DISCRETIONARY INVESTMENT MANAGEMENT SERVICE
QUARTERLY FOCUS
A discretionary managed investment solution, using a multi asset approach, designed to cover a number of different risk profiles to meet a range of client needs and goals.
First Quarter 2017
PORTFOLIO
PERFORMANCE
Over the period, portfolio returns have been strong. Our allocation to emerging markets has been a key contributor as the sector recovered from the Trump election shock in the previous quarter supported by a shift in sentiment towards the new president’s ability to implement his policies quickly or in the form he intended.
In terms of detractors, commodities – aside from gold – had a lacklustre quarter although the impact on portfolios was minimal as a result of the importance we place on diversification and our underweight positioning to the sector generally. Over the quarter, currency played less of a meaningful role than it did in 2016 with sterling largely flat over the period.
Applying our disciplined investment process and core investment principles has continued to underpin our decision making:
- Diversification. We continue to believe alternative strategies provide attractive levels of diversification to more traditional asset classes such as equities and bonds, as well as the potential for more attractive returns than government bonds.
- Value. We retain our conviction in our underweight positioning to government bonds where we see valuations as expensive - many yields are near or below zero - due to rising US interest rates and robust macroeconomic fundamentals. We continue to see European equities as attractively valued relative to global peers, especially US equities.
- Patience and Contrarian. We hold long-term thematic positions, such as emerging market equities and recently emerging market debt.
Portfolio returns, after fees | Wealth Preservation | Wealth Enhancement (Medium Term) | Wealth Enhancement (Long Term) | Wealth Generation | Diversified Bond |
---|---|---|---|---|---|
Last Quarter | 2.59% | 3.40% | 4.07% | 4.57% | 2.28% |
Rolling 12 Months: | |||||
End Mar 16 to end Mar 17 | 10.6% | 15.5% | 19.4% | 23.7% | 6.8% |
End Mar 15 to end Mar 16 | -1.70% | -3.5% | -4.40% | -4.5% | -0.7% |
End Mar 14 to end Mar 15 | 9.4% | 9.1% | 9% | 9.20% | 3.9% |
End Mar 13 to end Mar 14 | -0.7% | 1.7% | 4.00% | 3.80% | -1% |
End Mar 12 to end Mar 13 | 5.8% | 8.5% | 10.7% | 12.2% | 9.4% |
Source: Coutts/Thomson Datastream |
Past performance should not be taken as a guide to future performance.
The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.
Individual portfolio returns may vary.
Charity and Trust Portfolio Returns, after fees | Charity Wealth Preservation | Charity Wealth Enhancement (Medium Term) | Charity Wealth Enhancement (Long term) | Charity Wealth Generation |
---|---|---|---|---|
Last Quarter | 2.4% | 3.3% | 4.00% | 4.3% |
Rolling 12 Months: | ||||
End Mar 16 to end Mar 17 |
10.4% | 15.6% | 19.2% | 22.6% |
End Mar 15 to end Mar 16 | -2.2% | -3.7% | -4.80% | -6.3% |
End Mar 14 to end Mar 15 | 10.00% | 9.3% | 8.7% | 8.7% |
End Mar 13 to end Mar 14 | -0.2% | 2.2% | 4.4% | 3.60% |
End Mar 12 to end Mar 13 | 6.4% | 9.5% | 11.2% | 10.8% |
Source: Coutts/Thomson Datastream |
The value of investments and any income from them can go down as well as up, and you may not recover the amount of your original investment. Past performance should not be taken as a guide to future performance, please note the performance of individual portfolios may vary.
Holdings and
Portfolio Update
During the quarter we introduced exposure to emerging market local currency debt having identified an opportunity to invest at attractive valuations, taking advantage of what we believe to be short-term negative sentiment triggered by President Trump’s protectionist rhetoric. The economic environment is improving generally for emerging markets which is supportive for local currencies and we also see inflation and interest rates trending down. This trade aligns with a number of our investment principles including macro informed asset allocation and value.
(Please note: not all fund additions will be relevant for all portfolios)
Spotlight on
Holdings
For a full breakdown of all the underlying funds within the strategies, please refer to our monthly factsheets, available from your private banker or wealth manager.
The value of investments and any income from them can go down as well as up, and you may not recover the amount of your original investment. Where an investment involves exposure to a foreign currency, changes in rates of exchange may cause the value of the investment, and the income from it, to go up or down.
In the case of some investments, they may be illiquid and there may be no recognised market for them and it may therefore be difficult for you to deal in them or obtain reliable information about their value or the extent of the risks to which they are exposed.
Investments in emerging markets are subject to certain special risks, which include, for example, a certain degree of political instability, relatively unpredictable financial market trends and economic growth patterns, a financial market that is still in the development stage and a weak economy.
Important information
Wealth division of NatWest Group.
Coutts & Co. Registered in England No. 36695. Registered office 440 Strand, London WC2R 0QS. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority
The information in this webpage is not intended as an offer or solicitation to buy or sell securities or any other investment or banking product, nor does it constitute a personal recommendation. The information is believed to be correct but cannot be guaranteed. Any opinion or forecast constitutes our judgement as at the date of issue and is subject to change without notice. Any Coutts company, or a connected company, its clients and officers may have a position or engage in transactions in any of the securities mentioned.
The analysis contained in this webpage has been procured, and may have been acted upon, by Coutts & Co and connected companies for their own purposes, and the results are being made available to you on this understanding. To the extent permitted by law and without being inconsistent with any applicable regulation, neither Coutts & Co nor any connected company accepts responsibility for any direct or indirect or consequential loss suffered by you or any other person as a result of your acting, or deciding not to act, in reliance upon such analysis.
Not all products and services offered by the individual Coutts companies are available in all jurisdictions, and some products and services may be available only through particular Coutts companies.
None of the overseas Coutts companies or offices is an Authorised Person subject to the rules and regulations made under the Financial Services and Markets Act 2000 for the protection of investors and depositors, and compensation under the Financial Services Compensation Scheme will not be available in respect of business transacted with them.