direct factsheet sept 12

7/31/2019 Direct Factsheet Sept 12

1/9

Myddleton Croft Investment Managers, 1 Woodside Mews, Clayton Wood Close, Leeds, LS16 6QET: 0113 274 7700 F: 0113 274 7711 E-mail: [email protected] Website: www.myddletoncroft.co.uk

Myddleton Croft Ltd is authorised and regulated by the Financial Services Authority. Registered in England & Wales number 05782909. VAT number UK 889 241088.Registered office: 11 Clifford Avenue, Ilkley, LS29 0AS.

MANAGERS MONTHLY COMMENTARY SEPTEMBER 2012

INVESTMENT MANAGERS

Patrick Toes

Investment Director with over 20 years

experience in fund management. Previously

a member of Rensburg Sheppards Asset

Allocation and Fund Selection Committees

for over 9 years and former chairman of thosecommittees at BWD Rensburg, he holds a MSC in

Investment Analysis and is an Associate Member of the

Society of Investment Professionals (ASIP).

David CowellChief Executive, possessing over 40 yearsexperience in financial services, with over 25

years being investment management

focussed. David formulates the macro

economic position and leads the investment process

across the portfolio range. He also has over 10 years

experience of business consultancy to small andmedium sized enterprises.

For further information call :

0113 274 7700Email : [email protected]

Or visit us at :

www.myddletoncroft.co.uk

IMPORTANT INFORMATION

This i nformation has been approved for d istribution toprofessional investors only. The information in this

document is believed to be correct but cannot be

guaranteed. Past performance is not a guide to future

performance and may not be repeated. The value of

investments and the income from them may go down as

well as up and investors may not get back the amounts

originally invested. This material is not intended as anoffer or solicitation for the purchase or sale of any

security or any other action, without first seeking advice

as to the suitability of it for your needs.

INVESTING IN A STATE OF PARADOX

It was the best of times, it was the worst of times, it was the age of wisdom, it was

the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it

was the season of Light, it was the season of Darkness, it was the spring of hope, it

was the winter of despair, we had everything before us, we had nothing before us,

we were all going direct to heaven, we were all going direct the other way.Charles Dickens

Whilst August was full of rhetoric about what

central banks were going to do, September has

seen action. Firstly from the German

constitutional court giving its seal of approval to

more bail outs (with limits of German exposure

stated), then the ECB instigating a variant of QEcalled OMT and new QE programmes from the

US Fed & the Bank of Japan. These factors have

lifted animal spirits and risk assets at a time

when global growth is weak and in decline and

our expectation that corporate earnings will mirror

that weakness.

We are not in the camp that believes that QE has

a meaningful economic impact; it simply provides

a sugar rush for risk assets and a subsequent low

when removed. However the Feds recent action,

QE infinity, given the commitment to keep it in

place until unemployment falls, is different to

earlier QE exercises. If you believe, as I do, that

buying mortgage debt and treasuries has little

ability to effect such a change in unemployment,you are left with the inevitable conclusion that the

printing presses may stay on indefinitely. We feel

this contradictory state or paradox will be with us

for many years to come and is the subject of our

thoughts this month.

This year is the bicentenary of the birth of Charles

Dickens. I thought the opening sentence of A

Tale of Two Cities expresses a state of paradox

very well. It put me in mind of individuals who

might have to experience paradox and how they

deal with it. Rather amusingly my first thought

was the Pushmi-Pullyu of Dr Doolittle fame:

Although it is a work of fiction it can give us some

insight to dealing with a paradoxical state. It allows

us some comic relief at expense of Dr Doolittles

alter egos: Drs Bernanke, King and Draghi - Drs

Do-toomuch or Do-whatever it takes. It has

afforded a segue to the Pushmi Pullyus eventualfate. It joined Dr Doolittles circus and in true

paradoxical fashion Drs Do-toomuch have their

own circus act, tightrope walking, in which

investors are obliged to take part. This tightrope

walk is not optional from an investors perspective,

we have to accept the reality of the situation. The

best plan is to walk straight ahead and try to get to

the other side. However one risk is the longer QE

infinity extends, the further asset prices rally and

diverge from fundamentals, setting up a risk of

future problems. The other risk on the tightrope

walk is that they run out of ink for the printing press

(a Mitt Romney presidential victory) or that

investors dont lose faith in its capacity to work.

Just like the high wire such tensions can lead to a

long fall.

HOW SHOULD WE INVEST IN THIS

ENVIRONMENT?

