Quarterly Newsletter

Winter 2017

18/01/2017

Very few of us expected that the UK stockmarket would be up almost 17% and global equity indices close to 30% in 2016. Of course much of this is down to the weakness in sterling, a reality that was discussed at length in the Neville household over Christmas as I made the case for 2017 being the year of the ‘staycation’. It is also a stark reminder that markets and stocks often find good reasons for performing differently to collective expectations in the short to medium term.

More recently equity markets have been supported by stronger economic data and the talk of ‘reflationary’ policies under the new President. This is leading to forecasts of stronger earnings, which are further supported for UK companies by the translation effect. However, it is not yet clear whether this will support ongoing strength in markets or allow valuations to return to more normal levels. Whichever the outcome there is likely to be more volatility, as the authorities shift their focus from the market palliative of monetary policy (low interest rates and quantitative easing) to more fiscal support (infrastructure spending), potentially exacerbated by protectionist rhetoric or European elections.

My sense is that whilst maintaining our focus on the longer term, we will also need to be nimble in addressing cashflow requirements or market opportunities. I look forward to seeing many of you at meetings and our events to discuss the progress through 2017.

Feature article

Progress - A report from the annual Charity Investment Forum held at the Institute of Engineering and Technology

Market Update

January Market Update

Infographic

Globalisation in crisis

Other news

  • We welcome Amy Browne, Portfolio Manager, and Michelle D’Arcy, Client Services Executive, to the team.

    Amy joins us as a Portfolio Manager from GAM, where she looked after charity and private client investments. Amy began her career at Sarasin & Partners in 2010. 

    Michelle has three years’ experience in the industry and was previously an Investment Assistant at Ruffer and PAAMCO. Michelle has a BA (Hons) in Public Relations from University of Lincoln. 

  • Lucinda Napier recently became Chairman of the Cazenove Charitable Trust, taking over from Edward Harley.

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Rebecca Pink

Tel: 020 7658 6414 

rebecca.pink@cazenovecapital.com

The opinions contained herein are those of the author and do not necessarily represent the house view. This document is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Cazenove Capital does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Cazenove Capital has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Cazenove Capital is part of the Schroder Group and a trading name of Schroder & Co. Limited 12 Moorgate, London, EC2R 6DA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. For your security, communications may be taped and monitored. 

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Achieving your charity's investment objectives takes time and thought. To find out how we can help you please contact:

Giles Neville

Giles Neville

Head of Charities giles.neville@cazenovecapital.com
John Clifton

John Clifton

Business Development Manager john.clifton@cazenovecapital.com