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7/29/2019 January 2013 Platform Factsheets & Managers' Comments
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MANAGERS MONTHLY COMMENTARY JANUARY 2013
INVESTMENT MANAGERS:
Patrick Toes
Investment Director with over 20
years experience in fund
management. Previously a member
of Rensburg Sheppards Asset
Allocation and Fund Selection Committees
for over 9 years.
David Cowell
Chief Executive, possessing over 40
years experience in financial
services, with over 25 years being
The current rally was 76 days old as at the end of January with stock markets in full risk on mode. In fact this
month has been a tremendous month for equities. As we mentioned in our year end review and outlook, we
considered that the market was poised to move higher, not because the outlook for the global economy or
corporate earnings looked strong, rather that risk events investors have been grappling with had been kicked
further down the road. This would give investorsthe excuse to be more confident, if only in the shortterm.
Our investment approach is to look towards the medium term investment horizon (3-5 years) as we believe
many - or perhaps most - investors focus on short term performance and have the tendency to get too pre-
occupied by market noise. You may have read on our website about the need to be hyperopic as an investor and
not myopic (far-sighted, not short-sighted). The focus of many of these investments is on quality and strength in
76 DAYS AND COUNTING
.
SALES:
Julie Jones
Juliehas over 20 years experience ofworking in investment sales and
marketing, previously as Head of UK
Retail Sales for BNY Mellon (Newton
Investment Management).
For further information call :
0113 274 7700Email : [email protected]
Or visit us at :www.myddletoncroft.co.uk
. , -
markets which will exhibit low growth and a high degree of volatility. You will often hear us refer to quotes from
Warren Buffett. One which describes his approach to investing in equities is:
"In business, I look for economic castles protected by unbreachable 'moats'."
Our approach to investing is to use that castle and moat mentality to manage the whole of a clients portfolio,
both equities and non-equities. However, we have always been interested in looking to augment our medium
term views by identifying investments where the herd becomes too pessimistic and, for that matter, the
converse. We refer to this as our drawbridge. This allows us to add a tactical and opportunistic approach to
investing, employing a contrarian or mean reverting strategy, in effect, looking for out-of-favour laggards which
we believe could catch up with the herd. We utilised this part of our armoury to take a more positive stance
toward risk assets toward the end of 2012. This more positive stance has given us a strong start to the year
which you can see in our model factsheets (attached).
One opportunity which we noticed in late 2012 was in US small companies with a value bias. We saw four
positives: Firstly, the underperformance is particularly marked within small cap value stocks (Russell 2000 Value)
relative to the S&P 500 (see chart 1); secondly, from a valuation perspective small cap stocks with the highestreturn on invested capital were over 15% cheaper than S&P 500; thirdly, US companies in the S&P 500 have a
high risk of margin reduction which are currently at all time highs unlike small cap stocks wheremargins are well
below previous peak levels and finally, should there be a lasting improvement in sentiment we would expect to
see an improvement in M&A activity following a weak 2012 and we consider that is a likely positive for small-cap
stocks.We added a position to this area in November and have been well compensated for ourdecision.
The charts below show the relative performance of two indices, Russell 2000 Value vs S&P 500, which illustrate
the opportunity and how it has been a benefit to ourportfolio performance.
Myddleton Croft Investment Managers, 1 Woodside Mews, Clayton Wood Close, Leeds, LS16 6QE
T: 0113 274 7700 F: 0113 274 7711 E-mail: [email protected] Website: www.myddletoncroft.co.uk
Myddleton Croft Ltd is authorised and regulated by the Financial Services Authority. Registered in England & Wales number 05782909. VAT number UK 889 241088.
Registered office: 11 Clifford Avenue, Ilkley, LS29 0AS.
MPORTANT INFORMATION
This information has been approved for distribution
o professional investors only. The information inhis document is believed to be correct but cannot
be guaranteed. Past performance is not a guide touture performance and may not be repeated. The
value of investments and the income from them
may go down as well as up and investors may notget back the amounts originally invested. This
material is not intended as an offer or solicitation forhe purchase or sale of any security or any other
action, without first seeking advice as to theuitability of it for your needs.
