News Summary - August 2017

Portfolio Summary – August 2017

August is a traditionally quiet month in terms of news, with many market participants absent. Last month saw broadly neutral returns from equities. Bond markets were able to offer positive returns, in light of relatively benign economic data. The major themes of Brexit and US/North Korea were largely ignored by investors. The Jackson Hole Economic Conference produced no headlines and, thus far, the forthcoming German election looks set to go in favour of the incumbent Christian Democrat party. Japanese economic data exceeded expectations and inflation achieved a small, but welcome, tick upwards, offering hope that Abenomics is indeed starting to work.

The Affinity passive portfolios ranged from 0.53% (RP1) to 1.55% (RP7)
The BGL active portfolios ranged from 0.17% (RP1) to 1.11% (RP7), whilst the Growth Strategy returned 1.33%.

Benchmarks:
FTSE World – 2.65%
Barclays Global Aggregate – 3.33%

The portfolio returns were positive during the month of August and in-line with market expectations. Overall performance was contributed by both the satellite and core segments, with an outperformance from index linked bonds and cautious multi asset strategies. The key funds that contributed to the portfolio returns were the Legg Mason Japan Equity fund (8.2% return), where small / mid cap equities were supported by further strengthening of the Yen, putting pressure on large cap Japanese companies.

Also adding to performance was the Blackrock Gold and General fund (6.1%), the strong fund performance came from the recent turmoil involving the U.S. and North Korea, which had a significant impact on the Gold price (up 4.24%) as investors flocked to safe haven style assets. Finally MI Somerset Emerging Markets Diversified Growth fund (3.84%), the fund continued to perform well supported by strong returns from Asian technology, mining and industrial sectors.

Should you require any further information then please do get in touch.