World Asset Allocation Review Sector Returns

Around 80% investor portfolio growth comes from correct Asset Allocation. This is our Review of World Asset Sectors with the 5-year returns from our recommended funds:

UK CASH – Our least favoured asset class, at current rates of interest Cash deposits even in an ISA is guaranteed to lose you money in real terms against inflation.  We can now obtain best rates for our clients through Octopus Cash, please contact us for details.

UK FIXED INTEREST– For those who wish safer returns UK Government Gilts are seen as the logical choice, however we believe more is to be gained in UK Sovereign and Corporate Bond funds at present.  Last 5 Year CF&IS Recommended fund returned 46.3 %

INTERNATIONAL FIXED INTEREST – Government Bonds, Corporate Bonds to Emerging Market Bonds this asset class allows higher than cash potential returns without all of the volatility of Equity markets Last 5 Year CF&IS Recommended fund returned 39.30%

UK Equities– In 2018 UK economic growth is expected to slow to under 2%, compared to World growth of 3.8%. We are therefore reducing our asset allocation somewhat.            Last 5 Year CF&IS Recommended fund returned 78.90%

USA – The US economy is booming, “becoming great” and although most of the good news is priced into the stock markets, in the USA there is likely to be more dividend gains this year. Last 5 Year CF&IS Recommended fund returned 93.20%

ASIAN Equities – China’s government seem to be intent on reforming their economy and strengthening regulation. The Chinese economy is set to grow by 6.50% boosting company profits. If your goal is long term  capital growth, inclusion of this sector is essential.  Last 5 Year CF&IS Recommended fund returned 63.30%

EUROPE –   Europe was one of the best performing asset class in 2017 and we expect strong growth in 2018. The effects of BREXIT in 2020 onwards remains a lingering question over this sector. Last 5 Year CF&IS Recommended fund returned 91.10%

JAPAN –   Greater corporate governance is helping Japanese company shares, but after a long rally we are cautious of further gains for this year. Last 5 Year CF&IS Recommended fund returned 68.40%

GLOBAL EMERGING MARKETS (GEM)-   80% of the World’s population live in these economically emerging countries. Those who seek investment for long term growth, inclusion of this sector is essential.  Last 5 Year CF&IS Recommended fund returned 58.00%

COMMODITIES –  The Worldwide economic activity will expand by around 8% over the next 2 years. Demand for materials will positively impact on prices and share values of commodity companies. No specific funds recommended

COMMERCIAL PROPERTY FUNDS –  To reduce the risk from BREXIT and to aid diversity we now typically recommend funds that invest in properties across the World not just the UK. Last 5 Year CF&IS Recommended fund returned 47.60%