Phillip ETF Model Portfolio – September 2017 October 17, 2017 1306
September 2017 PORTFOLIO PERFORMANCE (%)
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 (%)
STRATEGIC ASSET ALLOCATION
INSTRUMENTS FOR PHILLIP ETF MODEL PORTFOLIOS
About the author
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.