TAVISTOCK PB PROFILES
JUNE 2017 Performance

Manager Commentary

Theresa May’s gamble to hold an early general election spectacularly backfired as the Conservative Party failed to regain a majority in the House of Commons. Despite winning the largest share of the vote since Margaret Thatcher’s post-Falklands victory in 1983, the Tories will now have to rely on a patchwork “confidence and supply” deal with the Democratic Unionist Party of Northern Ireland. The result is an “own goal” for the Prime Minister and her position as leader has been badly compromised. The government’s negotiating position on Brexit has been weakened and the direction of the upcoming talks in Brussels has become less clear. The initial reaction in UK markets was muted, but investor confidence in the stability of the government has been dented. By the end of the month, the FTSE 100 had fallen -2.76% and the FTSE 250 declined -3.16%. The UK government bond market also came under heavy selling pressure following signals from the Bank of England that interest rates could potentially rise in the second half of the year. Inflation has climbed to 2.9% so it is little surprise that ten-year gilt yields rose sharply from 1.05% to 1.26%. This trend is likely to continue following comments from ECB President Mario Draghi, stating that he is prepared to taper back the quantitative easing programme on further evidence of a recovery in the eurozone. Sterling rose 1.06% versus the US dollar and closed marginally below its highest level in more than one year. Commodity markets were weaker and the GSCI declined -1.80%. Gold fell -2.12% and the price of WTI oil lost -4.72% before finishing at $46.04 per barrel. Investor rotation away from long-dated government securities into short-dated corporate bonds and equities is underway. Portfolio diversification across global markets will be vital over the summer months, especially on a currency hedged basis.

Tavistock PB PROFILE 3

Tavistock PB PROFILE 3 returned -0.53% in June. The Market Composite Benchmark and the IA Mixed Investment 0-35% Shares sector returned -0.31% and -0.64% respectively. The profile has a rolling 1-year return of 5.27%.

JUNE 2017 Return

-0.53%

YTD

1.71%

1 Year Rolling Return

5.27%

Tavistock PB PROFILE 4

Tavistock PB PROFILE 4 returned -0.64% in June. The Market Composite Benchmark and the IA Mixed Investment 20-60% Shares sector returned -0.29% and -0.64% respectively. The profile has a rolling 1-year return of 8.26%.

JUNE 2017 Return

-0.64%

YTD

2.04%

1 Year Rolling Return

8.26%

Tavistock PB PROFILE 5

Tavistock PB PROFILE 5 returned -0.73% in June. The Market Composite Benchmark and the IA Mixed Investment 20-60% Shares sector returned -0.27% and -0.64% respectively. The profile has a rolling 1-year return of 10.52%.

JUNE 2017 Return

-0.73%

YTD

2.65%

1 Year Rolling Return

10.52%

Tavistock PB PROFILE 6

Tavistock PB PROFILE 6 returned -0.92% in June. The Market Composite Benchmark and the IA Mixed Investment 40-85% Shares sector returned -0.25% and -0.79% respectively. The profile has a rolling 1-year return of 13.43%.

JUNE 2017 Return

-0.92%

YTD

3.40%

1 Year Rolling Return

13.43%

Tavistock PB PROFILE 7

Tavistock PB PROFILE 7 returned -1.05% in June. The Market Composite Benchmark and the IA Flexible Investment sector returned -0.23% and -0.52% respectively. The profile has a rolling 1-year return of 17.73%.

JUNE 2017 Return

-1.05%

YTD

4.11%

1 Year Rolling Return

17.73%

Tavistock PB PROFILE 8

Tavistock PB PROFILE 8 returned -1.20% in June. The Market Composite Benchmark and the IA Flexible Investment sector returned -0.21% and -0.52% respectively. The profile has a rolling 1-year return of 20.08%.

JUNE 2017 Return

-1.20%

YTD

4.54%

1 Year Rolling Return

20.08%

Tavistock PB Income

Tavistock PB Income returned -0.95% in June. The Market Composite Benchmark and the IA Mixed Investment 20-60% Shares sector returned -0.27% and -0.64% respectively. The profile has a rolling 1-year return of 9.59%.

JUNE 2017 Return

-0.95%

YTD

3.16%

1 Year Rolling Return

9.59%

The value of investments held 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. The Tavistock PB PROFILES are a white-labelled offering based on the DFM Portfolio Management Service provided by PB Financial Planning Limited, a wholly owned subsidiary of Tavistock Investments Plc. PB Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. The inception date of the PB Financial Planning DFM Portfolio Management Service is 18/02/08. All Tavistock PB PROFILE performance data up until 31/12/16 has been provided by PB Financial Planning Limited and has been calculated using FE Analytics. As of 01/01/17, all Tavistock PB PROFILES invest in a blend of the ACUMEN Portfolio range. All performance data thereafter is provided by Tavistock Wealth Limited. Source of data: PB Financial Planning Limited, Tavistock Wealth Limited, FE Analytics, Thomson Reuters and Lipper for Investment Management unless otherwise stated.