TW 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.

TW PROFILE 3

TW PROFILE 3 returned -0.41% 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 7.70%.

JUNE 2017 Return

-0.41%

YTD

2.37%

Rolling 1-Year Return

7.70%

TW PROFILE 4

TW PROFILE 4 returned -0.58% 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 10.87%.

JUNE 2017 Return

-0.58%

YTD

3.42%

Rolling 1-Year Return

10.87%

TW PROFILE 5

TW PROFILE 5 returned -0.94% 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 13.42%.

JUNE 2017 Return

-0.94%

YTD

4.81%

Rolling 1-Year Return

13.42%

TW PROFILE 6

TW PROFILE 6 returned -1.02% in June. The Market Composite Benchmark and the IA Mixed Investment 40-80% Shares sector returned -0.25% and -0.79% respectively. The profile has a rolling 1-year return of 15.15%.

JUNE 2017 Return

-1.02%

YTD

5.47%

Rolling 1-Year Return

15.15%

TW PROFILE 7

TW PROFILE 7 returned -1.00% 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 17.46%.

JUNE 2017 Return

-1.00%

YTD

6.63%

Rolling 1-Year Return

17.46%

TW PROFILE 8

TW PROFILE 8 returned -1.19% 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 19.06%.

JUNE 2017 Return

-1.19%

YTD

7.06%

Rolling 1-Year Return

19.06%

The value of an investment 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. Source of data: Tavistock Wealth Limited, Thomson Reuters and Lipper for Investment Management unless otherwise stated.