SEPTEMBER 2014

NEWS

RC Brown along with the team who launched Alpha Portfolio Management continue to grow assets under management strongly.

PERFORMANCE

Performance has been excellent and as we intended – to produce above average returns with low than average volatility by seeking a broad range of investment management styles, assets and geographies. We would be delighted to provide up to date performance data on request.

 

INVESTMENT OUTLOOK

 

The recent setback in equities as a result of political tensions in Russia/Ukraine and Gaza show how markets dislike uncertainty.  The Russia situation is of particular concern to European markets given exports to the region and their reliance on Russian oil & gas.

 

The UK is anticipated to be one of the first developed economies to raise interest rates since the financial crisis.  Following Mark Carney’s recent comments, that is now unlikely to be until next year.  Regardless of when the first rate rise comes, it is expected that rates will remain far below their long run average of 5% for many years to come.  Despite recent strong growth in the UK, inflation remains low at 1.5% and the UK has only just surpassed its previous GDP peak prior to the financial crisis in 2008.

 

Whilst equities no longer appear cheap and much of the ‘easy’ gains been made, for the patient longer term investor, equities offer a growing dividend yield of 3.3% and exposure to global growth whilst representing better value than government bonds which remain expensive or cash.

 

 

Past performance is not necessarily a guide to future performance.  The value of investments and the income from them can go down as well as up and investors may not get back the amounts originally invested.