, and small businesses. The company’s resilient business model – supported by a strong balance sheet, loyal customer base, and predominantly U.S.-sourced product mix – has weathered economic disruptions and policy shifts. The company sells a wide range of rural‑lifestyle merchandise, including livestock, equine, and agriculture supplies (feed, fencing, sprayers, chemicals), companion‑animal products (pet food, treats, wellness items, and seasonal and recreation goods. The company sells national brands and a large portfolio of private labels such as 4health, Paws & Claws, Producer’s Pride, Bit & Bridle, Red Shed and Blue Mountain. During April the company reported mixed first‑quarter results, including a decline in net income and EPS below analyst expectations. Management highlighted lagging companion‑animal sales, a key category that had been a major growth driver in prior years. This raised concerns about category‑wide softness and pressured the shares.
IQ EQ ESG Multi-Asset Fund: April Ret. 2.76% YTD -0.53% (Total Return, net of fees).
Within the Equity Portfolio:
The IQ EQ ESG Multi-Asset Fund returned 2.76%, net of fees, during the quarter. The equity component, which accounts for approximately 61% of the strategy, returned +5.22% gross. This compares with the MSCI World Index return of +7.64%. The relative performance of the equity book was driven by negative Stock Selection and Sector Allocation. Currency Effects were a modest positive contributor to relative performance in the month. Stock Selection was most negatively impacted within the Information Technology sector, not owning Nvidia was the biggest contributor to the underperformance within Stock Selection. The negative Sector Allocation outturn for the quarter was driven by an overweight position in the Materials and sector and an underweight position in the Information Technology sector.
Key contributors during the period include:
+ Alphabet Inc. (GOOGL) is composed of Google and a collection of subsidiaries through which it provides web-based search, advertisements, mapping, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products. The company performed strongly in 2025 with earnings that showed broad-based strength in revenues across all divisions. Growth in its Search business was particularly strong. Alphabet followed that performance with strong reviews of its latest version of Gemini, the company’s AI model. Investors noted that the company ascribed the acceleration in search to the adoption of AI – a development that investors had seen as a potential threat to GOOGL as competitors, such as Microsoft, closed the gap in search. According to the company, AI is driving more search activity as users input more complicated searches confident in the knowledge that Google’s AI systems can produce accurate results. After a relatively weak start to 2026, Alphabet’s stock surged in April 2026 because its first quarter earnings beat expectations strongly, driven by 63% Google Cloud growth, a doubling of its AI infrastructure backlog, and analyst price‑target upgrades.
- Tractor Supply Company (TSCO) is a high-quality omnichannel U.S. rural lifestyle retailer, serving recreational farmers, ranchers, tradespeople, and small businesses. The company’s resilient business model – supported by a strong balance sheet, loyal customer base, and predominantly U.S.-sourced product mix – has weathered economic disruptions and policy shifts. The company sells a wide range of rural‑lifestyle merchandise, including livestock, equine, and agriculture supplies (feed, fencing, sprayers, chemicals), companion‑animal products (pet food, treats, wellness items, and seasonal and recreation goods. The company sells national brands and a large portfolio of private labels such as 4health, Paws & Claws, Producer’s Pride, Bit & Bridle, Red Shed and Blue Mountain. During April the company reported mixed first‑quarter results, including a decline in net income and EPS below analyst expectations. Management highlighted lagging companion‑animal sales, a key category that had been a major growth driver in prior years. This raised concerns about category‑wide softness and pressured the shares.
Within the Bond Portfolio:
Performance
The bond portfolio returned -0.90% in April, in line with its benchmark, the JP Morgan Global Bond Index (unhedged in euros). Positive contributions were driven primarily by the portfolio’s allocation to corporate and government agency bonds, while country selection also added to relative performance. However, these gains were offset by the portfolio’s long duration position in UK Gilts, which underperformed during the month. Gilt weakness reflected rising concerns over the potential inflationary impact of the conflict in Iran and the growing pressure on Prime Minister Keir Starmer to resign over his controversial appointment of Peter Mandelson as envoy to the US and ahead of May’s local elections, where Labour is expected to perform poorly.
Market
Bond yields rose (and prices fell) across most major markets in April, resulting in a -0.90% return for the JP Morgan Global Bond Index over the period. The primary driver of higher yields was the inflationary impact of rising energy prices, following the closure of the Strait of Hormuz. This led to concerns that central banks may need to tighten monetary policy in the coming months to counter potential increases in inflation expectations and the risk of second-round inflationary effects.
IQ EQ Cash Fund: April Ret. 0.12% YTD 0.45% (Net of fees)
The IQ EQ Cash Fund returned 0.12% in April, net of management fees, in euro terms.
The gross running yield on the Cash fund at the end of April was 1.79% as the ECB continue to monitor inflation, European infrastructure spending as well as the impacts of geopolitical events such as conflict in the Middle East to the current cycle of monetary policy. The Fund Management team continue to maintain approximately 30% of the fund in short term liquidity & short-dated government bonds, blended with deposits termed out for different maturities out to a maximum of one year.
The ECB kept interest rates on hold in April for the seventh consecutive time at 2%, as expected. ECB President Lagarde intimated that officials will consider a possible interest rate hike at the next meeting in June. Lagarde added that ‘we made an informed decision on the basis of yet insufficient information and debated the decision that we have unanimously taken today but also debated at length and in depth a decision to possibly hike’, with ‘verified and revisited information’ yet to come. Elsewhere, the Bank of England kept monetary policy on hold, although several MPC members stated that they may consider future hikes.
The latest ECB Bank Lending survey showed Eurozone banks’ consumer and corporate credit standards tightening in Q1 this year by the most in over two years, highlighting a continued cumulative tightening trend that began towards the middle of 2025. The report noted the perceived risks to the economic outlook and lower risk tolerance of banks were the main contributing factors, with banks indicating in a dedicated open-ended question that geopolitical and energy developments exerted tightening pressure and some banks reported additional tightening from exposures to energy-intensive firms and to the Middle East. Some banks also highlighted that ongoing developments in energy prices were driving increased liquidity demand from firms, while others pointed to higher uncertainty and postponement of investments as factors dampening demand. The reports also showed banks expect a ‘widespread and more marked net tightening of credit standards’ in the second quarter.
Key contacts
If you have any queries please contact Timothy.Kelly@iqeq.com. or any member of our sales team at assetmanagement@iqeq.com. Additional information on the Davy Funds Plc range of funds can be found on our website here.
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WARNING: Past performance is not a reliable guide to future performance. The value of investments may fall as well as rise. Investments denominated in non-euro currencies, may be affected by changes in exchange rates when converted to euro or other currencies.
* Effective 1st May 2024 the IQ EQ Fund Management (Ireland) Limited managed sub-funds on the Davy Funds Plc umbrella were renamed removing “Davy” from the name and/or including “IQ EQ”. ( Davy Global Equity Income Fund to IQ EQ Equity Income Fund; Davy Strategic: Global Quality Equity Fund to IQ EQ Strategic: Global Quality Equity Fund; Davy Global Focus Fund to IQ EQ Global Focus Fund; Davy ESG Multi-Asset Fund to IQ EQ ESG Multi-Asset Fund, and Davy Cash Fund to IQ EQ Cash Fund). There has been no change to the investment objective or process.
IQ EQ Fund Management (Ireland) Limited is regulated by the Central Bank of Ireland. Details about the extent of our authorisation and regulation by the Central Bank of Ireland are available from us upon request.