MPS update

The old trading adage of ‘sell in May and go away’ has not been fruitful thus far in 2018 with good equity returns available in both May and July.  Despite the on-going trade disputes between President Trump and China, most major equity markets were up last month as strong company earnings growth was seen in both the US and Europe – although a handful of names have failed to live up to expectations namely Facebook which dived more than 20% in after hours trading having missed analyst projections on revenue and daily active users.  The oil price fell with Brent Crude down 6%, giving back some of the gains made in Q2 which pared some of the gains from the UK stock market given its large weighting to the energy sector. 

Investing in Growth companies (those that are delivering strong earnings growth) has been the go-to style during 2017 and the first half of 2018 with technology stocks leading the way, dramatically outperforming the Value style (buying cheap/unloved shares).  July saw a slight reversal in this, with two of our value managers posting good returns in their respective regions: Man GLG Japan Core Alpha and JP Morgan US Equity Income.  Our bond allocation was positive, helped by M&G Optimal Income and Schroders Strategic Credit, whilst within alternatives HICL infrastructure was the standout performer, up over 10% as a number of the listed infrastructure names bounced on the news John Laing Infrastructure had received a takeover approach.

Cazenove Capital 

MPS Model

Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Cumulative return
  since launch*
Core Models
Cautious 1.2% -0.9% 0.8% 0.0% 1.2% -0.4% -1.0% -1.0% 1.8% 1.0% -0.2% 0.9% 13.7%
Balanced 1.5% -1.1% 1.5% -0.1% 1.5% -0.1% -1.2% -1.8% 2.5% 1.7% -0.3% 1.1% 19.2%
Growth 1.5% -1.1% 1.9% -0.2% 1.9% -0.1% -1.4% -2.5% 3.5% 2.3% -0.3% 1.3% 25.1%
Aggressive 1.6% -1.1% 2.1% -0.4% 1.9% 0.0% -1.4% -3.1% 4.1% 2.7% -0.3% 1.5% 28.7%
Equity Risk 1.7% -1.2% 2.5% -0.4% 2.0% 0.2% -1.5% -3.5% 4.2% 3.1% -0.3% 1.7% 31.8%
Balanced Inc 1.5% -1.0% 1.3% -0.1% 1.5% -0.4% -1.1% -1.6% 3.0% 1.5% -0.2% 1.3% 20.1%
Active/Passive Models
Cautious 1.1% -0.7% 1.1% -0.4% 1.2% 0.0% -0.9% -0.8% 1.6% 1.0% -0.2% 1.1% 4.4%
Balanced 1.4% -0.9% 1.7% -0.5% 1.4% 0.2% -1.1% -1.6% 2.3% 1.7% -0.1% 1.6% 6.7%
Growth 1.6% -1.0% 2.2% -0.6% 1.7% 0.1% -1.3% -2.2% 3.1% 2.4% -0.1% 1.9% 8.8%
Aggressive 1.7% -1.1% 2.4% -0.8% 2.0%  0.0% -1.4% -2.7% 3.5% 3.0% 0.0% 2.3% 10.1%
Equity Risk 2.0% -1.3% 2.7% -0.7% 2.0%  0.2% -1.4% -3.1% 3.7% 3.3% 0.0% 2.6% 11.3%

*Cazenove Capital MPS Core Models launched on 1st July 2016. Cazenove Capital MPS Active/Passive Models launched on 1st July 2017. 
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.

 

Contact Cazenove Capital

To discuss your DFM requirements, or to find out more about our services and how we can help you, please contact:

Nick Georgiadis

Nick Georgiadis

Head of DFM Team nick.georgiadis@cazenovecapital.com
Simon Cooper

Simon Cooper

Business Development Director simon.cooper@cazenovecapital.com