Whitechurch Asset Views - October 2018
Below are the key factors that have influenced investment markets in recent weeks, followed by our current position. You can download the full report of our detailed review of the markets and positioning of our portfolios...
Japanese stockmarkets were the strongest performers in September.
Investors were turning Japanese in September, with this market rallying strongly and the Nikkei benchmark reaching its highest level since 1991.
Best and worst fund performance
Looking at fund performance in September, the Japanese market rally meant the IA Japan was the best performing sector, returning 2.4%.
Mixed sentiment across the globe
Away from Japan there was little momentum. Other developed markets showed little progress and Asia and Emerging Markets continued to suffer outflows with geopolitical issues and trade war concerns weighing on investor sentiment.
UK blue chips show signs of recovery
The UK stockmarket had a more positive month, although it was primarily driven by miners and oil stocks due to the rising oil price and increased Chinese economic activity.
Currency diversification dragged on performance
Although holding a basket of currencies has been positive for UK investors this year, September provided a reminder of the risks of holding overseas investments when sterling strengthens.
A tricky month for bond investors
Defensive government bonds and investment grade bonds saw a sell-off in September.
The best of the rest
Commercial Property had a steady month and is proving a good bedrock within our cautious and balanced portfolios.
Going forward we still believe that interest rate policies at home and overseas will be key drivers of asset prices.