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January 2013 Factsheets & Manager's Comments

January 2013 Factsheets & Manager's Comments

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Published by stephen_wood_36
January 2013 Factsheets
January 2013 Factsheets

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Published by: stephen_wood_36 on Feb 27, 2013
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07/28/2013

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MANAGERS’ MONTHLY COMMENTARY JANUARY 2013
INVESTMENT MANAGERS:
Patrick Toes
Investment Director with over 20years’ experience in fundmanagement. Previously a memberof Rensburg Sheppards AssetAllocation and Fund Selection Committeesfor over 9 years.
David Cowell
 Chief Executive, possessing over 40years’ experience in financialservices, with over 25 years being
 Thecurrentrallywas76daysoldasattheendofJanuarywithstockmarketsinfull‘riskon’mode.Infactthismonthhasbeenatremendousmonthforequities.Aswementionedinouryearendreviewandoutlook,weconsideredthatthemarketwaspoisedtomovehigher,notbecausetheoutlookfortheglobaleconomyorcorporateearningslookedstrong,ratherthatriskeventsinvestorshavebeengrapplingwithhadbeen‘kickedfurtherdowntheroad’.Thiswouldgiveinvestorstheexcusetobemoreconfident,ifonlyintheshortterm.Ourinvestmentapproachistolooktowardsthemediumterminvestmenthorizon(3-5years)aswebelievemany-orperhapsmost-investorsfocusonshorttermperformanceandhavethetendencytogettoopre-occupiedby
market noise
.Youmayhavereadonourwebsiteabouttheneedtobehyperopicasaninvestorandnotmyopic(far-sighted,notshort-sighted).Thefocusofmanyoftheseinvestmentsisonqualityandstrengthin
76 DAYS AND COUNTING
.
SALES: Julie Jones
Julie
 
has over 20 years experience of working in investment sales andmarketing, previously as Head of UK Retail Sales for BNY Mellon (NewtonInvestment Management).
For further information call :
0113 274 7700
Email : sales@mcim.co.uOr visit us at :www.myddletoncroft.co.uk 
.,-marketswhichwillexhibitlowgrowthandahighdegreeofvolatility.YouwilloftenhearusrefertoquotesfromWarrenBuffett.Onewhichdescribeshisapproachtoinvestinginequitiesis:"Inbusiness,Ilookforeconomiccastlesprotectedbyunbreachable'moats'."Ourapproachtoinvestingistousethatcastleandmoatmentalitytomanagethewholeofaclient’sportfolio,bothequitiesandnon-equities.However,wehavealwaysbeeninterestedinlookingtoaugmentourmediumtermviewsbyidentifyinginvestmentswheretheherdbecomestoopessimisticand,forthatmatter,theconverse
.
Werefertothisasour
drawbridge.
 Thisallowsustoaddatacticalandopportunisticapproachtoinvesting,employinga
contrarian
or
mean reverting strategy 
,ineffect,lookingforout-of-favourlaggardswhichwebelievecouldcatchupwiththeherd
.
Weutilisedthispartofourarmourytotakeamorepositivestancetowardriskassetstowardtheendof2012.Thismorepositivestancehasgivenusastrongstarttotheyearwhichyoucanseeinourmodelfactsheets(attached).Oneopportunitywhichwenoticedinlate2012wasinUSsmallcompanieswithavaluebias.Wesawfourpositives:Firstly,theunderperformanceisparticularlymarkedwithinsmallcapvaluestocks(Russell2000Value)relativetotheS&P500(seechart1);secondly,fromavaluationperspectivesmallcapstockswiththehighestreturnoninvestedcapitalwereover15%cheaperthanS&P500;thirdly,UScompaniesintheS&P500haveahighriskofmarginreductionwhicharecurrentlyatalltimehighsunlikesmallcapstockswheremarginsarewellbelowpreviouspeaklevelsandfinally,shouldtherebealastingimprovementinsentimentwewouldexpecttoseeanimprovementinM&Aactivityfollowingaweak2012andweconsiderthatisalikelypositiveforsmall-capstocks.WeaddedapositiontothisareainNovemberandhavebeenwellcompensatedforourdecision. Thechartsbelowshowthe
relativeperformance
oftwoindices,Russell2000ValuevsS&P500,whichillustratetheopportunityandhowithasbeenabenefittoourportfolioperformance.
MyddletonCroft 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: www.myddletoncroft.co.uk MyddletonCroft 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.
IMPORTANTINFORMATION
This information has been approved for distributionto professional investors only. The information inthis document is believed to be correct but cannotbe guaranteed. Past performance is not a guide tofuture performance and may not be repeated. Thevalue of investments and the income from themmay go down as well as up and investors may notget back the amounts originally invested. Thismaterial 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 thesuitabilityof it for your needs.
Althoughnota‘drawbridgetradeperse,wewouldbringyourattentiontoanotherareawhereweareseeingachangeintheroadahead.IattendedtheM&GconferenceinJanuary,wherethefocusofattentionfromtheirbondteamwasoninflationanditsinevitablecorollaryforhighergiltandwesternsovereignbondyields.ThenewGovernoroftheBankofEnglandelect,MarkCarney,givenhispublicquestioningofthevalueofinflationtargetsandhisproposalsfornominalGDPtargeting,mayunhingeUKinflationexpectationsatariskytimeintheinvestmentcycle.ThenewleadershipinJapanhastargetedamuchlowerYenand2%
inflation
,whendeflationhasbeenthestatusquoforageneration.Lastly,thelong-termbuildupofliquidityfromquantitativeeasingprogrammesintheStatesandEuropeoverthelastfourandahalfyearswarrantsinvestorstoconsiderinflation-proofingtheirportfolios.Wehavebeendoingsograduallybyreducingdurationandowningindex-linkedbondswithinourfixedinterestexposure.Iwouldcautionagainstanall-inbettomorrowascentralbanks/governmentsareontheothersideofthistrade.Whilstthetimingofanupwardriseinbondyieldsisuncertain,wedoexpectthatitisa‘when’willthishappenratherthan‘if’.Fingersonbuzzers.
 
