February 2017 Performance
The US equity markets continue to believe in the vision outlined by President Trump and steadfastly ignore the protests of the vocal minority. His pro-growth and regulatory reform agendas resonate strongly with investors around the world. The DJIA rose 4.77% in February and for the first time since 1970 closed higher twelve trading sessions in a row. The S&P 500 gained 3.72% and only finished lower four times during the month. The new administration has pledged to publish its fiscal and tax reforms by the middle of March and this will be key in extending the Trump Rally. Global risk appetite is rising and the MSCI World climbed 2.58%. The Hang Seng rose 1.63% and the Shanghai Composite increased 2.74%, despite further signs of tension in the South China Sea. The UK remains on course to trigger Article 50 of the Lisbon Treaty by the end of March, but this appears to be already factored into current valuations. The large-cap FTSE 100 rose 2.31% to close at 7,263 and the mid-cap FTSE 250 gained 3.43%. Inflation is a growing concern in the UK given that the CPI rose 1.8% in the year to January. The entire gilt curve is yielding less that the rate of inflation, which history suggests is unsustainable for any meaningful length of time. Ten-year gilt yields fell -27 basis points and closed at 1.15%. The currency markets were relatively subdued and sterling fell -1.57% against the US dollar to finish the month at 1.24. Commodity markets also traded in a narrow range as the GSCI rose 0.35%. Light crude oil gained 2.27% and prices in the soft commodity sector finished marginally lower. Returns in global equity markets during the last twelve months have been extraordinary and a short-term correction is probably overdue. Risk management and portfolio diversification will be more important than ever in the months ahead.
ACUMEN Conservative Portfolio
The ACUMEN Conservative Portfolio returned 1.70% in February and the IA Mixed Investment 20-60% Shares sector rose 1.85%. The portfolio has a rolling 1-year return of 16.72%.
ACUMEN Income Portfolio
The ACUMEN Income Portfolio returned 2.07% in February and outperformed the IA Mixed Investment 20-60% Shares sector, which rose 1.85%. The portfolio has a rolling 1-year return of 17.37%.
ACUMEN Progressive Portfolio
The ACUMEN Progressive Portfolio returned 2.52% in February and outperformed the IA Mixed Investment 40-85% Shares sector, which rose 2.23%. The portfolio has a rolling 1-year return of 19.67%.
ACUMEN Adventurous Portfolio
The ACUMEN Adventurous Portfolio returned 2.59% in February and outperformed the IA Flexible Investment sector, which rose 2.25%. The portfolio has a rolling 1-year return of 19.96%.
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.