Although not a drawbridge trade per se, we would bring your attention to another area where we are seeing a
change in the road ahead. I attended the M&G conference in January, where the focus of attention from their
bond team was on inflation and its inevitable corollary for higher gilt and western sovereign bond yields. The
new Governor of the Bank of England elect, Mark Carney, given his public questioning of the value of inflation
targets and his proposals for nominal GDP targeting, may unhinge UK inflation expectations at a risky time in
the investment cycle. The new leadership in Japan has targeted a much lower Yen and 2% inflation, when
deflation has been the status quo for a generation. Lastly, the long-term build up of liquidity from quantitative
easing programmes in the States and Europe over the last four and a half years warrants investors to considerinflation-proofing their portfolios. We have been doing so gradually by reducing duration and owning index-
l inked bonds within our fixed interest exposure. I would caution against an all-in bet tomorrow as central
banks/governments are on the other side of this trade. Whilst the timing of an upward rise in bond yields is
uncertain, we do expect that it is a when will this happen rather than if. Fingers on buzzers.
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7/29/2019 January 2013 Platform Factsheets & Managers' Comments
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Myddleton Croft Defensive Risk Model JANUARY 2013
PERFORMANCE SINCE LAUNCH
On PlatformOn PlatformOn PlatformOn Platform
NVESTMENT MANAGERS:
atrick Toes
Investment Director with over
20 years experience in fund
management. Previously a
member of Rensburg Sheppards
sset Allocation and Fund Selectionommittees for over 9 years.
avid CowellChief Executive, possessing over
40 years experience in financial
2013 PERFORMANCE
services, wit over 25 years
being investment managementocussed.
ALES:
ulie Jones
Julie has over 20 yearsexperience of working in
investment sales and marketing,
previously as Head of UK Retail
ales for BNY Mellon (Newton Investment
Management).
or further information call :
0113 274 7700mail : [email protected]
Or visit us at :
www.myddletoncroft.co.uk
atform model portfolios include the cost of
nderlying investments and Myddleton Crofts
nnual management fees but not the
espective platform charges.
Myddleton Croft Investment Managers, 1 Woodside Mews, Clayton Wood Close, Leeds, LS16 6QE
T: 0113 274 7700 F: 0113 274 7711 E-mail: [email protected] Website: www.myddletoncroft.co.uk
Myddleton Croft Ltd is authorised and regulated by the Financial Services Authority. Registered in England & Wales number 05782909. VAT number UK 889 241088.
Registered office: 11 Clifford Avenue, Ilkley, LS29 0AS.
ASSET ALLOCATION
MPORTANT INFORMATION
This information has been approved for distribution
o retail and professional investors only. Thenformation in this document is believed to be
correct but cannot be guaranteed. Pastperformance is not a guide to future performance
a nd ma y not be r epe at ed. The va lue o f
nvestments and the income from them may godown as well as up and investors may not get back
he amounts originally invested. Beforecontemplating any transaction, you should consult
your financial adviser. This material is not intended
as an offer or solicitation for the purchase or sale ofany security or any other action, without first
eeking advice as to the suitability of it for yourneeds.
Platform performance / allocation may differ frommodel depending on platform availability of
underlying investments.
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7/29/2019 January 2013 Platform Factsheets & Managers' Comments
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Myddleton Croft Cautious Risk Model JANUARY 2013
PERFORMANCE SINCE LAUNCHVESTMENT MANAGERS
atrick Toes
Investment Director with over 20
years experience in fund
management. Previously a member
of Rensburg Sheppards Asset
ocation and Fund Selection Committees for
er 9 years.
avid Cowell
Chief Executive, possessing over 40
On PlatformOn PlatformOn PlatformOn Platform
2013 PERFORMANCE
years exper ence n nanc a
services, with over 25 years beinginvestment management focussed.
ALES:
ulie Jones
liehas over 20 years experience of workingin investment sales and marketing,
previously as Head of UK Retail Sales
for BNY Mellon (Newton Investment
Management).
tform model portfolios include cost of underlying
estments and Myddleton Crofts annualnagement fees, but not the respective platform
arges.
or further information call :
113 274 7700mail : [email protected]
r visit us at :ww.myddletoncroft.co.uk
Myddleton Croft Investment Managers, 1 Woodside Mews, Clayton Wood Close, Leeds, LS16 6QE
T: 0113 274 7700 F: 0113 274 7711 E-mail: [email protected] Website: www.myddletoncroft.co.uk
Myddleton Croft Ltd is authorised and regulated by the Financial Services Authority. Registered in England & Wales number 05782909. VAT number UK 889 241088.
Registered office: 11 Clifford Avenue, Ilkley, LS29 0AS.
ASSET ALLOCATION
PORTANT INFORMATION
is information has been approved for distribution
retail and professional investors only. Theormation in this document is believed to be correct
t cannot be guaranteed. Past performance is not ade to future performance and may not be
peated. The value of investments and the income
m them may go down as well as up and investorsay not get back the amounts originally invested.
fore contemplating any transaction, you shouldnsult your financial adviser. This material is not
ended as an offer or solicitation for the purchase
sale of any security or any other action, withoutst seeking advice as to the suitability of it for your
eds.
