Investment Model Portfolios for Adviser Firms

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Commercial Property

The recent news that M&G Investments have chosen to suspend dealing in their UK Commercial property fund has once again caused consternation from numerous commentators as there will be a an indeterminate period in which investors in the fund will not be able to redeem or trade units.  It has been applied because of increased withdrawals from the fund due to Brexit-related uncertainty. [click to continue…]

GDIM Investment Market Review & Outlook October 2019

The political landscape in the UK has shifted significantly in the last three months, but the future remains as uncertain as ever, especially in relation to Brexit. We continue to monitor the situation, and have further reduced our exposure to UK assets as a defensive measure.

The prospects for the addition and withdrawal of trade tariffs between the US and China, and others, have continued to move global markets, including weakening areas of the global economy in some regions too, significantly Europe, due to its heavy reliance on trade. However, we also see potential for more positive economic news in the near future as growth in the service industry may provide economic stability for countries that have previously relied on manufacturing.

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The second quarter of 2019 contained a huge amount of political noise, with Brexit weighing on everyone’s minds, the US:China Trade War continuing to rumble on, and India welcoming the re-election of their Prime Minister with an improved majority.

All of these issues affected asset prices across the board at various points over the quarter but the conclusion was a continuation of the healthy returns we had enjoyed in the first three months of 2019. [click to continue…]

Investment Market Review & Outlook April 2019

Stock markets rose through the first quarter of 2019, a reassuring counterpoint to the falls we saw at the end of 2018.

We have a more defensive approach in most portfolios at the moment as we expect lower growth this year. Holding enough risk to make gains in positive periods is key, but not at the expense of our risk-mitigation strategies, which we believe will be essential this year. [click to continue…]

Investment Market Review Q1 2019

2018 saw the culmination of a series of economic risks; US interest rates; the approaching end of the economic cycle; trade wars and other geopolitical issues; and of course Brexit. In terms of markets, it was one of the toughest years we have seen since the Global Financial Crisis in 2008. In this environment, there have been very few positives and we saw some drops in portfolios as result. [click to continue…]

GDIM Market Review & Outlook October 2018

Throughout the final quarter of 2018, the ever-changing US trade policy was the major event affecting stock market activity, but both US and Asian markets reacted very differently to each other.  In addition to this, the US initiated a further interest rate rise in September, with a further rise forecasted for December.

The effect of these steadily rising rates shouldn’t cause too much harm to equity markets, as it looks like companies are well-placed to deal with less generous financial conditions, but those with high levels of debt may find it increasingly difficult to do so.

GDIM Investment Market Review & Outlook October 2018GDIM Investment Model Portfolio Performance October 2018In the US, Europe and Emerging Markets, economic fundamentals remain strong, and we believe that these are likely to be the strong foundations on which to build success. The next earnings season starts again in October, and will provide us with a further indication of the health of the market. We anticipate that most companies will demonstrate further positive progress, though perhaps not at the rate we saw earlier in 2018, as the effects of tax cuts start to dissipate.

In the UK, we saw assets struggle to make progress as Theresa May failed to make any significant headway in her Brexit negotiations. As the March 29th 2019 deadline looms, it is essential that we see a resolution soon, and we are continuing with our low UK holdings to protect against the potential negative outcomes of this.

For further information, please read our full Investment Market Review & Outlook:

GDIM Investment Market Review & Outlook Q4 – October 2018

GDIM Investment Model Portfolio Performance Sheets Q4 – October 2018

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Cargo ship - investment market review

The unwelcome volatility at the beginning of the year was succeeded by a period of good stock market progress, though pockets of uncertainty were evident at times.

Investors warmed to the ideas that spooked them earlier in the year as inflation worries subsided and were replaced by fears of escalating ‘trade wars’, fuelled by the US’s tariffs on many countries, including some of its allies. Another interest rate rise from the US was accepted by markets without much fuss and most developed market bonds ended up broadly flat after yields on the 10-year US Treasury moved up to 3%, a level which seems to deter further selling. [click to continue…]

GDIM Investment Market Review & Outlook

The first quarter of 2018 finished in a very different fashion to the one it started in.  Recent moves have highlighted uncertainty and brought back volatility that was missing for most of last year.

While these stock market movements were arguably overdue, we believe that they will also be short-lived and that, while elevated levels of movement may be more frequent this year, they will not be here for good.  Bond markets also fell over the quarter but many regained their losses by the end of March and the fears over interest rate increases in the US subsided, though these are likely to re-emerge as we move into the summer.

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Tom Sparke, Investment Manager

Stock market indices have fallen over the last 24 hours on the widely expected introduction of trade tariffs by the US, mainly directed at China, to come into effect in around a month’s time (after a ‘comment period’), meaning that the uncertainty caused by these moves may be prolonged.

From the details that have emerged, the tariffs will likely affect $50bn worth of imported goods and the proposed tariff level will be 25%, which the White House believe will be sufficient to block trade in the affected areas.  The list of specific goods to be targeted will be released early next week but will include aerospace, information communication technology, and machinery.  The tariffs themselves will not have a fundamental impact on China (initial estimates show this would affect around 0.25% of China’s GDP), but the larger worry is over the potential escalation of these measures and a descent into a ‘trade war’.

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Ethical Investments

From Blue Planet II showing how our oceans are full of plastic or the banning of plastic microbeads in soaps and cosmetics to the rise of Fairtrade products, it has been hard to escape the realisation that people are waking up to ethical and environmental concerns. This increasing awareness isn’t just limited to the physical products we buy, either – more investors are choosing portfolios that support their views on social and ethical concerns as well as meeting their financial goals and objectives. [click to continue…]