latest platform factsheets & managers' comments
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7/29/2019 Latest Platform Factsheets & Managers' Comments
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NVESTMENT MANAGERS:
atrick Toes
Investment Director with over
20 years experience in fund
management. Previously a
member of Rensburg
heppards Asset Allocation and Fund
election Committees for over 9 years.
David Cowell
Chief Executive, possessing
over 40 years experience in
MONTHLY COMMENTARY DECEMBER 2012
On PlatformOn PlatformOn PlatformOn Platform
5 years of performance a marathon not a sprintAlthough we have been running client portfolios since 2006, our model portfolio records start at the end of 2007
which means we are now able to show a five year performance record. We strongly believe that managing
clients investments should be viewed as a marathon not a sprint and whilst 2012 has been a year where we
have lagged a little - mostly in the last quarter - I would draw your attention to our longer term performance
(marathon). This record is one where we have acted to protect capital given the difficult investment landscape
and we have been successful in that regard. Our balanced and flexible approach (we often refer to it as avoiding
the potholes or mitigating their effect with the shock absorbers in our portfolios) is in many ways the antithesis
of the benchmark-hugging and high equity content of many of our peers. In the volatile markets we have been
through and which we expect will remain for some years to come, we feel a more risk conscious and absolute
return mentality should be at the forefront. We are mindful that there have been four corrections of 15% in
equity markets over the last four years or so. In such circumstances outcomes for portfolios with structurally high
e uit content offer binar outcomes; it oes u a lot or down a lot, which is fine in ood ears but sava e to
For further information call :
0113 274 7700Email : [email protected]
Or visit us at :
,
years being investment
management focussed.
SALES:
ulie Jones
Julie has over 20 yearsexperience of working in
investment sales and
marketing, previously as Headf UK Retail Sales for BNY Mellon
Newton Investment Management).
investors capital, when not.
Myddleton Crofts Balanced Moderate risk model (platform clients) has risen by 19% which compares favourably
with a 12.56% return for the IMA 20-60% equity sector. Moreover, our Speculative risk model has grown by
16.42%, outpacing its benchmark IMA 40-85% which has risen by 10.07%.
2012 review
2012 was a year of moderate returns as you can see from
the table opposite, however, it wasnt always that way
throughout the year. Worries over Greece and the
periphery of Europe moved back into the headlines,
particularly through the second quarter of the year, to be
met with firm resolve by Mario Draghi to do whatever it
takes to protect the Euro. Just as that threat saw risk
assets rally in Europe, so too did Bernankes and other
central bank action.
2012 was not a year of strong profit growth; quite the opposite. Stockmarkets rallied significantly more than the
growth in corporate earnings in 2012 and a similar situation took place in bond markets where sovereign debt
rose very modestly but the lowest grade of debt (high yield) rallied strongly. Investors confidence to take on
more risk in both equity and bond markets was the key driver of returns in 2012. Sovereign bonds rose but far
more modestly than in 2011 and modestly too in respect of the expansion of central banks balance sheets. The
dire straits of 2011 were gone but their legacy remains money fornothin andyour debts forfree (excuse the pun).
To cap it all off, the worries over US tax rises coming
into force at the end of 2012, known as fiscal cliff, were
misplaced as eventually politicians fudged a solution.
The effect was that e uit markets moved stron l
IMPORTANT INFORMATION
This information has been approved fordistribution to professional investors. The
information in this document is believed to becorrect but cannot be guaranteed. Opinions and
forecasts constitute our judgment as at the date of
issue and are subject to change without notice.
Certain investments carry a higher degree of risk
than others and are, therefore, unsuitable for someinvestors. Past performance is not a guide to future
performance and may not be repeated. The valueof investments and the income from them may go
down as well as up and investors may not get back
the amounts originally invested. Beforecontemplating any transaction, you should consult
your financial adviser. This material is not intendedas an offer or solicitation for the purchase or sale of
any security or any other action, without first
seeking advice as to the suitability of it for yourneeds.
* Platform performance / allocation may differ frommodel depending on platform availability of
underlying investments.
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.
www.myddletoncroft.co.uk higher in the last week of the year and the beginning ofthe New Year. Clearly all our worries have gone away,
all our problems have been solved, the stalls have been
openedand its off to the races. Or not?
And so to our outlook for the year and further ahead.
We see two distinctly different scenarios which could
unfold in the year ahead. Confidence is the key as to
whether we see a replay of 2011 or 2012
markets. We expect growth in developed markets to be modest and slower than currently expected. This would
mean 2013 will look very similar to 2012. In 2012 low growth was ignored and more positive investor
psychology pushed valuations higher, this effect typically accounting for two thirds of the returns seen in
equities. A reprise of 2012s low earnings growth and improving sentiment is our positive scenario. Alternatively,
our negative scenario would see low growth allied to flat or worsening sentiment, more akin to 2011.
You will often hear that equities are cheap relative to history, particularly the period prior to 2008. We would
caution against wholly accepting such a premise,. The chart below compares a more normal level of GDP
growth in the States of 3% as opposed to the current slower growth environment. The valuation on the USmarket of 13x 2013 earnings seems cheap in the context of history but much less so in a slower growth
environment. We would extend this thesis broadly to other developed economies. We are not suggesting that
equity valuations cannot rise further towards the top end of the slower growth range at 17x but it is worth
noting we are trading above the average.
