ACUMEN PORTFOLIOS
AUGUST 2017 Performance

Manager Commentary

August has a reputation for being relatively quiet, but the last month proved to be the exception. Escalating tension between the US and North Korea, white supremacist violence in Charlottesville, a Presidential crisis in Washington, Hurricane Harvey and a terrorist attack in Barcelona all contributed to growing geopolitical uncertainty and financial market volatility.

The ebb and flow in headline grabbing news, however, masked otherwise positive global economic developments. In the US, non-farm payrolls, rose by 209,000, the jobless rate fell to 4.3% and second quarter GDP was revised up to 3%, its highest reading in more than 2 years. In the Eurozone, second quarter GDP expanded by 0.6%, building on 0.5% growth in the first quarter. Meanwhile, in the UK the unemployment rate fell to 4.4%, below the Bank of England’s equilibrium jobless rate of 4.5% pointing to a likely pick-up in wage inflation later in the year.

The much anticipated Jackson Hole symposium provided little clarity on future monetary policy. Absent of further guidance, the market reaction was broadly dovish. In the UK, 10-year gilt yields finished the month -19bps lower with German Bund and US Treasury equivalents falling -17bps. Global equities were little changed. The MSCI World fell -0.07%, the S&P 500 rose 0.05% and the Euro Stoxx 50 fell -0.81%, held back by ongoing Euro appreciation. In the currency markets, the Dollar Index resumed its decline, touching a new 31 month low, helping the Euro breach $1.20, intraday, for the first time since January 2015.

Heightened volatility helped lift Gold, now up 8.97% since early July to $1,321.60 per ounce. Commodity markets were otherwise lower with the GSCI down -0.83%, led by WTI Oil which fell -5.86% to $47.23 per barrel.

We continue to look through short term developments to the broader economic picture which remains favourable. Key upcoming market risks include the ECB meeting on 7th September and the FOMC meeting on 19th/20th September.

ACUMEN Bond Portfolio

The ACUMEN Bond portfolio returned 0.46% in August. The Market Composite Benchmark and the IA’s Global Bond sector returned 0.82% and 2.14% respectively.

AUGUST 2017 Return

0.46%

YTD

N/A

Rolling 1-Year Return

N/A

ACUMEN Conservative Portfolio

The ACUMEN Conservative portfolio returned 0.65% in August. The Market Composite Benchmark and the IA Mixed Investment 20-60% Shares sector returned 0.43% and 0.81% respectively. The profile has a rolling 1-year return of 3.36%.

AUGUST 2017 Return

0.65%

YTD

3.32%

Rolling 1-Year Return

3.36%

ACUMEN Income Portfolio

The ACUMEN Income portfolio returned 0.29% in August. The Market Composite Benchmark and the IA Mixed Investment 20-60% Shares sector returned 0.33% and 0.81% respectively. The profile has a rolling 1-year return of 5.70%.

AUGUST 2017 Return

0.29%

YTD

4.21%

Rolling 1-Year Return

5.70%

ACUMEN Progressive Portfolio

The ACUMEN Progressive portfolio returned 0.08% in August. The Market Composite Benchmark and the IA Mixed Investment 40-85% Shares sector returned 0.15% and 1.03% respectively. The profile has a rolling 1-year return of 8.44%.

AUGUST 2017 Return

0.08%

YTD

5.74%

Rolling 1-Year Return

8.44%

ACUMEN Adventurous Portfolio

The ACUMEN Adventurous portfolio returned -0.07% in August. The Market Composite Benchmark and the IA Flexible Investment sector returned 0.06% and 1.17% respectively. The profile has a rolling 1-year return of 8.36%.

AUGUST 2017 Return

-0.07%

YTD

5.71%

Rolling 1-Year Return

8.36%

ACUMEN Equity Portfolio

The ACUMEN Equity portfolio returned -0.08% in August. The Market Composite Benchmark and the IA’s Global sector returned -0.11% and 1.50% respectively.

AUGUST 2017 Return

-0.08%

YTD

N/A

Rolling 1-Year Return

N/A

ACUMEN Strategic Portfolio

The ACUMEN Strategic portfolio returned 0.49% in August. The Market Composite Benchmark and the IA’s Global sector returned -0.11% and 2.63% respectively.

AUGUST 2017 Return

0.49%

YTD

N/A

Rolling 1-Year Return

N/A

The value of an investment in the Protection Portfolios, ACUMEN Portfolios or Tavistock PROFILES may fall as well as rise. Past performance should not be seen as an indication of future performance. Source of data: Tavistock Asset Management Limited, Thomson Reuters and Lipper for Investment Management unless otherwise stated.