Platform performance / allocation may differ from
odel depending on platform availability ofderlying investments.
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7/29/2019 January 2013 Platform Factsheets & Managers' Comments
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IMPORTANT INFORMATION Myddleton Croft Moderate Risk Model JANUARY 2013
PERFORMANCE SINCE LAUNCH
On PlatformOn PlatformOn PlatformOn Platform
NVESTMENT MANAGERS:
atrick Toes
Investment Director with over
20 years experience in fund
management. Previously amember of Rensburg Sheppards
Asset Allocation and Fund Selection
ommittees for over 9 years.
David Cowell
Chief Executive, possessing over
40 years experience in financial
services, with over 25 years
2013 PERFORMANCE
being investment management
ocussed.
ALES:
ulie Jones
Julie has over 20 yearsexperience of working ininvestment sales and marketing,
previously as Head of UK Retail
ales for BNY Mellon (Newton Investment
Management).
or further information call :
0113 274 7700mail : [email protected]
Or visit us at :
www.myddletoncroft.co.uk
latform model portfolios include the cost of
nderlying investments and Myddleton Crofts
nnual management fees but not the
espective platform charges.
Myddleton Croft Investment Managers, 1 Woodside Mews, Clayton Wood Close, Leeds, LS16 6QE
T: 0113 274 7700 F: 0113 274 7711 E-mail: [email protected] Website: www.myddletoncroft.co.uk
Myddleton Croft Ltd is authorised and regulated by the Financial Services Authority. Registered in England & Wales number 05782909. VAT number UK 889 241088.
Registered office: 11 Clifford Avenue, Ilkley, LS29 0AS.
ASSET ALLOCATION
MPORTANT INFORMATION
his information has been approved for distribution
o retail and professional investors only. Theformation in this document is believed to be
orrect but cannot be guaranteed. Pasterformance is not a guide to future performance
nd ma y not be re peat ed . T he v al ue of
vestments and the income from them may goown as well as up and investors may not get back
he amounts originally invested. Beforeontemplating any transaction, you should consult
our financial adviser. This material is not
tended as an offer or solicitation for the purchaser sale of any security or any other action, without
rst seeking advice as to the suitability of it for youreeds.
Platform performance / allocation may differ fromodel depending on platform availability of
nderlying investments.
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7/29/2019 January 2013 Platform Factsheets & Managers' Comments
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Myddleton Croft Progressive Risk Model JANUARY 2013
PERFORMANCE SINCE LAUNCH
On PlatformOn PlatformOn PlatformOn Platform
NOTE: THE ADVENTUROUS RISK MODEL HAS BEEN RENAMED THE PROGRESSIVE RISK MODEL
NVESTMENT MANAGERS:
Patrick Toes
Investment Director with over
20 years experience in fund
management. Previously amember of Rensburg Sheppards
Asset Allocation and Fund Selection
Committees for over 9 years.
David Cowell
Chief Executive, possessing over
40 years experience in financial
services, with over 25 years
2013 PERFORMANCE
being investment management
ocussed.
SALES:
ulie Jones
Julie has over 20 yearsexperience of working ininvestment sales and marketing,
previously as Head of UK Retail
Sales for BNY Mellon (Newton Investment
Management).
For further information call :
0113 274 7700Email : [email protected]
Or visit us at :
www.myddletoncroft.co.uk
Platform model portfolios include the cost of
underlying investments and Myddleton Crofts
nnual management fees but not the
espective platform charges.
Myddleton Croft Investment Managers, 1 Woodside Mews, Clayton Wood Close, Leeds, LS16 6QE
T: 0113 274 7700 F: 0113 274 7711 E-mail: [email protected] Website: www.myddletoncroft.co.uk
Myddleton Croft Ltd is authorised and regulated by the Financial Services Authority. Registered in England & Wales number 05782909. VAT number UK 889 241088.
Registered office: 11 Clifford Avenue, Ilkley, LS29 0AS.
ASSET ALLOCATION
MPORTANT INFORMATION
his information has been approved for distribution
o retail and professional investors only. Thenformation in this document is believed to be
orrect but cannot be guaranteed. Pasterformance is not a guide to future performance
nd may not be repeated. The value of
nvestments and the income from them may goown as well as up and investors may not get
ack the amounts originally invested. Beforeontemplating any transaction, you should consult
our financial adviser. This material is not
ntended as an offer or solicitation for the purchaser sale of any security or any other action, without
rst seeking advice as to the suitability of it for youreeds.