MCIM Balanced Defensive PortfolioJANUARY 2013
PERFORMANCE SINCE LAUNCH
INVESTMENT MANAGERS
Patrick Toes
Investment Director with over 20 years’experience in fund management.Previously a member of RensburgSheppards Asset Allocation and FundSelection Committees for over 9 years.
David Cowell
 
Chief Executive, possessing over 40 years’experience in financial services, with over25 years being investment managementfocussed.
2013 PERFORMANCE
 
SALES: Julie Jones
Julie
 
has over 20 years experience of working in investment sales andmarketing, previously as Head of UK RetailSales for BNY Mellon (Newton InvestmentManagement).Model portfolios include cost of underlyinginvestments and Myddleton Croft’s annualmanagement fees, but not the charges forcustodian, dealing and settlement (equivalent toplatform charges)
 
For further information call :
0113 274 7700
Email : info@mcim.co.uk Or visit us at :www.myddletoncroft.co.uk 
IMPORTANT INFORMATION
  This information has been approved for distribution toretail and professional investors only. The information inthis document is believed to be correct but cannot beguaranteed. Past performance is not a guide to future
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: 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.
ASSET ALLOCATION
 performance and may not be repeated. The value of investments and the income from them may go downas well as up and investors may not get back theamounts originally invested. Before contemplating anytransaction, you should consult your financial adviser. This material is not intended as an offer or solicitationfor the purchase or sale of any security or any otheraction, without first seeking advice as to the suitabilityof it for your needs.*Clients portfolios may differ from model portfoliosdependent on their specific objectives.
 
MCIM Balanced Cautious Portfolio JANUARY 2013
PERFORMANCE SINCE LAUNCH
INVESTMENT MANAGERS
Patrick Toes
Investment Director with over 20 years’experience in fund management.Previously a member of RensburgSheppards Asset Allocation and FundSelection Committees for over 9 years.
David Cowell
 
Chief Executive, possessing over 40years’ experience in financial services,with over 25 years being investment
2013 PERFORMANCE
managemen ocusse.
SALES: Julie Jones
Julie
 
has over 20 years experience of working in investment sales andmarketing, previously as Head of UK Retail Sales for BNY Mellon (NewtonInvestment Management).Model portfolios include cost of underlyinginvestments and Myddleton Croft’s annualmanagement fees, but not the charges forcustodian, dealing and settlement (equivalent toplatform charges)
 
For further information call :
0113 274 7700
Email : info@mcim.co.uOr visit us at :www.myddletoncroft.co.uk 
IMPORTANT INFORMATION
  This information has been approved for distribution
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: 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.
ASSET ALLOCATION
.information in this document is believed to be correctbut cannot be guaranteed. Past performance is not aguide to future performance and may not berepeated. The value of investments and the incomefrom them may go down as well as up and investorsmay not get back the amounts originally invested.Before contemplating any transaction, you shouldconsult your financial adviser. This material is notintended as an offer or solicitation for the purchase orsale of any security or any other action, without firstseeking advice as to the suitability of it for your needs.*Clients portfolios may differ from model portfoliosdependent on their specific objectives.

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