Nick Georgiadis: second quarter 2019

With central banks adopting a supportive stance, equities performed well in the quarter. Portfolios have benefited, but we are mindful of rising risks.



Nick Georgiadis
Head of DFM Team

Equities notch up another quarter of gains, but with divergent performance

UK shares rose 3% during the period, slightly lagging global equities. Emerging markets and Japan, both highly dependent on global trade, were flat or slightly lower during the period.

Marked shift in US interest rate expectations

At the end of last year, investors were expecting the Federal Reserve to increase interest rates three times in 2019. By the end of June, they were expecting three cuts.

Portfolios performed well but we are mindful of risks

We maintained our equity positions through the first half of the year and benefited from the rebound in share prices. However, with growth slowing and continued political risks, we are ready to shift to a more defensive stance when required.

This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

All data contained within this document is sourced from Cazenove Capital unless otherwise stated.


Nick Georgiadis
Head of DFM Team


The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.