Platform performance / allocation may differ frommodel depending on platform availability of
nderlying investments.
-
7/29/2019 January 2013 Platform Factsheets & Managers' Comments
6/7
Myddleton Croft Adventurous Risk Model JANUARY 2013
PERFORMANCE SINCE LAUNCH
On PlatformOn PlatformOn PlatformOn Platform
NOTE: THE HIGHLY ADVENTUROUS RISK MODEL HAS BEEN RENAMED THE ADVENTUROUS RISK MODEL
NVESTMENT MANAGERS:
atrick Toes
Investment Director with over
20 years experience in fundmanagement. Previously amember of Rensburg Sheppards
sset Allocation and Fund Selection
ommittees for over 9 years.
avid CowellChief Executive, possessing over
40 years experience in financial
2013 PERFORMANCE
,
being investment management
cussed.
ALES:
ulie Jones
Julie has over 20 yearsexperience of working ininvestment sales and marketing,
previously as Head of UK Retail
ales for BNY Mellon (Newton Investment
anagement).
or further information call :
113 274 7700mail : [email protected]
r visit us at :
www.myddletoncroft.co.uk
atform model portfolios include the cost of
nderlying investments and Myddleton Crofts
nnual management fees but not the
spective platform charges.
Myddleton Croft Investment Managers, 1 Woodside Mews, Clayton Wood Close, Leeds, LS16 6QE
T: 0113 274 7700 F: 0113 274 7711 E-mail: [email protected] Website: www.myddletoncroft.co.uk
Myddleton Croft Ltd is authorised and regulated by the Financial Services Authority. Registered in England & Wales number 05782909. VAT number UK 889 241088.
Registered office: 11 Clifford Avenue, Ilkley, LS29 0AS.
ASSET ALLOCATION
MPORTANT INFORMATION
his information has been approved for distribution
retail and professional investors only. Theformation in this document is believed to be
orrect but cannot be guaranteed. Pasterformance is not a guide to future performance
nd ma y n ot be repe at ed. The v al ue of
vestments and the income from them may goown as well as up and investors may not get back
e amounts originally invested. Beforentemplating any transaction, you should consult
ur financial adviser. This material is not intended
an offer or solicitation for the purchase or sale ofny security or any other action, without first
eeking advice as to the suitability of it for youreeds.
Platform performance / allocation may differ fromodel depending on platform availability of
nderlying investments.
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7/29/2019 January 2013 Platform Factsheets & Managers' Comments
7/7
Myddleton Croft Speculative Risk Model JANUARY 2013
PERFORMANCE SINCE LAUNCH
On PlatformOn PlatformOn PlatformOn Platform
NVESTMENT MANAGERS:
atrick Toes
Investment Director with over
20 years experience in fundmanagement. Previously amember of Rensburg Sheppards
sset Allocation and Fund Selection
ommittees for over 9 years.
avid CowellChief Executive, possessing over
40 years experience in financial
2013 PERFORMANCE
,
being investment management
cussed.
ALES:
ulie Jones
Julie has over 20 yearsexperience of working ininvestment sales and marketing,
previously as Head of UK Retail
ales for BNY Mellon (Newton Investment
anagement).
or further information call :
113 274 7700mail : [email protected]
r visit us at :
www.myddletoncroft.co.uk
atform model portfolios include the cost of
nderlying investments and Myddleton Crofts
nnual management fees but not the
spective platform charges.
Myddleton Croft Investment Managers, 1 Woodside Mews, Clayton Wood Close, Leeds, LS16 6QE
T: 0113 274 7700 F: 0113 274 7711 E-mail: [email protected] Website: www.myddletoncroft.co.uk
Myddleton Croft Ltd is authorised and regulated by the Financial Services Authority. Registered in England & Wales number 05782909. VAT number UK 889 241088.
ASSET ALLOCATION
PORTANT INFORMATION
is information has been approved for distribution
retail and professional investors only. Theormation in this document is believed to be
rrect but cannot be guaranteed. Pastrformance is not a guide to future performance
d may not be repeated. The value of investments
d the income from them may go down as well asand investors may not get back the amounts
ginally invested. Before contemplating anyansaction, you should consult your financial
viser. This material is not intended as an offer or
licitation for the purchase or sale of any securityany other action, without first seeking advice as
the suitability of it for your needs.
Platform performance / allocation may differ from
odel depending on platform availability ofderlying investments.