We are very modestly overweight equities, hoping

to benefit from QE infinity. But our focus has been

to avoid more cyclical stocks as we worry that

those may suffer from the weak growth

fundamentals most. However we think it is

incumbent that we provide a safety net, so that

should the tightrope walk fail, we have several

strategies which will protect against a fall. This

forms part of our wider investment strategy of

castle, moat and drawbridge, which we will be

talking about shortly. This strategy has proved

quite successful as evidenced by our performancethis year.

IMPORTANT NOTE:

We have taken the decision to rename two of our

risk levels, Adventurous and Highly Adventurous,

as many clients feel they do not best describe the

risks being taken. They are now called

Progressive and Adventurous respectively.

Needless to say the way we manage these

portfolios will remain unaltered.


2/9



MCIM Balanced Defensive Portfolio SEPTEMBER 2012

PERFORMANCE SINCE LAUNCH

2012 PERFORMANCE

ASSET ALLOCATION

INVESTMENT MANAGERS

Patrick Toes


experience in fund management. Previously

a member of Rensburg Sheppards Asset

Allocation and Fund Selection Committees

for over 9 years and former chairman of those

committees at BWD Rensburg, he holds a MSC in

Investment Analysis and is an Associate Member of the

Society of Investment Professionals (ASIP).

David CowellChief Executive, possessing over 40 years

experience in financial services, with over 25

years being investment management




experience of business consultancy to small and

medium sized enterprises.

Model portfolios include cost of underlying investments

and Myddleton Crofts annual management fees, but not

the charges for custodian, dealing and settlement

(equivalent to platform charges)



Or visit us at :



This information has been approved for distribution to

retail and professional investors only. The information in

this document is believed to be correct but cannot be

guaranteed. Past performance is not a guide to future

performance and may not be repeated. The value of

investments and the income from them may go down

as well as up and investors may not get back the

amounts originally invested. Before contemplating any

transaction, you should consult your financial adviser.

This material is not intended as an offer or solicitation

for the purchase or sale of any security or any other

action, without first seeking advice as to the suitability

of it for your needs.

*Clients portfolios may differ from model portfolios

dependent on their specific objectives. 19%

23%

20%

5%

7%

16%

10%UK Equities

International Equities

Alternatives

Commodities

UK Fixed Interest

Global Fixed Interest

Cash


3/9



MCIM Balanced Cautious Portfolio SEPTEMBER 2012


2012 PERFORMANCE

ASSET ALLOCATION

INVESTMENT MANAGERS

Patrick Toes


experience in fund management.

Previously a member of Rensburg

Sheppards Asset Allocation and FundSelection Committees for over 9 years and former

chairman of those committees at BWD Rensburg, he

holds a MSC in Investment Analysis and is an Associate

Member of the Society of Investment Professionals

(ASIP).


experience in financial services, with over

25 years being investment management



across the portfolio range. He also has over 10 yearsexperience of business consultancy to small and


Model portfolios include cost of underlying

investments and Myddleton Crofts annual

management fees, but not the charges for custodian,

dealing and settlement (equivalent to platform

charges)



Or visit us at :



This information has been approved for distribution

to retail and professional investors only. The

information in this document is believed to be correct

but cannot be guaranteed. Past performance is not a

guide to future performance and may not be

repeated. The value of investments and the income

from them may go down as well as up and investors

may not get back the amounts originally invested.

Before contemplating any transaction, you should

consult your financial adviser. This material is not

intended as an offer or solicitation for the purchase or

sale of any security or any other action, without first

seeking advice as to the suitability of it for your needs.*Clients portfolios may differ from model portfoliosdependent on their specific objectives.

21%

27%

18%

5%

6%

15%

8% UK Equities


Alternatives

Commodities

UK Fixed Interest


Cash


4/9



MCIM Balanced Moderate Portfolio SEPTEMBER 2012


2012 PERFORMANCE

ASSET ALLOCATION

INVESTMENT MANAGERS

Patrick Toes




Sheppards Asset Allocation and Fund

Selection Committees for over 9 years and former




(ASIP).












charges)



Or visit us at :





information in this document is believed to be correct










seeking advice as to the suitability of it fo r your needs.


dependent on their specific objectives.

