PERFORMANCE SUMMARY AND COMMENTARY AUGUST 2018 FOR FINANCIAL ADVISERS ONLY

Transcription

1 PERFORMANCE SUMMARY AND COMMENTARY AUGUST 18 FOR FINANCIAL ADVISERS ONLY

2 CRA ACTIVE MANAGED PORTFOLIOS PERFORMANCE SUMMARY CHART (CRA 3-6 ACTIVE) Active IA Mixed -35% 4 Active IA Mixed -6% 5 Active IA Mixed 4-85% 6 Active FTSE All Share Source: Factset and FE Analytics. Total return over period 24/2/14 to 31/7/18. The performance above is for the CRA Active portfolios. For full performance infromation of all the WealthSelect Managed Portfolios, please visit portfolioexplorer.oldmutualwealth.co.uk. PERFORMANCE SUMMARY CHART (CRA 7-1 ACTIVE) Active IA Mixed 4-85% 8 Active IA Flexible 9 Active IA Global 1 Active FTSE All Share Source: Factset and FE Analytics. Total return over period 24/2/14 to 31/7/18. The performance above is for the CRA Active portfolios. For full performance infromation of all the WealthSelect Managed Portfolios, please visit portfolioexplorer.oldmutualwealth.co.uk.

3 PERFORMANCE SUMMARY TABLE (CRA 3-1 ACTIVE) Since Estimated Estimated 1m 3m 6m 1y 3y launch Dividend Interest (%) (%) (%) (%) (%) (%) Yield Yield 3 Active IA Mixed -35% Active Active IA Mixed -6% Active Active IA Mixed 4-85% Active Active IA Flexible Active IA Global Source: Factset and FE Analytics. Total return over period 24/2/14 to 31/7/18. The performance above is for the CRA Active portfolios. For full performance infromation of all the WealthSelect Managed Portfolios, please visit portfolioexplorer.oldmutualwealth.co.uk. RISK AND RETURN CHART (CRA 3-1 ACTIVE) Active Performance Active 7 Active 6 Active IA Flexible 5 Active 4 Active IA Mixed 4-85% 3 Active IA Mixed -6% IA Mixed -35% 9 Active IA Global Volatility Source: Factset and FE Analytics. Total percentage return and volatility (both annualised) over period 24/2/14 to 31/7/18. The performance and volatility above is for the CRA Active portfolios. For full performance infromation of all the WealthSelect Managed Portfolios, please visit the portfolioexplorer.oldmutualwealth.co.uk.

4 CRA PASSIVE BLEND MANAGED PORTFOLIOS PERFORMANCE SUMMARY TABLE (CRA 3-6 PASSIVE BLEND) Passive Blend IA Mixed -35% 4 Passive Blend IA Mixed -6% 5 Passive Blend IA Mixed 4-85% 6 Passive Blend FTSE All Share Source: Factset and FE Analytics. Total return over period 24/2/14 to 31/7/18. The performance above is for the CRA Passive Blend portfolios. For full performance infromation of all the WealthSelect Managed Portfolios, please visit portfolioexplorer.oldmutualwealth.co.uk. PERFORMANCE SUMMARY TABLE (CRA 7-1 PASSIVE BLEND) Passive Blend IA Mixed 4-85% 8 Passive Blend IA Flexible 9 Passive Blend IA Global 1 Passive Blend FTSE All Share Source: Factset and FE Analytics. Total return over period 24/2/14 to 31/7/18. The performance above is for the CRA Passive Blend portfolios. For full performance infromation of all the WealthSelect Managed Portfolios, please visit portfolioexplorer.oldmutualwealth.co.uk.

5 PERFORMANCE SUMMARY TABLE (CRA 3-1 PASSIVE BLEND) Since Estimated Estimated 1m 3m 6m 1y 3y launch Dividend Interest (%) (%) (%) (%) (%) (%) Yield Yield 3 Passive Blend IA Mixed -35% Passive Blend Passive Blend IA Mixed -6% Passive Blend Passive Blend IA Mixed 4-85% Passive Blend Passive Blend IA Flexible Passive Blend IA Global Source: Factset and FE Analytics. Total return over period 24/2/14 to 31/7/18. The performance above is for the CRA Passive Blend portfolios. For full performance infromation of all the WealthSelect Managed Portfolios, please visit portfolioexplorer.oldmutualwealth.co.uk. RISK AND RETURN CHART (CRA 3-1 PASSIVE BLEND) Performance Passive Blend 3 Passive Blend IA Mixed -6% IA Mixed -35% 8 Passive Blend 7 Passive Blend 6 Passive Blend IA Flexible 5 Passive Blend IA Mixed 4-85% 9 Passive Blend 1 Passive Blend IA Global Volatility Source: Factset and FE Analytics. Total percentage return and volatility (both annualised) over period 24/2/14 to 31/7/18. The performance and volatility above is for the CRA Passive Blend portfolios. For full performance infromation of all the WealthSelect Managed Portfolios, please visit the portfolioexplorer.oldmutualwealth.co.uk.

