Phillip ETF Model Portfolio – September 2017 October 17, 2017

September 2017 PORTFOLIO PERFORMANCE (%)

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Highlights

  • All our portfolios generated positive returns for September, with the European markets taking the lead. Equity markets are being spurred by the better than expected economic momentum globally.
  • Uptrend in European markets did not stall despite the disappointing election victory of Angela Merkel and her coalition in Germany. The election is a blow towards greater fiscal integration in the Eurozone. However, the economic recovery in Eurozone continues to surprise on the upside.
  • Returns from our bond positions suffered as the FOMC meeting in September show a clear shift to tightening monetary policies going forward. Yields suffered even more after the plans for Trump tax cuts were announced. 10-year US Treasuries yields ended the month 10% higher ending at 2.32 percent.
  • Gold was our worst performer, but we view the negative return as more of a technical correction. Fundamentally, geopolitical tension remains high with nuclear threats from North Korea. We view gold a safe haven asset and a hedge against geopolitical tail risk.

SEPTEMBER 2017 ETF PERFORMANCE (%)

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STRATEGIC ASSET ALLOCATION

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INSTRUMENTS FOR PHILLIP ETF MODEL PORTFOLIOS

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About the author

Profile photo of Pei Sai Teng

Pei Sai Teng
Investment Analyst
Phillip Securities Research Pte Ltd

Sai Teng covers the global macro research. He has more than 6 years investment experience primarily in portfolio construction and asset allocation. He graduated with Bachelor of Science in Banking and Finance from University of London.

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