ASSET ALLOCATION

23%

30%17%

4%

5%

15%

6%

UK Equities


Alternatives

Commodities

UK Fixed Interest


Cash


5/9

Myddleton Croft Investment Managers, 1 Woodside Mews, Clayton Wood Close, Leeds, LS16 6QE

T: 0113 274 7700 F: 0113 274 7711 E- mail: info@mcim. co.uk Website: ww w.myddletoncroft .co.uk

Myddleton Croft Ltd is authorised and regulated by the Financial Services Authority. Registered in England & Wales number 05782909. VAT number UK 889 241088.

Registered office: 11 Clifford Avenue, Ilkley, LS29 0AS.

MCIM Balanced Progressive Portfolio SEPTEMBER 2012


2012 PERFORMANCE

INVESTMENT MANAGERS

Patrick Toes









(ASIP).












charges)



Or visit us at :www.myddletoncroft.co.uk




information in this document is believed to be correctbut cannot be guaranteed. Past performance is not a







intended as an offer or solicitation for the purchase orsale of any security or any other action, without first

seeking advice as to the suitability of it for your needs.


dependent on their s pecific objectives.

ASSET ALLOCATION

***IMPORTANT NOTE : THE ADVENTUROUS PORTFOLIO HAS BEEN RENAMED THE PROGRESSIVE PORTFOLIO***

25%

32%

16%

4%

4%

14%

5% UK Equities


Alternatives

Commodities

UK Fixed Interest


Cash


6/9





MCIM Balanced Adventurous Portfolio SEPTEMBER 2012


2012 PERFORMANCE

ASSET ALLOCATION

INVESTMENT MANAGERS

Patrick Toes









(ASIP).












charges)



Or visit us at :


MPORTANT INFORMATION


retail and professional investors only. The information

in this document is believed to be correct but cannot

be guaranteed. Past performance is not a guide to

future performance and may not be repeated. The

value of investments and the income from them may

go down as well as up and investors may not get back

the amounts originally invested. Before

contemplating any transaction, you should consult

your financial adviser. This material is not intended asan offer or solicitation for the purchase or sale of any

security or any other action, without first seekingadvice as to the suitability of it for your needs.

*Clients portfolios may differ f rom model portfolios


***IMPORTANT NOTE: THE HIGHLY ADVENTUROUS PORTFOLIO HAS BEEN RENAMED THE ADVENTUROUS PORTFOLIO***

28%

35%

14%

3%

4%

13%

3% UK Equities


Alternatives

Commodities

UK Fixed Interest


Cash


7/9





MCIM Balanced Speculative Portfolio SEPTEMBER 2012


2012 PERFORMANCE

ASSET ALLOCATION

INVESTMENT MANAGERS

Patrick Toes









(ASIP).












charges)



Or visit us at :
















35%

46%

7%

4%5%

1%

2%

UK Equities


Alternatives

Commodities

UK Fixed Interest


Cash


8/9

INVESTMENT MANAGERS

Patrick Toes







holds a MSC in Investment Analysis and is an

Associate Member of the Society of Investment

Professionals (ASIP).







experience of business consultancy to small and






charges)



Or visit us at :





information in this document is believed to b e correct










seeking advice as to the suitability of it for your needs.



.


T: 0113 274 7700 F: 0113 274 7711 E-mail: [email protected] Website: www.myddletoncroft.co.uk



MCIM Enhanced Income Portfolio SEPTEMBER 2012


12 MONTH PERFORMANCE

ASSET ALLOCATION

The Enhanced Income Portfolio was launched at the beginning of 2011. It should be noted that

the performance before that date (presented above) is from the back-tested portfolio and is

provided for i llustration purposes only.

INVESTMENT MANAGERS

Patrick Toes









(ASIP).












charges)



Or visit us at :
















5%5%

15%

5%

20%

45%

5% UK Equities


Alternatives

Commodities

UK Fixed Interest


Cash


9/9


T: 0113 274 7700 F: 0113 274 7711 E-mail: [email protected] Website: www.myddletoncroft.co.uk


MCIM Tactical Growth Portfolio SEPTEMBER 2012

PERFORMANCE SINCE LAUNCH*

2012 PERFORMANCE*

ASSET ALLOCATION

INVESTMENT MANAGERS

Patrick Toes









(ASIP).












charges)



Or visit us at :










the amounts originally invested. Before contemplating

any transaction, you should consult your financial

adviser. This material is not intended as an offer or

solicitation for the purchase or sale of any security or

any other action, without first seeking advice as to thesuitability of it for your needs.



10%

35%

14%

11%

20%

10% UK Equities


Alternatives

Commodities


Cash

*Soft-launched inJune 2012. Performance prior to June 2012 is back-tested.

direct factsheet sept 12

Documents