April 2017 Performance
Prime Minister Theresa May finally succumbed to the mounting pressure from within the Conservative Party to hold an early general election on the 8th of June 2017. This is a calculated risk and is likely to be a shrewd move that will redefine the UK political landscape for the next five years. The opposition parties remain in complete disarray and polls indicate that the Conservatives will increase their majority in the House of Commons to over 150 seats, which will give the government a stronger mandate in the difficult Brexit negotiations. Sterling surged 3.20% versus the US dollar to 1.29 and the mid-cap FTSE 250 climbed 3.39%. The large-cap FTSE 100 fell -1.62% in response to the rally in the pound. Emmanuel Macron of the social-liberal party En Marche! won the first round of the French presidential election and will enter the second round as the strong favorite to defeat Marine Le Pen of the right-wing National Front. These political outcomes are good omens for the continuation of economic growth on both sides of the English Channel. The enigma of the Trump administration is gathering pace and his 100-day report card is difficult to interpret. US equity markets continue to believe in his pro-growth agenda, but have been frustrated with the lack of detail in his tax reform package and are increasingly concerned about military conflict with North Korea. The S&P 500 rose 0.91% and the MSCI World climbed 1.33%. Government bond markets in the UK and US offer a safe-haven refuge amidst the growing tension in Northeast Asia, but ultimately the rise in inflation will undermine current valuations. Commodity markets traded lower as the GSCI fell -2.18%. Crude oil declined -2.51% to close at $49.33 per barrel. Geopolitical risks remain high, but economic fundamentals are improving in much of the world, which bodes cautiously well for performance during the remainder of the year.
ACUMEN Conservative Portfolio
The ACUMEN Conservative Portfolio returned -0.18% in April and the IA Mixed Investment 20-60% Shares sector rose 0.04%. The portfolio has a rolling 1-year return of 13.18%.
ACUMEN Income Portfolio
The ACUMEN Income Portfolio returned -0.67% in April and the IA Mixed Investment 20-60% Shares sector rose 0.04%. The portfolio has a rolling 1-year return of 12.60%.
ACUMEN Progressive Portfolio
The ACUMEN Progressive Portfolio returned 0.49% in April and outperformed the IA Mixed Investment 40-85% Shares sector, which fell -0.06%. The portfolio has a rolling 1-year return of 15.97%.
ACUMEN Adventurous Portfolio
The ACUMEN Adventurous Portfolio returned 0.69% in April and outperformed the IA Flexible Investment sector, which fell -0.26%. The portfolio has a rolling 1-year return of 16.08%.
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 Wealth Limited, Thomson Reuters and Lipper for Investment Management unless otherwise stated.