6 PORTFOLIO MANAGER COMMENTARY PORTFOLIO REVIEW The managed portfolios recorded moderate gains in July. The fixed income markets were generally flat, and Asian and emerging markets were dragged down by China concerns as the trade war with the US rumbled on. Overall equity markets were driven slightly higher, prompted by a strong corporate results season buoying many of the regions combined with decent economic data in the US. European equities performed well as trade worries eased, but the relative underperformers remained those at the forefront of President Trump s trade war, as both the US and China announced further titfor-tat tariff measures during the month. Within fixed income, some markets made more modest gains. However, overall performance was relatively flat with UK gilts underperforming. INTERNATIONAL EQUITIES The international equity bucket lagged the MSCI AC World index during the month, as stronger performance from European and US names was dragged lower by emerging markets and Asian equities. The negative contributors to top level returns included the Quilter Investors Asia Pacific (Old Mutual), Quilter Investors China Equity (Janus Henderson), and Quilter Investors Emerging Markets Equity Income Wells Fargo) funds. All of these funds were behind their individual benchmarks, and the region as a whole underperformed in the period driven primarily by China concerns. Stand out performance from the Quilter Investors Europe (ex UK) Small/Mid Cap Equity (Old Mutual) fund helped limit the drag from weaker funds. The Quilter Investors Asia Pacific (ex Japan) Equity (Aberdeen), Quilter Investors Europe (ex UK) Equity (Janus Henderson), and Quilter Investors North American Equity (Old Mutual) funds lagged their individual benchmarks, but contributed nicely to top level returns. UK EQUITIES UK markets, in the form of the FTSE All-Share, ended the month slightly higher as large cap overseas companies with strong earnings benefited from sterling weakness. However, It was a disappointing month for the UK equity funds in the portfolio, as while they were all positive in absolute terms, they were well behind the FTSE All-Share, with the Quilter Investors UK Equity Large Cap Income (Artmeis) fund, the best performer. In the UK, Brexit remains a key concern, as a poorly received plan post-chequers, the resignations of senior Brexiteers, and a Cabinet at loggerheads raises the spectre of a no-deal or hard exit from the European Union next March. ALTERNATIVES In a mixed market environment, our alternatives allocation had a weak month. The Old Mutual Global Equity Absolute Return (Old Mutual) fund was a significant drag on performance, although the Quilter Investors Precious Metals Equity (BlackRock) fund was also weaker as commodity price strength dipped during the month. Elsewhere, we added to our alternatives basket with the introduction of the PIMCO Global Unconstrained Bond fund, which delivered a small positive performance to help offset some of the weaker funds. PROPERTY The Henderson UK Property Fund, held as a diversifier and shock absorber, had a steady July, as it continued last month s trend and delivered a positive return in line with the index.

7 FIXED INCOME Overall, fixed income delivered a positive performance, outperforming its comparative benchmark, despite fairly flat returns from some of the underlying funds. The Quilter Investors Emerging Market Bond (Old Mutual) fund performed well, along with the Quilter Investors Diversified Bond (Old Mutual), Quilter Investors Sterling Diversified Bond (Fidelity), and Quilter Investors Investment Grade Corporate Bond (Invesco Perpetual) funds, which offset a small loss from the Quilter Investors Gilt Index (Old Mutual). PASSIVES The UK and World ex-uk passive equity offerings tracked their underlying benchmarks when adjusted for the timing effect inherent in the investment vehicles. OUTLOOK A strong earnings season in the US, but also to some extent in Europe and Japan, suggests positive corporate fundamentals, while overall economic growth still looks healthy. There are, however, a number of potential political risks to markets ranging from President Trump s trade antics to Brexit or the arrival of a seemingly anti-euro coalition at the heart of the EU. Political risks are among the most difficult to predict which emphasises the need for a more balanced and well diversified approach in the second half of the year as we explore the later stages of this already very mature economic cycle. STUART CLARK - PORTFOLIO MANAGER As Portfolio Manager, Stuart has responsibility for running the WealthSelect Managed Portfolios. He is accountable for all portfolio management and investment decisions. Prior to joining Quilter Investors, Stuart was an Executive Director at Julius Baer, responsible for mutual fund due diligence and has held similar roles at Merrill Lynch Wealth Management, UBS, and BDO Investment Management. Stuart is a CFA Charter holder. Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back the amount originally invested. Further information on the WealthSelect Managed Portfolio Service can be found at wealthselect.oldmutualwealth.co.uk Calls may be monitored and recorded for training purposes and to avoid misunderstandings. Old Mutual Wealth is the trading name of Old Mutual Wealth Limited which provides an Individual Savings Account (ISA) and Collective Investment Account (CIA) and Old Mutual Wealth Life & Pensions Limited which provides a Collective Retirement Account (CRA) and Collective Investment Bond (CIB). The WealthSelect Managed Portfolio Service is provided by Old Mutual Wealth Limited and Old Mutual Wealth Life & Pensions Limited. Old Mutual Wealth Limited and Old Mutual Wealth Life & Pensions Limited are registered in England and Wales under numbers and respectively. Registered Office at Old Mutual House, Portland Terrace, Southampton, SO14 7EJ, United Kingdom. Old Mutual Wealth Limited is authorised and regulated by the Financial Conduct Authority. Old Mutual Wealth Life & Pensions Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Their Financial Services register numbers are and 7977 respectively. VAT number Quilter Investors is a trading name of Quilter Investors Limited. Authorised and regulated by the Financial Conduct Authority with FCA register number Registered in England & Wales under number Registered office: Millennium Bridge House, 2 Lambeth Hill, London, England, EC4V 4AJ. SK11661 / / July 18