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7/29/2019 Latest Platform Factsheets & Managers' Comments
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Myddleton Croft Investment Managers
Balanced Moderate Risk Model
Myddleton Croft Investment Managers
Balanced Moderate Risk Model
You could call it ironic that US stocks are at five year highs
despite the fact that the 3rd quarter earnings were very
disappointing. It seems likely that the 4th quarterreporting season (starting January 8th 2013) will also
disappoint. Make no mistake, when a public company
sets earnings guidance these numbers are very
conservative, and they expect to beat them comfortably
in a healthy business environment. The fact that
companies currently have to struggle to meet
expectations shows how difficult it is from a corporate
profit standpoint.
The global manufacturing PMI index has proved a good
indicator of equity markets over the last few years. The
chart below illustrates that there have been periods of
confidence (green lines) where equity prices diverged
NVESTMENT MANAGERS:
Patrick Toes
Investment Director with over
20 years experience in fund
management. Previously a
member of Rensburg
heppards Asset Allocation and Fund
election Committees for over 9 years.
David Cowell
Chief Executive, possessing
over 40 years experience in
financial services, with over 25
years being investment
Continued/DECEMBER 2012
.
Gilts and western sovereign bonds, which for recent years have been the default safe haven, have seen their
yields fall to very low levels, pushed by risk aversion and Bernanke et al continuing to use the printing press. We
see considerable risk to capital of investing both in this area and long duration (investment grade) credit over
the medium term. We expect there will be consequences to central banks efforts to avoid deflation which
include much higher inflation down the road. In effect it is a Scylla and Charybdis dilemma: in attempting to
avoid the first peril it almost assures capture by the second. Our solution is to position with short duration to avoid
from macro fundamentals. In these cases there were no
instances of a strong pick up in Global PMI andsubsequently the market corrected. We need to keep in
mind that there are some risks should growth remain
subdued that this confidence based rally may correct. We would also highlight that when comparing developed
markets to emerging markets manufacturing PMI, the latter has seen a pick up inferring that emerging markets
are not as stretched as developed markets in valuation terms.
We have been minded to agree that confidence is improving
even though growth continues to look anaemic and we have
increased equity exposure toward the end of the year. Small
companies valuations look attractive with drivers such as
M&A and cheap valuation looking likely to assist their
performance. This is an area we have added to recently. We
remain overweight in Asia & emerging markets whose
outlook seems to be improving and we will look to add to
that area should we see some weakness. However, we havemaintained exposure to defensive areas as we see those
areas less susceptible to disappoint, and should hold up
betterif we seesentiment wane.
management focussed.
SALES:
ulie Jones
Julie has over 20 yearsexperience of working in
investment sales and
marketing, previously as Head
f 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
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 to
professional investors. The information in thisdocument is believed to be correct but cannot be
guaranteed. Opinions and forecasts constitute ourudgment as at the date of issue and are subject to
hange without notice. Certain investments carry ahigher degree of risk than others and are, therefore,
unsuitable for some investors. Past performance is not
guide to future performance and may not beepeated. The value of investments and the income
rom them may go down as well as up and investorsmay not get back the amounts originally invested.
Before contemplating any transaction, you should
onsult your financial adviser. This material is notntended as an offer or solicitation for the purchase or
ale of any security or any other action, without first
eeking advice as to the suitabilityof it for your needs.
Platform performance / allocation may differ from
model dependingon platform availability of underlyingnvestments.
.
However this brings up a second issue: short duration often comes hand in hand with lower quality debt which
is highly correlated to equity returns. We note many of our peers have positioned in the riskiest end of fixedinterest. We are concerned that in such positioning little diversification is being exercised and, should equities
markets fall, so will the so-called safety element of a portfolio. In effect it is like playing roulette and betting on
black - the numbers bet on are irrelevant shouldit come up red.
Squaring this circle seems difficult but we have tried to find a balance. On the one hand by owning very little sovereign
debt and on the other, some of the more attractive areas in high yield and emerging market debt, whilst carrying a
high exposure to the US dollar as a safe haven which rallies in a time of stress, much like sovereign bonds but more
attractively priced. We consider the US dollar will provide a good hedge against tail risk and we have positioned
ourselves against the herd. We continue to hold gold which still remains under-owned and offers protection for both
left and right tail risk (deflationand inflation) scenarios.
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Myddleton Croft Defensive Risk Model DECEMBER 2012
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
2012 PERFORMANCE
services, with 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
and may not be repeated. The value of
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 Latest Platform Factsheets & Managers' Comments
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Myddleton Croft Cautious Risk Model DECEMBER 2012
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
2012 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, withoutt 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 Latest Platform Factsheets & Managers' Comments
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IMPORTANT INFORMATION Myddleton Croft Moderate Risk Model DECEMBER 2012
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
2012 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 may not be repeated. The value 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 Latest Platform Factsheets & Managers' Comments
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Myddleton Croft Progressive Risk Model DECEMBER 2012
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 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
2012 PERFORMANCE
being investment management
ocussed.
SALES:
ulie Jones
Julie has over 20 yearsexperience of working 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
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 i n 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.
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7/29/2019 Latest Platform Factsheets & Managers' Comments
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Myddleton Croft Adventurous Risk Model DECEMBER 2012
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 fund
management. Previously a
member of Rensburg Sheppards
sset Allocation and Fund Selection
ommittees for over 9 years.
avid Cowell
Chief Executive, possessing over
40 years experience in financial
2012 PERFORMANCE
,
being investment management
cussed.
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
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 may not be repeated. The value 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 Latest Platform Factsheets & Managers' Comments
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Myddleton Croft Speculative Risk Model DECEMBER 2012
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 Selection
ommittees for over 9 years.
avid Cowell
Chief Executive, possessing over
40 years experience in financial
2012 PERFORMANCE
,
being investment management
cussed.
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
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 anynsaction, 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.