Portfolio Update June 2011
Our Team
In autumn 2009, following a period of high volatility in all major investment sectors - particularly in equities - we constructed three model portfolios designed to provide exposure to appropriate markets - but with lower volatility than the relevant sector averages.
The three portfolios that we chose initially were:
a) UK Equity,
b) Overseas Equity and
c) Bond
The performance of each portfolio for the period to 30 June 2011 is set out below and we are delighted that over the year the volatility in all of the portfolios has been below the sector average and that of the benchmark.
| 3 Months | 6 Months | 12 Months | Since Inception | |
|---|---|---|---|---|
| UK Equity | 2.1% | 2.6% | 22.4% | 31.2% |
| FTSE All Share |
1.2% | 1.9% | 25.6% | 33.7% |
| Overseas Equity |
1.6% | -0.7% | 19.4% | 35.3% |
| MSCI World ex UK |
-1.0% | 2.8% | 21.5% | 33.8% |
| Bond |
1.6% | 3.9% | 6.2% | 15.6% |
| IBOX Stg Corp All Mats | 1.7% | 3.8% | 6.2% | 15.6% |
UK EQUITY PORTFOLIO
We have incorporated Equity Income funds in the portfolio design with the aim of obtaining exposure to high dividend yielding equities.
OVERSEAS EQUITY PORTFOLIO
Since inception we have continued to advise a reduced exposure to European Equities in favour of US and emerging markets linked equities.
BOND PORTFOLIO
With interest rates predicted to stay low for some time the recommended bond portfolio offers an income yield of 3.9% with some protection against rising inflation.