July Performance

pmx

July Overview
Generally positive economic news as well as a weakening dollar provided the backdrop for investors in July. For UK investors, this meant strong positive returns from almost all asset classes. Politics and Central Bank messaging continued to influence markets, but in a slightly more subdued manner than had been the case throughout the rest of the year. Learn more

Intelligent Investments – 2017 Best Practice in Offshore Award

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Intelligent Investments is proud to announce that for the second consecutive year, we have been shortlisted for Best-Practice in Offshore Award in this year’s International Investment International Fund & Product Awards 2017. Learn more

STIR Crazy

mario-draghi-has-cracked-the-negative-rate-puzzle-for-banksJust over a month ago, the UK was still reeling from the shock result of the general election and it would be another fortnight before Theresa May and the DUP finally hammered out a deal.

Barely had the ink dried on the DUP agreement when the European Central Bank Forum kicked off in Sintra, Portugal, and Mario Draghi, President of the ECB, unwittingly set the cat amongst the pigeons when he said that “deflationary forces have been replaced by reflationary ones”. This caused alarm when investors interpreted his positive tone as a precursor to the central bank slowing its economic stimulus package more quickly than markets were discounting. ECB officials were quick to voice concern that the comments had been misjudged but this didn’t stop sharp price action in rate and FX markets.

Alex Harvey (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers, shares his view. Click here to view.

Volatility: Deep Calm in the Markets

“Not since Watergate have our legal systems been so threatened, and our faith in the independence and integrity of those systems so shaken,” These were the words of Senator Richard Blumenthal of the US Judiciary on the incendiary news that President Trump has fired the Director of the FBI, James Comey. The timing of the termination, occurring whilst the presidential campaign is under investigation for possible ties to Russian collusion has raised eyebrows…

Yet those searching for some immediate negative market reaction to events reminiscent of the Nixon debacle would be hard pushed to find much of any real significance: A small slide on equity futures and a brief flight to currency safe havens (a fleeting rally on USD/JPY to a 114.32 high which swiftly retraced to a 113.63 low) were about all- Indeed the S&P500 index even ticked upwards, closing at a record high of 2399.63 on the day. What is more, the US equity markets have remained largely flat since February, whilst volatility on treasuries also remains low. What effect this latest twist will have on Trump’s longer term economic plan of tax reforms, protectionism, healthcare and infrastructure investment remains to be seen. Some indicators that it is stalling were already in place after a tumultuous first one hundred days, and it is hard to see these latest developments helping matters.

James Jones (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers, shares his view. Click here to view.

PortfolioMetrix Market Update and Portfolio Performance Review April 2017

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Politics again dominated in April with the big news for European investors being the relief that centralist Emmanuel Macron progressed to the second round of the French presidential election and has then went on to secure election ahead of Le Pen. Elsewhere, there was an announcement of a snap election in the UK and investors mulled over Trump’s first 100 days in office against the backdrop of weaker than expected US growth. Learn more

Global Market Viewpoint Q1 2017

As UK Prime Minister Theresa May calls for an early general election to expedite the Brexit process, Glyn Owen, Investment Director of Momentum Global Investment Management, one of our UK regulated, discretionary investment managers shares his view of the markets and reviews first quarter of 2017.

PortfolioMetrix Market Update: Asset Allocation – Eyes Forward

News-wise it was an eventful month with the UK formally triggering Article 50 to begin the process of leaving the EU, the withdrawal of Trump’s healthcare bill, the US Fed raising rates by 0.25% and the Netherland’s avoiding the election of far-right candidate Geert Wilders.

PortfolioMetrix have just completed a formal asset allocation review for all portfolios, the results of which have just been implemented in their latest rebalance. How they decide on this asset allocation is reasonably technical, which they have already covered (the perhaps infamous ‘Black Litterman’ discussion), but they did want to highlight one key element of the process: PortfolioMetrix asset allocations are forward-looking, not backward-looking. Learn more