November 2016 Performance
Donald Trump’s victory in the US Presidential Election has shaken the political establishment and the reaction in financial markets has been surprisingly buoyant. Having run one of the most brilliantly executed campaigns in the modern era, the President-elect has quickly shifted his focus to reconciliation and the transition to the White House. His pledge to “make America great again” through the repatriation of jobs and the creation of infrastructure projects will be the focal point of his administration. The controversial billionaire has built a successful commercial property empire and markets appear to have embraced his vision for the future. The S&P 500 rose 3.42% to an all-time high and the US dollar currency index gained 3.10%. The US government bond market sold-off heavily in the anticipation of increased debt issuance, higher inflation and an interest rate hike by the Federal Reserve. In the UK, the Autumn Statement contained few surprises and the response was muted apart from in the bond market, where ten-year gilt yields rose 17 bps to 1.42%. The Chancellor’s GDP forecast of 1.4% for 2017 is likely to compare favourably with most of the G7 nations. Gilt issuance is set to rise by £122 billion over the next five years and given that the Bank of England is behind the inflation curve, yields will continue to climb. The FTSE 100 fell -2.45% to close at 6,784. Investor confidence is returning to sterling as it gained 5.90% versus the euro and 2.14% against the US dollar. The OPEC agreement to reduce output by more than 1 million barrels per day was the catalyst for a sharp appreciation in the price of oil, which closed up 5.51% at $49.44. Looking ahead, the precise paths of “Brexit and Trumponomics” are going to be difficult to predict and portfolio diversification combined with patience will be essential in the coming months.
ACUMEN Conservative Portfolio
The ACUMEN Conservative Portfolio returned -1.62% in November and the IA Mixed Investment 20-60% Shares sector fell -1.53%. The portfolio has returned 13.84% year to date and 18.55% since inception on 1st October 2014.
ACUMEN Income Portfolio
The ACUMEN Income Portfolio returned -1.71% in November and the IA Mixed Investment 20-60% Shares sector fell -1.53%. The portfolio has returned 15.19% since inception on 25th February 2016.
ACUMEN Progressive Portfolio
The ACUMEN Progressive Portfolio returned -0.41% in November and outperformed the IA Mixed Investment 40-85% Shares sector, which fell -1.54%. The portfolio has returned 10.07% year to date and 16.67% since inception on 9th October 2014.
ACUMEN Adventurous Portfolio
The ACUMEN Adventurous Portfolio returned -0.63% in November and outperformed the IA Flexible Investment sector, which fell -1.85%. The portfolio has returned 16.26% since inception on 25th February 2016.
The value of an investment in the ACUMEN Portfolios or CIP PROFILES may fall as well as rise. Past performance should not be seen as an indication of future performance. Source of data: Tavistock Wealth Limited, Thomson Reuters and Lipper for Investment Management unless otherwise stated.