Chilvester Investment Strategies

Transcription

1 Chilvester Investment Strategies Portfolio Review April 2018

2 Contents Introduction... 1 Investment returns... 2 Portfolio Review... 2 Summary... 3 Appendix... 4 Important information... 4 Economic update... 5 Introduction Chilvester provide Independent Financial Advice which means we are unbiased towards any range of investment funds or products. We have access to a variety of different companies to meet your advice needs. Being Chartered Financial Planners demonstrates our commitment to achieving the highest professional standards and ongoing knowledge via qualifications to help meet our clients varied objectives. Our ethical practices ensure that we have you at the centre of the advice process and you are kept updated. We provide investment planning advice to help your money through the growth phase or income phase depending upon where you are in your life cycle and individual needs. Regular reviews of your investment goals will keep your investments in line with your requirements. We provide professional support for all of your investments. This ensures you remain invested in suitable funds in line with agreed risk profiles. Chilvester advise on a number of strategies to suit individual investment requirements. provide access to We A range of investment portfolios, predominately using passive (or tracker) funds our passive portfolios A range of ethical portfolios, using predominately actively managed funds which are screened against ethical, environmental or sustainable criteria our ethical portfolios Bespoke investment strategies built to suit individual client needs Third party managed investment solutions 1

3 Investment returns The following table details the gross returns over recent months and years. Declared Returns to 31/03/2018 Portfolio 3 month % 12 month % 3year % (cumulative) 3 (low risk) (lowest medium risk) (medium risk) (high medium risk) (highest medium risk) Ethical Cautious (low risk) Ethical Balanced (medium risk) Ethical Adventurous (highest medium risk) The above figures are the fund managers quoted returns excluding nominee account and advice charges which will reduce the returns seen by the investor. For more information about these charges, please refer to the Important Information in the attached appendix. Portfolio Review After several quarters of positive performance, this last quarter all our portfolios fell mainly due to global concerns about technology companies and also trade tensions between the US and China. The largest falls were in our equity holdings which showed their worst returns for over two years. To put the portfolio returns into some context, the FTSE 100 was down -7.2% from January to the end of March and the S&P 500 also fell -4.3% over the same period. Despite this poor quarter, returns across the portfolios are still positive over a rolling 12 month period. The Investment Committee remain comfortable with the current asset allocation and constituent funds and we are not recommending any changes to either our passive and ethical portfolios this quarter. 2

4 Summary In summary, the investment committee remain comfortable with the current position of all portfolios and we are not recommending any changes this quarter. The latest portfolio and fund factsheets are available online at Please ask if you would like paper copies posting out to you. If you do think that you may need additional withdrawals in the coming months or there have been any changes to your circumstances then please do speak to us now. Chilvester Financial April

5 Appendix Important information This report provides detail on the recent review of our Investment Strategies and discusses our thoughts about their progress and details any changes recommended. Should your situation have changed since our last meeting, please do contact us for advice before acting on the content of this report. Should you require any additional information about your specific investments, please do not hesitate to contact us. For the purposes of this report, the gross returns quoted throughout are those declared by the current fund managers (with any income reinvested), they exclude the negotiated rebates and underlying charges applied by the nominee company that holds the assets and advice charges. The actual returns achieved by the investments will vary from client to client depending on the type of investment and fund size but are likely to be within 1.25% per annum of the figures quoted. The returns quoted are those of the current portfolio holdings and do not reflect past changes in the composition of the Portfolios. They also do not reflect any adjustments made to individual Client portfolios over this time, such as rebalancing, withdrawals or additional contributions. Please note that whilst this recommendation has been made to ensure that the portfolios are maintained in such a manner to suit the current economic conditions, there is no guarantee that the returns from these investments will outperform any other. Whilst most investments are readily saleable should you need access to capital at any time, some assets may suffer short term liquidity problems which may at times restrict access to all of your money. This may be particularly relevant to property funds which, whilst they maintain sufficient liquidity to cover most demands, they may have to sell assets to meet particularly high redemption requests. Due to the time it takes to sell commercial property, such funds may impose redemption restrictions which may delay access to some of your monies for some months. The value of investments can go down as well as up; past performance is not necessarily a guide to future performance and may not necessarily be repeated. 4

6 Economic update Our economic comment this quarter comes from Schroders Global equity markets declined in Q1 with investors unnerved first by concerns about the path of US interest rate rises and then worries over trade. Global bond markets reflected higher inflation, with most major government bond yields climbing. US equities began the year strongly, boosted by tax reforms, but ended the quarter lower amid concerns over inflation and the impact of US-China trade sanctions. Eurozone equities posted negative returns as worries over US rates and trade affected other markets. Italy s election was inconclusive but had limited impact on the equity market. UK equities were negatively impacted by sterling strength amid expectations that the Bank of England may lift rates sooner and faster than the market had previously anticipated. Japanese equities followed a similar pattern to other global markets and ended the quarter lower. The heightened uncertainty resulted in a generally stronger yen against major currencies. Emerging market equities outperformed, delivering a positive return in US dollars. Brazil gained amid expectations that former president Luiz Inácio Lula da Silva will be prohibited from participating in October s presidential elections. US Treasury yields rose markedly across the curve over the quarter. Corporate bonds made negative total returns and underperformed government bonds. Schroders Quarterly Markets Review Q April