July 2019 Newsletter
The 2018/19 financial year has proven to be a strong one for Collins House Online with our five core portfolios returning on average between 5.8% and 10.9% net of fees.
This is an excellent result especially when you cast your mind back to the sell-off in equities from October through to December when volatility rose sharply and markets fell heavily. Slowing Chinese growth, the threat of rising U.S interest rates and trade tension between the U.S and China were just some of the main factors contributing to this weakness. The last half of the financial year however has seen equity markets rebound strongly driven mainly by the prospect of softening monetary policy around the globe.
An interesting development in equity markets over the past 12 months has been the continued divergence between “Growth “ stocks vs “Value “ Stocks. Growth sectors such as technology and healthcare have risen strongly whilst value plays in such sectors as financial services and consumer staples have continued to underperform.
The reason I raise this, is to reinforce the importance of having a diversified portfolio not only across asset classes but also within the equity component of the portfolio. At Collins House Online our investment philosophy is to target diversification across all portfolios and with a strong focus on risk adjusted returns.