Below is a quick market update written by one of our portfolio managers for your information.
The recent rally we have seen in markets is encouraging and has been led by positive economic data from the UK and US bolstering investor confidence and dispelling some of the concerns that we might be heading towards another global recession. Figures such as the strong non-farm payrolls released last week and a sharp recovery in the oil price has supported bourses across the world.
We have seen particular strength from Asian indices (which has benefitted our holding in the Stewart Asia Pacific fund.) Other strategies have also performed well. For instance, Fundsmith run by Terry Smith (up almost 6% since February lows) and strategies described as having ‘value’ characteristics.
The past two weeks, which may form the start of a longer term recovery for value companies, has benefited the Strategic Income model, up 1.4% for February. The Strategic Income model targets a 3.5% income yield, this being its primary investment focus rather than being run within a volatility band.
We continue to remain positive on equity markets, particularly versus fixed income on a value basis. We have selected active primarily defensive managers in the UK equity space and continue to favour absolute return funds within the alternatives portion of portfolios to maximise diversification within the models.
This communication is provided for information purposes only The information presented herein provides a general update on market conditions and is not intended and should not be construed as an offer, invitation, solicitation or recommendation to buy or sell any specific investment or participate in any investment (or other) strategy. Past performance is not an indication of future performance and the value of investments and the income derived from them may fluctuate and you may not receive back the amount you originally invest
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