Investment Newsletter May 2016
Fixing Portfolios Mike Deverell Investment Manager
After a very volatile start to 2016, stockmarkets have settled down somewhat and stabilised. Most stockmarkets are now pretty much flat over 2016 so far but have recovered significantly over the past quarter. For example, the FTSE 100 is 8.55% higher than it was three months ago and the equity content of a balanced portfolio up 9.74% (total return 12 February to 13 May 2016). Whilst things look a lot brighter, the FTSE 100 is still well below where it was this time last year, closing at 6,138 on 12 May, or 8.66% down over 12 months. Of course, investors in Equilibrium portfolios have fared somewhat better, with the equity within a balanced portfolio down 1.54% over the same period.
significantly improved economic data. In particular, we think UK stocks are unlikely to go anywhere much until after the EU referendum in June. Importantly, we don’t just invest in equities and other asset classes have of course been positive over the same period. One of the best performing assets over the past few years has been UK commercial property, with our property portfolio gaining 24.7% over three years, or just under 8% pa on average. However, things have slowed down recently and the portfolio is only up 2.63% over the past 12 months.
Stockmarkets remain a little jumpy and it is difficult to see a sharp move upwards in the short term without Equilibrium Asset Management LLP (a limited liability partnership) is authorised and regulated by the Financial Conduct Authority. Equilibrium Asset Management is entered on the Financial Services Register under reference 452261. The FCA regulates advice which we provide on investment and insurance business; however it does not regulate advice which we provide purely in respect of taxation matters. Copyright Equilibrium Asset Management LLP. Not to be reproduced without permission.