020 7189 9999
Opening hours
Mon - Fri: 7.45am to 6pm (Thurs 8pm)
Sat: 9.30am - 1.30pm
Request a call back
  • Home
  • News
  • Economic overview and summary of our asset allocation decisions

Economic overview and summary of our asset allocation decisions

August was generally a quiet month, with seasonally low volatility and equity markets moving in a narrow range for small positive returns. Notably the UK’s FTSE 250 continued its rebound as investors brushed off Brexit concerns, while European banks also staged a partial recovery.

 

Market commentary

  • In fixed income markets, gilts and sterling corporate bonds were the standout performers, with the latest policy announcements from the Bank of England (BoE) leading to a sharp contraction in spreads while yields tumbled.  In commodities oil prices were volatile, while precious metals lost ground
  • The main event in August was the BoE’s much anticipated policy intervention following June’s Brexit vote.  Facing a deteriorating economic outlook, the BoE cut interest rates from 0.5% to 0.25%
  • The BoE also introduced a Term Funding Scheme (TFS), which aims to help ensure this rate cut is passed through to the real economy, and announced the resumption of its quantitative easing (QE) programme, which was extended to include £10 billion worth of corporate bond purchases over an 18-month period, starting in September
  • Elsewhere ambiguous ‘Fed speak’ highlighted potential splits in the voting intentions of committee members ahead of its next meeting in September. The apparent strength of the US labour market led Chairwomen Janet Yellen to make hawkish comments during her appearance at the Jackson Hole Conference.

VIEW MARKET COMMENTARY

The value of your investment can go down as well as up, and you can get back less than you originally invested.

The Bestinvest Online Investment Service, including any account analysis and investment reports provided by our guidance services, is an online execution-only dealing service for investors who want to make their own investment decisions. It does not provide advice on the suitability of products and investments; if you are unsure about the suitability of any investment you should seek professional advice. Clients of our Investment Advisory Service and Managed Portfolio Service can use the website to obtain current valuations of their investments but cannot trade on these accounts online and should call their adviser if they wish to discuss changes to their investments.

Past performance or any yields quoted should not be considered reliable indicators of future returns. Restricted advice can be provided as part of other services offered by Bestinvest, upon request and on a fee basis. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Issued by Bestinvest (Brokers) Limited (Reg. No. 2830297), which is authorised and regulated by the Financial Conduct Authority. Financial services are provided by Bestinvest (Brokers) Limited and other companies in the Tilney Bestinvest Group, further details of which are available here. This site is for UK investors only.
© Tilney Bestinvest Group Ltd 2016.

Version: RC1027.44113